Inside Los Galácticos: Corruption Scandal Ripping Peruvian Football Apart
Many football executives and club owners in Peru allegedly manipulated TV rights, sponsorships, and funds for grassroots development to loot millions.
In the early hours of November 7, 2024, Peruvian police descended on the neighborhood of San Borja in the capital, Lima. Their target: the home of Agustín Lozano, the president of the Peruvian Football Federation (FPF). Officers rifled through his property while Lozano was led away in handcuffs.
Lozano’s rap sheet was soon released. He stood accused of being the ringleader of a criminal organization ominously dubbed Los Galácticos in reference to the legendary Real Madrid team of the early 2000s.
According to prosecutors, this group systematically penetrated the upper echelons of Peruvian football, to carry out embezzlement, money laundering, and fraud. These allegations revolve around a scheme to siphon millions from football revenues, including funds meant for grassroots development, TV broadcasting rights, and sponsorship deals.
While Lozano and other arrested officials face a number of charges, one of the most damning accusations involves a controversial television rights deal with Chilean company 1190 Sports.
Investigators allege that Lozano manipulated the bidding process, ensuring 1190 Sports secured the rights under highly favorable terms. In return, Lozano and his allies reportedly pocketed substantial kickbacks. If proven, this deal did not just benefit Lozano personally, it also took away TV rights funds from football clubs already struggling to make ends meet.
But Lozano’s alleged misconduct doesn’t end there. The investigation revealed a web of financial irregularities, including unexplained salary raises. After a thorough review of FPF financial records and bank statements, prosecutors discovered a staggering increase in Agustín Lozano’s salary.
Specifically, they found that Lozano’s official monthly income increased by 5,500% in just three months. In September 2019, Lozano received his first salary as FPF president at a modest 9,105 soles (about $2,400). In October 2019, this had risen to 29,214 soles, and by November, he pocketed more than 600,000 soles ($160,000). These amounts were further corroborated by bank transfers and deposit records tied directly to Lozano’s personal accounts.
The Galácticos case in Peru is one of the most significant anti-corruption cases in world football at the moment. It may seem out of the way, but it may set an example about how criminal networks can take over entire leagues. The Sports and Crime Briefing will continue to bring you these stories from around the world. Please consider becoming a paid subscriber.
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Where Did the Money Go?
Investigators believe Lozano used this sudden wealth to expand his personal empire. He reportedly acquired luxury properties, including a hacienda, a boutique hotel, and private schools, all while maintaining a lifestyle far beyond what his public role would justify. Some of the funds were also allegedly funneled into maintaining political alliances, ensuring that regional football league presidents—who hold significant voting power within the FPF—remained loyal to him.
Moreover, Lozano is suspected of diverting some of this money to support Los Galácticos, the criminal organization within the FPF which he allegedly led. This group used the FPF as a vehicle to launder money, distributing funds through sham contracts and inflated expenses, all while enriching its members at the expense of Peruvian football’s future.
The 1190 Sports Deal: A Web of Corruption
In 2022, the FPF signed a contract with Chilean company 1190 Sports, granting them exclusive broadcasting rights to Liga 1 matches.
On the surface, the deal promised modernization and greater exposure for Peruvian football, but prosecutors allege the bidding process was a sham.For them, Lozano and his inner circle orchestrated a scenario where 1190 Sports faced little competition, ensuring the contract was awarded under terms that disproportionately favored the company and its backers. Authorities raided 1190 Sports’ offices in Lima. In exchange, Lozano and key FPF officials received substantial kickbacks, funneled through intermediaries and offshore accounts.
The company issued a statement, vowing that it had behaved “with total integrity and operated transparently and responsibly.”
The company manages international broadcasting rights television rights for several top leagues in Latin America, including Argentina’s Primera División and Brazil’s Serie A Championship, as well as Chile’s national team.
Similarly, the FPF’s contracts with Prisma, another Chilean company which searched for potential buyers of broadcasting rights, are alleged to have been used as vehicles for laundering money and diverting funds under the guise of legitimate services.
A Broader Pattern of Exploitation
The 1190 Sports deal is just one example of how Los Galácticos operated. Prosecutors uncovered other schemes where the FPF leadership diverted funds from sponsorship deals and international match revenues. Contracts with companies for everything from stadium renovations to youth development programs were inflated, with profits siphoned off into personal accounts.
One striking example involved equipment procurement for the national team. Lozano allegedly approved inflated contracts with suppliers, who then kicked back a portion of the proceeds to Los Galácticos. Meanwhile, the national team was left with substandard facilities and outdated gear, harming its competitiveness.
Impact on Peruvian Football
These corrupt practices had far-reaching consequences. A number of clubs spoke out agaisnt the 1190 Sports deal, like Alianza Lima and Universitario de Deportes, and were then allegedly penalized through withheld funding and regulatory harassment. Some eventually seemed to capitulate and accept the deal.
Both Alianza Lima and Universitario de Deportes had been vocal in their opposition to the broadcasting arrangements proposed by the FPF and 1190 Sports. In October 2022, these clubs, along with others, expressed concerns about the transparency and fairness of the bidding process for television rights.
It seems some were eventually persuaded to tow the line.
In August 2023, Alianza Lima entered into a contract with 1190 Sports for the transmission of their home matches in the Liga 1. This agreement was reached after a period of negotiations and legal considerations, during which Alianza Lima had previously expressed reservations about the terms proposed by 1190 Sports. The finalized contract stipulated that Alianza Lima would receive approximately 8 million dollars for the rights to broadcast their matches.
Out with the Old, In with the Old
But any optimism that these arrests would lead to change at the top of the FPF may be short-lived. Following the arrest of Agustín Lozano, the Peruvian Football Federation (FPF) appointed Arturo Ríos, president of Club Atlético Grau, as its interim president.
But Ríos, who was the FPF vice president, is also implicated in corruption. Authorities recently conducted a raid on his home in Piura, where they seized assets believed to be linked to financial irregularities within the federation. While Ríos has not been formally charged, prosecutors allege he benefited from the schemes orchestrated under Lozano’s leadership, including the controversial television rights deal with 1190 Sports.
Key Figures in the Los Galácticos Investigation
Peruvian prosecutors are investigating 14 individuals allegedly involved in Los Galácticos, a criminal network that infiltrated the Peruvian Football Federation (FPF) to embezzle funds and manipulate contracts. Below are the key figures and their alleged roles:
Agustín Lozano (President, FPF): AAs the mastermind, Lozano reportedly received the lion’s share of the bribes. This influx of cash was allegedly used to bolster his personal wealth and sustain his political dominance within the FPF. His influence over the regional football leagues, which control votes in FPF elections, was fortified through financial incentives, ensuring his continued reign.
Joel Raffo (President, Sporting Cristal): Raffo, a central figure in the TV rights negotiations, allegedly played a key role in pushing the deal forward. In return, he is said to have received financial rewards and promises of favorable treatment for his club. Sporting Cristal allegedly benefited from lenient regulatory oversight, giving them an edge in league competitions.
José Carlos Isla Montaño (Treasurer, FPF): Allegedly approved misappropriations, including financial aid, debt forgiveness, and travel expenses for certain clubs. Linked to the approval of the 1190 Sports contract.
Genaro Humberto Miñán Armanza (President, Tumbes Football League): Accused of facilitating unauthorized payments and coordinating directly with 1190 Sports prior to the public tender.
Gisella Karen Mandriotti Nightingale (President, Cantolao Academy): As a staunch Lozano supporter, she helped shield Los Galácticos by obstructing internal investigations and ensuring key votes went their way.Allegedly approved illicit financial transactions and participated in meetings with 1190 Sports. Suspected of aiding in securing questionable contracts like Prisma SpA.
Norma Rosa Alva Vidal (Close Associate of Lozano): Allegedly sold leftover sports equipment and match tickets without authorization, coordinating travel logistics for unauthorized personnel.
Raúl Eduardo Bao García (FPF Board Member): Accused of approving misappropriations and supporting contracts with Prisma and 1190 Sports.
Susan Colchado Baldarrago (Finance Manager, FPF): Allegedly suggested continued misuse of FPF funds for dubious transactions and club transfers.
Freddy Salazar Rondinel (FPF Accountant): Accused of authorizing financial misappropriations under Lozano’s instruction.
Sabrina Giselle Martín Zamalloa (Former General Secretary): Allegedly coerced clubs opposing 1190 Sports and filed fraudulent disciplinary complaints against dissenting teams.
Jean Marcel Robilliard Ibárcena (Former Secretary General): Allegedly managed FPF’s finances and negotiated directly with 1190 Sports, bypassing public tender processes.
Oscar Chiri Gutiérrez (Former Secretary General, FPF): Accused of managing contracts with Prisma and other entities involved in laundering FPF funds.
Franklin Aly Chuquizuta Alvarado (FPF Board Member): Allegedly approved fraudulent financial transactions and confidential agreements with Prisma .
Juan Francisco Quispe Cáceres (FPF Board Member): Accused of signing off on unauthorized fund transfers and confidential deals with Prisma.