Sony has decided to "end its sponsorship" of the FIFA World Cup "amid growing concerns about the transparency of the bidding process for the next two tournaments," according to a source cited by Eric Pfanner of the WALL STREET JOURNAL. Sony’s contract as one of six official partners of FIFA was "set to expire at the end of this year." The decision not to pursue a renewal makes Sony the "second top-tier sponsor this month, after Emirates Airline, to move to sever ties with FIFA." Sony has not officially announced its decision, but the source said that the company "wouldn't renew its eight-year deal" worth $280M. The source added that one reason for the move is that the company is "focusing on cutting costs as it restructures its electronics division, including the smartphone business, which has featured prominently in Sony’s World Cup-related marketing," but the company was also "concerned about the possible negative implications of further associations with FIFA." Pfanner notes Sony in June called on FIFA to "conduct a thorough investigation of corruption allegations" (WSJ.com, 11/25). REUTERS' Reiji Murai noted sponsors have "put pressure on FIFA to respond robustly to allegations of bribery to secure" the '18 World Cup for Russia and the '22 tournament for Qatar (REUTERS, 11/25).
LOSING SUPPORT: In London, Calvert, Blake & Boswell reported Coca-Cola has become the first big World Cup sponsor to "attack
FIFA over the 'disappointing' handling of its botched corruption investigation." The brand last weekend "called for transparency amid the deepening crisis over the organisation’s attempts to whitewash a report on corruption in the bidding" for the '18 and '22 World Cups. A Coca-Cola spokesperson said, "Anything that detracts from the mission and ideals of the
FIFA World Cup is a concern to us." Calvert, Blake & Boswell noted two other "big corporate sponsors" -- adidas and McDonald’s -- also "expressed disquiet about
FIFA’s disastrous handling of the controversy last week." adidas said that it "intended to discuss the report with
FIFA directly." McDonald’s said it was “monitoring the situation” (
LONDON TIMES, 11/23). BUSINESS INSIDER's Lara O'Reilly wrote it is "extremely unusual for sponsors to publicly come out against the media they sponsor." But in recent months, sponsors including adidas, Hyundai, Visa, Sony and Budweiser have all "released statements effectively denouncing the negative tenor surrounding
FIFA's decision to award" the '22 World Cup to Qatar. It shows "just how tense the situation is at
FIFA right now and how poisonous association with the football body is becoming." O'Reilly noted Coca-Cola has "sponsored the tournament" since '74 (
BUSINESSINSIDER.com, 11/24).
