VZCZCXRO0998
PP RUEHFL RUEHNP
DE RUEHRO #1539/01 1391450
ZNR UUUUU ZZH
P 191450Z MAY 06
FM AMEMBASSY ROME
TO RUEHC/SECSTATE WASHDC PRIORITY 4852
INFO RUCNMEU/EU INTEREST COLLECTIVE PRIORITY
RUEHMIL/AMCONSUL MILAN 7122
RUEHNP/AMCONSUL NAPLES 1487
RUEHFL/AMCONSUL FLORENCE 1413

UNCLAS SECTION 01 OF 02 ROME 001539 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12356: N/A 
TAGS: PGOV ECON SCUL IT
SUBJECT: THE NOT-SO-BEAUTIFUL GAME: CORRUPTION SCANDAL 
HITS ITALIAN SOCCER LEAGUE 
 
 
This cable is Sensitive but Unclassified.  Not for 
distribution outside the USG, not for Internet 
publication. 
 
¶1. (SBU) Summary: A scandal over alleged match-rigging 
by the Turin football squad Juventus is snowballing 
into a broader investigation of corruption in Italy's 
football league.  Many top soccer federation officials 
have resigned, and shares of publicly-traded teams 
have crashed.  Some members of the former center-right 
government are under scrutiny for their ties to 
disgraced ex-Juventus General Manager Luciano Moggi, 
and there may be greater political fallout from this 
scandal.  AC Milan, a team owned by former Prime 
Minister Berlusconi, is one of the squads under 
investigation.  Public prosecutors, who had planned to 
attend an Embassy-sponsored IPR conference the week of 
May 22, have cancelled due to the investigation.  End 
summary. 
 
Juventus Accused of Match-Fixing 
-------------------------------- 
 
¶2. (U) The formation of a new center-left Italian 
government this week (as well as the appointment of 
Italy's new President of the Republic), faced strong 
competition for media space by a massive match-rigging 
scandal in the Italian soccer league.  Prosecutors on 
Thursday had sealed off the offices of Turin's 
Juventus club, one of Italy's (and Europe's) most 
popular football teams. 
 
¶3. (U) The scandal centers on allegations that former 
Juventus General Manager Luciano Moggi colluded with 
referees to fix the outcome of matches or, at the very 
least, ensure favorable calls in the team's favor. 
[Note: The tendency of referees to make controversial 
calls that go Juventus' way has long been a topic of 
debate among Italy's football fans.  End note.]  The 
Agnelli family, who control FIAT, owns 62 percent of 
Juventus.  The entire Juventus board has resigned, 
reportedly under pressure from the Agnelli's; and most 
executives in the Italian football federation, 
including President Franco Carraro (a former Mayor of 
Rome), have quit. 
 
"Footballopoli" 
--------------- 
 
¶4. (U) While Italy has dealt with match-fixing 
scandals before, the latest seems to go far beyond 
Juventus and involves rapidly expanding allegations of 
financial fraud, illegal betting, drug use by players, 
and collusion between Moggi and Italian politicians. 
Italian newspapers are comparing this scandal to the 
Tangentopoli (a.k.a. "Clean Hands") anti-corruption 
cases of the early 1990s.  Among those under 
investigation is Moggi's son, who controls GEA, a 
sports agency that represents many Italian soccer 
stars.  The younger Moggi allegedly coerced players 
into signing with GEA with the threat that not doing 
so would nix the possibility of career-enhancing 
trades.  Other squads, including AC Milan (owned by 
former Prime Minister Silvio Berlusconi), Lazio, and 
Florentina are also under investigation. 
 
¶5. (SBU) While former PM Berlusconi is not a target of 
investigators, former members of his government have 
come under scrutiny by prosecutors.  According to news 
reports, investigators have wiretaps of conversations 
between Moggi and former Interior Minister Giuseppe 
Pisanu, who allegedly asked Moggi to "help" Pisanu's 
hometown third-division team.  Other intercepted 
conversations allegedly include a call by Moggi to 
then-Finance Minister Domenico Siniscalco seeking 
favors for one of Moggi's friends, an officer in 
Italy's financial police. [Comment:  While the leak of 
these wiretaps is certainly embarrassing for Pisanu 
and Siniscalco, it is far from clear that either 
minister did anything illegal.  Moggi is a well- 
connected figure, and we doubt that these are the only 
government officials with whom he had regular contact. 
End comment.] 
 
The Financial Fallout 
--------------------- 
 
¶6. (U) Stock in the three publicly-traded teams fell 
 
ROME 00001539  002 OF 002 
 
 
precipitously this week, with Juventus shares alone 
losing 42 percent.  Although the 20 teams in Italy's 
A-division collectively enjoy annual revenue of euro 
1.3 billion, most operate in the red because of high 
player salaries.  This scandal will certainly hurt an 
already struggling league. 
 
Calling All Prosecutors 
----------------------- 
 
¶7. (SBU) Almost immediately after this scandal hit the 
papers, the Embassy received calls from prosecutors 
from Naples and Rome canceling their participation in 
an Embassy IPR conference May 22-24.  The magistrates 
said they were unable to take time off to attend the 
popular Embassy-sponsored event due to the ballooning 
scandal, a sign that this is becoming a case of truly 
national proportions. 
 
Comment 
------- 
 
¶8. (SBU) This case is rapidly expanding beyond the 
confines of Italy's sports world.  With so many 
Italian political figures involved in soccer, there is 
a high potential for even more spillover into Italian 
politics.  Romano Prodi's new government will be under 
pressure to clean up this rapidly expanding mess. 
 
¶9. (SBU) Perhaps the greatest damage, so far, has been 
to Italy's international image.  Since the "Clean 
Hands" campaign of the 1990s, Italy has taken pains to 
present itself as a normal country that has turned the 
page on this kind of endemic, deep-seated corruption. 
Italy's football league, like the pre-Clean Hands 
Christian Democrats, may not survive this 
investigation in one piece. 
 
Spogli