祖文特斯足球俱樂部2006年義大利甲級聯賽危機處理之個案探討

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(1)1 . Chapter I Introduction Background Football is the most popular sport in the world, with 240 million participants worldwide (FIFA, 2007). Fédération Internationale de Football Association (FIFA) has 208 members, outnumbering United Nations (UN) or International Olympic Committee (IOC). The continued high level of public and commercial interest is reflected by another year of strong growth. The combined revenue of out top 20 clubs was €3.9 billion in 2007/08. More than three times the level in the first edition covering of Deloitte football money league 1996/97, and a € 220 million (6%)increase on the previous year (Deloitte, 2009). The Italian football professional league, Serie A, is one of the most important football leagues in the world. It includes many well-known clubs participating in European football club tournaments such as AC Milan, Juventus, Internazionale, etc. Also, the Italian clubs have won the most trophies among the other European football clubs (UEFA, 2007). Many great players had played in Serie A, for example, Ronaldo Luis Nazário de Lima, Ricardo Izecson dos Santos Leite, Zinedine Yazid Zidane, and many others. The development of modern football in Italy has been taking place for more than one hundred years. The Italian.

(2) . 2 . national team won champions for 4 times in world cup series, only less one time to Brazil. Regarding to the overall development of the sport, there are 4,363,000 participants in 2005 in Italy (CONI, 2005). In addition, football has been and still is a very popular pastime in this country, with more than 44 million Italians interested in the games, 31 million who support a particular team, 8 million who regularly watch matches at stadiums, 20 million who read about football in newspapers and 25 million who follow television and radio broadcasts. In Italy, there are 25 television programs with record audiences, which are solely dedicated to football events. It has been estimated that football generates aggregate revenue amounting to € 4,200 million (Baroncelli & Lago, 2004). Juventus was established in 1898,and has become one of the most successful clubs in European history.. They have. won 27 scudetti (Serie A trophies), 9 Coppa Italia (Italian Cup), 1 Supercoppa Italia (Italian Super Cup), and 1 trophy of Serie B. In addition, their international achievements include 2 trophies of UEFA (Union of European Football Associations) Champions League, 1 UEFA Cup Winner’s Cup, 3 UEFA Cups, 1 UEFA Intertoto Cup 2 European Super Cups, and 2 Intercontinental Cups. One month ago before the opening of World Cup 2006, there was a scandal among Serie A: there were 4 clubs whom allegedly manipulated referee designations to in order to boost their performance, including the famous Juventus football club.

(3) . 3 . S.p.A. An ancient Chinese proverb goes: crisis is a turning point. It means when facing crisis, use a proper and efficient way you can not only handle it, but also create an opportunity as well. As mentioned above, the questions of this research are as follows: 1. What Was the Process of the Italian Football Scandal in 2006? 2. What Was the Strategy did Juventus use to Address the Crisis Handling? Delimitations and Limitations of the Research Delimitation of the Research The research will focus on the strategies of Juventus when dealing with crisis in this scandal. Research duration The study looked at the scandal happened during the 13 months from from May 1st, 2006 to May 30th, 2007. The chosen duration for this research is due to the crisis was being uncovered in May 2006; and Juventus who had been relegated to Serie B, had returned to Serie A in May, the end of the season 06/07..

(4) . 4 . Range of content This research is examined according to the crisis handling theory; the main ideas are the way of crisis handling by Juventus. Additionally, there are official organizations such as FIFA, Union of European Football Associations (UEFA), Italian Olympic Committee (CONI), Italian football federation (FIGC), and mass media and relevant news; for instance, Gazzetta, Repubblica, BBC, and etc, have discussed to outline the crisis that Juventus had come upon. Limitations of the Research Beside Juventus, there are also 3 other clubs involved in this scandal: SS Lazio, ACF Fiorentina, and AC Milan. Due to different ways of dealing with crisis, and the limit of space, this research will only emphasize on the Juventus's method of crisis handling. Need for this Research There are many kinds of sport scandals all over the world. Offering relevant research of their experiences of handling crisis will be important because that football is considered very popular in Europe. This research can enrich the variety of development in the field of professional sports in Taiwan. The Football league has been developed more than one hundred years in Italy. Besides the scandal in 2006, there.

(5) . 5 . were also other 2 major scandals that had shocked its football development. The first Italian football scandal which was revealed in 1980, is called ‘Scandalo del Calcio Italiano del 1980’ (Football Scandal in 1980). There were players, coaches, club managers and other related staff members involved. There were 7 clubs being punished: In Serie A, there were clubs: AC Milan, Perugia, SS Lazio, Perugia, Bologna and Avellino; in Serie B, there were Palermo and Taranto. In addition, Juventus FC and ACF Fiorentina were not prosecuted because of lacking of evidence. The second one was uncovered in 1986: the Second Gambling Scandal of 1986(Secondo Scandalo del Calcio-Scommesse del 1986). The prosecutor of Turin Armando Carbone had wiretapped the phone call on the manager of Napoli and found out that the manager had had illegal interest exchanges of gambling with Italo Allodi, who also maneuvered Dario Maraschin, the president of Lanerossi Vicenza, to bribe related staff gaining guarantee of the triumph when having matches with 2 clubs, Asti and Pacenza. Therefore, the club Lanerossi Vicenza had been relegated from Serie A to Serie C. Those players and managers and other involved staff members were punished as relegation, point deduction, and prohibited from involving football affairs. Although there have been 3 major scandals of progessional football in Italy, its football league has still played an.

(6) . 6 . important role in European professional football field. Even during these 3 scandals, its national team won 2 champions of world cup in 1982 and 2006. Definition of Terms Società per Azioni, S.p.A. There are 3 kinds of joint stock company (Società di capitali) in Italy: (a) private company limited by shares (Società a responsabilità limitata, S.r.l), (b) limited partnership with shares (Società in accomandita per azioni, S.a.p.a), and (c) Public limited company (Società per Azioni, S.p.A.). S.p.A. is the abbreviation of Italian: Società per Azioni.S.p.A, it means public limited company. The company is represented by shares or stocks (the least stocks are € 120,000 in Italy). The amount of company capital of Juventus is € 20,155,333.20 divided into 201,533,332 ordinary shares of par value of € 0.10 each.. UEFA Champions League UEFA Champions League is the largest sport event of European football clubs. UEFA Champion League was conducted by UEFA. It was founded between 1955- 1956; its original name was European Champion Club's Cup. During the season 92/93, the name had been changed to the present one..

(7) . 7 . Gross income for the 2006/07 season is estimated at € 750 million and, according to the projections, will be made up of € 743.3 million from television and commercial contracts and of € 6.7 million from new media contracts (UEFA, 2008). A total minimum amount of € 4.4 million per club is guaranteed for the group stage. A club could receive, at best, up to € 22.7 million, not counting the market pool. Serie A Serie A is the highest level in Italian football league system, consisting of 20 clubs. The National Professional League (LNP) governs Serie A..

(8) . 8 . Chapter II Literature Review The first part of this chapter will introduce the background of Italian football development, the development of modern football, and the relevant organizations pertaining to this scandal. The second part will review crisis management in order to find out the most reasonable way to analyze the case. RELATIVE LITERATURE OF ITALIAN FOOTBALL The Origin of Football in Italy There are many sports similar with football in some ancient countries, such as China, England, and so on. There was also a sport resembling football during the period of the ancient Roman Empire. At that time, the soldiers were playing a sport called Harpastum for military training (Wikipedia, 2007). During 16th century in Florence, “Calcio” was a popular sport, even the powerful Medici family, which had great influence on Italy, was fond of this sport (Cronologia, 2008). Nowadays the noun “Calcio” is still being used for representing football in Italy. Like the Italian Football Federation, the full name is “Federazione Italiana Giucco Calcio”, instead of Pallone, which means football in Italy..

(9) . 9 . The first football club was established in Turin. Edoardo Bosio, who had worked in England, after being experienced the sport of football, had introduced it in his hometown in 1887 when he returned to Italy. He founded the Torino Football and Cricket Club (Wynn, 2007). The first football league was held in 1896 by National Gymnastics Federation in Italy (Federazione Ginnastiac Nazionale Italiana, FGNI), which merged with the present Italian Football Federation in the early 1890s. The present official federation, Federazione Italiana Giucco Calcio (FIGC), was founded in 1898 in Turin. Soon after its establishment, they also created a football championship event, participated by 4 clubs; there were Genoa, FBC Torinese, Ginnastica Torino and Internazionale Torino. Genoa won this championship. During that time, the clubs was able to take part in both competitions held by FIGC and FNGI. Today, the official federation is FIGC, directed by Italian Olympic Committee (CONI). There were 16,144 clubs including professional and non-professional clubs registered in 2001, and there were over 4,363,000 participants in 2005. Its national team is the first European country that won the world cup title. Italian football is certainly very competitive in the world. Relevant Organizations of the Research The relevant football organizations and present.

(10) . 10 . development of Italian football will be discussed in the following paragraph. Fédération Internationale de Football Association, FIFA FIFA is the international governing body in the world. It was founded in 1904 in Paris by Robert Guérin. It had only 7 countries as member in this initiative stage. The headquarters is located in Zurich, Switzerland. FIFA is responsible for the organization and governance of every major international tournament. Its most notably event is the FIFA World Cup, held since 1930. There are 208 associations affiliated to FIFA to date. Union of European Football Associations, UEFA UEFA was established in Basel, Switzerland, in 1954. UEFA is one of the 6 continental football organizations under the conduction of FIFA. It can be said that UEFA is the most important football organization among the 6 continental organizations; it has a great influenced on the development of football. The origin of modern football derived from England, and it had been brought to all over the Europe in the early 20th century due to the geographical advantage. Beyond that, the European national teams are remarkable. There were 14 teams that came from Europe of all 32 teams in the final round in the world cup 2006. Today there are 12 teams among the best 15 in the rankings of FIFA (2008). When talking about professional football, owing to high.

(11) . 11 . paying salary, there are many elite players gathering in European leagues such as Serie A in Italy, League 1(Ligue 1) in France, Premier League in England, The League (La Liga) in Spain, etc. As described above, European leagues and their development have become important in the world. The UEFA hold not only European football championship, but also professional club competitions, like the highest honor-UEFA Champions League, and UEFA Cup. Italian National Olympic Committee, CONI CONI was established in 1914, representing the highest physical activity organization in Italy. CONI controls and conducts all the sporting events in Italy, including 102 provinces and 19 regions. Under its control, there are 45 national sports federations (Federazioni Sportivi Nazionali, FSN), 17 National sport-promoting agencies (Enti di Promozione Sportiva Nazionali), 15 discipline associations (discipline associate), a territorial sport-promoting agency (Enti di Promozione Sportiva Territoriale), and 18 meritorious associations (Associazioni Benemerite). Under the direction of CONI, there are 6,500 clubs with 8,000,000 people registered (CONI, 2008). Those federations belonging to CONI, can be conciliated, intermediated, and arbitrated by the Chamber of Conciliation and Arbitration for Sport (Camera di Conciliazione e Arbitrato per lo Sport, CAMERA). The funding of CAMERA is.

(12) . 12 . according to the statue of CONI, in the principle of third party, autonomy, and independency. CONI builds up consultation, coordination based on the statue in order to lead the procedure of arbitration, to solve the disputes of sport. CAMERA is composed of 9 members. There is 1 president, 4 fixed members including a vice-president, another members who are law experts in sport field chosen from National Council of CONI (Consiglio Nazionale del CONI). They are replaced every year. According to the Statue of CONI (2008), there are 3 main authorities of CAMERA: Implementing the consulting process, promoting, conciliation and presiding over arbitration procedures. Italian Football Federation, FIGC The official football federation in Italy called Federazione Italiana Giucco Calcio (FIGC) was founded in 1898. FIGC is the official governing body of football affairs all over the country.. Those football affairs such as. national team-managing, football-promoting, professional clubs, amateur events, are international competitions, regional matches, school and the youth-managing, female football sectors and futsal (FIGC, 2008). As well as football promotion and improving technique, FIGC also has the authority of supervision. Inside FIGC, there are several cameral organizations: (a) Commission of Guarantee of Sportive Justice, (b) Court of Federal Justice, (c) Federal Attorney, (d) National Discipline Commission,.

(13) . 13 . (e) Membership Commission, (f) Economic Controversy Commission (FIGC, 2008). Relevant Italian Football League Organizations and other Organizations The Major Organization of Italian League System National Professional League Before its establishment in 1946, there were many football activities in the country. After World War II, the prevailing sport had its own organization to manage the number of growing matches and clubs: Lega Nazionale Professionisti (LNP) to govern the first league (Serie A) and the second league (Serie B) (LNP, 2008). Serie C Professional League The second major professional league organization in Italy is called Lega Professionisti Serie C (LPSC). LPSC was established in 1978. It manages the third and fourth level of the Italian football system. LPSC conducts the activities and clubs of C1 and C2. National Amateur League The organization, Lega Nazionale Dilettanti (LND), was established in 1959. LND has conducted domestic non-professional activities like futsal, female football,.

(14) . 14 . beach football, the 5th level league of Italian football system (Serie D), and youth and school football activities. There are 1,200,000 members, over 14,000 clubs registered and over 50,000 matches in this organization (LND, 2008). Italian Football League System Professional Football Leagues There are 4 levels of professional football leagues in Italy. The first one, Serie A, has 20 clubs; the second one, Serie B, has 22 clubs. Both Serie A and Serie B are administered by LNP, the National Professional League, as mentioned before. At the end of the season, the last 3 teams of Serie A will be relegated to Serie B. Likewise, the top 3 clubs will be promoted to Serie B, 4 clubs will be relegated to Serie C1. Under Serie A and Serie B, there are the 3rd and 4th levels organized by LPSC, the Serie C1 and C2. There are 2 divisions in Serie C1; each division is composed of 18 teams. A total of 36 clubs are divided geographically. In each division, the top 2 clubs will be promoted to Serie B, while the last 3 teams will be relegated to Serie C2. Serie C2 consists of 54 clubs. It has been divided into 3 divisions. Serie C2 is the lowest level of professional football league. The top 2 clubs of each division will be promoted to Serie C1 while the 3 clubs of the bottom will be relegated to Serie D..

(15) . 15 . Amateur Leagues Serie D Serie D is the biggest amateur league in Italy. It is managed by the Interregional Committee (Comitato Interregionali). Serie D is the only amateur league with a national level. Serie D is also the conjunction between professional levels and amateur levels. There are 9 divisions in this league; every division is composed of 18 clubs. The best club of each division will be promoted to Serie C2, and the last 3 clubs will be relegated to the league Excellence League (Eccellenza). Other leagues The rest of the amateur football leagues are composed of 5 levels divided by geography. And the regulation of promotion and relegation depends on each regional committee. The names of the 5 leagues are as follows: Excellence (Eccelenza), Promotion (Promozione), Primary Category (Prima Categoria), Second Category (Seconda Categoria), and Third Category (Terza Categoria). Each regional committee of FIGC manages the leagues from Excellence to Second Category, while the provincial committees of the FIGC organize the Third Category. After reviewing the relevant Italian football literatures above, it is worth studying the structure of its own league system. It is well-organized structure, and.

(16) . 16 . systematic development of each level and each aspect, including professional and non-professional parts. This is the evidence that football in Italy is competitive in the world. RELEVANT LITERATURES OF CRISIS MANAGEMENT Crisis Management is the major topic when it comes to continuous management for an enterprise or an organization. Crisis Management can be an appropriate way of discussing the issues of sport management except typhoon, terrorism, or earthquakes. The following section will be divided into 5 parts. The first part will discuss the general idea of crisis to clarify the definitions of crisis and to find out its characteristics. The second part will discuss the definitions of crisis management. Then the third part is going to discuss crisis stage theories. In the fourth part the domestic crisis studies of sports in Taiwan will be broadly described. And the last part will be the summary of the above main ideas. The Definition and Characteristic of Crisis There are all kinds of crisis menacing sport organizations such as official federations, clubs or sectors of physical activities in the schools. As the Taiwanese scholar Chan（1990） had mentioned: according to the dictionary of Merriam Webster: the definition of crisis is a crucial stage or turning point in the course of something..

(17) . 17 . In addition, crisis in Greek written in crime in, means determination. Therefore, crisis is a turning point, a.k.a. critical juncture. Booth (1993) thought, due to the pressure lead by the changes of environment, the members of organizations will not be able to cope with it. Barton (1993) pointed out that crisis is a major and unpredictable event, with lurking negative results. The event itself and its result may apparently harm the image and reputation; even the products and services provided by the enterprises could be in a danger as well. Moreover, crisis can also results in financial difficulties. Bland (1998) had defined the crisis: severe incident that will lead to the company being in a crisis situation because of the unfavorable disseminations related to safety of employees, environment, or the reputation of a product. Basically, the core of the crisis is an urgent incident. Hence, handling any kind of crisis will not be a situation where normal daily procedures for an organization can handle. For instance, the Olympic Game in Munich 1972, the death toll and casualties were beyond imagination. This horrible tragedy revealed a problem to the whole world: the threat of terrorism had become a crucial issue. Therefore, security checks in American professional games are getting stricter after the attack of 911. As given below, the precaution and crisis management will be an important aspect for sport events and activities. Sun (1998) also mentioned: crisis is an immediate severe,.

(18) . 18 . menacing situation or event caused by the rapid inner and outer changes. Chu, Y. Y. (2002) have said: the noun Crisis in Chinese is combined by 2 words: danger and opportunity. Generally speaking, one opportunity does not refer to an additional benefit, but it gives an implication of being escaped from the present incident, or decreasing the unfavorable influence when crisis arises. In conclusion of the scholars above, the definition of crisis in this study is: when confronted with a desperate, urgent incident, which endangers the core values or prior aims of an organization, the management of crisis handling will have a critical influence on the development of an organization. Hence, the study of crisis management requires immediate attention. As for crisis, the answer why it can menace the operation of an organization even to the point that the existence of an organization is in danger for crisis has those following characteristics: urgency, continuous worsening, damaging the company image and the routine had been affected. So if such an organization could not respond to a crisis with efficient and proper methods, the crisis would cause great damage to the organization. Fink (1986) had mentioned 5 characteristics of a crisis: The problem is intensely getting worse, mass media and government attention, the routine of the organization has been affected, damaging the image of the organization, the assurance of existence has been harmed. A Taiwanese scholar Chu, Y. Y.(1990) described 6.

(19) . 19 . characteristics: Crisis is blight (and the astonishment leading up to the crisis), it has disrupted the core value and prior aim of an organization, it has mentally devastated managers and employees, being short of information when confronting a crisis event, it is necessary to deal with it quickly, decisively under the pressure of time, the result of crisis handling will definitely have great influence on the survival and development for an enterprise. Relevant Research of Crisis Management Chai (1996) said: Crisis management is described as a study developed during Cold War in America between the 60s and 70s. Accompanying the rapid change of the international situation, the study of crisis management has become a main topic for international politics and relationships. After the Cuban Missile Crisis, the US minister of Defense, Robert McNamara stated that there would be no more such existing strategy; there will be only crisis management. Although planning a crisis-managing program is important, the accuracy and the control of time will be the main ideas for organization when confronting a crisis. No one or any organization in the world will live or operate smoothly forever. There are crises lurking around the organizations or individuals when facing new situations and new challenges. For the time being, crisis handling means the measures that are taken for eliminating crisis, i.e. after the break out of a crisis, organizations or individuals.

(20) . 20 . must concentrate on dealing with crisis. Much stress has been given to handle the crisis after its first appearance. After the crisis breaks out, organizations should focus on the present situation and crisis status then put all its effort to handle the crisis and execute a strategy to reduce the damage caused by crisis. Unlike crisis management, crisis handling has no sufficient time to react. An organization must scan the overall situation and respond quickly and accurately. As Wu, T. (2000) said that crisis handling is more like the measures involved after the break out. Crisis handling places emphasis on what has happened. In other words, when a crisis comes, the organization should draft an effective plan and execute it right away, preventing a greater scale of damage. Therefore, crisis handling is getting more important in the studies of management. Likewise, crisis handling cannot be ignored in holding any sporting event or managing a sports club. When dealing with a crisis, there are 4 points that organizations should notice: Speed is the key point, recognition of crisis, the importance of decision-making, and preventing the spread of crisis Wu, T. (2000) also mentioned: the leading key of crisis handling is “focus and speed.” This means finding out the real crisis and dealing with it quickly. Focus means when a crisis appears, it is necessary to judge what the problem is that causes the worst immediate impact and cope with it.

(21) . 21 . right away. If the handling of crisis has been put off, delayed, the crisis would possibly spread out and beyond control. Moreover, the crisis could lead to the destruction of an organization. As sport organizations or events are discussed, it is known that most of the income of professional sports comes from sponsors, broadcasting trademarks, advertisements, and so on. The reason that a sponsor or media organization will contribute to this business would be because of the images beneath the sport: teamwork, passion, or the spirit to challenge the unknown future. Most important of all, everyone competes equally under the rules of the sporting events. When a scandal breaks out, the organization must be very cautious during the process of coping with it, or the organization will lose its credibility in the present market. Chu, Y. Y. (2002) thinks crisis handling should be done and the whole situation must be controlled as well. This means the organization should find out the least damaging way to solve the problem, regain the trust of consumers, and prevent it from happening again. He also thinks that crisis handling is systematic work; if we miss any stage or detail, problems will arise and the work of crisis handling may completely failed. Hence, facing a complicated and changeable crisis, the decision maker is often being in a situation of bounded rationality. So, a clearly defined and clarified stage guide will be of great assistance when handling a crisis or reducing damage..

(22) . 22 . The Stage and Crisis Handling According to Chu, Y. Y. (2002), only until we know a crisis has “life”, and life has “activities” will we fully understand a crisis. Furthermore, activities show “signs.” If we can analyze an active crisis by stages, it will be handled efficiently. A crisis is just like a play without a rehearsal. If we can deal with it well, the credibility and capability of an organization will be elevated. Nevertheless, a crisis cannot be controlled; it can cause the waste of resources of an organization, and even end up destroying the organization. As mentioned before, crisis handling is an important subject. The experience of crisis handling shall be adapted to the new crisis-managing program to prevent the same crisis again. Even the policy maker of an organization may have had a risk management program or other similar projects to prevent the outbreak of a crisis. Yet, being in an environment that changes every moment, the emergence of a crisis seems to be inevitable. Crisis is not a fixed simple form. Therefore, if an organization cannot detect it before the eruption and control it after its appearance, an organization might suffer from a crisis. When a crisis cannot be found before the eruption, the strategies toward crisis will be quite crucial. It is the reason why clarifying each stage of crisis is important. The theories of the different stages of crisis will be discussed in the following paragraph, and the principle of crisis handling.

(23) . 23 . will be concluded. In 1989, Nunamaker et al divided the crisis handling in 3 stages: Operations and Activities Before Crisis The scheme of crisis management, training program for crisis, and a crisis detection system, etc. Detection and prevention is emphasized in this stage. Managing Issues During the Outbreak of Crisis There should be a crisis-handling panel; the detection of crisis should be an ongoing situation, and the resource management of crisis in this stage. Handling and Operation After Crisis After eruption of crisis, an organization shall gain experience from this incident to prevent the spreading out of crisis. An Organization should be examined if it is able to handle crisis with present resource. Those knowledge and experiences gained from crisis should be adapted to the new crisis-managing project, offering elements of modification. Mitroff (1988) has stated 5-stage theory as follows: Message detecting, preparations and Prevention, damage reduction, recovery, reviewing and further Learning. And Blackey (1994) has another 5-stage theory: Assessment, prevention, preparation, response, and.

(24) . 24 . recovery. Contrasted with other crisis stage theories, Blackley (1994) thinks assessment should be independent as a stage. He has an idea that assessment has its unique function when being an independent stage. Fink (1986) has stated that the crisis similar with disease. So we adapt the name from pathology to call each phase. The 4 stages are mentioned below: Prodromal Crisis Stage This is known as the warning stage. Sometimes the “Prodromal crisis stage” is also called the “crisis before eruption phase”. People will discover signs of crisis when reviewing a series of incidents. When they have simply ignored the signs, and then followed the outbreak of crisis. Sometimes it is easy to identify a caution, but there is no one to take any action. Hence the caution indifference has become a crisis. Therefore, finding out the problem in early stage is extremely important. Even though due to some reason it cannot be solved after finding out where the problem is, it still can be helpful when the organization is coping with crisis. This is because the organization had known what kind of incident that is going to happen. So crisis could be controlled when the organization is aware of it. As described above, crisis has signs, and it also asks the ability of caution identifying for an organization..

(25) . 25 . Victory is the highest aim for most athletes, and organizations. In regards to professional sports, outstanding performance can increase the value of an athlete or a club. Taking European clubs for example, the exceptional achievements will be a good bargaining power when negotiating with sponsors for better support, or receiving a handsome pay when trading brilliant athletes. Behind the great interest and the yearning for honor, the elements of crisis will arise, hiding around the organization. Hence, before it comes into being, there should be made relating law about organization construction, employee hiring, etc, to prevent the appearance of crisis. However, no matter how careful we are, the probability of a crisis outbreak still exists. According to Murphy’ law: Anything that can go wrong will go wrong. Crisis may frustrate the employees, cause financial problems and damage the credibility. Moreover, it can lead to the destruction of an organization. Acute Crisis Stage When most people talk about crisis, what comes to their mind is the acute crisis stage. When are in this stage, there is nothing that can be done to prevent it. In the prodromal crisis stage, the crisis has begun to broken out. In this phase, the crisis has broken out. The key to handle crisis in this phase is to control it as soon as possible. If we cannot stop the crisis from.

(26) . 26 . happening, we can still choose where, when, and how to let it happen. The most difficult part in handling a crisis is that the crisis gets worse day by day, with the speed and the intensity of the expansion as fast as a landslide. The level of speed differs from every kind of crisis, and the result depends on how critical the intensity. No matter how long it is in this stage, it is still the shortest one of the 4 stages. Most of people consider it the longest day for the damage caused by crisis is the worst one among 4 stages. In addition, crisis will bring many follow-up problems. Crisis handling examines the abilities of an organization: how do we find out the real problem, make right decisions and handle it accurately. The outbreak of a crisis also means the organization has an opportunity to get rid of the defect that had been lurked for a long time, because there must have been problems why it had the chance to become a crisis. Chronic Crisis Stage This stage is also known as the crisis-handling stage. After coping with crisis, the menacing of crisis had been controlled toward the organization. Yet if the decision maker thought that the organization had been through the crisis, the menace of the crisis would arise at another time. Besides handling the present crisis, it will be helpful to move to the next stage and examine itself in the area.

(27) . 27 . of human resources, new rules making, financial affair rearrangement, and so on. Nevertheless, the progress of recovery can be long or short term. If the result of the handling is not well, like a lawsuit, the time for recovery can be quite long. Crisis Resolution Stage This is the last stage for crisis handling. It is also the goal of the other stages mentioned above. The organization is able to return to their normal routine, and operates like before. Finally, the crisis has been overcome. After the crisis, the experiences gained will be adapted to a new program for controlling crisis. Learning from a crisis and training personnel how to deal with crisis is the main point in preventing the next crisis. The strategy or decision should be made according to the development of each stage, while reducing the side effects involved in overcoming the crisis. The manager of Juventus, Luciano Moggi had been alleged to conduct the referee-designation; this is the root of the crisis. After the crisis broke out, Juventus had been seriously harmed. After many modifications and lawsuits, Juventus has stabilized itself and returned from Serie B to Serie A. Therefore, the proper theory for this thesis may be the crisis handling 4 stages of Steven Fink. The study will be analyzed by the 4-stage theory of Steven Fink. Here are 5 major studies related research as table2-1.

(28) . 28 . below: Table 2-1 Domestic literatures of Sport crisis Publisher. Year. Subject. Hung, C. W.. 1997. The Application of Crisis Management in Sport Event. Huang, Y. S.&. 2002. Chien, C. Y. Jiang C. H.&. Sport Meeting in Terms of the 911-Issue 2005. Lin C. L. Guo, G. N.. A Discussion of Risk Management in The Application of strategy of Crisis Management in Large Sport Event.. 2005. The Adoption of Crisis Strategies and the Analysis of the Effects of Strategies in Crisis Context of CPBL's Crisis Communication. Wu, S. Y.. 2006. Crisis Handling- Analysis on Game Throwing of CPBL in 2005. Note. This research Guo (2005), who collected news from July 1996 to September 1997 to analyze the first scandal of CPBL. Next he collected news from July 2005 to September 2005 to analyze the Second Scandal of CPBL. He studied the measures and punishments that CPBL had taken with these 2 scandals. Guo has adapted the theory of four crisis situations of Bradford and Garrett (1995) as a main structure. He used this theory to analyze the crisis situation, develop strategies when coping with.

(29) . 29 . the crisis, and reflect upon the effect of the strategy, i.e. discussing the relation of “situation-strategy-result”. Jiang & Lin (2005) discussed the concept of crisis and the application in sport events. After reviewing theories in Taiwan and other countries, they tried to discuss the concepts of crisis and the application of strategy through group organizing and project planning during the out break of the crisis, situation controlling, human resources, the evaluation and tracking after the crisis, knowing the importance when facing the crisis in a sport event. The effectiveness of crisis management can see through in the awareness, management, and strategy. Wu, S. Y. (2006) analyzed the scandal of CPBL in 2005 by the theory of 5 crisis stages created by Coombs. Jiang and Lin (2005) and Hung (1997) discussed about the risk and crisis management for a sporting event. These studies were stressed on the organizations of the sport events and the security checks of throughout the event. It is helpful making the direction for this study after reviewing related domestic research. It is also beneficial for researchers to realize the strategy application of a sport related crisis of Taiwan and the influence of a man-made disaster on a sporting event. However, there are few studies of international sport crisis handling in Taiwan. Hence, discussing the experience of international sport crisis handling will be the brand new milestone for Taiwan..

(30) . 30 . SUMMARY Lurking, abrupt, and shocking are the ideas of a decision maker when the organization comes across a crisis. There must be some reasons for the outbreak of a crisis. Even natural calamities may be predictable. Those scandals and crisis damage the organizations very hard, such as the Black Sox Scandal 1919, Black Mist in 1969 regarding Japanese baseball, etc. If we cannot handle it as soon as possible, the problems will continue to be critical even after years. While handling a crisis, we can examine the structure or the details of the organization, and improve them or remove the potential causes of crisis. Therefore, crisis handling is becoming more important in the sporting field, the amount of research on crisis handling should be increased as well. Like the German Football League, there was a scandal in 2005 (Bundesliga scandal of 2005), it was alleged that the referee, Robert Hoyzer, was alleged being bribed to fix matches in German football leagues: Federal League (Bundesliga) and Regional League (Regionalliga), causing a crisis for German football, especially while the World Cup is going to be held in Germany the next year. Hence, this was a crucial event for German football development. Although the organization is always trying to be dedicated to the planning of crisis prevention, the coming of a crisis seems to be inevitable preventing. In conclusion, this is the reason to do studies in the field of crisis management..

(31) . 31 . Chapter III Methodology Method and Subject Method Generally speaking, there are 2 types of research: quantitative research and qualitative one. Quantitative research can be described as experimental research. Its experimental circumstances are away from a natural one. Quantitative research essentially is a means of converting natural observation into numerical data, which can then be used to measure the strength of relationships.. Qualitative research is used for examining. a phenomenon within a context. The theory is sometimes created by the researcher's point of view. Qualitative research is designed to accept and encourage the interaction between the researcher and the subject to gain more insight into the phenomenon in question. Collecting documents or text can also be a valuable resource when conducting qualitative research. Qualitative research is not necessarily contrary to quantitative research. Each of them has strong points and its limitations. They are complementary of each other (Yang, 1998). Due to geographical constraints, the methods of direct observation and interviews cannot be used. Instead, the method of content analysis will be used in this study to.

(32) . 32 . analyze present documents, such as news in Italy or other countries, official announcements, and other literature related to football. After analysis, the strategies of crisis handling will be discussed. The method of content analysis originated in Sweden during the 18th century (Krippendorff, 2004). This method had been spread out quickly since the 1930s with the rise advertisement analysis and media studies. Weber (1990) stated content analysis can be used for many purposes. The following list points out a few notable examples (adapted from Berelson, 1952): Disclose international differences in communication content, compare media or “levels” of communication, audit communication content against objectives, code open-ended question in surveys, determine the intentions and other characteristics of the communicator, determine the psychological state of persons or groups, detect the existence of propaganda, describe attitudinal and behavioral responses to communications, reflect cultural patterns of groups, institutions, or societies, reveal the focus of individual group, institutional, or societal attention, and describe trends in communication content. Nowadays, content analysis has become a very important method in the study of mass media and other social sciences (Wang, 1999). When using the method of content analysis, the applicable range of mass media studies are titles of news, public speech, titles of evening papers, topic of.

(33) . 33 . advertisement, or other visual or acoustic messages (Haskin & Kendrick, 1991). Jhally (1986) thinks the best advantage of this method is that the information collected can offer objective answers to qualitative questions. Furthermore, the result that had been collected will not be prejudiced and surmised. Additionally, we can also use a large amount of materials outlining the case of a study. In addition, the use of content analysis on electronic databases is discussed. Krippendorff (2004) had mentioned that the late 1950s witnessed considerable interest among researchers in mechanical translations, mechanical abstracting, and information retrieval systems. Computer languages suitable for literal data processing emerged, and scholarly journals started to devote attention to computer applications in psychology, the humanities, and the social sciences. Today, a fantastic amount of raw textual data is being generated daily in digital form, representing almost every topic of interest to social scientists. Electronic full-text databases, to which all major U.S. newspapers, many social science and legal journals, as well as many corporations contribute all of the materials they publish, are growing exponentially and have become easily available and inexpensive to use online. Add to this the volume of electronic publications, the research potential of the Internet, data available from online multiuser discussions (MUDs) and news groups, which may well replace focus groups.

(34) . 34 . and surveys in certain empirical domains, and it is clear that the landscape of how society presents itself had been altered drastically. With more and more people interested in this wealth of digital data, there is a corresponding demand for increasingly powerful search engines, suitable computational tools, text base managing software, encryption systems, devices for monitoring electronic data flows, and translation software, all of which will eventually benefit the development of computer-aided content analysis. The current culture of computation is moving content analysis toward a promising future (Krippendorff, 2004). With regard to the sources of information for this content, it is collected from news, official announcements, and reports issued by clubs such as Juventus and AC Milan. News is collected from a variety of resources in order to decrease the amount of error. There is a term in qualitative research called triangulation. Triangulation was first borrowed in the social sciences to convey the idea that to establish a fact that you need more than one source of information. For example, to be confident that a train arrived in a certain station on a certain day you need more than the entry from the diary of a person who was on the train. (The person might be inaccurate.) If you had the train schedule, plus the diary you could be more confident. Still would be the train schedule plus the diary plus a report in a newspaper covering.

(35) . 35 . the arrival. When triangulation made its way into qualitative research it carried its old meaning – verification of the facts - but picked up another. It came to mean that many sources of data were better in a study than a single source because multiple sources lead to a fuller understanding of the phenomena you were studying. Others expanded its use to include using multiple subjects, multiple researchers, and different theoretical approaches in addition to different data-collecting techniques. Bodgan&Biklen advise against using the term. It confuses more than it clarifies, intimidates more than enlightens. If you collected data from many subjects about the same topic, say that. If more than one researcher collected the data, say that. In short, describe what you did rather than using the imprecise and abstract term “triangulation (Bogdan& Biklen, 2006). Hence, the word triangulation is not used in this research.. Subject When a high standing sport organization confronted a crisis, what were the measures that the organization had taken in each stage of the crisis? The strategy toward crisis handling is the main topic of this research. The subject of this study is Juventus, a football club in Italy. The manager Luciano Moggi of Juventus is the primary offender in the Italian football scandal in 2006..

(36) . 36 . Procedure Reviewing relevant international and domestic football literature is the first step of this study. Clarifying the direction and idea will be completed in the second step. After that, the delimitations and the limitations will be decided. When the method has been chosen, the search for and study of related documents will commence. Finally, the conclusion and advice will be given. The procedure of research is as follows: Review of Relative Research . Asserting of Topic & Orientation. . Establishing Delimitation & Limitation. . Deciding Structure & Method. Collecting Relevant Literatures Case Analyzing Result & Discussion Procedure of Research Fig.3-1 .

(37) . 37 . Chapter IV Profile of Juventus Juventus has been among the exceptional teams of the world and one in recent years both in company and sport field. For a further understanding of the club, the history and governance will be discussed in this chapter. Brief History of Juventus Celebrating its 110th birthday, the Running zebra (Le Zebre) in the football court, a.k.a. Old Lady (La Vecchia Signora) and girlfriend of Italy (La Fidanzata d'Italia), Juventus is the most famous football team in Italy. The Rise The team was formed by a group of students in the school Liceo D'Azeglio of Turin in 1897. They organized a football club for the purpose of entertainment. In 1905, the club had its first championship by defeating Genoa and AC Milan. After World War I, they continued to rise, with the goalkeeper Giacone and full backs Novo and Bruno being the first to play in the national team. The President Corrado Corradini, who had taken over the club in 1919 and wrote the club anthem, remained until the sixties. The Agnelli Family By the end of World War I, FIAT had become one of Italy’s.

(38) . 38 . biggest companies. By the 1920s, FIAT was producing 90 percent of Italy’s cars and the Agnelli family controlled 70 percent of the company. In 1923, Edoardo Agnelli took control of Juventus and remained presideny until 1935, overseeing a series of astonishing victories in the 1930s. Edoardo was the son of Giovanni Agnelli, founder of the company. FIAT has been linked to Juventus ever since. Edoardo used to take his son, Gianni, with him to the stadium, and Gianni Agnelli was part of Juve’s history until his death in 2003(Foot, 2007). Jeno Karoly, the first real trainer, arrived at Juventus with the inside left Ferenc Hirzer, both from Hungary, to supplement the talents of Gaimpiero Combi, Virginio Rosetta, Federico Munerati, Carlo Bigatto and Giuseppe Grabbi. The Glory In the period of the 1930s, Juventus almost dominated the world of Italian football. Trainer Carlo Carcano was able to call upon great stars such as Raimendo Orsi, Umberto Caligaris, Luis Monti, Renato Cesarini, Mario Varglien, Luigi Bertolini, Giovanni Ferrari and Felice Borel. Juventus had triumphed for 5 scudetto from 1930 to 1935 in a row. During the 1930s Juventus had their first experience in world football, participating in the Europe Cup (today's Champions League). In 1934 the Italian national team won the World Cup. Nine players had participated in the national team: Gianpiero.

(39) . 39 . Combi, Virginio Rosetta, Luigi Bertolini, Felice Borel, Umberto Caligari, Giovanni Ferrari, Luis Monti, Raimundo Orsi and Mario Varglien. 1935 Edoardo Agnelli passed away in an airplane accident. It shocked all of Italy. However, Juventus still held a dominant place in Italian football right up until World War II. The Dominance Juventus returned to victory from 1967 to 1986 and had opened a long cycle of triumphs with its most representative champion, Giampiero Boniperti and featured such greats as Zoff, Scirea, Tardelli, Cabrini, Causio, Rosa, Gentile, Furino, Anastasi and Roberto Bettega. The club won nine scudetto in 15 years (in 1972, '73, '75, '77, '78, '81, '82, '84, '86), and Juventus also conquered the international arena: UEFA Cup (first success in 1977), Cup Winner's Cup (1984), European Cup, Supercup and World Club Championship (1985). In 1985, Juventus became the only team in the world to have won all official international cups and championships, and became the first club in the history of European football to have won all 3 major UEFA competitions. The Triad In 1994 Luciano Moggi became the Administrator and General Director of Juventus. The famous triad was formed.

(40) . 40 . with the Chief executive and FIAT boss Antonio Giraudo and the former player Roberto Bettega. In the same year of 1994, the coach Marcello Lippi, who led the Italian team, won the 4th World Cup in 2006, also joined the club. From 1994 to 2004 Juventus won 5 scudetto, 1 Italian Cup, 4 Italian Supercup, 1 Intercontinental Cup, 1 Champions League, 1 European Supercup and 1 UEFA Intertoto Cup. Juventus was incomparable. At the beginning, the students were only trying to entertain themselves by forming a football club. They had no idea that the Juventus football club would become so crucial even in the modern history of Italy. In a way that is unique, Italy’s biggest company has run Italy’s biggest football club, and this alliance has created love, hate, loyalty and jealousy in equal measure. FIAT’s wealth, and its business ethics, made Juventus into the greatest producer of victories in Italian football, with a fan-base that spread across the whole country and dwarfed that of the other clubs (Foot, 2007). FIAT used Juventus to make money, but also to create consensus and popularity with Turin workers, but above all among ordinary Italians across the peninsula. Every victory was identified with the car company that pays the players’ wages. By the 1930s Juventus could count on a fan-base bigger than that of all the other clubs put together..

(41) . 41 . Nowadays, Juventus has outnumbered fans all over Italy. According to the survey of monitor calcio (2007), there are 41 million fans in Europe and 173 million fans around the world. In another survey of CRA in 2008, there are 12.6 million fans in Italy distributed uniformly across the country. The number of fans in Italy is one third of the total football spectators in this country. Juventus seems to possess a charismatic power on the pitch. Also, the FIAT group may be a reason why the club has an enormous amount of fans in Italy. The Agnelli family and its FIAT car industry may be able to explain this question. Between 1951 and 1967, Turin’s population rose from 719,300 to 1,124,714. Many of these ‘terroni’ immigrants - a racist term used by northerners towards southerners- were already, or soon came to be, Juventus fans. Thousands of peasants took the ‘train of the sun’- especially in the 1950s to 1960s- to cold, foggy Turin to pursue the dream of a job with FIAT. In the 50s to 60s, large amounts from southern Italy came to Turin for works. They were looking for a position in the biggest capitalism in the country- FIAT. Even when workers went home, they still supported the city’s club- Juventus. When those workers had returned home, they still remained passionate toward the club (Foot, 2007). Besides, Juventus also builds up and develops the youth sector. There are 17 teams, about 348 players, 67 technical staff and 14 young players in senior championships and it.

(42) . 42 . has invested over 5 million euro per year (Juventus, 2008). The youth sector of Juventus is divided into six squads: Primavera, Berretti, Allievi, Giovanissimi, Esordienti and Pulcini. Governance of Company From 20th December 2001, the title Juventus is quoted on Mercato Telematico Azionario (MTA): the STAR segment, managed by Borsa Italiana S.P.A. (The Italian Exchange). As stated above, the Agnelli family presided over the club in 1923. The Agnelli family was one of the most influential groups in the history of modern Italy. Nowadays, the Agnelli family forms the Giovanni Agnelli e C. S.a.p.az. to manage the club through Exor investment company. Juventus, as a company with shares on the Stock Exchange, also has a series of duties towards shareholders, with whom they want to maintain and develop a relationship based on trust. The objectives of the club in this sense include increasing the value of the brand, preserving a top-level sport organization, and studying and carrying out projects to diversify the Club's activities. Partly in the light of recent events that involved in the company in the summer of 2006, it has made innovations in its system of governance, adapting it to the best national and international practices, enhancing the role of independent directors, adopting a cutting-edge Code of Ethics unique in its business sector, establishing new.

(43) . 43 . internal monitoring rules and adopting a system of delegation of responsibilities that puts the Board of Directors at the centre of company management (Juventus, 2007). Corporate Governance The corporate governance system of Juventus envisages the division of responsibilities between Board of Directors and committees that have been created in the framework of the Board of Directors to provide consultancy and proposals. The Board of Directors The Board of Directors (BoD) is composed of 8 members who remain in office for 3 financial years and may be re-elected. The BoD is vested with the broadest powers for the ordinary and extra ordinary management of the company. It thus has the power to take all the measures considered necessary and appropriate to achieve the Company's purpose, with no exception, save only such action as is reserved by law for the Shareholder’s Meeting (Juventus, 2007.03.31). In the framework of the Board of Directors, 3 committees have been set up to provide consultancy and proposals. There are: the Audit Committee, the Remuneration and Appointment Committee and the Sport Committee. The Audit Committee The Audit Committee (Comitato per il controllo interno).

(44) . 44 . consists of 3 members. The Audit Committee has the function of providing consultancy and proposals, as well as control of internal procedures (administrative and operative) and it is composed entirely of independent Directors. The Remuneration and Appointment Aommittee The Remuneration and Appointment Committee (Comitato remunerazioni e nomine) is composed of 3 committees. The objectives of this committee are to examine matters in question, and the Board of Directors has decided to create a single committee if the issues are inter-related. The Sports committee The Sports Committee (Comitato sportivo) consists of 4 members; the chairman Givanni Cobolli Gigli and the CEO of Juventus are included. The Sport Committee has the function of providing proposals and consultancy to the Board of Directors itself concerning the Company’s strategy in the sports world in general and more, in particular, in activities linked to the football world. In addition, there are also several important institutions for the company: the Board of Statutory Auditors (Collegio Sindacale) and the Shareholder’s Meetings. The Meetings are important occasions for informing Shareholders about the Company, respecting regulations on confidential information..

(45) . 45 . Other Activities Channel Juventus also has its own television channel: the ”Juventus Channel.” It is the first Juventus-themed TV channel, and broadcasts 24 hours a day. It went on air on the 1st of November 2006 on the Sky Satellite platform. Although the Juventus Channel cannot show League matches live, they only offer an alternative live audio commentary to the one provided by Sky. Every match is broadcast in full, with live link-ups before and after the game, and exclusive interviews with players, coaches and fans (Juventus, 2008.03.31). It provides a platform for fans to get to know the club. Promotion of Football Juventus also established the Juventus Soccer Schools in 2004 as part of Merchandising S.r.l, the company created by Nike along with the technical sponsorship of Juventus. The result of collaboration between Juventus and Juventus Merchandising, the project aims to allow young lovers of football to make their first steps in the world of sport and of football following the “Juventus method.” With these premises, a great deal of attention is concentrated not only on professional aspects, but also on.

(46) . 46 . learning and fun. Juventus Soccer Schools' initiatives are: Juventus University, courses dedicated to coaches, lasting a few days; Juventus Academy, year-long football schools all across Italy; and Juventus Summer Camps, allowing kids to combine football and fun and, in East Bourne’s case, the study of the English language (Juventus, 2008.03.31). Juventus Stores and Juventus Corners In September 2003, the first Juventus Store was launched in Turin where fans can find all official Juventus products. Over the years several Juventus Corners were also opened: in Milan (inside Football Corner), Rome (inside Esedra), Catania (inside Teamsport), Sorrento (inside Fiorile Sport), Riccione (inside Discovery), Varese (inside Epi Official Merchandising) and Aosta (inside Fans Store). There are also 200 Juventus Points all over Italy across the Tamoil distribution network. During the football season there are also 6 Juventus Shops inside the Olimpico Stadium, selling merchandise during matches (Juventus, 2008). Summary While building up an outstanding football club, Juventus has been a successful club in Europe.. Juventus has won most. Italians’ heart in Italy. Juventus has supporters all around Italy. Juventus has € 12.6 million supporters in their own country. It is truly an amazing statistics. Regarding contact with the fans, Juventus has its own channel,.

(47) . 47 . published magazine, memberships and stores. Juventus has several different kinds of ways of communicating with supporters. As a company, Juventus is the 3rd quoted football clubs in Italy. Juventus makes revenue of 251.2 million euro in the 05/06 season, 3rd place in Europe (Deloitte, 2007). As mentioned above, Juventus has won the hearts of the fans. The support of the fans is the real thing that matters for a professional club. Without it, a club cannot be described as a great club..

(48) . 48 . Chapter V Analysis of Crisis Management. In this research, Fink's（1986） theory of crisis management will be utilized to analyze the scandal.. Prodromal Crisis Stage – Caution and Signs In 2002, the former coach of AS Roma Football club, Zdenek Zeman who claimed it was time for Italian football to clean up its act by 'throwing out its chemists’ and made references to the 'muscular physiques of several Juventus players (World Soccer News, 2005). The prosecution of Turin started the investigation on the doping case. The doctor of Juventus Riccardo Agricola and the chief executive of Juventus Antonio Giraudo were also under investigation via interception of phone conversations. In addition to the doping allegations, the creation of false bank accounts by Juventus and the gambling affairs of players were under investigation. An inquiry in Naples was more relevant to this particular scandal. The magistrates in Naples were investigating the mafia of the city in 2004 due to the discovery of some illegal betting calls. The magistrates of Naples had issued an order.

(49) . 49 . to wiretap the phone of Luciano Moggi. In other cities, different investigations were also undergoing. The interceptions of several phone conversations were used to prove the manipulation and designation of referees as well as other related scams. In Parma, the gambling affairs were uncovered. After the initial doping allegations, additional accusations emerged. In 2004, the magistrates of Naples ordered to wiretap Luciano Moggi's phone conversation in order to investigate illegal betting and possible ties to the mafia. Meanwhile in Naples, the manipulation of referee designation was uncovered. Many other accusations were also surfacing in several major Italian cities (Gazzetta, 2006.05.04). The Roman magistrates focused on the illegal activities of GEA World, a sport agency. GEA World was presided over by Alessandro Moggi, the son of Luciano Moggi, which is a company mostly comprised of sons and daughters of people in power, such as politicians and bankers, including the son of Italian national team coach, Marcello Lippi. Many Juventus players were represented by Alessandro Moggi, an agent at GEA, who alone controlled an extraordinary 12.3 percent of the football market in Italy, while GEA had a share of nearly 20 percent (Foot, 2007). Also, the magistrates of Rome were looking into the involvement of Franco Zavaglia, managing director of GEA World, which is.

(50) . 50 . the largest company of football agents in Italy with over 220 professional footballers and coaches on their books. Moggi’s son Alessandro ran it. (Italian Calcio Blog, 2007). In Perugia, the magistrates were investigating the bankruptcy of the Perugia football club and the illegal activities of GEA World.. Table 5-1 Investigations in Different Cities Region Rome. Investigation Concerning GEA, the largest company of football agents in Italy with over 220 professional footballers and coaches on their books. Moggi’s son Alessandro ran it.. Turin Inquiry into the doping of Juventus players in the 1990s involved phone taps that revealed further disturbing aspects of the Moggi system. (Foot, 2006) Inquiry into False bank accounts, gambling among players Naples Inquiry into the Neapolitan version of the mafia, the Camorra, had uncovered an illegal betting ring involving players and referees,.

(51) . 51 . and investigating magistrates had ordered phone taps on 6 or so mobile phones of Luciano Moggi in 2004(Foot, 2007). This started after the telephone conversations were leaked to the press. The central figure is Luciano Moggi, but. magistrates were questioning 41 people after identifying 19 matches which they believe to be suspicious.. Parma. Investigators unearthed evidence of a gambling scam involving Serie A players.. Perugia Investigation into the bankruptcy of the Perugia football club and GEA World. Note. Gazzetta (2006.05.11 & 2006.05.12). In the spring of 2006, ‘Gazzetta dello Sport’ reporter, Ruggiero Palombo, had written: L'Italia è il Paese delle intercettazioni telefoniche [Italy is the country of phone-tapping]. He anticipated the use of wire-tapping to monitor crucial characters of Italian football. This was the last sign of the scandal..

(52) . 52 . Acute Crisis Stage – The Emergence of the Crisis In May, the magistrates of Turin had sent a dossier related to the investigation into important football characters to the president of FIGC, Franco Carraro, which he later sent to the inquiry office head of FIGC Italo Papa and UEFA. The content of the dossier regarded an FIGC official, a football club and a referee appointer (Gazzetta, 2006). On May 3rd, 2006, the FIGC had issued an announcement that the federation had opened an investigation. Soon after that, names were revealed, among which were managers, referees, and journalists. On May 4th, the newspapers Gazzetta dello Sport, Repubblica and Corriere della Sera had all widely reported the interception involving the general manager of Juventus, Luciano Moggi, the chief executive, Antonio Giraudo, and the vice president, Innocenzo Mazzini. Reports from the Italian press had shown several conversations that revealed the general manager Luciano Moggi had constantly made contact and phone calls to referee designators and also the official of AIA Pierluigi Pairetto. In an excerpt of those phone calls, Luciano Moggi not only made a request for which referee he wanted to be assigned to the match, but also complained about judgments made by the referees. According to the content, affected matches could have been those from the season in 2004/05 of Serie A, and also the most prestigious international tournament,.

(53) . 53 . the UEFA Champions League. Pairetto was also the member of the Refereeing Commission of UEFA (Gazzetta, 2006.05.05). There were dozens of such conversations like the example mentioned above. In fact, according to the investigators, Moggi received or made an average of 416 calls per day. He had 6 mobile phones and 300 SIM cards. In 9 months, he made or received 100,000 calls (Foot, 2007). He had made contact with officials from FIGC, referee designators, agents, and TV show presenters. Here are some excerpts from the intercepted conversations between Moggi and referees, TV show ‘Il Processo di Biscardi’ presenter Aldo Biscardi, Innocenzo Mazzini, and other important figures in the world of Italian football.. Table 5-2 Excerpts of Wiretaps. • Luciano Moggi talked to the referee designator Pierluigi Pairetto complaining about the referee that Pairetto had appointed to the match. Moggi also asked Pairetto to appoint a referee with a bias against Ajax in UEFA Champions League. • Luciano Moggi had conversed with the vice.

(54) . 54 . president of FIGC, Innocenzo Mazzini, and called him a ‘friend’ in the phone call. • Luciano had conversations with Antonio Giraudo about the designation of referees • Luciano Moggi also talked with his son, Alessandro Moggi about the transfer of players and coaches • Luciano Moggi called Aldo Biscardi about manipulating the slow motion footage on the football comment show ’Il Processo di Biscardi’ to conceal the bias of referees on Juventus • Luciano Moggi talked about the election of the FIGC's president with Innocenzo Mazzini • Luciano Moggi talked about the election of the FIGC's president with Innocenzo Mazzini • Luciano Moggi talked about the Czech coach Zdenek Zeman. Luciano seemed to be resentful towards Zeman expressed that he wanted to ‘hit him with a piece of wood’. Zdenek Zemen had previously accused Juve players of being doped in the early 1990’s Note. From Gazzetta dello Sport (2006.05.04 & 2006.05.05. & 2006.05.06).

(55) . 55 . These fragments of conversations were some examples from the content of the wiretaps of Luciano Moggi. The excerpts revealed many important characters involved in this scandal. New facts were coming out day by day. As more and more evidence came up, things had become more complicated and critical. The wiretapped conversations had shown that it could be the worst scandal in the last 20 years of the Italian football. The investigation and the interrogation of this scandal went on in different cities. The wiretapped conversations became evidence of which the designation of referees had been manipulated as well as other related fraud. In Parma, the gambling affairs were uncovered; in Perugia, the magistrates were investigating the bankruptcy of Perugia football club as well as the illegal activities of GEA World (Gazzetta, 2006.05.11). UEFA had started a disciplinary procedure against Pierluigi Pairetto and had closed with an official reproach on the May 5th. Pairetto's World Cup passes had been revoked for having violated the rules of conduct. Luciano Moggi and Alessandro Moggi were told that they were being investigated as part of a criminal inquiry relating to the 2004-05 season. Luciano Moggi was alleged to be the head responsible for manipulating the appointment of referees (Gazzetta, 2006.05.06). They were joined by 9 referees, 11 linesmen, and 21 others. The president Franco Carraro resigned on the May 8th. Following the resignation of the president, was.

(56) . 56 . also the vice president of FIGC Innocenzo Mazzini, who had been found having suspicious talks with Luciano Moggi. The president of the Italian referee association, Tullio Lanese, resigned on the May 10th. 41 persons and 19 matches from Serie A and B were under investigation up to May 12th. Juventus, AC Milan Fiorentina, and Lazio were involved. Additionally, a member of the National team and a player from Juventus Gianluigi Buffon were involved in the scandal and had been interrogated in Parma. On May 14th, FIGC had withdrawn the accreditation of 2 referees and 2 linesmen. And all of whom were involved with the World Cup. The designator Paolo Bergamo and Pierluigi Pairetto were also suspended. Although Juventus had clinched their 29th Scudetto (trophy of Italian championship). On May 16th, Luciano Moggi had announced his resignation while FIGC nominated their extraordinary commissioner Guido Rossi, to take charge of this scandal. The famous TV show host of “il Processo di Biscardi”, Aldo Biscardi, left his job because of the allegation that he took directions from Luciano Moggi to control the content of slow motion plays to conceal the biased calls toward Juventus (Foot, 2007). On the May of 18th, the financial guard (La Guardia di Finanza) of Turin conducted a perquisition at the center of Juventus approved by the magistrates of Turin (Juventus, 2006.05.16). The financial guard also went for the residence.

(57) . 57 . of Luciano Moggi and Antonio Giraudo to make a perquisition. It referred to a bad sign in Italy. First, the search always found something. Second, it meant that one's political protection has disappeared. Moggi was isolated and vulnerable. He had lived and worked on the phone, but when the scandal broke, many of his former ‘friends’ abandoned him. La Gazzetta dello Sport described him as ‘shut up inside his home, with his 6 silent mobiles which don’t ring any more’. Not only Juventus, there was other new evidence shown that Lazio, AC Milan, and Fiorentina were also at risk in the scandal. They were all accused for the same charge along with Luciano Moggi of manipulating the matches in 2004-05 seasons. The financial guard had searched the office of AC Milan and Internazionale Milano club from the investigation of Turin into false statement in account by the former management of Juventus. Documents on player transfer’s rosters and team budgets were taken from the offices of several other clubs as well, with the focus on transfers involving Juventus. According to the Italian newspaper Corriere della Sera, Milan chairman Adriano Galliani, who was also President of Italian professional league (LNP), apparently had official Leonardo Meani made arrangements with referees commission.

(58) . 58 . secretary Manfredi Martino in which Meani was informed by Martino 2 days before the match against Chievo football club that Gianluca Paparesta would officiate the match. Martino also told Meani that the team's linesman of choice, Claudio Puglisi, had been appointed to the match (Gazzetta, 2006.05.11). Lazio and Fiorentina were mired in difficulties as well (Gazzetta, 2006.05 13). The president of Lazio Claudio Lotito was found having conversation with former vice president of FIGC Innocenzo Mazzini (Gazzetta, 2006.05.10). In the talk, he complained about Diego Della Valle had made him "a bandit's offer" in relation to their game against Fiorentina at the end of the 2004-05 season. He was also under investigation of the magistrates in Milan on suspicion of market-rigging involving Lazio a share. Also in the phone interception that the brothers, owner and president of Fiorentina Diego Della Valle and Andrea Della Valle had complained about refereeing decisions with Luciano Moggi and FIGC official Paolo Bergamo in the 2004-05 season when the club were at risk of being demoted to Serie B. On May 16th, Francesco Saverio Borrelli was nominated as the head of the investigation office (L’Ufficio d’Indagini) in FIGC. Soon, FIGC had officially started their investigation work since 5th June. The greatest event of football- World Cup was about to kick off in several days on June 9th. However, some players.

(59) . 59 . had to go to different cities for different inquiries for this scandal (Gazzetta, 2006.05.12). For example, Buffon the world well-known goalkeeper of Italian national team and Juventus were involved in illegal betting that was under the investigation in Parma. And the captain of the national team Fabio Cannavaro had been warning for his inappropriate comment in public (Gazzetta, 2006.05.06). The quadrennial FIFA World Cup is the most important international event in the football world. Nevertheless, the scandal had undermined the morale of the team. The coach, Marcello Lippi was also involved for his son Davide Lippi had been investigated for the position in GEA World. Marcello himself was also interrogated for Moggi put pressure upon him for picking up the players who were belonged to the GEA World. Moreover, there were 13 players among 23 played for the 4 clubs related to the scandal (FIGC, 2006). Some players had to go to different cities for different inquiry for this scandal.. Table 5-3 List of Players in Involved Clubs Juventus. (5) Fabio Cannavaro, Gianluigi Buffon, Alessandro Del Piero, Mauro Camoranesi, Gianluca Zambrotta,.