FIFA is under a cloud of suspicion after 14 members and associates were charged by the United States this week over $150 million in alleged bribes and kickbacks. But is the global soccer governor paying no taxes related to the Women’s World Cup?
City of Vancouver is one of six cities hosting the June 6 to July 5 tournament but it has not released the host city agreement. A leaked version for bidders of the 2018 World Cup, eventually given to Russia, said the host city is responsible for local taxes. FIFA recently reported US$1.5 billion in cash reserves.
“To the extent that FIFA and/or FIFA's subsidiaries and/or the (local organizing committee) incurs any costs for taxes imposed under municipal laws and regulations in the Host City, the Host City shall indemnify and hold free and harmless FIFA and/or FIFA's subsidiaries and/or the LOC from and against any such tax payment,” said the agreement.
The agreement also said the clause shall not affect “any exemption from taxes, duties and levies granted to FIFA in the Host Country at any level.”
City solicitor Francie Connell and chief financial officer Patrice Impey have not responded for comment. The Canada 2015 national organizing committee has a reported $90 million budget that includes $27 million from federal and provincial taxpayers. Vancouver’s $1.5 million budget includes $250,000 for city services.
B.C. Place Stadium was chosen in 2013 to host the final, but planning is still in progress for the biggest event since the 2010 Winter Olympics.
“We are still working to determine the final road closures and once we have confirmed them we will be notifying relevant businesses and residents,” city hall spokesman Tobin Postma told the Courier. “Closures around B.C. Place will be led by PavCo.”
A leaked May 21, 2014 spreadsheet titled “Host City Agreement Review” contains a checklist of city duties. The city is responsible for safety, security and protecting sponsors, like Russian oil and gas giant Gazprom, from ambush marketing. It mentions a 2,500 square metre Commercial Display Area and Exclusion Zone around the stadium: “No commercial/non-commercial activities on Match Days (existing businesses OK).”
The spreadsheet said the city must provide appropriate policing, assist in stopping unauthorized ticket trading and cover-up construction sites with temporary decorations. It must close certain roads and restrict traffic in some lanes to FIFA vehicles. Key venues include the broadcast compound beside the Plaza of Nations, FOX TV studio at Jack Poole Plaza, FIFA headquarters hotel (Westin Bayshore), team hotels (Sheraton Wall Centre and Coast Coal Harbour) and training fields (Empire Fields and UBC Wolfson Field).
City manager Penny Ballem declined an interview request.
“This event is complex and the (Canadian Soccer Association) is working with municipalities across the country,” Ballem said via email. “We have been struggling because decisions are made late and incrementally by CSA, FIFA and or the local organizing committee.”
Host cities are required to pay for a fan zone for the public to watch matches on a big screen and FIFA hospitality. Vancouver’s will open for 12 days at Larwill Park and cost $1.2 million. City hall is paying Sport BC, which subcontracted producer Brand Live, but neither Sport BC CEO Rob Newman nor Brand Live vice-president Paul Runnalls responded to interview requests. NPA Coun. George Affleck wondered why the deal was structured that way.
“I do not recall it ever coming to us,” Affleck said. “You would think if there was a (competitive) process, they’d be open to telling you that.”
Brand Live is no stranger to city hall. Since 2010, it has been paid $1.35 million for event production, including the $854,013 Vancouver Host City Pavilion during the Olympics and $85,480.63 for managing the 2014 World Cup final viewing party at Trout Lake community centre. The threshold for public tenders is $75,000, but city hall deemed the latter contract urgent and highly specialized.
No other substantial sporting events are allowed in the city from May 30 to July 13 and major concerts mustn’t take place on a match day, or the day before or after.
The Vancouver-based Group C includes defending champion Japan and Women’s World Cup rookies Cameroon, Ecuador and Switzerland. The United States and Nigeria will meet in a June 16 crossover match, the only hot ticket in the first round.
@bobmackin
