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PALGRAVE PIVOTS IN SPORTS ECONOMICS
An Economic Roadmap
to the Dark Side of Sport
Volume II: Corruption in Sport
Wladimir Andreff
Palgrave Pivots in Sports Economics
Series Editors
Wladimir Andreff
Emeritus Professor
University Paris 1 Panthéon-Sorbonne
Paris, France
Andrew Zimbalist
Department of Economics
Smith College
Northampton, MA, USA
This mid-length monograph series invites contributions between
25,000–50,000 words in length, and will consider the economic analy-
sis of sports from all aspects, including but not limited to: the demand
for sports, broadcasting and media, sport and health, mega-events,
sports accounting, finance, betting and gambling, sponsorship, regional
development, governance, competitive balance, revenue sharing, player
unions, pricing and ticketing, regulation and anti-trust, and, globali-
zation. Sports Economics is a rapidly growing field and this new series
provides an exciting new publication outlet enabling authors to generate
reach and impact.
An Economic
Roadmap to the Dark
Side of Sport
Volume II: Corruption in Sport
Wladimir Andreff
Centre d’Economie de la Sorbonne
University Paris 1 Panthéon-Sorbonne
Paris, France
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer
Nature Switzerland AG 2019
This work is subject to copyright. All rights are solely and exclusively licensed by the
Publisher, whether the whole or part of the material is concerned, specifically the rights
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on microfilms or in any other physical way, and transmission or information storage and
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The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publication does not imply, even in the absence of a specific statement, that such names are
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The publisher, the authors and the editors are safe to assume that the advice and
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Neither the publisher nor the authors or the editors give a warranty, expressed or implied,
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This Palgrave Pivot imprint is published by the registered company Springer Nature
Switzerland AG
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
Introduction
This book focuses on the economic facets of the dark side of sport and
warns against those manipulations, dysfunctions, distortions and crimes
triggered by economic interests or even naked greed in sports. It gathers
publicised facts and cases referring to economic manipulations and builds
up a typology of sport manipulations which makes sense from an eco-
nomic standpoint.
The book is divided into three volumes. Volume I shows that sports
ethics and integrity are at bay as soon as economic manipulations, dys-
functions and distortions breach the sports rules, and violate managerial
rules and the law and infringe human rights in sport.
Volume II is about a darker phenomenon that is corruption in sport
and focuses on those manipulations and misbehaviours that nurture deci-
sions which are influential on sporting outcomes such as match-fixing and
on sport economic development such as corrupt sports governing bodies.
Volume III deals with the most economically significant manipulations
which definitely jeopardise the future of current modern globalised sport,
that is rigged online sport betting and doping. This is the darkest side of
sport that seriously threatens sport integrity and credibility in the long run.
In Volume II, corrupt sport is road-mapped as such. Over past dec-
ades the sports industry “experienced multiple forms of corruption
(fraud, bribery, and institutional) that ranged in extent (individual to
systematic), occurred in varying contexts (non-profit, for profit sports,
sport events, governance, and international and online betting), and
resulted in a multitude of consequences (sanctions, financial costs,
v
vi INTRODUCTION
Reference
Kihl, L. A., Skinner, J., & Engelberg, T. (2017). Corruption in sport: Understanding
the complexity of corruption. European Sport Management Quarterly, 17(1), 1–5.
Contents
2 Match-Fixing 13
2.1 Match-Fixing in Soccer 15
2.1.1 Match-Fixing in the Big Five 15
2.1.2 Match-Fixing in Other European Leagues 26
2.1.3 Match-Fixing in Non-European Leagues 32
2.1.4 Match-Fixing Globalisation 35
2.1.5 Match-Fixing Through Club Ownership 37
2.2 The Technology of a Fix in Soccer and Detection
at Random 37
2.3 Match-Fixing in Other Sports 40
References 50
vii
viii CONTENTS
Index 95
Acronyms
ix
x ACRONYMS
need not agree to fixing the match before it is played. It suffices that
players on the pitch, or riders in a race, speak with each other and come
up with an oral implicit contract trading a sporting win (or a loss) for a
bribe.
Collusion is a low-profile variant of corruption. Caruso (2008) evi-
denced spontaneous cooperation between rivals in sport contests. In a
soccer match, players of the two teams speak with each other or simply
signal to the opponents, by kicking the ball aimlessly and lazily, their
willingness to exert fewer efforts fix the result. Such corruption usually
involves monetary payments, i.e. bribes.
In the 1903 cycling Tour de France, Lucien Pothier and César Garin,
brother of Maurice Garin, ceded overall victory to the latter, taking
instead second and third place—the amount of the bribe is unknown.
However, four months after the end of Tour de France, all three riders
were disqualified by the French cycling federation and Henri Cornet
(ranked 4th) was declared the winner.
Jan Raas bribed Gregor Braun on 24 April 1982 to let him win the
Amstel Gold Race, according to a French sports journalist, J.M. Leulliot
(Bourg 1988). In long distance cycling races like the Tour de France,
winning a stage happens to be bargained between two riders who finish
ahead of the peloton, eventually one rider bribing the other in the range
of between €10,000 and €20,0001 with a variance depending on race cir-
cumstances and the type of—mountain or not—stage (Andreff 2015).
In the 1997 Tour de France, during the 20th July stage, Jan Ullrich
(Telekom) on the brink of winning the Tour accepted to let Richard
Virenque win the stage in Courchevel. Bruno Roussel (head of Festina
team) and Willy Voet (Virenque’s trainer) alleged later that the bribe
was amounting to 100,000 French francs (€15,000). In the 1996 Tour,
Swiss Laurent Dufaux (Festina) was alleged to have paid 30,000 French
francs (€5000) to Bjarne Riis for letting him win in Pamplona.
Jérôme Chiotti, the winner of the world cross-country cycling cham-
pionship in 1999 admitted that the event was plagued with bribing and
collusion between riders about monetary gain sharing. In June 1979,
1 To be compared to the prize for a stage winner in the 2013 Tour de France that was
€8000 while the second-ranked rider of a stage was winning €4000. Accepting a €15,000
bribe for “throwing” the stage, a corrupt second-ranked rider comparatively would increase
his gains (4000 + 15,000 – 8000 = 11,000) and would be financially worth off than if he
had been winning the stage (11,000 > 8000).
1 CORRUPTION IN SPORT: INSIDERS AND OUTSIDERS 5
Joseph Voegeli, the director of the cycling Tour de Suisse suspected the
two strongest teams, Ti-Raleigh and Ijsboerke-Warncke Eis, respectively
coached by Peter Post and Willy Jossart, to have colluded to take over
the lion’s share of prizes (180,000 Swiss francs), and decided to fine
both teams (1000 Swiss francs each) given an article in the Swiss Tour
rules that was forbidding “collusion between riders of different teams”.
2 Volume 3 will show that with networked online betting indeed the amounts placed can
be enormous.
10 W. ANDREFF
References
Andreff, W. (2015). The Tour de France: A success story in spite of competitive
imbalance and doping. In D. Van Reeth & D. J. Larson (Eds.), The Economics
of Professional Road Cycling (pp. 233–255). Heidelberg: Springer.
Andreff, W. (2016). Corruption in sport. In T. Byers (Ed.), Contemporary Issues
in Sport Management: A Critical Introduction (pp. 46–66). Los Angeles:
Sage.
Andreff, W. (2019). The unintended emergence of a greed-led economic system.
Kybernetes, 48(2), 238–252.
Borghesi, R. (2008). Widespread corruption in sports gambling: Fact or fiction?
Southern Economic Journal, 74(4), 1063–1069.
Borghesi, R., & Dare, W. (2009). A test of the widespread point-shaving theory.
Finance Research Letters, 6, 115–121.
Bourg, J.-F. (1988). Le sport en otage. Paris: La Table Ronde.
Brooks, G., Aleem, A., & Button, M. (2013). Fraud, Corruption and Sport.
Basingstoke: Palgrave Macmillan.
Caruso, R. (2008). Spontaneous match-fixing in sport: Cooperation in contests.
In P. Rodriguez, S. Késenne, & J. Garcia (Eds.), Threats to Sports and Sports
Participation (pp. 63–82). Oviedo: Ediciones de la Universidad de Oviedo.
Diemer, G., & Leeds, M. A. (2013). Failing to cover: Point shaving or statistical
abnormality? International Journal of Sport Finance, 8(3), 175–191.
Dietl, H. M., Lang, M., & Werner, S. (2010). Corruption in professional sumo:
An update on the study of Duggan and Levitt. Journal of Sports Economics,
11(4), 383–396.
Duggan, M., & Levitt, S. D. (2002). Winning isn’t everything: Corruption in
sumo wrestling. American Economic Review, 92(5), 1594–1605.
Gorse, S., & Chadwick, S. (2013). The Prevalence of Corruption in International
Sport: A Statistical Analysis. Report to the Remote Gambling Association,
12 W. ANDREFF
Match-Fixing
Match fixers will target the most influential agents, primarily referees and
umpires then goalkeepers, which does not exclude bribing other crucial
(defensive) players or even attacking players for readily missing goal-scor-
ing opportunities. All the bribed insiders will decisively influence the
match outcome in a manner that raises as little suspicion as possible.
Referees are especially under the spot since they are often in high-pres-
sure situations when they have a difficult decision to make while their
power to influence the match outcome is high by calling fouls against
players. Indeed “before sport economic globalisation and online betting,
a major opportunity for corrupt sport to emerge was already found in
sport gambling which provides an opportunity to fraud since it creates an
incentive to lose a sport contest through match-fixing in view to making
money against the likelihood of a sport performance.
During the past four decades, the number of revealed corruption
scandals increased in modern sports, namely in boxing, US college bas-
ketball, South Korean, Swedish and Turkish basketball, English, Indian,
Kenyan and South African cricket, French handball, Australian and
English rugby, African, Asian, European and Latin American soccer,
Japanese sumo wrestling, Austrian, Russian and Serbian tennis, South
Korean volleyball, and Chinese and English snooker” (Andreff 2016).
The list is in no way exhaustive.
2 MATCH-FIXING 15
2.1 Match-Fixing in Soccer
Soccer is the most focused sport as far as match-fixing is concerned.
Most European soccer leagues are plagued with match-fixing. A Europol
investigation that ran from July 2011 to January 2013, alleged that,
from 2008 to 2011, about 680 matches were suspected of having been
fixed in relation with rigged bets in European soccer with 425 players,
referees, officials and serious criminals involved, from more than 15
countries. Europol announced that among the 680 suspected matches,
380 were eventually identified as fixes in Europe and 300 from other
regions. Indeed, a number of fixers were found to belong to a sophis-
ticated cartel of criminals based in Asia, in particular in Singapore. In
2013–2014, 460 European soccer matches were suspected by bookmak-
ers to be fixed (and for 110 the fix was practically certain). Some cases
are picked up below to exemplify that match-fixing has plagued many
soccer leagues. Starting from the Big Five European professional soccer
leagues, one can show afterwards that match-fixing has spread worldwide
in soccer.
Lincoln City against Brentford and Oldham Athletics against York City
were fixed by Gauld and his syndicate. In 1963, Esmond Million and
Keith Williams playing with Bristol Rovers were fined and banned from
football for life by the FA for having taken bribes from Gauld to throw
a match against Bradford Park Avenue. Eventually, ten former or current
players were sent for trial at Nottingham Assizes in 1965.
Gauld, described by the judge as the central figure of the case received
a sentence of four years in prison. It was established that he has earned
£3275 from betting on soccer matches and £7420 from having sold his
confessions to the Sunday People. Overall 33 players were prosecuted and
ten were sentenced to shorter imprisonment than Gauld and banned
from soccer for life.
Harry Gregg, goalkeeper for the successful Manchester United team
of the early 1960s claimed in his autobiography (Gregg 2002) that sev-
eral of his (unnamed) teammates regularly made money by betting
against the team and underperforming. At that time, players were just
beginning to benefit from pay increase after a capped maximum wage of
£20 per week in 1960.
The highest-profile case of match-fixing in English soccer involved
a number of players from the Premier League during the 1990s. The
most famous was an accusation against Bruce Grobbelaar, long-time
goalkeeper for Southampton and Liverpool, of accepting money from
a Chinese Triads’ bookmaker to throw matches. Together with John
Fashanu and Hans Segers, he was accused by the Southampton court,
on 11 October 1995, of corruption for having fixed two 1st division
matches. Fashanu was suspected to have offered £40,000 to Grobbelaar,
Liverpool goalkeeper at that time, to favour the Newcastle win (indeed
Newcastle won 3-0) on 21 November 1993. He also paid £19,000 to
Hans Segers, Wimbledon goalkeeper, to favour Liverpool on 22 October
1994 (Liverpool won 3-0).
Globelaar did not dispute that he had received £40,000 for providing
expert tips on soccer results but he claimed this had not influenced his
on-field performance. After two trials and one appeal, the judges even-
tually declared that it was implausible that he was paid so much money
simply to forecast results. Notice that while it was an individual criminal
behaviour, match-fixing was still operating without a network of corrup-
tors a quarter of century ago.
In 1997, soccer officials suspended two EPL matches—West Ham
vs. Crystal Palace and Arsenal vs. Wimbledon—after the stadium lights
2 MATCH-FIXING 17
lost power. Each match had entered the second half, so by the rules of
Asian bookmaking, bets on these matches had to be paid based on the
score as it stood. Known as the Floodlights Affair, it was the first inci-
dence of Asian-backed match-fixing in the English league. A stadium
security guard and three Asian men—two Malaysian nationals and a
Hong Kong native—were found guilty of conspiracy charges related to
match-fixing (Precrimbet 2016).
A less publicised case was an Accrington Stanley vs. Bury game in
the English fourth tier league—Division 2—which attracted an unusual
betting activity with almost £300,000 (instead of a £20,000 usual aver-
age) placed before the kick-off on an Accrington Stanley loss, in July
2008. Bury won the match 2-0. But an FA investigation revealed that
five Accrington Stanley players were guilty of betting on Bury to win the
match. They were given fines (between £2000 and £5000) and suspen-
sions (the longest was one year). It is one of the simplest cases where
players bet on a match in which they are involved.
Since then, in 2014, the FA has prohibited betting either directly or
indirectly by participants on the result, progress or conduct of any match
or competition played in any part of the world. Betting is also banned on
players’ transfers, employment of managers, team selection or disciplinary
matters and to provide bettors with inside information. The devil is in the
details of enforcing these new rules all. To some extent, match-fixing in
the English championships in the past recent years illustrated globalisa-
tion of corruption in sport since those approaching the players or referees
to throw matches came from illegal gambling consortia mainly based in
South East Asia, but also Qatar and Central Eastern Europe.
Italy
In Europe the corrupted palm in soccer returned, ahead of England,
to Italy. As early as in 1927 the Italian Football Federation revoked the
championship just won by Torino Calcio since its managers bribed a
Juventus soccer player before the Turin derby.
The very existence of Totonero—an illegal betting system parallel to
the official Totocalcio—where the risks and gains were greater resulted in
a large number of games that were fixed four decades ago in Italian soc-
cer. Certain players participated in distributing the receipts and manipu-
lating match outcomes. In 1980, a Totonero case involved 19 players who
were suspended or banned for life for betting on games in which they
were playing. For their role in the scandal, Lazio Rome and AC Milan
18 W. ANDREFF
We were drifting over the hills. "There," Julia said suddenly. "There's
the one, Roger!"
It looked like all the others to me—drab, scarred by innumerable
gullies, lifeless. But when Julia opened the door of the cockpit and
leaned out and waved, the gullies rivened, and the whole hill opened
up like an enormous metallic flower.
I saw the ship then, the tall burnished ship poised on its concrete
launching platform. I saw its name—the Mayflower II.
We drifted down past the tapered prow, the gleaming flanks. The
other Pilgrims were already aboard. Betz and Kester waved to us as
we passed the open lock. We stepped out upon the launching
platform. The ship towered above us. The lathes and presses and
furnaces of the subterranean factory stood silent in the gloom around
us.
I looked at Julia. Her eyes were iridescent with relieved tears, her
smile tremulous with happiness. "Mars, Roger," she whispered. "The
ship can make it. But perhaps the old colony has perished and we'll
have to start a new one. It won't be easy, darling. But will you come?"
I felt the way Samuel Fuller and Christopher Martin must have felt five
centuries ago, standing on a lonely wharf in Southampton. The way
William White and John Alden must have felt—
No, not quite the way John Alden had felt. I already had my Priscilla
Mullins. I bent and kissed her. Then, hand in hand, we ascended the
spiral gang-plank of the Mayflower II to begin our journey to the New
World.
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