'WE NEVER GOT AN OFFER FROM KENTARO' Vlatko Markovic told Nacional there was no offer from the Kentaro agency, even though the CFF received the offer back in 2006Nacional has come into possession of documents that reveal that Vlatko Markovic, president of the Croatian Football Federation, with the help of the federation's general secretary Zorislav Srebric, hid from the members of the CFF Executive Committee a very favourable offer from the London-based Kentaro agency, which offered the CFF a deal worth at least EUR 7.2 million for television and marketing rights. Instead Markovic arbitrarily in 2008 extended the CFF's contract with the Sportfive agency, which paid only EUR 1.4 million for the TV rights from 2000 to the end of the Euro 2008 in Austria and Switzerland. The members of the CFF Executive Committee have never seen the Kentaro offer, which was received by the CFF on 9 November 2006 and on 24 July 2007, but instead were informed by CFF president Markovic that a contract had been signed with the Sportfive agency.

Speaking for Nacional Vlatko Markovic denied that there were Kentaro offers, falsely stating that the CFF had never received such an offer, that the contracts are regularly discussed at CFF sessions, which is also not true, and that the amount of the remuneration paid by Sportfive to the CFF is a business secret. From the offers available to Nacional it is evident that Markovic and Srebric negotiated with the London-based agency in 2006 and 2007, that they received very favourable offers and were in the signing stage, and then nevertheless extended the unfavourable deal with Sportfive. Admittedly, in the extension annex, they financially improved the basic contract, but the sum of EUR 2.7 million is very far from the Kentaro offer and from market prices for TV broadcast rights.

Kentaro, a London-based specialised agency for the purchase of TV and marketing rights, faxed a letter on 9 November 2006 addressed to CFF president Vlatko Markovic and general secretary Zorislav Srebric. The top people at Kentaro, Philipp Grothe and Marc Rautenberg, submitted an offer to the CFF. They address Vlatko Markovic and Zorislav Srebric as close friends, reminding them of the recent pleasant meeting in Munich. "We would like to offer a combined offer for CFF TV, related media and advertising rights in the period from 1 January 2008 to 31 December 2011," Grothe and Rautenberg state on behalf of Kentaro, and add, "We believe that this offer reflects the high domestic and international value of the CFF and that it will establish an excellent foundation for our future cooperation." Kentaro submitted an offer to CFF president Vlatko Markovic that guarantees the CFF minimum earnings of EUR 6 million, a bonus of EUR 1 million and attractive terms for the preparation and playing of national team matches that provide additional earnings for the CFF, for the purchase of TV and other rights through to 2012. Kentaro sent the offer at a time when the deal the CFF has with the Hamburg-based Sportfive agency was close to expiring and when Kentaro had a signed consultancy contract with the CFF. And while the CFF had a deal on the purchase of TV and other rights with Sportfive from 2000 to 2008, Kentaro, which organised the spectacular Croatia-Brazil match in Split in 2005, had a strong consultancy deal signed with the CFF on 5 March 2005. Based on this Kentaro sent an attractive offer in the hope that, in a transparent competition among bidders, the CFF would choose the London-based agency to be its promoter. Because coming up are the qualification rounds and the World Cup in South Africa, and the European Championships to be hosted by Poland and Ukraine in 2012.

THE EXECUTIVE COMMITTEE Members of the CFF Executive Committee were never informed of the lucrative offer from the Kentaro agencyThe Kentaro offer of 9 November 2006 was improved by an additional offer in a second letter to Vlatko Markovic and Zorislav Srebric, sent from London on 23 July 2007. Just a week after "our pleasant meeting in London," Kentaro top executives Grothe and Rautenberg go on to thank them "for their trust and confirmation that the CFF is willing to enter an exclusive long-term partnership with Kentaro. The CFF will transfer to Kentaro all global TV and related media rights including Croatian territory, and panel advertising rights at all domestic matches played by the Croatian national team from 1 January 2008 to 30 June 2012." For rights during the qualifications for the 2010 World Cup and the Euro 2012, Kentaro would pay a licence fee of at least EUR 6 million. In the first offer of November 2006 Kentaro also offered a bonus payment: if the men's A national team faces Germany or England in a qualification match, Kentaro will pay a further EUR 1 million to the CFF. At the time the qualification groups for the World Cup in South Africa were not yet known. And since Croatia will play in the group with England, Kentaro would give the CFF a total of EUR 7 million. But that is not all. Kentaro offered Vlatko Markovic additional services - to finance the training of the A national side at the Weggis training camp on Lake Luzern during the entire contract period. Kentaro organised a much-lauded training camp for five-time world champions Brazil at this world-renowned destination ahead of the 2006 World Cup in Germany. Kentaro also offered Markovic and Srebric a tour of Latin America by the Croatian football team and "a minimum of two competitive matches against strong South American opponents. For this tour Kentaro will cover all costs and the price, and pay the CFF an additional fee of 200,000 euro." In the second offer of July 2007 Kentaro makes an even more direct offer to "organise a friendly match between the Croatian A side and two-time world champion Argentina."

For the global TV ad related media rights, Kentaro offered Markovic at least EUR 7.2 million, a training camp, the payment of all additional expenses, and a promo tour in South America. In the second offer of 23 July 2007 Kentaro emphasises that "all earnings from the exploitation of the above mentioned rights shall be divided among the parties in a ratio of 75:25 in favour of the CFF." Philipp Grothe, then, with realistic expectations and the promises Markovic had made to him, states in his offer, "I understand that we shall sign our contract on the 2nd and 3rd of August 2007. Please state the date and time of this meeting. I propose that Marc (Rautenberg) contacts Zorislav (Srebric) to finalise our agreements in greater detail," writes Grothe.

But no deal came out of it. Without notifying the Executive Committee or any other CFF body of the existence of a much better offer from Kentaro, Markovic, with the help of Zorislav Srebric, by signing an annex to the contract with the Sportfive agency, extended that agency's exclusive global TV rights a further four years. And by doing so, Markovic and Srebric consciously cost the CFF in excess of EUR 8.2 million. But in severing the contract with Kentaro the CFF had to pay penalties of a further EUR 1 million, something none of the members of the CFF Executive Committee knew. Markovic saw to it that the penalty was paid by Sportfive's legal firm in Hamburg, which Sportfive compensated from the CFF's earnings.

PHILIPP GROTHE, the head of Kentaro, hoped that the bidding for the Croatian national team TV rights would be transparentSportfive has for all TV and media rights outside of Croatia and advertising rights for domestic friendly and qualification matches from 20 September 2000 to 31 December 2007 paid the CFF EUR 1.4 million (i.e. DEM 2.7 million German) even though it passed the qualification rounds for the 2002 World Cup in Japan and South Korea, the Euro 2004 in Portugal, the 2006 World Cup in Germany and the Euro 2008 in Austria and Switzerland. It is entirely legitimate to ask what the personal motivation, reasons or benefit the top man at the CFF has to, in concert with the general secretary Srebric, approve and sign a deal that bad. In the qualification rounds for the 2010 World Cup in South Africa, Sportfive will, according to the contract annex, pay the CFF EUR 2,770,000. Markovic and Srebric have thereby, right at the start, directly cost the CFF EUR 4.5 million, the amount that the Sportfive offer is lower than the hushed up Kentaro offer.

Responding to all this Vlatko Markovic told us that "The sum for which we signed a contract with Sportfive cannot be disclosed. It is a business secret. But I guarantee you that it is an exceptional contract, that we have been very well reimbursed and that we are very happy with Sportfive, from the first day of our cooperation to the latest contract signed last year. We have been working with Sportfive for 15 years now, and they stood by us when times were tough for us. We have never received an offer from Kentaro, so there is nothing I could tell you about it. Which is why the Executive Committee never had it under consideration. Otherwise all offers and contracts are regularly discussed by the CFF Executive Committee in a timely fashion. We did have a temporary contract with Kentaro, they organised some matches for us, and we were satisfied with them. But other agencies tell you and promise many things, but do not write that into their offers."

Some members of the Executive Committee, however, do not share this opinion. We spoke to three respected members of the Executive Committee, all high-ranking and long time football officials who hail from three different Croatian cities. All three confirmed that there had been no discussion, much less decision making, at the Executive Committee, concerning the contracts on the purchase of TV rights with Sportfive, because the CFF Executive Committee does not in fact ever discuss or decide on contracts of that kind. One of our sources recalled that a member of the Executive Committee had protested this practice and sought in vain that all contracts be transparent. Not one of these three members of the CFF Executive Committee has ever heard of or seen the offer from the Kentaro agency. One of our three sources, who has been a member of the Executive Committee for almost ten years, recalled that "we were informed a few years ago by president Markovic that a contract had been signed with Sportfive, but no details were provided."

For the broadcast of the match with Andorra Sportfive paid EUR 18,000, while the market price was EUR 20,000. Sportfive paid EUR 18,000 for the match with Macedonia instead of EUR 30,000. For the match with Russia, Sportfive paid EUR 25,000, but should have paid the CFF EUR 250,000 at market prices. EUR 18,000 was paid after the match with Estonia instead of 20,000, and 25,000 for the match with Israel instead of the market value of 100,000. Therefore, during that entire period for the qualification matches against England, Russia, Israel, Macedonia, Estonia and Andorra, Sportfive paid the CFF EUR 504,000 and a further EUR 351,000 of contractual fees (contract guaranteed earnings), for a total of EUR 855,000. The total real gross earnings for the CFF, had Sportfive paid them market prices, should have been EUR 8,580,000. So, thanks to Markovic's contract with Sportfive, the CFF earned ten times less. Had the real gross earnings been shared with the agency in a 75:25 split in favour of the CFF, the Croatian Football Federation would have taken away EUR 6,435,000 as remuneration for the sale of global TV rights. As it only earned EUR 855,000 in that round, the CFF loss on the Euro 2008 amounts to at least EUR 5,580,000.

A FARCE IN TUHELJ Vlatko Markovic lays the cornerstone for a football camp in TuheljIt is hard to believe that Vlatko Markovic and Zorislav Srebric did not know of these sums and the unbelievable earnings reaped by Sportfive as a result of the naivety of the CFF. It is equally hard to believe that Braco Vujcic, the owner of Sportfive, put all that profit in his own pocket. Based on the annex extending the CFF contract with Sportfive from 2008 to 2012 the CFF losses continue in the qualifications for the 2010 World Cup. For the broadcast of the Croatia-England match Sportfive paid EUR 2,650,000, but should have paid 7 million at market prices. Sportfive will pay EUR 30,000 for the match with Ukraine, and should pay EUR 200,000, EUR 30,000 for the match with Kazakhstan instead of 40,000, and EUR 30,000 for the match with Belarus instead of 50,000. It will only pay the real, market price for the match with Andorra - EUR 30,000. In total for the qualification rounds for the World Cup the CFF will get EUR 2,770,000. In the annex extending the contract with Sportfive Markovic grasped that it was too risky to leave the existing remuneration of EUR 1.4 million. With a guaranteed contractual fee of a further EUR 900,000, the CFF will in this round get a total of EUR 3,670,000. But the real CFF profits at market values would be EUR 8,480,000. The annex to the contract with Sportfive is just as damaging as the actual contract - if the earnings made at market prices were split with a good agency 75:25 in favour of the CFF, the real CFF earnings should be EUR 6,360,000. Therefore the loss of earnings that the CFF will realise during the qualification rounds for the 2010 World Cup will amount to EUR 2,690,000. The total CFF loss for granting TV and other marketing rights for the Euro 2008 and 2010 World Cup, as a result of Markovic's and Srebric's protectionist attitude towards Sportfive will amount to EUR 8,270,000. Perhaps that is where the answer lies as to why members of the CFF Executive Committee and other bodies of the Croatian football organisation have never learned from Vlatko Markovic and Zorislav Srebric of the offer made by the Kentaro agency and why their offer was a jealously guarded secret.

And while Vlatko Markovic has on several occasions bombastically gone public with announcements of the construction of a football centre in the town of Tuhelj, he has to this day not secured a preliminary, much less detailed design, or a single permit, or a single bank guarantee, or the money with which the construction of the EUR 50 million camp with a sports arena, four football pitches, a four or five star hotel with between 300 and 400 rooms, will finally begin. Markovic has no idea how many rooms the hotel is to have, how it would operate, what category it would be, how much land needs to be purchased in Tuhelj and the Municipality of Trgovisce, but in October of 2008 he triumphantly had his photo taken as he laid the cornerstone for the new Tuhelj Football Centre. Markovic has for the third time signed a cooperation contract that obliges no one with the Tuheljske Toplice spa. The members of the Executive Committee are uninformed concerning this project, and some have begun to censure him on account of this tardy or defunct investment. No one knows where CHF 2.5 million the CFF received from UEFA for the construction of the football camp in Tuhelj wound up. It is not known whether it is true that the CFF paid an Austrian architectural firm EUR 70,000 for a preliminary design of the camp or if the money was spent on something else. It is also not known where EUR 2 million the CFF received from UEFA to build 20 grass football pitches in the capitals of Croatian counties wound up. Markovic allegedly plans to spend HRK 40 million of state budget funds for the construction of the camp, which the CFF is to receive on the basis of a court ruling in its favour for a signed, but never implemented, sponsorship deal with the tourism ministry concluded during the time of former minister Ivan Herak. That there is no idea who is drinking and who will pay for it all in the Tuhelj football camp project, is borne out by the fact that Markovic has not spoken to anyone at all concerning the purchase of 40,000 square metres of land in the Municipality of Trgovisce, necessary along with the land that the Tuheljske toplice spa would bring to the table. And while he claims to have worked everything out with the proprietors, no one in Trgovisce has yet sold land to the CFF, which is offering EUR 25 per square metre, while a square metre of land with infrastructure present costs from EUR 150 to 180. In the project, which was initially conceived by the Zagreb-based firm of Remax Exclusive, which had the best intentions to finance the construction, the Tuheljske Toplice spa was also to have participated, with the value of its land, and the CFF, which was to have brought in its brand. It looks like Remax's sports centre will be built in Tuhelj, but not a CFF camp. What's important is that Markovic in October of last year announced that Manchester United, Barcelona and Milan would be training in Tuhelj in a year's time. If construction of the Tuhelj football centre were to start today it would be completed in four years.

That Markovic has no credibility among the members of the Croatian football governing body was demonstrated at last week's session of the CFF Executive Committee. "The lot of you are criminals! ... You are the hangmen of Croatian football!" thundered Zdravko Mamic, accusing all of the gathered members of the Executive Committee, and CFF president Markovic of wrongdoing, after they did not support the request from the Dinamo football club that all matches played against rival Hajduk be refereed by foreign referees to the end of this year's championships. Not for a single moment did it occur to Zlatko Markovic that he might cut Mamic off, or, after this misappropriate behaviour on the part of the member of the Executive Committee, also the vice president of the Dinamo football club, to initiate a disciplinary procedure. Asked the following day what had happened at the session, which Zdravko Mamic, and two other members of the CFF Executive Committee, had left in protest when they saw that Dinamo's request was not backed by the referees' organisation, or the members of the Executive Committee, because it is not in line with the Competition Regulations, depriving the Executive Committee of its quorum - Markovic coolly lied to the press and Croatian public, saying that he had seen or heard nothing unusual and that nothing in fact had happened. Vlatko Markovic stoically endured Mamic's outburst. But it is clear to all that the man who has worked for years to create the myth that he personally saved Croatian football, is not able, either by his personal authority, or business acumen, and even less by the damaging contracts he has produced, to lead the CFF.