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Marketing and Sponsorship

McDonald's Discusses Withdrawal From FIFA Sponsorship Due To Ethical Concerns

Senior McDonald's officials "have discussed a possible withdrawal from their sponsorship of FIFA due to ethical concerns" with the World Cup in Russia less than a year away, according to Adam Crafton of the London DAILY MAIL. McDonald's has sponsored the World Cup since '94 but has been "increasingly critical of the governing body's approach." In Oct. '15, McDonald's called for former President Sepp Blatter to step down and also "made clear to the new leadership" that it expected "serious improvements." The topic reportedly "continues to be discussed amid concerns that sponsors could be tarnished by ongoing investigations into corruption." McDonald's insisted on Saturday that it remains committed as a sponsor. But one source close to internal discussions indicated that there is "around a 40 per cent chance" that the company could "pull the plug" ahead of the 2018 World Cup. The Russia World Cup has been "dogged by controversy." According to Forbes, McDonald's pays FIFA between $10M and $25M a year. The existing deal runs until '22 and it is believed that McDonald's would have to pay more than $100M to break its agreement. McDonald's "declined to comment over the financial implications." However, its concern is "echoed" by U.K. Digital, Culture, Media & Sport Select Committee Chair Damian Collins, who said, "It is unsurprising that sponsors of the FIFA World Cup are increasingly nervous about being associated with the organization. If FIFA is to regain the confidence of sponsors and fans alike, it needs to undertake reforms. Blatter may have gone, but the taint of the Blatter years remains." In a statement, McDonald's insisted that it "will continue to hold FIFA accountable for meaningful reform." It added, "There is no change to our sponsorship plans for the FIFA World Cup in Russia in 2018" (DAILY MAIL, 7/8).

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