Will FIFA leave Switzerland? Or is Infantino just playing around?

FIFA announced plans to transfer over 100 jobs from its headquarters in Zurich to Miami, but said it will maintain its headquarters in Zurich. Keystone/ennio Leanza

World football’s governing body FIFA this week announced plans to transfer over 100 jobs from its headquarters in Zurich to Miami, in the United States (US). The news comes two years after their decision to move 34 jobs from Switzerland’s biggest city to Paris. We asked two well-known FIFA observers what’s going on. 

We spoke to Guido Tognoni, a Swiss lawyer and former Director of Communication at FIFA, and Mark Pieth, a Swiss law professor who previously oversaw a reform process at FIFA, to hear their views on the recent moves and the future of FIFA’s relationship with Switzerland.  

Is Zurich still the capital of football?  

FIFA was founded in Paris in 1904 but moved to Zurich 91 years ago. Since 2007, it has been world football’s main headquarters. However, on Wednesday a FIFA spokesperson raised eyebrows when he announced that “FIFA is a global governing body and certain departments have been informed of a plan to move to a new permanent headquarters in Miami”. 

The new offices, which will be located in Coral Gables, a city near Miami, will welcome over 100 FIFA staff from Zurich, including the legal department. The move is planned to be fully operational in August 2024.  

FIFA said the move was necessary to ensure better planning for the 2026 World Cup, which will take place in the US, Canada and Mexico. “This is in line with the global vision of an organisation with 211 member associations. Our new offices in Miami and Singapore join our Paris offices and regional development offices around the world,” explained the spokesperson.  

Around 800 FIFA staff still have a Swiss employment contract, and the organisation insists that its headquarters will remain in Zurich. But some suspect there is a pattern behind the opening of FIFA offices in Paris, Miami and Singapore.  

swissinfo.ch

Guido Tognoni told SWI swissinfo.ch that FIFA President “Gianni Infantino’s policy to depart from Zurich started already years ago” and is a response to the criminal proceedings launched against him. In 2020, the Swiss judiciary started investigating informal and undisclosed meetings between Infantino, former Attorney General Michael Lauber and Valais prosecutor Rinaldo Arnold.  

Although this probe was closed last August, Tognoni says Infantino still resents Zurich City’s decision to ban the broadcasting of the 2022 Qatar World Cup in public due to human rights concerns about migrant labourers.

“First it was Paris, now it’s Miami, soon Singapore. This could continue and it shows that Zurich is no longer the world capital of football,” Tognoni told Swiss public television SRFExternal link. 

Is Infantino threatening Switzerland?  

“He doesn’t feel particularly sentimental towards Switzerland,” continues Tognoni. This is unlike former FIFA president Sepp Blatter, who was particularly close to Zurich. Tognoni believes Infantino holds a more global view of the organisation.  

Mark Pieth is a Swiss law professor and previously oversaw a reform process at FIFA. Keystone / Martin Ruetschi

Mark Pieth sees FIFA’s move away from Zurich as a response to the criminal investigation Infantino was subject to in Switzerland. “He’s probably still angry and he’s trying to threaten Switzerland to show that FIFA does not need the country. This announcement is Infantino trying to make a statement towards Switzerland,” he explains. 

+Infantino’s FIFA is a ‘return to the Blatter Middle Ages’  

Pieth, who was hired by Blatter in 2011 to help clean up the football federation, has often been critical of Infantino’s rule at FIFA. However, he doesn’t think the latest decisions are a definite move away from Switzerland. “Infantino is just playing around and he’s trying to be pushy. The truth is that Switzerland and FIFA mutually profit from each other,” he says. 

Can Switzerland afford to lose FIFA?  

Switzerland is home to many international sports organisations, which are extremely important for the country. A 2015 study revealed that these federations contribute CHF1.07 billion ($1.09 billion) to the Swiss economy annually. And “FIFA is financially the most interesting”, explains Pieth. On top of employing staff, drawing tourists and boosting the hotel industry, Zurich also hosts the local FIFA Museum. 

“Switzerland needs FIFA much more than the contrary,” says Tognoni. Earlier this year, SRF reported how Bern received around CHF1.8 billion in loans from FIFA. According to some data published by the city itself, other Swiss municipalities received funding, including Zumikon, Glattfelden and Winterthur in canton Zurich, Allschwil in canton Basel City, and Frauenfeld in canton Thurgau.  

Is FIFA keen to keep a foothold in Switzerland?  

Remaining in Switzerland does however represent an extremely safe option for FIFA, says Pieth. The organisation “can do anything they want” in the country thanks to its association status which brings “tremendous advantages”, he explains.  

Sports bodies based in Switzerland enjoy so-called association status, which means they are not obliged to register with the state or to publish their accounts. But most importantly, they are granted tax breaks.  

In 2018, Zurich cantonal authorities decided to re-confirm FIFA’s low-tax and non-profit status. Despite billion-franc turnovers, FIFA still remains a non-profit organisation, benefitting from the same rules as the smallest village football club. “This is a very liberal concept that grants FIFA much freedom,” says Pieth explaining that this status was granted during Blatter’s presidency, and it was only in 2016 that FIFA started to pay taxes. But they did so at a much lower rate, “at least 10 times lower”. 

Pieth doesn’t think FIFA will leave Switzerland any time soon because of the strong lobby they hold in the Swiss parliament. “There were some attempts to reform the organisation, but the members of parliament themselves blocked them,” he said. Pieth believes Switzerland should now take steps to demand greater transparency from FIFA.  “Do you want to keep your tax benefits? Then we should be able to look at your books and supervise your activities,” he says.  

FIFA meanwhile insists that every year it files a financial statement in line with the International Financial Reporting Standards (IFRS). 

Guido Tognoni, a Swiss lawyer and former Director of Communication at FIFA. Keystone / Str

How Swiss is FIFA?  

So, is the future of FIFA still in Switzerland? Pieth believes that “it would be pretty stupid for the organisation to shift more institutions to the US. Currently, they’re moving their compliance offices to Florida and they don’t really have executive power. But if they do leave Switzerland they would leave behind a lot of benefits.”  

Tognoni, on the other hand, is certain FIFA is heading towards gradual decentralisation. “Although I don’t think FIFA will relocate totally, the organisation will split into different units, and I think this will make it much harder to manage,” he says.