Wednesday, March 28, 2001

Soccer boss running out of options Chvalovsky arrest widens charges of financial impropriety By James Pitkin and Frantisek Bouc The most influential man in Czech soccer has been shown a red card. Frantisek Chvalovsky, who has been chairman of the Czech Soccer Association (CMFS) for a decade, was arrested March 16 on fraud charges in connection with 1.3 billion Kc ($35 million) in outstanding loans. Police allege that he and five business partners took out the loans under false pretenses, then channeled the funds into agricultural and meat-processing concerns. So far, Chvalovsky is the only suspect in custody. "Our investigation is in its early stages," says Veronika Bohackova, the judge who ordered the arrest. "There was a high risk that [Chvalovsky] could try to influence witnesses." If convicted of all charges, he could face a maximum 12-year prison term. Chvalovsky's detention was the latest in a string of financial-crime arrests that has marred the image of Czech soccer. "People who do business with the intention of cheating still remain in soccer," says Milan Luhovy, a former national league striker. "Chvalovsky and the people around him have no character at all." Problems began in 1995, when FK Svarc Benesov owner Miroslav Svarc claimed publicly that bribery was commonplace in Czech soccer. That same year, Svarc withdrew his financial support for the team, leaving it without assets. He eventually faced a civil suit on fraud charges related to a construction firm he owned. The Svarc case set something of a precedent, with several owners tallying up massive debts and then abruptly pulling out, usually leaving behind floundering clubs. Former Sparta Praha club President Petr Mach, who quit soccer in 1996, received a five-year sentence in January for tax evasion in connection with various businesses he had stakes in. Under his leadership, Sparta racked up 600 million Kc in debts. Viktoria Zizkov owner Vratislav Cekan stepped down only months before Mach. Although he borrowed more than 800 million Kc from the National Property Fund, only an estimated 150 million Kc went into his team, which was broke when he departed. Chvalovsky's arrest, given his position atop Czech soccer, is more grave. Authorities said they had been investigating him for three years. Police first arrested Chvalovsky at Prague's Ruzyne airport in February as he prepared to fly to Macedonia with the national team. He was later released on bail of 10 million Kc, despite prosecutors' fears that he might flee the country. A week before his latest arrest, Chvalovsky obtained court permission to spend three days in Switzerland, where he was allegedly drumming up funds to repay his debts. Now, Chvalovsky's future looks increasingly bleak. Czech Soccer Association spokesman Jaroslav Kolar has already announced that the association will consider replacing him as early as April. But Chvalovsky publicly declares he wishes to "concentrate on what I do best -- football," and put the allegations behind him. Investigators say that may be exceedingly difficult. The Chvalovsky file Frantisek Chvalovsky Age: 46 Business interests: Chvalovsky has been involved in meat processing, beer, real estate and sports equipment. He is active in more than 20 companies. Background: From Blsany, he graduated from Prague's School of Economics. His career took off in 1990 when he was elected chairman of the newly created Czech Soccer Association. Since 1996, he has been a member of the European Football Association (UEFA) executive board. His current term would end in 2002. The writers may be reached at news@praguepost.cz