The most popular sport in the world is in intensive care. Or at least its administration is, following the latest suspensions of the most senior figures in the running and policy-making of the game.
Outgoing Fifa president Sepp Blatter and Uefa head Michel Platini intend to appeal the decisions by Fifa's own ethics committee to ban them from involvement in football for at least 90 days, but the reputations of both men are so damaged that there is an urgent need to look far beyond them for progress out of the escalating scandal.
Fifa’s executive committee (Exco) will meet this month to address the question of what to do about the governing body’s crisis. That very fact invites derision.
Since the last major decision taken by a Fifa Exco – to award the 2018 and 2022 World Cup hosting rights to Russia and Qatar – all but six of the 24 executives involved in that have since been censured for alleged irregularities, in most cases to do with corruption.
The evidence of what Fifa does badly, and has been doing badly for more than a generation, has never been more glaring and abundant.
But this is a crux moment for those with the interests of the sport genuinely at heart to remember what it is Fifa has done well.
Hard though it seems to peer through the rotten summit of the organisation and glimpse anything positive, there are some principled, virtuous individuals in some of its Zurich offices, or in its outreach programmes.
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Most of them have a far lower profile than the men being investigated, from within, or by US or Swiss prosecutors.
It is too trite to call the collapse of Fifa’s leadership an opportunity. But there will be some conspicuous opportunists gathering around the power vacuum at the top of a body that, according to its last financial report, brought in US$5.7 billion (nearly Dh21bn) in the three years leading up to 2014.
Fifa’s ownership of the World Cup means it sits on a glittering golden egg.
The World Cup’s value comes from its truly global reach. The tournament’s final stages may be too inclusive – 32 teams – for some tastes, but it is an event that enchants spectators from almost everywhere, and can take place in any continent.
Far too large a portion of its profits has been misused under Blatter’s long watch and culture of cronyism, but some of its wealth has genuinely been spread about for the development of the game.
Whoever oversees international football after next February, when presidential elections are still scheduled, their task will be to balance the interests of all football’s constituents.
Allow the most moneyed corner of the game, which is Europe, to become too domineering, and the sport’s global appeal risks gradually falling into retreat. Let the representatives of elite club football start flexing their muscles more, and the feeling of participation that the World Cup and international football generates among citizens of almost every nation on earth will fade.
Running Fifa, or whatever body might need to replace it as the overseer of the most popular sport ever invented, is a tough job.
To do it properly, transparently and with the balanced vision of how to grow the game further requires the sort of leadership football has lacked for more than 40 years.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Dubai Rugby Sevens
November 30-December 2, at The Sevens, Dubai
Gulf Under 19
Pool A – Abu Dhabi Harlequins, Jumeirah College Tigers, Dubai English Speaking School 1, Gems World Academy
Pool B – British School Al Khubairat, Bahrain Colts, Jumeirah College Lions, Dubai English Speaking School 2
Pool C - Dubai College A, Dubai Sharks, Jumeirah English Speaking School, Al Yasmina
Pool D – Dubai Exiles, Dubai Hurricanes, Al Ain Amblers, Deira International School
UAE currency: the story behind the money in your pockets
The five pillars of Islam
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
PROFILE OF INVYGO
Started: 2018
Founders: Eslam Hussein and Pulkit Ganjoo
Based: Dubai
Sector: Transport
Size: 9 employees
Investment: $1,275,000
Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri
