Brazil’s World Cup Standoff with FIFA

FIFA Secretary General Jérôme Valcke arrived in Brazil Monday ahead of November 8 meetings with President Dilma Rousseff, congressional leaders, Brazilian Football Confederation President Ricardo Teixeira, and the new Minister of Sports Aldo Rebelo in an attempt to finalize the controversial World Cup Law. Known as the Lei Geral da Copa do Mundo de 2014, the bill establishes a legal framework for the international soccer tournament that incorporates both Brazilian law and FIFA requirements, covering areas ranging from ticket discounts to piracy to alcohol sales. But some lawmakers, including outspoken former soccer player and Rio de Janeiro Federal Deputy Romário De Souza Faria, refuse to concede to FIFA, insisting on the sovereignty of Brazilian law. The law is a major point of contention between the Brazilian Congress and FIFA, in addition to running several years behind schedule since FIFA originally proposed the bill in 2007. At stake is one of the largest international events on earth that could theoretically be taken away from Brazil if FIFA proves unsatisfied with the country’s progress and cooperation. 

There are several parts of the law that some Brazilian lawmakers wish to change. The most contentious issue involves half price tickets for students and senior citizens; FIFA calculates that these discounts would amount to a $100 million loss for the organization. Discounted tickets for students and seniors are guaranteed by Brazilian law, but FIFA proposed an alternative: setting aside 10 percent of all sales for $25 tickets. These tickets would be sold exclusively to Brazilians, but of any age. FIFA also maintained its demand to sell alcoholic beverages in stadiums (Budweiser is one of FIFA’s biggest sponsors). Alcohol is prohibited in Brazilian stadiums due to concerns over violence and illegal sales to minors, but it’s likely Congress will concede on this point. Since piracy is an ongoing problem in Brazil, FIFA has mandated a change to the penal code to increase jail time for pirating FIFA products and illegal transmission of games. The likely compromise will be to increase piracy prevention, but not to change the penal code. Finally, Brazilian legislators are under the impression FIFA wants to create special temporary courts to try cases involving the event and FIFA brand. If Brazil allows the temporary courts, they would be run by Brazilian magistrates with support from the attorney general’s office. However, FIFA denies this particular demand, claiming it was a unique situation in South Africa, due to the inability of local courts to handle FIFA cases.

Though Rousseff supposedly worked out an agreement with FIFA in October, Valcke’s visit indicates an uphill battle in Brazil’s Chamber of Deputies. Brazil has always been sensitive to sovereignty issues and is also eager to flex its muscles as an emerging world power. But FIFA is keen to protect its business interests. According to VEJA, FIFA could lose up to $1 billion if Brazil refuses to meet its requirements.

Brazil is under considerable pressure to pass the World Cup law, though it may not be approved until next year. A clause in the original FIFA agreement would allow the World Cup to be removed from Brazil as early as next year, should the law fail to pass or should FIFA decide Brazil is in violation of its agreement. FIFA has changed a World Cup host country only once: Colombia was chosen to hold the 1986 games, but renounced the event under pressure. The country could not manage the financial investment, and was also unable to comply with FIFA’s requirements. Brazil is not the only country to create a World Cup law—all host countries must legally commit to FIFA requirements. South Africa passed its World Cup law in September 2006, less than a year after agreeing to do so but missing two FIFA deadlines. Russia, which will host the 2018 World Cup, has already prepared legislation—as FIFA officials like to remind Brazilian lawmakers—and will pass its FIFA-mandated law in the first quarter of 2012.

Valcke’s visit may bring the necessary compromises, but he’s likely to continue antagonizing local politicians. In an interview with Época last week, Valcke expressed his dissatisfaction with proceedings in Brazil: “We’ve been talking about this law since 2007, and it’s like we’re starting from scratch.” He also emphasized that the event is not Brazil’s alone. “It can’t be seen as a national event, it can’t be seen as a purely Brazilian event, and it can’t be seen as an event controlled by a single country. The World Cup is organized by FIFA for the rest of the world.” But some remain skeptical. During the hearing on Tuesday, Romário called the proceedings “a circus” and asked Valcke if it was true that he was a “blackmailer.”  Earlier on his Twitter, he commented on the ongoing FIFA battle: “Brazil must stop being FIFA’s slave. The sovereignty of this country must be respected.”

Learn more:

• Access the text of the World Cup law bill from Brazil’s Chamber of Deputies
• VEJA’s breakdown of possible concessions on the World Cup law
• CBC on Dilma’s face-off with FIFA
• AS/COA Online News Analysis on Brazil’s race to meet World Cup infrastructure deadlines
• Brazil’s delayed preparations for the 2014 World Cup, from Americas Quarterly