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World Cup sponsor Visa warns FIFA it could jump ship
(REUTERS/Kai Pfaffenbach) Argentina and Germany's 2014 World Cup final in Rio de Janeiro on July 13.
If FIFA wasn't already feeling the heat after Wednesday's arrests, now that its commercial partners have come out in criticism, things are getting seriously uncomfortable for the organization.
Visa just issued the most critical statement yet from a World Cup sponsor in reaction to the arrests of several FIFA officials Wednesday on racketeering and corruption charges.
In a statement released on its corporate website, Visa — which has a contract with FIFA to sponsor the World Cup until 2022, at an estimated value of $185 million (£120 million) over a four-year tournament period, according to the sponsorship agency Brand Rapport — threatened to "reassess" its sponsorship if soccer's governing body did not make changes.
The full statement reads:
Our disappointment and concern with FIFA in light of today's developments is profound. 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.
Visa became a sponsor of FIFA because the World Cup is one of the few truly global sporting events with the power to unite people from around the world through a common love of football. Our sponsorship has always focused on supporting the teams, enabling a great fan experience, and inspiring communities to come together and celebrate the spirit of competition and personal achievement — and it is important that FIFA makes changes now, so that the focus remain on these going forward. Should FIFA fail to do so, we have informed them that we will reassess our sponsorship.
Other sponsors have reacted to the corruption scandal engulfing FIFA in light of Wednesday's news, but Visa's statement is the most strongly worded and the only statement to suggest it could pull its support.
Each sponsor has huge commercial contracts worth tens of million of dollars a year with FIFA. Even one sponsor pulling out is an issue. And, given the scandal, other brands might not be as keen to hop in to replace fleeing sponsors as they may have once been.
That said, withdrawing funding before the end of a contract would be tricky unless a sponsor's lawyers could find a suitable exit clause (such as one that would prove involvement with FIFA could fundamentally negatively affect their business) in the contract for them to do so.
Adidas was first to issue a statement: "The Adidas Group is fully committed to creating a culture that promotes the highest standards of ethics and compliance, and we expect the same from our partners. Following today's news, we can therefore only encourage FIFA to continue to establish and follow transparent compliance standards in everything they do. Adidas is the world's leading football brand, and we will continue to support football on all levels."
Coca-Cola: "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. FIFA has stated that it is responding to all requests for information, and we are confident it will continue to cooperate fully with the authorities."
McDonald's: "McDonald’s takes matters of ethics and corruption very seriously, and the news from the US Department of Justice is extremely concerning. We are in contact with FIFA on this matter. We will continue to monitor the situation very closely."
Budweiser: "We expect all of our partners to maintain strong ethical standards and operate with transparency," the brewer told Reuters.
Hyundai: "As a company that places the highest priority on ethical standards and transparency, Hyundai Motor is extremely concerned about the legal proceedings being taken against certain FIFA executives and will continue to monitor the situation closely."
Gazprom: Told Bloomberg Wednesday's news "doesn't influence" the Moscow-based gas company's sponsorship agreement, which is in place until the end of the 2018 World Cup in Russia.
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