FIFA is an organisation of Sepp and by his underlings and for unlimited junkets. When you understand that FIFA has more members that the United Nations, you can see how this happened. It is nothing but a kleptocracy that exists for itself.
FIFA lives off the fees that are generated by the 'events' that are granted it's imprimatur.
So they have to maximize the return with many teams and many events.
The first clue is to look at the United Kingdom. FIFA divides this Nation into four separate entities for membership purposes thus increasing the revenues by 400 %.
Scotland (Act of Union 1707), Wales (Laws in Wales Acts 1536-1543) and Northern Ireland (1800 Act of Union) are for every other purpose known to man or nations one. But not to FIFA. And they play into the old grievances in the bargain. In Scotland, come World Cup time it's "..anyone but England..".
There's no land too small or obscure that isn't a FIFA member or a Confederation member or a wannabe being talked up in Geneva. Purely for sport mind you. Never mind the 'fees'.
Martinique, Yap, Zanzibar, Sardinia. The list is impressive to any geography crank!
The events that are official FIFA tournaments is truly impressive. On FIFA's site they list 14 tournaments and these are just finals. Think of the thousands and thousands of qualifiers that have to be played just to get to Worlds. Then all the Confederations have their own internal competitions. The number of games that carry the FIFA label is immense. And remember every game sends money to Geneva!
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