German Football Chief Says 6.7mn Euro Payment to FIFA Was Not Bribe, But to Get Subsidy During 2006 World Cup

German football chief Wolfgang Niersbach said on Thursday that a controversial 6.7 million-euro payment was not a bribe to obtain the right to host the 2006 World Cup, rather, the sum was transferred in order to secure a substantial subsidy from FIFA. (Germany Deny 2006 World Cup Vote Bribes)

"There was no slush fund, there was no vote buying," said Niersbach.

Niersbach explained that the sum in question was paid to FIFA in 2002 in order to later receive from football's governing body some 170 million euros in subsidies to organise the tournament.

The football chief said that the World Cup organising committee then had three potential revenue sources, -- ticket sales, national sponsors, and possible subsidies from FIFA.

He claimed that in January 2002, FIFA chief Sepp Blatter held "four-eye talks" with Franz Beckenbauer in which the German football legend was told the organisation could provide 250 million Swiss francs (then worth approximately 170 million euros) in subsidies but that Beckenbauer had to speak to the finance commission about it.

"Then the talks with the finance commission took place. To this day, I don't know who was at those talks," said Niersbach.

Eventually there was an agreement on the 250 million francs, "but in return 10 million francs (then worth 6.7 million euros) must be transferred to the (FIFA) finance commission," he added.

Beckenbauer was ready then to put up the 10 million with his private funds, but his manager had advised him to stay out of the issue, said Niersbach.

Subsequently, it was the then chief executive of Adidas, Robert Louis-Dreyfus, who put up the 10 million francs.

Niersbach added that he "was not aware of this process in January 2002".

A few years later, said the German football chief, the sum reappeared on its accounts as it had to be repaid to Louis-Dreyfus.

Niersbach said he had been aware of the issue since June, and apologised for not having informed other board members earlier.

German news weekly Spiegel had claimed in a report last week that the German bidding committee had accepted a 10.3 million Swiss francs (6.7 million euros at that time) loan from Louis-Dreyfus.

Spiegel claims the loan was used to buy the votes of four Asian members of FIFA's 24-strong executive committee.

At the vote in July 2000 Germany saw off South Africa by 12 votes to 11 -- Charles Dempsey of New Zealand abstained -- to win the right to hold the 2006 World Cup, with South Africa going on to stage the 2010 edition.