Petrus Damaseb of Namibia, deputy charman of the FIFA ethics committee holds a booklet of the FIFA Disciplianry Code as he addresses a news conference after a hearing at the FIFA headquarters in Zurich, May 29, 2011. [Photo/Agencies]

Olympic crisis 

Valcke agreed that FIFA was facing "a watershed moment," drawing comparisons with the International Olympic Committee's crisis when IOC delegates were found guilty of taking bribes for votes to award the 2002 Winter Games to Salt Lake City.

This crisis, whose tentacles spread into the very heart of the senior governance of the world's most popular and richest sport, has arguably greater implications.

Unlike fairly anonymous IOC officials, Blatter is the most famous sports politician in the world, has worked for FIFA for more than 35 years and been president for the last 13.

During his time in charge, FIFA has grown rich through sales of TV rights, sponsorship and merchandising opportunities and currently boasts reserves of over $1 billion.

While FIFA's financial situation is sound, recent scandals have provoked widespread calls for reform of the powerful executive committee at the organisation's heart.

Last November, two other exco members, Reynald Temarii and Amos Adamu, were banned over the cash-for-votes allegations concerning the hosting of the 2018 and 2022 World Cups.

Asked if this was the lowest point in FIFA's 107-year history, Valcke replied: "The reputation of FIFA? Maybe it's not at the highest, that's clear. It's sad.

"Definitely, there is a need for change. I'm not the FIFA president so he is the one who must decide what he wants to do and FIFA must make the necessary changes so that the institution has systems in place to avoid something like this happening again. This is the pattern of the work which we have to do very quickly in the next few months."

He also dramatically produced an e-mail from the president of the Puerto Rico FA who stated that he had been offered a $40,000 inducement, which he accepted, reported and was sending to FIFA.

In a statement issued after the news conference, Blatter said: "The FIFA Ethics Committee has reached its decisions. I do not wish to comment in detail but simply to say that I regret what has happened in the last few days and weeks.

"FIFA's image has suffered a great deal as a result, much to the disappointment of FIFA itself and all football fans."

Blatter was interrogated at Bin Hammam's request because he may have known about payments, FIFA said, but Damaseb said nothing wrong had been found.