FCPA and Foreign Interference in American Sports

The Foreign Corrupt Practices Act, Executive Orders, and Fair Play

We are almost constantly reminded of the change going on around us as the digital world creeps more and more into our physical day to day lives. The sports industry is not immune to this wave of change. Within the world of sports, leagues are contending with a new media environment, a seismic change in rules for college athletics is unfolding, and legal sports gambling is growing and morphing into new products.

Photo by Kyle DeSantis on Unsplash

There are a few changes happening beyond the world of sports that I want to focus on, though, as they may generate a real threat to the integrity of sports and how Americans view them. We are at the beginning stages of what could become a real opportunity for foreign adversaries to sow doubt about the fairness and integrity of American professional and collegiate sports if leagues don’t take the necessary and proper steps to shore up the moat that keeps detrimental forces away from the games’ integrity.

I want to focus on one of the first Executive Orders signed by the President after he took office. In February 2025, President Trump announced that he was directing the Department of Justice to stop opening new investigations related to the Foreign Corrupt Practices Act, or FCPA, for at least 180 days. He directed them to focus existing enforcement efforts on cases related to drug cartels and transnational criminal organizations (TCOs). The FCPA dates back to the 1970’s and makes it illegal for Americans or American businesses to bribe foreign officials for a business gain. The President’s rationale for the policy instruction was, in part, that enforcement was hurting American businesses and national security interests. Whether you agree with the policy change or not, it may signal to some in the business world (including the business of sports) that the U.S. government will turn a blind eye to its citizens bribing or pressuring foreign officials. [To be fair, I think most lawyers would still advise clients that it remains illegal and they should act accordingly.] As the NFL thinks about a Super Bowl overseas, the NBA expands games to foreign markets, and America hosts and continues to bid on international sporting competitions like the Olympics and the World Cup, it opens the door to accusations and the perception (if not the actuality) of bribes, undue pressure, and covert influence from all corners of the licit and illicit business world.

So what does all of this have to do with sports integrity? The change opens a broad avenue for undue foreign influence in American sports. It has the potential to undermine the fairness, or perception of fairness, in the outcome of a game. For example, in the lead up to Super Bowl LIX in February, there were several stories about whether the fix was in, and referees were colluding with the NFL front office to secure a third consecutive Super Bowl win for the Chiefs (though the Eagles wound up winning Super Bowl LIX). Conspiracy theories about games being rigged are nothing new, and neither are actual cheating scandals. But if bribing foreign officials becomes an accepted practice, and certain betting or prediction markets offer an avenue for foreign governments to influence athletes or cause a perception that a game might be rigged when combined with those business deals or bribes, then a key thread of our social fabric has the potential to become seriously frayed. Not to mention the potential for violence focused on prominent athletes because of gambling losses.

We are now about 100 days past the EO’s signing, and I am sure many are waiting to see what updates the Justice Department is making in their long-term enforcement of the law. For this instance though, the point is not necessarily that sports gambling needs a new regulatory framework, or that the Department of Justice should more or less stringently enforce this law. The point, rather, is that the sports world is changing rapidly, as are many of the elements that orbit around it. Sports leagues and their partners, however, don’t yet seem to appreciate the effects that these changes may have on their product or their employees. This is exactly the reason why teams, leagues, and other stakeholders should collaborate more and share information to protect against external threats. Some of these changes may be beyond their control, so it seems a prudent step would be to reinforce their internal integrity controls and work in concert with other sports leagues to protect their product and their athletes. Once the public loses trust in the integrity of one sports league, the damage to the others will be hard to contain.

And consider all of this in the face of the Wall Street Journal’s reporting about the President potentially issuing an Executive Order about money in college sports in the not too distant future.

Are you a sports or sports gambling company looking to better understand how national security, cybersecurity, or geopolitical risks might impact your work? Maybe you’re seeking a different perspective on how Congress or the Executive Branch operates? Or perhaps you need help monitoring a specific policy issue? I help enterprises large and small understand the policy process, assess security risks, and position themselves for success in a dynamic threat environment. Contact WeinStrategyLab@pm.me and let’s talk about how I can help you.