(Blood) Boosting Profits FIFA under Global Neoliberalization

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1 (Blood) Boosting Profits FIFA under Global Neoliberalization Volker Eick, Berlin Seminário Nacional Metropolização e Megaeventos: Os Impactos da Copa do Mundo e das Olimpíadas nas Metrópoles Brasileiras Observatório das Metrópoles, Rio de Janeiro, Brazil 10 a 12 de dezembro de 2013 Volker Eick Freie Universität Berlin John F. Kennedy Institute Department of Politics

2 (Blood) Boosting Profits (A) Neoliberalizing Sports Liberalization Deregulation Privatization Neoliberalization and its others (B) The 2006 FIFA World Cup Securitization (C) The 2006 FIFA World Cup Commercialization (D) Policing (Transnational) Protest From Fan Miles to Protest Policing (E) Concluding against FIFA and IOC FIFA shapes and is shaped by neoliberalization FIFA shapes and is shaped by the urban form FIFA shapes and is shaped by a new mode of governance FIFA functions as experimental ground for policing

3 (A) Neoliberalizing Sports Liberalization Deregulation Privatization Neoliberalization and its others

4 Neoliberalizing Sports Neoliberal Glocalization Liberalisation promote free competition Deregulation reduce role of law and state Privatisation sell off public sector Market proxies in residual public sector Internationalization free inward and outward flows Lower direct taxes increase consumer choice and the World Cups Liberalisation athletes as entrepreneurs Deregulation role of FIFA, IOC, etc. Privatisation stadia, sport clubs, new leagues Market proxies fan miles, public viewing Internationalization sport clubs as TNCs Lower direct taxes tax-free: FIFA, IOC, etc.

5 Neoliberalizing Sports The Fédération International de Football Association (FIFA) is registered as a nonprofit organization. It is shaped by and shaping actually existing neoliberalism. At the same time it is a neocommunitarian organization aiming at profit maximization by its main product, the World Cups. There is no comprehensive definition of nonprofits, but relevant characteristics include: formal (professional) independent societal organizations primary aim to promote common goals exist at the national or the international level exempted from tax-payment not allowed to generate profits other than for nonprofit purposes purposes have to be fixed in a constitution.

6 Neoliberalizing Sports Liberalization The FIFA is the head of the football family and heralds free competition in football. a market-based football industry under the rules and regulations of the FIFA (internally, an autocratic system) João Havelange (FIFA) started as an Old Boy Network in 1904, developed from the 1980s onwards into a profit-generating corporation ambiguity: a nonprofit shaping and shaped by profitable markets, state and non-state actors a neocommunitarian kind of capitalism under which FIFA sets the rules

7 Neoliberalizing Sports Deregulation paradigm of conflict : independence of nonprofits is effectively eroded and turned them into an arm of the state apparatus; on the other hand, paradigm of partnership : nonprofits as operating in a niche created by the failure of market and state FIFA neither failure of market nor state: FIFA has been able to conquer a civil society activity Sepp Blatter (FIFA) FIFA defines its own private rules and therefore reduces the role of the state, at the same time it aims at regulating free competition (by contesting current public legislations)

8 Neoliberalizing Sports Privatization privatization in the case of FIFA not the sell off of public sector but commodification of practices of civil society»marketing rights mean all rights of exploitation (in whatever form) of all types of advertising...«(regulations 2006 FIFA World Cup) Eike Batista (EBX Group) since 1986 commercial logos: jerseys and shorts (1986), socks and goalkeeper's gloves (1994), goalkeeper's caps (1998), thermal shorts, wristbands (2002) since 1998 neither Regulations nor Statutes kept track of distribution of financial proceeds and FIFA's relative share

9 Neoliberalizing Sports Market proxies public viewing areas can be either understood as temporary privatization of public space or as introduction of market proxies into public space take-over of public space by FIFA as attempt to safeguard the exclusive rights for ground-advertisement space parts of the coalition of the willing state, nonprofit, forprofit members of football family transform into coalition of the billing : FIFA& its member organizations José Maria Marin (FIFA) we might even define the FIFA as the personate embodiment of a market proxy

10 Neoliberalizing Sports Internationalization FIFA as supra-national organization sets rules; direct link to local sport clubs: glocalization wedding of football, television and commercialization starting with 1954 World Cup in Switzerland FIFA today has 208 member organizations and thus more members than the United Nations organization Juan Antonio Samaranch (IOC) FIFA profits grew from 20,000 EUR in 1930 to 1.1 billion EUR at the German World Cup in 2006

11 Neoliberalizing Sports Lower Direct Taxes»an international nongovernmental, nonprofit organization in the form of an association according to Swiss law«2006 profits include: 40 mill. EUR from each of the 15 exclusive sponsors, 13 mill. EUR each from the 6 national sponsors, 230 mill. EUR from German TV ARD and ZDF Thomas Bach (IOC) 75% of profits are redistributed to member associations exemplification of neocommunitarianism FIFA financed host cities with 300,000 EUR each; DFB received million Euro

12 Neoliberalizing Sports Neocommunitarianism FIFA aims at limiting free competition in setting rules within its organization (institutionalized monopoly) at the same time, FIFA promotes neoliberal marketing (for its for-profit purposes); regulations contested by EU Bernard Rajzman (IOC) FIFA emphasizes football's social use-value and highlights the capacity of football to boost social cohesion (might include nationalism) I argue for an understanding of FIFA as»neocommunitarian realist«

13 (B) The 2006 FIFA World Cup Securitization (Humanware, Software, Hardware)

14 The 2006 FIFA World Cup: Securitization Hard- and Software CCTV RFID AWACS AVL (Automatic Vehicle Location) SLS (Sniper Locating Systems) robots equipped with video cameras, radar sensors, temperature gauges, infrared scanners Humanware police military secret services army rent-a-cops volunteers 孫 子 兵 法 The Art of War

15 The 2006 FIFA World Cup: Securitization Humanware Largest display of domestic security strength since 1945: more than 100,000 State Police officers additional 30,000 Federal Police officers more than 500 foreign police officers an unknown number of intelligence service officers and 7,000 military guards In addition, 20,000 rent-a-cops (in the football stadia called supervisors ) 20,000 security screened citizens took part in security and safety measures as stewards and volunteers 150,000 persons, applying for jobs during tournament, got security-screened by secret service and respective computer systems to get an accreditation: Even selling sausages became a security issue!

16 The 2006 FIFA World Cup: Securitization Humanware FIFA has its own internal policing entity, the Task Force For the good of game, since 2007 the Strategic Committee :»to resolve problems within the family, rather than let rulings be made by a judge who comes from outside the world of football«an additional surveillance net had been spanned»in order to determine whether the FIFA 2006 World Cup had had an effect on infectious disease epidemiology in Germany«

17 The 2006 FIFA World Cup: Securitization since 1990s, bans on alleged hooligans since 2006, European Council's decision:»a risk supporter...is a person...posing a possible risk to public order«since 2000: data bank Gewalttäter Sport (violent offenders, sports related), declared unlawful by the Higher Administrative Court in 2008, but still in operation. Number of persons whose data are stored: 2004: 6, : 9, : 10, : 13,032 an additional 9,000 data files on foreign hooligans (provided by partnering police) Humanware 8,450 German hooligans contacted by the police at home or at their workplace 3,200 local banishments from inner cities & stadia declared 131 stadia bans issued on-site 587 tickets bought blocked based on existing stadia bans 910 notification requirements issued 210 persons into temporary custody 370 refusals of entry into Germany

18 The 2006 FIFA World Cup: Securitization CCTV I Most police cameras for traffic management (overview images) New or modernized CCTV systems in all stadia of First & Second Football League CCTV as core of 3S-system of national railway company with Federal Police May 2006: CCTV in around 30 cities small networks with max. 14 cameras run by police World Cup led to modernization, enduring expansion, and centralization of CCTV systems in major sports stadia, at railway stations and in urban public transport Soft- and Hardware

19 The 2006 FIFA World Cup: Securitization CCTV II Munich stadium (opened in 2005), called Allianz Arena, fully equipped with interconnected RFID and CCTV 1983:»right to informational selfdetermination«, no surveillance without informed consent & with legal basis police: concerned, to be substituted by CCTV, high costs for monitoring by trained police officers June 2000: 4 cities with CCTV; June 2006: permanent CCTV in 6 of 12 host cities. most CCTV systems at public viewing areas dismantled after World Cup Soft- and Hardware World Cups are catalysts and accelerators

20 (C) The 2006 FIFA World Cup: Commercialization Urban Spectacles, wedding of football, television, and sports industry plus wedding of security and commerce, city as entrepreneur

21 The 2006 FIFA World Cup: Commercialization Consumer attractions such as sports stadia, convention and shopping centers, plus entertainment»in the form of urban spectacles on a temporary or permanent basis have all become much more prominent facets of strategies for urban regeneration«(harvey 1989: 9). Urban Spectacles Packaging and sale of urban place images have become as important as the measures to keep the downtowns and event spaces clean and the safety, order and security complex (SOS) under control.

22 The 2006 FIFA World Cup: Commercialization The claim of German criminologist Thomas Feltes,»the World Cup has been democratized by public viewing«(2006: 9) is at least confusing if not irritating. What emerges during the World Cups in the host cities is the spatialized suspension of democracy in favor of the pop-up consumer. Public Space Not only wedding of football, television, the sports industry and commerce but also wedding of security and commerce. Affected by FIFA's regulations are sponsors and nonsponsors, urban and non-urban citizenry, and all administrations from global to local scale.

23 The 2006 FIFA World Cup: Commercialization FIFA's main product is the World Cup The City as Entrepreneur FIFA regulates competition between big players in sports and media in order to allow for greater revenues from festivalization of the city (1980s) to city as a prey and the city as an entrepreneur (since 1990s) victimization of local service industry, dissenters, and the urban poor main winners architects and construction industry: Blitzkrieg planning and building

24 (D) Policing (Transnational) Protest Sport events as training sites and global policy transfer

25 Policing (Transnational) Protest G8 Summit in Heiligendamm (June 6-8, 2007) Sport events as training sites 13,000 state police officers 2,500 Federal Police officers 1,000 Federal Criminal Investigation Police 1,450 military guards unknown number of intelligence service 1,300 private security officers 12 km fence (barbed wire, CCTV, motion sensors) media manipulation, protest bans

26 Policing (Transnational) Protest international efforts to learn from events that pool together masses of people (sports, culture, political) in order to: Global Policy Transfer improve military and policing strategies and tactics (pop-up armies, incapacitation) study how acceptance for policing measures of targets and wider public can be achieved Fan Mile fence avoid disturbances ranging from the voices of protesters (not) to be heard to militant action transfer knowledge globally among urban and other economic and political elites G8 summit fence

27 Concluding against FIFA and IOC FIFA shapes and is shaped by neoliberalization, shapes and is shaped by the urban form, shapes and is shaped by a new mode of governance

28 Concluding against FIFA and IOC FIFA shapes and is shaped by neoliberalization marketing of a per se civil society activity, and transforming it into a profitable commodity, main product: World Cups growing influence (not necessarily acceptance) of FIFA and IOC, dictating nation states and cities rules and regulations FIFA and IOC aim at limiting competition within its realm and is willing to contest public law particular kind of neoliberalization highly regulated, constantly readjusted process with elements of neocommunitarian thought and practice driven by demands of sports, media and security industry

29 Concluding against FIFA and IOC FIFA shapes and is shaped by the urban form FIFA and IOC set rules and regulations within the stadia consistency of the football green dress codes for sports security measures to be deployed commercial logos allowed to be displayed Their influence outreaches the stadia extents to the surrounding of the stadia extents to the fan miles extents into the sky above stadia transforms urban and rural space FIFA and IOC are driven by trends such as festivalization of the city, city as a prey, city as an entrepreneur

30 Concluding against FIFA and IOC FIFA shapes and is shaped by a new mode of governance (contractual) relationships between all stakeholders involved are shaped by FIFA's ability to offer a monopolized product, the World Cups competitors and contested trademark rights shape the negotiations within the football family hierarchical networks (on four-year basis) and the subjugation under FIFA'S rules and regulations: pop-up growth coalitions modes of governance established before, during and after the World Cups are at the same time exploited by the other stakeholders: sponsors, media, sports industry, security industry

31 Concluding against FIFA and IOC FIFA shapes and is shaped by a new mode of governance World Cups normalize the perception of the populace that private commercial and nonprofit stakeholders are to define and to classify to select and to separate to symbolically mark and to materially arrange to control and to regulate markets and policies security measures urban spaces and, to a certain and growing extent our everyday life FIFA and IOC both are neocommunitarian realists profiteering from pop-up growth coalitions

32 Thank you for your patience For further questions:

33 Strategies to promote or adjust to global neoliberalism Neoliberalism 1. Liberalization promote free competition 2. Deregulation reduce role of law and state 3. Privatization sell off public sector 4. Market proxies in residual public sector 5. Internationalization free inward and outward flows 6. Lower direct taxes increase consumer choice Neostatism 1. From state control to regulated competition 2. Guide national strategy rather than plan top-down 3. Auditing performance of private and public sectors 4. Public-private partnerships under state guidance 5. Neomercantilist protection of core economy 6. Expanding role for new collective resources Neocorporatism 1. Rebalance competition and cooperation 2. Decentralized "regulated self-regulation" 3. Widen range of private, public, and other "stakeholders" 4. Expand role of public-private partnerships 5. Protect core economic sectors in open economy 6. High taxation to finance social investment Neocommunitarianism 1. Deliberalization limit free competition 2. Empowerment enhance role of third sector 3. Socialization expand social economy 4. Emphasis on social use-value and social cohesion 5. fair trade not free trade; Think global, Act Local 6. Redirect taxes citizens' wage, carers' allowances

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