A recent report has asserted that Fifa is unfit to govern and requires extensive reform, beginning with how money is utilized to "buy the political support of member associations." The report, compiled by the human rights advocacy group FairSquare and based on interviews with over 100 individuals, calls for increased transparency from football's governing body and suggests that external regulation may be necessary for the organization to uphold its values.

"Football is far too socially, politically, and economically significant to be governed so poorly," stated Nick McGeehan, FairSquare's director and the report's lead author. "Only external regulation will provide the necessary foundation for Fifa to realize football's transformative potential and prevent the organization from causing further harm."

The report contends that Fifa's governance issues, which have led to legal actions from players' unions and criticism from human rights organizations, can be traced back to the distribution of funds to member associations. The Fifa Forward program, the latest funding mechanism, distributed $2.79bn (£2.14bn) to member associations and confederations between 2016 and 2022, according to the report. However, the funding is deemed "problematic" as it does not allocate money based on need and fails to publish information confirming that the funds were spent as intended.

"Fifa does not seem to be exercising adequate control over the money it redistributes; instead, it is pumping increasing amounts of money into its member associations without any apparent consideration for their specific development needs," the report argues. "It is difficult to avoid the conclusion that one of the primary functions of the [programme] is to buy the political support of member associations at the expense of the proper sustainable development of the game."

The report suggests that such mechanisms have long been part of Fifa's operations, but it argues that some governance aspects have deteriorated since Gianni Infantino's election as president in 2016, following a series of corruption scandals. The report characterizes Fifa today as "marked by misgovernance and a lack of transparency, with the power of its most senior officials rooted in a patronage model that discourages ethical behavior."

The report recommends an "institutional separation" of funding from Fifa's other operations to "break the patronage system." It also calls for greater transparency regarding the nature and scale of redistribution, including information to verify that funds are being spent as allocated. Additionally, it suggests disclosing details about Fifa's 35 committees, significantly expanded under Infantino, including the remuneration of their members. Finally, the report argues that Fifa should resume holding press conferences and engaging regularly with the media.

"None of these basic measures are currently in place," the report states, suggesting that external regulation, possibly by the EU, could compel the necessary changes. "The potential benefits of effective external regulation, whether through the EU or another institution, are substantial and far-reaching," it concludes.

The report comes amid a period of turmoil for sports governing bodies, particularly Fifa. Fifa is facing legal action from players' unions and national leagues over fixture congestion and appears to have retreated from some of its key commitments, especially on human rights. The outcome of a report investigating the need for financial compensation for migrant workers in Qatar remains unpublished nearly a year after its completion. Various stakeholders, including former Fifa reform officials, have expressed concern over the lack of consultation regarding Saudi Arabia's bid to host the 2034 tournament.

"Fifa is a commercial rights holder, a development organization, a competition organizer, and a global regulator, all in one chaotic entity," McGeehan noted. "Commercially, it is a highly successful organization, but it has been grossly negligent in addressing the extensive list of human rights abuses linked to its operations. From the perspective of the game's development, particularly the women's game, it appears to be irredeemably dysfunctional."

FairSquare shared the report's findings with Fifa and requested information, but received no response. The Guardian has reached out to Fifa for comment.

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