Insurance Firm Leaves World Cup Uncovered

By GRAHAME L. JONES

Oct. 14, 2001 12 AM PT

Security concerns already are having a significant impact on next year’s World Cup in Japan and South Korea, and it appears likely that even if the 32-nation tournament goes off without a hitch it will not produce a financial windfall for FIFA.

World soccer’s governing body uses the millions of dollars that the quadrennial World Cup generates to fund its various tournaments and programs for the next four years. But the profit from Japan/Korea 2002 might be swallowed up by expenses.

FIFA was dealt its second significant blow of the year on Friday when its insurance carrier for the May 31-June 30 tournament withdrew coverage.

The French company AXA told FIFA in writing that it would terminate its coverage on Nov. 11, believing that the risk was too great in light of the terrorist attacks on the United States and the subsequent American response in Afghanistan.

“The completely changed danger situation makes a new assessment necessary,” an AXA spokesman said.

FIFA had an $875-million insurance policy covering the tournament and now has to find a new company willing to carry it. Sepp Blatter, FIFA’s president, was angered by AXA’s decision, which, he said, came without any warning. He insisted, however, that the World Cup “will definitely go ahead” as planned.

“It really boils down to a question of money and they clearly want a bigger premium [than the present $17 million],” Blatter said of AXA’s move.

Earlier this year, FIFA was rocked financially when its marketing partner, ISL/ISMM, went bankrupt, costing FIFA tens of millions and forcing it to establish an in-house marketing firm for the World Cup.

Meanwhile, in Japan and South Korea, tournament organizers have increased their security budget by 25%, and Lee Moo-young, commissioner general of South Korea’s National Police Agency (NPA), acknowledged that events of Sept. 11 had raised fears of possible terrorist activity during the tournament.

“We do understand these concerns and we are working hard to address them,” he said.

South Korea will enforce no-fly zones over each of its 10 World Cup stadiums and each will be protected by a 120-person security detail that will include bomb disposal experts.

In addition, the 32 training sites and 33 accommodation areas in South Korea will be guarded by special troops, SWAT teams and anti-hooligan squads. Security escorts will be assigned to FIFA dignitaries and 800 players, coaches and officials, an NPA statement said.

Hooliganism, as much as terrorism, is a focus of the planning, and South Korea already has formed 10 anti-hooligan squads of 3,000 officers, equipped with helicopters, water cannons, batons and shields.

Japanese organizers so far have not instituted no-fly zones over Japan’s 10 World Cup stadiums, but are moving toward such a plan.

“That is something that can only be decided at a government level,” a spokesman said.

Japan plans to increase its World Cup security force, from the current 7,500, and install more metal detectors at the stadiums.

“People shouldn’t have to be afraid of everything,” said Sho Nasua, head of Japan’s organizing committee.

Having qualified for the World Cup with its 2-1 victory over Jamaica last Sunday, the U.S. can more or less consider its final qualifying game at Trinidad and Tobago on Nov. 11 a friendly.

“Knowing that you’re going [to the World Cup] and that the final game is just for fun makes a big difference,” said the Galaxy’s Cobi Jones, who earned his U.S.-record 143rd cap against Jamaica.

After the Trinidad game, the next U.S. match will be Dec. 9 against World Cup co-host South Korea in Seogwipu on the resort island of Jeju, where one of 10 Korean stadiums being built or renovated for the tournament will be unveiled.

The game takes place a week or so after the Dec. 1 World Cup draw in the port city of Pusan, South Korea, where the U.S. will learn the identity of its three first-round opponents.

Organizers hope that the war on terrorism will not cause the ceremony to be postponed.

“For now, there is no reason to put it off,” said Moon Dong-hoo, secretary-general of the South Korean organizing committee.

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MLS SEMIFINALS

Three points for victory, one point for tie; first team to five points advances.

GALAXY vs. CHICAGO

Game1--Galaxy 1, Chicago 1

Game2--Galaxy 1, Chicago 0

Game3--Wednesday, at Chicago, 5:30 p.m.

SAN JOSE vs. MIAMI

Game1--Miami 1, San Jose 0

Game2--Today, Miami at San Jose, 6 p.m.