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Marketing and Sponsorship

FIFA Sponsors May Want To Wait Out Investigations Before Denouncing Blatter

The furor surrounding FIFA President Sep Blatter and investigations into corruption at the organizing body for the World Cup is “one ball that will not be kicked into the long grass,” according to Nick Fox of MANAGEMENT TODAY. As “the scandal snowballs” various stakeholders in the tournament now “risk collateral damage by association.” In particular, “the top tier sponsors of the tournament are vulnerable.” Last week AB InBev, Coca-Cola, McDonald’s and Visa “called openly for Blatter to step down immediately” rather than hold on to his position. Thursday FIFA suspended Blatter for 90 days. Sponsorship, especially in sport, “presents challenges.” The right vehicle can give “unprecedented access to a huge audience and tap into the enthusiasm of fans,” but there can be “taint by association” if anything unpleasant occurs. But the World Cup is in a “league of its own in delivering a massive global audience of the young, engaged and passionate and the problems are consequently that much bigger.” One could argue that the sponsors “should not be making calls for Blatter’s resignation and that FIFA should not be seen to bow to them.” This may “seem counter-intuitive when corruption appears rife,” but as a principle “no organizing body should accede to pressure from sponsors.” In sport, such bodies exist “to administer the tournaments and serve the fans -- without whom the vehicle would have no value.” No investigations have been concluded, “Blatter has not been found guilty.” What unites the “four sponsors calling for Blatter’s scalp” is that they are American businesses and might have had “their hands held close to the flame by U.S. legislation in regard to doing business with disreputable companies.” Brands “have fans too” and McDonald’s, Coca-Cola and the rest are “jeopardizing their standing among their global target audience with the criticism of Blatter and FIFA.” When looked at “through U.S. (and U.K.) eyes they are taking the right action.” But many nations, “especially developing nations in Africa and Asia,” see FIFA as a “benevolent entity and operate to different business standards and moral codes” (MANAGEMENT TODAY, 10/8). 

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