The Geopolitical Storm: How the Ukraine Crisis is reshaping the World of sport
The ongoing conflict in Ukraine has sent shockwaves through the global community, impacting not only geopolitics and economics but also the world of sports. The intricate connections between these realms have become increasingly apparent, leaving major sporting events and institutions grappling with unprecedented challenges.
Football, basketball, volleyball, Formula 1, and other major sporting events are all facing potential disruption due to the war’s ripple effects. International sporting bodies are now tasked with making arduous decisions with far-reaching consequences.
FIFA and UEFA: Navigating a Minefield
FIFA has been under pressure from the Ukrainian Football Association, which has called for Russia’s expulsion from all international competitions. Poland, scheduled to play Russia in a World Cup playoff semifinal in Moscow on March 24th, has requested FIFA to relocate the match to a neutral venue. Sweden and the Czech Republic, who may face Russia in a potential final, have echoed this request.
UEFA’s situation is even more complex. The association had initially planned to hold the 2022 Champions League final at st. Petersburg’s Gazprom Arena on May 28th. However, following an emergency meeting on February 25th, UEFA was forced to relocate the final to Paris’ Stade de France, displeasing one of its major sponsors, Gazprom.
This energy giant, controlled by the Russian state and headquartered in a skyscraper in the former imperial capital, pours an estimated €30-40 million annually into UEFA’s coffers through a decade-long sponsorship deal that covers club and national team competitions, including the Euro 2024.
The 2023 UEFA Super Cup, scheduled to be held at Kazan’s Ak Bars Arena, also hangs in the balance. Furthermore, UEFA has announced that Russian and Ukrainian clubs and national teams participating in international competitions must play their home games at neutral venues “until further notice.”
Gazprom’s Influence: A Tangled Web
the sponsorship deal with Gazprom presents a significant dilemma for UEFA President Alexander Ceferin. As the early 2000s, Gazprom has strategically leveraged football’s global reach to enhance its soft power.
After acquiring ownership of Zenit St. Petersburg, Gazprom became the main sponsor of Schalke 04 and Red Star Belgrade, further solidifying its presence in the European football landscape.
The partnership with Schalke 04, a key player in the European energy sector, coincided with the construction of the nord Stream 1 pipeline, a 1,200 km gas pipeline laid across the Baltic Sea to transport Russian gas directly to Western Europe via Germany. This project was completed in September 2021.
Gazprom’s sponsorship of Red Star Belgrade, signed around 2010, aligned with the company’s ambition to secure a second gas pipeline to Serbia through the Black Sea, bypassing Ukraine.
schalke 04 Takes a Stand
In the wake of the Russian invasion, German Chancellor Olaf Scholz announced the suspension of the Nord Stream 2 pipeline authorization.This project, completed in September 2021, aimed to double the annual gas transport capacity to 110 billion cubic meters. gazprom,with an annual turnover of $150 billion,remains the majority shareholder.
Schalke 04 responded decisively, demonstrating solidarity with Ukraine by forcing the resignation of Matthias Warnig, CEO of Nord Stream 2 and a member of their supervisory board since 2019. Warnig has also been placed on the US blacklist.
Furthermore,Schalke 04 removed the gazprom logo from their jerseys,forfeiting the guaranteed sponsorship money until 2025 (€9 million annually in the second division and €15 million per season plus €3 million in bonuses upon promotion). This bold move has garnered international attention and sparked calls for UEFA to follow suit.
Sanctions Hit the Pitch
the US sanctions have directly impacted the football world, with CSKA Moscow, a six-time winner of the Russian Premier League and the first Russian club to win a European competition after the Soviet Union’s dissolution (the 2004 UEFA Cup), being added to the blacklist.
CSKA Moscow is controlled by Vnesheconombank (VEB), an investment bank that has been targeted by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC).
VEB acquired majority shares in CSKA Moscow at the end of 2019, taking over from Bluecastle Enterprises Ltd. The club had been playing home games at the newly built VEB Arena since 2017, named after the bank that financed its construction.
In April 2020, VEB announced the acquisition of 77.63% of CSKA Moscow’s shares through debt conversion into capital, becoming the main shareholder. This move was intended to “resolve the issue of the club’s debt,” according to VEB President Igor Shuvalov.
This situation highlights the prevalence of state-controlled corporations owning Russian sports clubs, including non-football clubs. apart from Gazprom’s ownership of Zenit st. Petersburg, Lukoil, Russia’s leading oil producer, owns Spartak Moscow.
These intertwined relationships between politics, economics, and sports have forced the global sporting community, including FIFA, UEFA, and the IOC, to confront difficult questions about the future of international competitions and the role of sports in a world increasingly defined by geopolitical tensions.
The Fallout in the Stands: Ukraine Crisis Upends the World of Sport
The echo of explosions in Ukraine reverberates far beyond the nation’s borders, casting a long shadow over the global sporting landscape. This geopolitical earthquake is forcing international sporting bodies into uncharted territory, demanding they confront complex ethical dilemmas with possibly devastating ramifications.
Football, the lovely game, finds itself embroiled in the controversy. The Ukrainian Football Association’s call for Russia’s expulsion from international competitions, backed by Poland, Sweden, and the Czech Republic, highlights the emotional weight of this crisis. FIFA, despite facing immense pressure, treads a precarious path.
Similarly, UEFA finds itself navigating a minefield. While relocating the Champions League final from St. Petersburg to Paris sends a powerful message, it also incurs a meaningful financial cost. Gazprom, the Russian state-controlled energy giant and a major UEFA sponsor, stands to lose millions.
A Delicate Balancing act:
This situation exposes the tangled web of geopolitics and sports. For years, Gazprom strategically leveraged football sponsorships to bolster its soft power. From Zenit St.Petersburg to Schalke 04, its influence spread across Europe, intertwining sports and political interests. Now,this entanglement becomes a burden.
UEFA President Alexander Ceferin faces a Herculean task. Balancing commercial interests with moral responsibility is no easy feat. The future of Gazprom’s sponsorship, the fate of Russian and Ukrainian clubs in international competitions, and the atmosphere surrounding major sporting events all hang precariously in the balance.
Beyond Football: A Wider Impact:
While football takes center stage, the repercussions of the Ukraine Crisis are felt across various sporting disciplines. formula 1, volleyball, and basketball, all face potential disruptions and boycotts.
The world watches as sporting institutions grapple with unprecedented challenges. Their decisions resonate far beyond stadiums and scoreboards, impacting athletes, fans, and international relations. The choices made now will shape the relationship between sports and geopolitics for years to come.
What’s Next?:
This unfolding crisis raises crucial questions. How will sport respond to geopolitical conflicts going forward? Can sport truly be apolitical? Will fan behaviour reflect the broader political climate?
The answers remain elusive, but one thing is certain: the fallout from the Ukraine Crisis will continue to reverberate throughout the world of sport, underscoreing its undeniable connection to the wider global stage.
