June 26 – The German Football Association (DFB) has been convicted of tax evasion and fined along with former top officials nineteen years after Germany hosted the 2006 World Cup.
The trial was prompted by allegations that the Germany used a slush fund to bribe FIFA executive committee members to acquire the rights to host the tournament.
Frankfurt’s Regional Court handed the DFB a total of €130,000 in fines for tax fraud, after Prosecutors had accused the organisation of evading €2.7million in taxes and asked for a €270,000 fine. The defense denied intentional wrongdoing.
The case centered on a €6.7m payment to FIFA, falsely claimed as funding for a World Cup gala that never occurred. It raised suspicions of a slush fund used to buy votes for Germany’s 2006 World Cup bid.
Charges against former DFB presidents Theo Zwanziger and Wolfgang Niersbach, and ex-general secretary Horst R. Schmidt, were dropped after they paid fines totaling €100,000. A 2016 investigation found the money was likely a loan repayment via FIFA from ex-Adidas chief Robert Louis-Dreyfus.
The DFB was later ordered to repay over €20million in back taxes for 2006. The 2006 tournament remains a cherished memory in Germany, often dubbed the ‘summer fairy tale.’
The DFB can appeal the decision.
Contact the writer of this story, Samindra Kunti, at moc.l1750955820labto1750955820ofdlr1750955820owedi1750955820sni@i1750955820tnuk.1750955820ardni1750955820mas1750955820