The Football Association of Malaysia (FAM) has had nearly US$2 million dollars in legal costs and risks losing sponsorships following the naturalization scandal involving seven players found to have used falsified documentation.
According to Malaysia’s New Straits Times (NST), the total amount FAM has had to spend so far stems from two main sources: a fine of 350,000 Swiss francs ($444,000) imposed by FIFA, and an estimated 4.2 million ringgit ($1 million) in legal expenses, including fees for lawyers and consultants, as well as the costs of filing appeals to FIFA and the Court of Arbitration for Sport (CAS).
The sum is roughly equivalent to what FAM earned from sponsorships for the national team in 2024, further darkening the federation’s already bleak financial outlook.
The Suspended players, Joao Figueiredo, Jon Irazabal, Hector Hevel, Imanol Machuca, Facundo Garces, Rodrigo Holgado, and Gabriel Palmero, may now pursue compensation claims against FAM for loss of income, which could add millions to the federation’s liabilities, the NST and Harian Metro reported.
The 12-month ban from all football-related activities, effective from Sept. 26, has severely affected the players’ incomes, as clubs have terminated contracts or stopped paying salaries.
Transfermarkt has recently downgraded the market value of all seven players to zero.
FAM’s sponsors are closely monitoring developments. Bank Islam has temporarily frozen funding and may terminate its partnership altogether if FAM’s appeal to CAS proves unsuccessful.
Earlier, FAM was allocated 15 million ringgit ($3.7 million) by the Malaysian government.
However, Minister of Youth and Sports Hannah Yeoh stressed that the funds are strictly earmarked for activities related to the 2027 Asian Cup qualifiers. She also warned that FAM could lose government funding altogether if it fails to implement reforms to improve governance.
Malaysian football analyst Pekan Ramli believes the financial damage is still easier to repair than the blow to the country’s reputation.
“FAM will need a decade or two to restore the country’s image on the international stage,” Ramli told NST. “Sponsors could withdraw, fan support may decline due to integrity issues, and there will be doubts about future naturalization programs.”
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Malaysia football players prepare for a training session on Nov. 17, 2025, a day before they beat Nepal 1-0 at the 2027 Asian Cup qualifiers. Photo by MalaysiaNT |
The financial crisis has been exacerbated by competition bans. At present, FIFA has ruled Malaysia to 0-3 losses in three international friendlies played in 2025 for fielding ineligible players. The overturned results caused Malaysia to drop five places in the FIFA rankings in December.
If the Asian Football Confederation impose similar punishment and hand Malaysia 0-3 losses against Vietnam and Nepal in the final round of the 2027 Asian Cup qualifiers, the points deduction would be even more severe.
Beyond missing out on qualification for the 2027 Asian Cup, Malaysia could face a ban from the 2031 edition imposed by the AFC.
In addition, the team risks being sidelined for the inaugural AFC Nations League season. A flagship project of the AFC and inspired by the UEFA Nations League model, the AFC Nations League is designed to give lower-ranked national teams more competitive, high-quality matches instead of relying solely on friendlies.
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Key developments in FIFA’s sanction against Malaysia – March 19, 2025: FAM submitted a request to FIFA to verify the eligibility of Hector Hevel, along with a birth certificate stating that the player’s grandfather was born in Melaka, Malaysia. – March 20, 2025: FAM submitted a further request to verify the eligibility of Gabriel Palmero, supported by a birth certificate indicating that his grandmother was born in Melaka, Malaysia. – March 24, 2025: FIFA responded to FAM that, based on the documents received, Hector Hevel “appeared to be eligible” to play for the Malaysian national team. – June 6, 2025: FAM submitted additional documentation for five other players, including Facundo Garces, Rodrigo Holgado, Imanol Machuca, Joao Figueiredo, and Jon Irazabal. Each file included a birth certificate of a grandparent stating they were born in a Malaysian state (Penang, George Town, Johor, or Sarawak). – June 6 and 9, 2025: FIFA sent written responses confirming that, according to the documents provided by FAM, the remaining five players also “appeared to be eligible.” – June 10, 2025: All seven naturalized players featured in the Asian Cup 2027 qualifier against Vietnam at Bukit Jalil Stadium. Malaysia won 4-0, with Figueiredo and Holgado scoring. – June 11, 2025: FIFA received an official complaint from a member association questioning the validity of the players’ naturalization documents, particularly the unusually rapid completion process and debut timeline. – Aug. 22 and 28, 2025: Following an investigation, FIFA’s Disciplinary Committee (FDC) formally opened disciplinary proceedings against FAM and the seven players, after determining that the original birth certificates showed their grandparents were born outside Malaysia, in violation of Article 22 of the FIFA Disciplinary Code. – Aug. 22, 2025: FAM president Joehari Ayub submitted his resignation, citing health reasons. – Sept. 22, 2025: FAM and the players submitted their official responses, arguing that they had acted in good faith based on documents certified by Malaysian authorities. – Sept. 25, 2025: Jorge Palacio, vice-chairman of the FIFA Disciplinary Committee, issued the final ruling on the case. – Sept. 26, 2025: The decision and sanctions were formally communicated to FAM and the players concerned. – Oct. 6, 2025: FIFA sent a detailed 19-page document to FAM and relevant parties, outlining the legal basis, investigative process, and reasoning behind the sanctions. – Oct. 15, 2025: Malaysia filed an appeal against FIFA’s sanctions. – Nov. 3, 2025: FIFA’s Appeals Committee announced the outcome of the appeal. – Dec. 8, 2025: Malaysia lodged a case against FIFA with CAS. – Dec. 18, 2025: Malaysia submitted its full, detailed legal arguments to CAS. |
