OPINION: The danger to North American sports from match-fixing linked to the globalized sports gambling market

Declan Hill speaks at the University of Waterloo (2015) “Sports in Danger: How a Tide of Corruption and Match-Fixing Threatens Sports”

As discussed in Professor Hill’s lecture, there is significant sports corruption in Asia. This corruption exists at all levels – from the local sports all the way to the South East Asian games. Professor Hill gave the example of the South East Asia games where the top 3 medal table, including in which sports medals would be won, was predetermined even before the SEA games started. The chef de mission of the Vietnamese delegation even gave a press conference before the start of the games to announce that Vietnam finished in 3rd place. Given this level of corruption, sports fans in Asia are increasing turning away from sports in the region and turning to Europe and North America for their sports interest. Facilitated by international broadcasts and international betting sites (both regulated and unregulated), Asian bettors have a wealth of options and markets in which to place bets.

As Asian sports fans are turning away from Asia, and by extension away from games historically fixed by Asian fixers, it is to be expected that Asian bookmakers and fixers will follow the fans and seek to influence sports in these other markets – including North America.

In The Fix, Professor Hill’s interactions with Asian fixer Lee Chin gives some insight into the real potential – if it isn’t already happening – that North American sports could be fixed. Lee Chin professed that he and his associates travelled the world fixing international soccer matches. How did Chin to this? In the case of 1996 Olympic soccer, he alleges that $50,000 was paid to a prostitute to influence individuals on the Tunisian soccer team. Chin also demonstrated that his group of Asian fixers could affect the outcome of games in Germany and also suggested that English soccer players could also be influenced to fix matches – despite their existing high salaries. “People see the amount of money that is paid in transfer fees but that does not go to the players. You approach their agents; that is the way to get to the players. Say they get £50,000 a week. Then we offer them £150,000 for an hour and half’s work. Think they will turn that down? Very easy to get them to say yes. But all the leagues in the world, EPL, Champions League, World Cup, they can be fixed.” (Hill, 2010)

If Lee Chin’s claims are to be believed, there are existing global sports fixers who, using the age-old tools of sex and money, have the ability to fix matches around the world – including in North America. While the example of Lee Chin’s network focuses on professional sports, when we examine the structural and cultural deficiencies that exist throughout all levels of North American sports, we can see a sports market ripe for corruption.

US Collegiate sports – the largest organising body being the NCAA - provides an opportunity for corruption in sports through its organisational structure and set-up that does not benefit all. On one hand collegiate sports are significant multi-million-dollar revenue-generating enterprises for the colleges and universities that have successful teams. However, student-athletes, those who are the driving force for this revenue generation, are unpaid and are subject to restrictions on how they themselves can make money through their sporting activities.

With an environment in which there is significant interest in college sports, and a substantial betting market, unpaid student-athletes present potentially an easier, and cheaper, route for match fixers to influence the gambling market. In the case of professional athletes, their significant salaries and endorsements mean that any bribes to fix games have to be “worth it” - Professor Hill gave the example of a player on £50,000 a week accepting a bribe of £150,000 – whereas an unpaid collegiate athlete is likely to accept a bribe for much (much) less. Match fixers can leverage the existence of a substantial sports gambling market with the ability to fix games for much less. Win win. For an unpaid student-athlete, a relatively small sum of money offered by a match fixer may be sufficient to achieve their buy-in to the fix. Naturally the value of the bribe or inducement paid to the student-athlete will pale in comparison to the profits make by the fixers.

Another key vulnerability that exists in the North American sports is “what comes after”. For collegiate student-athletes, only a small percentage are drafted or graduate to professional sports. This means that for a 3–4-year period, student-athletes have a narrow window of time to capitalise on opportunities presented to them – this includes the ability to make money through match-fixing. A de-facto salary from a sport which does not provide one of its own.

Similarly planning for what comes next after their sporting career is over, are professional athletes. Pablo Torre in his 2009 Sports Illustrated article, How (and Why) Athletes Go Broke, presented some difficult statistics - by the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress, and within five years of retirement, an estimated 60% of former NBA players are broke. Since the article was written, little has changed, added to the controversy over CTE injuries and the lack of post career care for NFL players, the pressures on professional athletes to properly prepare financially for a life after their playing days are well known.

And likely to be known by global match-fixing syndicates who would be in a position use their tried-and-tested methods to achieve their desired outcomes in the North American sports market.

At this point we see that both student and professional athletes have financial vulnerabilities that make them potentially susceptible to accept bribes from match fixers. There is of course the argument that athletes may choose to refuse a bribe out of love for their sport and to maintain its integrity. Over recent years, through the numerous scandals and cover-ups that have plagued North American sports, athletes are discovering that their sport – or principally their sporting bodies – do not have their best interests at heart. As sports organising bodies cover up acts of abuse and ill treatment of athletes to protect the bottom-line and revenue streams, athletes are questioning their sports commitment to them (rather than the dollars they bring in) and may be asking the question why they should not do the same.

Match-fixers may provide them with the answer.   As a result, the North American sports market is in danger from globalised sports betting markets.

Sources,

Hill, D (2010) The Fix, McClelland & Stewart

Torre, P (2009) How (and Why) Athletes Go Broke, https://vault.si.com/vault/2009/03/23/how-and-why-athletes-go-broke