FIFA is "struggling" to secure new commercial partners in time for next year’s World Cup in Russia, with int'l and local groups "balking at the financial cost and reputational risk" of being associated with one of the world’s most-watched sporting events, according to Ahmed & Seddon of the FINANCIAL TIMES. The difficulties come as FIFA, which is trying to "emerge from a corruption scandal," and Russia, a "pariah" for many in the west since it annexed Crimea in '14, "battle with image problems." Sponsorship and broadcasting deals help cover the $2B operational costs of running the event, while the host nation "picks up the tab" for infrastructure such as building stadiums. Local companies have been the "slowest to come on board." Only one Russian sponsor, Alfa-Bank, has signed up as a “National Supporter.” Russian Int'l Olympic University professor Andrei Malgin said that two years of recession "made Russian companies wary of the costs of sponsorship." Malgin: "They’re essentially worried that they’ll pay the money and won’t see any marketing benefits." Russian state-run firms are also "conspicuous by their absence after spending often exorbitant sums on the 2014 Sochi Olympics." Former IOC Marketing Head Michael Payne said, "No question that in the latter era of the Blatter period, the FIFA brand became toxic. It would take a very brave chief marketing officer to say let’s take FIFA and the World Cup. But ... the actual product and sport of football ... remains one of the most -- if not the most -- entertaining sports entertainment platforms in the world (FT, 4/19).
