FIFA do tend to punish referees who make big errors in big games. Graham Poll was sent home from the 2006 WC (and retired as a result) following the infamous three yellow cards, and the referee that screwed Italy in South Korea was similarly dispatched.
I wouldn't buy into the conspiracy theories, but I wouldn't be surprised if this referee's appointment was an expression of authority on the part of FIFA/Blatter. He certainly wasn't appointed because he's a great referee.
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