Sponsors of FIFA have welcomed Sepp Blatter's decision to step down as FIFA president, "describing the watershed moment as a 'first big step' on the road to reform" at the governing body, according to James Riach of the London GUARDIAN. Blatter announced his resignation in Zurich on Tuesday. FIFA sponsors have "reacted positively" to the news, stating that Blatter's departure would "hopefully be just the beginning of reform after recent and long-standing allegations of corruption." Some sponsors including Visa had previously said that they were "analysing their relationship" with FIFA after
14 indictments were issued against officials and arrests made last week. Visa said that Blatter's departure was "a significant first step towards rebuilding public trust" while McDonald's said that "the allegations of corruption and questionable ethics within Fifa have overshadowed the game" (
GUARDIAN, 6/3). In London, Isabelle Fraser wrote Visa was "encouraged by the recognition by Fifa that extensive and fundamental reform is needed." But it "added caution and urged further reform." Visa: "It is our expectation that Fifa will take swift and immediate steps towards addressing the issues within its organization to quickly rebuild a culture with strong ethical practices." Other brands were "more positive." Coca-Cola said that "this decision will help Fifa transform itself rapidly into a much-needed 21st century structure and institution," adding that it should "take concrete actions to fully address all of the issues that have been raised" (
TELEGRAPH, 6/3). Also in London, Kashmira Gander wrote McDonald's, another of the World Cup's "most important sponsors, used less polarised terms to address Blatter's decision." McDonald's said in a statement, "The allegations of corruption and questionable ethics within FIFA have overshadowed the game and taken away from the sport, players and fans. We're hopeful that the changes being implemented within FIFA will be a big first step in positively reforming the organization and gaining back trust from fans worldwide" (
INDEPENDENT, 6/3).
SOLUTIONS: REUTERS' Athavaley & Thomasson wrote branding experts said that the news "eases concerns of sponsors, who have been in a tough spot: On one hand, they have signed long-term agreements" with FIFA, and the World Cup "presents a lucrative opportunity." But the recent corruption investigation could "taint their brands and reputation with consumers." However, the news does "make it easier for companies to stick with their sponsorships." Consulting firm BottomLine Marketing CEO Miro Copic said, "They're not going to be as stressed because I think one of the major linchpins and major challenges was Sepp Blatter himself. There are marketing teams out there who are just breathing a sigh of relief." But the resignation could also be a "precursor to more sponsor demands." N.Y. consulting firm Tenet Partners Chair James Gregory said, "I think the sponsors are going to do a lot more. They are going to have to make sure this doesn't happen again." Others said that the resignation does not necessarily "signal broader change." Susan Liautaud, a lecturer in public policy at Stanford University, said, "There will be a new leader, which is positive, but it is very difficult for one person to change the culture of an organization." Experts said that, still, Blatter stepping down "removes one major obstacle." Former Visa Dir of Public Relations Andrew Woodward said, "Problem solved. This was the major hurdle and changes everything" (REUTERS, 6/2). BLOOMBERG's Aaron Ricadela wrote the announcements step up the rhetoric from companies that have often been "slow to criticize the organization." NPD Group sports industry analyst Matt Powell said, "I do not recall any time sponsors have really stood up to FIFA. This tarnishes the FIFA brand" (BLOOMBERG, 6/2).
THE SPONSOR EFFECT: AD AGE reported it is "not clear" if sponsors played a role in Blatter's decision to resign (AD AGE, 6/2). ESPN's Taylor Twellman wondered how many sponsors "played a part" in Blatter's decision. Twellman: "I wonder once Sepp Blatter was ... re-elected, I wonder if those sponsors came together. There was so much a threat of pulling out from those sponsorships if not for the resignation of Sepp Blatter" (ESPN, 6/2).
