jno and jth, it could be a "Thank you for awarding us the World Cup", which like a bribe after the event. It smacks of the corruption that pervades FIFA. Expensive gifts are what their officials expect in return for their largesse.
I do think the make and appearance of the watch is material if you're going to accept Dyke's explanation that he didn't know its value. He's implying that he thought the value would be trivially small and not embarrassingly large. Most corporations have guidelines about the value of gifts that can be given or received. For example, Google's says:
------------------------------
Generally, acceptance of inexpensive “token” non-cash gifts is permissible. In addition, infrequent and moderate business meals and entertainment with clients and infrequent invitations to attend local sporting events and celebratory meals with clients can be appropriate aspects of many Google business relationships, provided that they aren’t excessive and don’t create the appearance of impropriety. Before accepting any gift or courtesy, consult the Non-Government Related Gifts & Client Entertainment Policy, and be aware that you may need to obtain manager approval.
------------------------------
See
https://investor.google.com/corporate/code-of-conduct.html#toc-gifts-and-courtesies - I doubt FIFA's policies are worded this way!