However, when the extent of the alleged malfeasance was made public. Blatter announced his resignation from the presidency four days later, declaring that: "FIFA needs a profound restructuring." The beginning of the end for Blatter came on September 25,2015, when Swiss investigators issued criminal proceedings against him in relation to the assignment of valuable World Cup television rights to former FIFA official Jack Warner for a fraction of their true value. The contract dated back to 2005 when the Carribbean broadcast rights for the 2010 and 2014 World Cups were sold to Warner for a mere $600,000. He then sold those rights to a Jamaica based cable television station for an alleged $15 million to $20 million profit. THE END OF A DARK ERA In the face of mounting allegations against Blatter, long time FIFA sponsors, including McDonald's, Visa, Coca-Cola, and Anheuser-Busch InBev, began calling for Blatter to sever all ties with FIFA, labelling him as an obstacle to reform. Blatter remained defiant, even in the face of a formal suspension by the organization's ethics committee for 90 days. On December 21, 2015, Blatter and Michel Platini, the president of UEFA, European football's governing body, were found guilty of ethics violations by FIFA's ethics committee and barred from the sport for eight years. Both men appealed the decision to the Court of Arbitration for Sport, and their ban was reduced to only six years. On February 25, 2016, 45-year-old Gianni Infantino, the former general secretary of UEFA, was appointed as Blatter's successor as the ninth president of FIFA on a platform that committed to restoring “the image of FIFA and the respect of FIFA." Blatter, who turned 80 in March 2016, announced: "With the adoption of [reforms], expectations on him will be even higher. But I am convinced that my successor will put them in place. ad this burden on me. And now it is finished." In June 2018, Blatter attended the World Cup in Russia as the invited guest of President Vladimir Putin in spite of his six-year ban. When asked about how the visit would be perceived by FIFA, Blatter responded: "It will be a sporting and diplomatic mission for me." Required: (a) Explain the steps should be taken by the new president of FIFA to restore the corporate governance. (b) In your opinion, review the value added of the outside directors in the board of corporation.
However, when the extent of the alleged malfeasance was made public. Blatter announced his resignation from the presidency four days later, declaring that: "FIFA needs a profound restructuring." The beginning of the end for Blatter came on September 25,2015, when Swiss investigators issued criminal proceedings against him in relation to the assignment of valuable World Cup television rights to former FIFA official Jack Warner for a fraction of their true value. The contract dated back to 2005 when the Carribbean broadcast rights for the 2010 and 2014 World Cups were sold to Warner for a mere $600,000. He then sold those rights to a Jamaica based cable television station for an alleged $15 million to $20 million profit. THE END OF A DARK ERA In the face of mounting allegations against Blatter, long time FIFA sponsors, including McDonald's, Visa, Coca-Cola, and Anheuser-Busch InBev, began calling for Blatter to sever all ties with FIFA, labelling him as an obstacle to reform. Blatter remained defiant, even in the face of a formal suspension by the organization's ethics committee for 90 days. On December 21, 2015, Blatter and Michel Platini, the president of UEFA, European football's governing body, were found guilty of ethics violations by FIFA's ethics committee and barred from the sport for eight years. Both men appealed the decision to the Court of Arbitration for Sport, and their ban was reduced to only six years. On February 25, 2016, 45-year-old Gianni Infantino, the former general secretary of UEFA, was appointed as Blatter's successor as the ninth president of FIFA on a platform that committed to restoring “the image of FIFA and the respect of FIFA." Blatter, who turned 80 in March 2016, announced: "With the adoption of [reforms], expectations on him will be even higher. But I am convinced that my successor will put them in place. ad this burden on me. And now it is finished." In June 2018, Blatter attended the World Cup in Russia as the invited guest of President Vladimir Putin in spite of his six-year ban. When asked about how the visit would be perceived by FIFA, Blatter responded: "It will be a sporting and diplomatic mission for me." Required: (a) Explain the steps should be taken by the new president of FIFA to restore the corporate governance. (b) In your opinion, review the value added of the outside directors in the board of corporation.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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