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Marketing and Sponsorship

FIFA Struggling To Sell World Cup Sponsorships Allotted For Local Companies

Two years from the start of the 2014 World Cup, FIFA is "encountering difficulties selling the last two sponsorship packages" allotted to Brazilian companies, according to Paulo Passos of UOL.com.br. The struggles stem from the high price that FIFA demands and the "poor image that the event has in Brazil," principally because of delays in construction and the corruption crisis that hit FIFA. The packages have been available in the market since at least '10. FIFA offers three different sponsorship packages and the cheapest, "with costs estimated between R$8M ($4M) and R$16M ($8M) per year," are exclusively for Brazilian companies. An exec for an advertising agency who asked to remain anonymous said, "In the market, the image of the World Cup is negative with all the delays in stadium construction and the corruption case. I do believe that as we get closer to the event this will change, but today it's not worth the high price to be associated with an image that has so much uncertainty." For the 2010 World Cup in South Africa, it was estimated that FIFA generated R$3.2B ($1.6B) through sponsorships. Similarly to what is happening with Brazil now, in South Africa, the entity "encountered difficulties in commercializing that packages to local companies" (UOL.com.br, 8/5).

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