German Soccer Federation Hit with Fines Over Tax Evasion Scandal

The German soccer federation, DFB, was fined 110,000 euros for tax evasion related to the 2006 World Cup. The trial revealed a 6.7 million euro payment, allegedly a business expense, channeled to a Qatari company. Initial charges against former DFB officials were dropped after fines were paid.

The German soccer federation, known by its acronym DFB, has been convicted of tax evasion related to the 2006 World Cup. This week, a Frankfurt court imposed a fine of 110,000 euros, concluding a 16-month trial.

Prosecutors had sought a steeper penalty, alleging the DFB avoided 2.7 million euros in taxes for a 6.7 million euro payment to FIFA. This payment was intended to settle a loan acquired by Franz Beckenbauer, linked to a former Adidas executive, and funneled through questionable channels.

The DFB misrepresented the transaction as funding for a World Cup gala that was never executed, underlining false business expense claims. While charges against former DFB officials were initially pursued, they were lifted following fine payments.

(With inputs from agencies.)