Barely three months after winning the right to host the 2022 Fifa World Cup, Qatar's bid campaign is under increasing scrutiny. What was supposed to be the crowning of its efforts to position itself as a global soccer powerhouse is turning into a public relations nightmare.
The state is fending off assertions it employed its financial muscle to influence crucial votes on the executive committee of Fifa, football's world body. Despite that, there is little doubt its campaign fitted within Fifa's broad interpretation of its bidding rules and its accepted practices.
Qatar, nonetheless, is getting the short stick of the debate. Its deep pockets rather than the loopholes in Fifa's bidding rules are the focus of the debate that is coloured by the body's reputation having been tainted by a series of corruption scandals. Those deep pockets have so far not been employed to shift the focus of the debate on to Fifa, the core of the problem.
Qatar's failure to fend for itself beyond formal denials offers only one explanation for why it is in the eye of the storm. Equally important is the fact that Qatar is an obvious target as it seeks to capitalise on its success of becoming the first Middle East nation to host the world's biggest sporting event.
Less than two weeks after winning the bid contest, Qatar sealed a US$200 million (Dh734.58m) sponsorship agreement with FC Barcelona, one of the world's richest and most successful football clubs. Since then, Mohamed bin Hammam, the president of the Asian Football Confederation and a Qatari national with close ties to the Royal Family, has all but officially announced he will challenge Sepp Blatter, the imperious Fifa president, in that organisation's presidential elections scheduled for June. To top it all off, Qatar, despite official denials, is thought to be negotiating to acquire the English club Manchester United.
Ironically, Chuck Blazer, Fifa's outspoken US executive committee member, is one of the few to come out in Qatar's defence. In an interview to be published in next month's edition of World Soccer Magazine, Mr Blazer praises Qatar's bid campaign while acknowledging it raises questions about Fifa's bidding rules and attitudes.
At the core of the criticism of Qatar are allegations that it colluded with Spain and Portugal, which were jointly gunning for the 2018 World Cup, to trade votes for their respective bids and that it had promised to invest in the building of stadiums and soccer academies in the home countries of executive committee members. Qatar has denied the allegations.
To make things worse, Mr Blatter this month claimed the collusion did occur, despite Fifa earlier saying it had investigated the matter and had failed to find evidence to support the allegations. Mr Blatter's move achieved what he had hoped it would - tarnish Qatar and with it Mr bin Hammam who asserts Mr Blatter's 12-year tenure needs to be ended to ensure Fifa becomes a more transparent, more accountable organisation.
In his interview, Mr Blazer lays the blame where it belongs; he lashes out at Fifa's pooh-poohing of collusion and its acceptance of what he terms "legacy", the influencing of Fifa executive members with promises of assistance in building training facilities and stadiums in their home countries. For Qatar, however, that is a mixed blessing. While it exonerates the country from wrong doing, it leaves the question hanging about whether Qatar should have been awarded the World Cup.
Mr Blazer also takes Fifa to task for ignoring a Fifa inspection report that described Qatar's team facilities as "high risk" and concluding that granting it the World Cup would pose a "medium risk" in eight other categories. The report also warned that Qatar's scorching summer heat posed a potential health risk to players, officials and spectators.
Qatar's image problem is likely to be aggravated with Thomas Kistner, a prominent German sports journalist, promising to document at a conference in Miami in April Qatar's splurging of at least $200m on its campaign to win its World Cup bid. Qatar has never published its bid budget, but past estimates have put its marketing and event-related spending at $45m - compared with the $10m spent by the US on its campaign.
None of this belittles Qatar's success in winning the World Cup bid. If anything, it reinforces the call for reform of Fifa. However, it also highlights the challenges Qatar faces as it plays in football's big league. To succeed at that level, Qatar will have to radically revamp its public relations strategy and adopt a far more proactive and transparent approach. Failure to do so will prevent it from turning the tables on its detractors and condemn it to remaining the punch bag in other people's battles.
A James M Dorsey is a freelance journalist and the author of The Turbulent World of Middle East Soccer blog
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Last 10 NBA champions
2017: Golden State bt Cleveland 4-1
2016: Cleveland bt Golden State 4-3
2015: Golden State bt Cleveland 4-2
2014: San Antonio bt Miami 4-1
2013: Miami bt San Antonio 4-3
2012: Miami bt Oklahoma City 4-1
2011: Dallas bt Miami 4-2
2010: Los Angeles Lakers bt Boston 4-3
2009: Los Angeles Lakers bt Orlando 4-1
2008: Boston bt Los Angeles Lakers 4-2
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Handicap (TB) Dh100,000 (T) 2,200m. Winner: Harbour Spirit, Adrie de Vries, Jaber Ramadhan.
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Job: Executive vice chairman and chief executive of Dubai Duty Free
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ENGLAND TEAM
Alastair Cook, Mark Stoneman, James Vince, Joe Root (captain), Dawid Malan, Jonny Bairstow, Moeen Ali, Chris Woakes, Craig Overton, Stuart Broad, James Anderson
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Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
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How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.
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The specs: 2019 Chevrolet Bolt EV
Price, base: Dh138,000 (estimate)
Engine: 60kWh battery
Transmission: Single-speed Electronic Precision Shift
Power: 204hp
Torque: 360Nm
Range: 520km (claimed)
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Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now