Soccer-German Court fines FA over 2026 World Cup-related payment
FILE PHOTO: A German Football Association (DFB) logo is pictured on a backdrop prior to a DFB news conference in Frankfurt, Germany March 4, 2016. REUTERS/Kai Pfaffenbach
FRANKFURT, Germany (Reuters) -A German Court on Wednesday fined the German Football Association (DFB) just over 100,000 euros in relation to a World Cup 2006-related payment which had been at the heart of a years-long scandal that tarnished the reputation of the tournament.
The DFB said it took note of Frankfurt Regional Court's decision on Wednesday, adding that an appeal was possible but it would first study the written verdict once published.
The case regarding a payment of 6.7 million euros ($7.8 million) made two decades ago damaged the image of the global showpiece event held in Germany.
At the heart of the case that dragged through the legal system and involved several other separate investigations is the payment linked to a 2006 World Cup-related event that never took place.
The tax return included a 6.7 million euro payment from the DFB to world soccer's governing body FIFA for the 2006 World Cup, although the funds were actually used for another purpose and should not have been offset against tax, prosecutors had said.
"According to the ruling, the court assumes that the DFB fully declared and taxed its income from the 2006 World Cup. However, it believes that the 6.7 million euros should have been deducted for tax purposes in 2002, not in 2006," the DFB said in a statement.
"The Regional Court imposed a fine of 130,000 euros on the DFB because it ruled in isolation on the year 2006 and did not take into account the excessive tax paid for 2002," the DFB said.
"The DFB only has to pay 110,000 euros because the court deducted 20,000 euros due to the excessive length of the proceedings.
In April, the same court had discharged former DFB President Theo Zwanziger after ordering him to pay a 10,000-euro fine.
The payment in question had triggered investigations over allegations it had been used as a slush fund to buy votes in favour of Germany's bid to host the 2006 tournament.
A DFB-commissioned investigation in 2016 had said the sum was the return of a loan via FIFA from former Adidas chief Robert Louis-Dreyfus.
The German tax office ordered the DFB in 2017 to pay more than 20 million euros in back taxes related to the year 2006.
The tournament was nicknamed the "summer fairytale" because of the home team's run to the semi-finals, and the sold-out stadiums and outdoor viewing areas across the country which attracted hundreds of thousands of fans.
($1 = 0.8621 euros)
(Reporting by Karolos Grohmann, editing by Ed Osmond)
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