Sepp Blatter warned FIFA's sponsors that "they could not afford to abandon world football’s governing body, given its growing commercial clout -- despite being mired in the worst scandal of its history," according to Moore & Aglionby of the FINANCIAL TIMES. Blatter said, "Partners want to be with FIFA because the World Cup is a showpiece not just for football but for sport in general. There is no sporting event that has so much fame and draws so much attention, especially on television, where millions and billions watch the World Cup." Some of FIFA’s most important sponsors said that "they were reassessing their relationship" with the organization after U.S. and Swiss investigators announced on Wednesday two investigations this week. David Haigh, CEO of Brand Finance, which estimates the value of global brands, said, "The kind of activities that are alleged to have been going on could destroy billions of dollars of brand value [for FIFA’s sponsors]." Blatter, who acknowledged the scandal had "unleashed a storm," was keen to reassure Coca-Cola, in particular, of its importance to FIFA. Blatter: "Without Coca-Cola we would not be standing here today" (
FT, 5/29). The BBC reported FIFA sponsors said that "they want swift action to restore the football governing body's reputation" after Blatter was re-elected president. McDonald's, Coco-Cola and adidas "have all issued statements" calling for FIFA to take steps to win back trust. Visa had been "
particularly vociferous," warning that unless the global governing body made "changes now," it would "reassess" its sponsorship. Visa said that "it had nothing further to add." A Coca-Cola statement said, "Fifa must now seize the opportunity to begin winning back the trust it has lost. We urge Fifa to take concrete actions to fully address all of the issues that have been raised, in a swift and transparent manner" (
BBC, 5/29). In N.Y., Vranica, Mickle & Robinson wrote the
scandal "is stoking long-festering concerns among corporate sponsors" about FIFA, "but the marketing power of the world’s most popular game is so great" that severing ties would not be easy. World football "offers an unrivaled platform for brands to get their messages out in emerging markets that are vital sources of growth." Rob Prazmark, who has negotiated FIFA contracts with companies through
his Greenwich, Conn.-based sports-marketing agency 21 Sports &
Entertainment Marketing Group Inc., said, "Companies get squeamish [about doing business with FIFA], but it’s all about the business. Does the upside potential outweigh the downside risk? The answer is yes." Some sports marketing experts said that companies "have likely been
willing to turn a blind eye to FIFA’s problems because the World Cup is
so important for companies needing to reach global audiences." Burns Entertainment & Sports Marketing CEO Bob Williams said, "It’s like the NFL with the Ray Rice situation. The NFL
sponsors walked the tight rope and stuck with the NFL because the
benefit of the NFL is so large. The World Cup is also so important and
they [sponsors] don’t want to see that go" (
WALL STREET JOURNAL, 5/29).
