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Scandal Creates a Tricky Spot for FIFA Sponsors World Cup Sponsors’ Situation Is Complex
(about 9 hours later)
Hours after the Justice Department indicted nine FIFA officials on Wednesday on corruption charges, Visa vowed to “reassess” its World Cup sponsorship if soccer’s world governing body did not change its ways. World Cup sponsors demonstrated various levels of caution in their responses this week to the United States Justice Department’s indictment of nine FIFA officials on corruption charges.
“Our disappointment and concern with FIFA in light of today’s developments is profound,” the company said in a statement. “As a sponsor we expect FIFA to take swift and immediate steps to address these issues within its organization. This starts with rebuilding a culture with strong ethical practices in order to restore the reputation of the games for fans everywhere.” The sponsors did not threaten to drop their deals, but Visa, the most indignant, said that it would “reassess our sponsorship” if FIFA did not change its ways.
Visa’s response was the most indignant of the World Cup sponsors who issued statements after the indictments. The others focused on broad, nonspecific concerns about ethics and the allegations, with little elaboration. None, including Visa, criticized any of the individuals indicated or mentioned Sepp Blatter, the powerful president of FIFA, who was not charged. None threatened to drop their World Cup deals. The sponsors did not criticize any of the individuals indicted. They did not mention Sepp Blatter, the powerful president of FIFA, who was not charged. Instead, they focused largely on broad, nonspecific concerns about ethics and the allegations, with little elaboration.
But Visa’s statement stood out among the sponsors who made comments.
“Our disappointment and concern with FIFA in light of today’s developments is profound,” the company said Wednesday. “As a sponsor we expect FIFA to take swift and immediate steps to address these issues within its organization.”
Coca-Cola said: “This lengthy controversy has tarnished the mission and ideals of the FIFA World Cup, and we have repeatedly expressed our concerns about these serious allegations. We expect FIFA to continue to address these issues thoroughly.”Coca-Cola said: “This lengthy controversy has tarnished the mission and ideals of the FIFA World Cup, and we have repeatedly expressed our concerns about these serious allegations. We expect FIFA to continue to address these issues thoroughly.”
McDonald’s said that it “takes matters of ethics and corruption very seriously,” while Adidas said that it was “fully committed to creating a culture that promotes the highest standards of ethics and compliance.” McDonald’s said that it “takes matters of ethics and corruption very seriously,” and Adidas said it was “fully committed to creating a culture that promotes the highest standards of ethics and compliance.”
Adidas added, “We expect the same from our partners.”Adidas added, “We expect the same from our partners.”
Jim Andrews, a senior vice president of IEG, a sponsorship research and valuation firm, said that sponsors who were otherwise satisfied with their association with the World Cup as an event would be under pressure to dissociate themselves from FIFA, which has been the subject of corruption allegations for years.Jim Andrews, a senior vice president of IEG, a sponsorship research and valuation firm, said that sponsors who were otherwise satisfied with their association with the World Cup as an event would be under pressure to dissociate themselves from FIFA, which has been the subject of corruption allegations for years.
“They know that fans of the sport make a very distinct separation between their love of the World Cup tournament, their national teams and favorite players, and in some cases, their hatred for FIFA,” Andrews said. “In an ideal world, sponsors would be able to do the same thing, but it’s not as easy. A lot of groups will demand that they take a stance against the type of corruption that’s charged here.” “They know that fans of the sport make a very distinct separation between their love of the World Cup tournament, their national teams and favorite players, and in some cases, their hatred for FIFA,” Mr. Andrews said. “In an ideal world, sponsors would be able to do the same thing, but it’s not as easy. A lot of groups will demand that they take a stance against the type of corruption that’s charged here.”
Phil de Picciotto, president of Octagon Worldwide, a sports marketing company, said that sponsors exhibit caution when asked to respond to issues like the FIFA indictments because they have not had time to speak to their stakeholders — business partners, customers or shareholders. Phil de Picciotto, president of Octagon Worldwide, a sports marketing company, said that sponsors were cautious when asked to respond immediately to issues like the FIFA indictments because they have not had time to speak to their stakeholders — business partners, customers or shareholders.
“Stakeholders expect two things,” de Picciotto said. “One, that you will respond quickly to show that you’re on top of things and paying attention, and two, to make a decision about the steps you will take. Those two elements don’t have to happen at the same time, which is why you find caution in the first element.” “Stakeholders expect two things,” Mr. de Picciotto said. “One, that you will respond quickly to show that you’re on top of things and paying attention, and two, to make a decision about the steps you will take. Those two elements don’t have to happen at the same time, which is why you find caution in the first element.”
De Picciotto suggested that sponsors should not have been surprised by the indictments, given the prolonged speculation about corruption within FIFA. Mr. de Picciotto suggested that sponsors should not have been surprised by the indictments, given the prolonged speculation about corruption within FIFA.
“It’s such a powerful property,” he said. “It’s had a lot of consistency over the decades about how it’s been managed and by whom.”“It’s such a powerful property,” he said. “It’s had a lot of consistency over the decades about how it’s been managed and by whom.”
Andrews said the World Cup was such a potent asset that companies would have to think carefully about exercising any possible option to escape their contracts. Mr. Andrews said that the World Cup was such a potent asset that companies would have to think carefully about exercising any possible option to escape their contracts.
“If you walk away from this incredibly valuable marketing opportunity,” he said, “you’re allowing your competitor to take it.”“If you walk away from this incredibly valuable marketing opportunity,” he said, “you’re allowing your competitor to take it.”