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Visa, Adidas Among Top FIFA Sponsors Speaking Out Following Corruption Arrests

Visa has told FIFA it could "end its sponsorship if soccer's governing body does not act fast to restore the reputation of the game after senior officials were arrested on corruption charges," according to Athavaley & Thomasson of REUTERS. The credit card company put out a statement that read, "Our disappointment and concern with FIFA in light of today's developments is profound. As a sponsor, we expect FIFA to take swift and immediate steps to address these issues within its organization." Athavaley & Thomasson note the statement was the "strongest so far as sponsors lined up to express concern about the scandal." Visa became a FIFA partner in '07 and "recently extended the relationship" until '22. Fellow sponsors adidas and Coca-Cola also "called on FIFA to increase transparency and resolve the controversy." adidas, Visa and Coca-Cola "all made statements last week pushing FIFA to take seriously the issue of rights for migrant workers in Qatar, responding to reports of human rights abuses" at the '22 World Cup construction sites. Hyundai, the sole Asian FIFA partner for the '18 World Cup in Russia, said it was "extremely concerned" about the charges levied yesterday. A-B InBev and McDonald's said that they were "in contact with FIFA and were monitoring the situation" (REUTERS, 5/28). Visa said that unless FIFA "rebuilds a corporate structure with 'strong ethical practices' at its heart, 'we have informed them that we will reassess our sponsorship'" (AFP, 5/28). Meanwhile, the GLOBE & MAIL's Iain Marlow reports Scotiabank is "taking a close look at its high-profile sponsorship" of CONCACAF. The bank issued a statement that read, "We have zero tolerance for these types of actions from any of our partners.” Scotiabank in '14 signed with CONCACAF as the title sponsor of the Champions League, "as well as an official sponsor of the league’s flagship Gold Cup event for national teams" in '15 and '17 (GLOBE & MAIL, 5/28).

ASSESSING THE DAMAGE
: AD AGE's E.J. Schultz noted marketers affiliated with FIFA "could face more pressure to take a stand." Marketing and media agency rEvolution Exec VP/Consulting & Research Darren Marshall said, "This is now at the point where the sponsors have to take action or their image is going to get tarnished." But Intersport VP/Sponsorship & Event Marketing Rita Battocchio said that brands are "wise to take a wait-and-see approach." She said that because brands have "significant sums of money invested in the soccer deals, 'making any big decisions quickly is the wrong way to go.'" Battocchio noted for World Cup sponsors, "time is on their side," as the next event is still three years away (ADAGE.com, 5/27). Brand marketing consultant Dean Crutchfield said that sponsors "might look to renegotiate their contracts in view of the scandal." Atlanta-based Romance the Brand President Tim Halloran said that companies were "likely to weigh the risk of collateral damage from the scandal against the brand visibility generated by the tournament." Halloran: “Is what I’m trying to leverage out of FIFA, is that still trumping what is going on behind the scenes?” (FINANCIAL TIMES, 5/28). Former IOC Marketing Dir Michael Payne said that sponsors "can start to distance themselves with FIFA, but can still keep their deal." Payne: "This is the first time this is a criminal issue, which takes things to a new level. What they should do is say, 'We are a sponsor of the World Cup and the sport of soccer, we are not a sponsor of FIFA itself'" (ESPNFC.com, 5/27). 

adidas last week called on FIFA to take workers' rights in Qatar more seriously
TIME TO TAKE A STAND?  BLOOMBERG VIEW's Kavitha Davidson wrote the deaths of "thousands of migrant workers building World Cup stadiums and other rampant labor abuse have done little to move soccer's giant marketing partners ... so perhaps an international criminal investigation might do the trick." However, the "business of sponsoring global soccer still outweighs the bad press from FIFA's shenanigans." These companies are "making a bet that the global fervor for the Beautiful Game is enough to withstand a legal fight with the American government." However, within the last year, some "big-name sponsors have started to take notice, with Emirates, Johnson & Johnson and Sony ending partnerships" with FIFA. Davidson: "Shouldn't Adidas, Budweiser, Coca-Cola, Hyundai-Kia, McDonald's and Visa consider doing the same?" (BLOOMBERG VIEW, 5/27). In Chicago, Philip Hersh writes under the header, "With FIFA's Cesspool Running Over, Sponsors Must Make A Stink." FIFA and President Sepp Blatter "will withstand the earthquake unless the multinational sponsors who feed from the trough of the World Cup's massive money-making machine decide they no longer want to risk feasting on an organization with a poisoned reputation" (CHICAGO TRIBUNE, 5/28). In Philadelphia, Bob Ford writes soccer "is allowed to be this corrupt only because its corporate partners, in the areas of sponsorship, marketing, and media rights, shrug and play along." Ford: "Save some shame for the companies, many of them from the United States, that stay quiet when dealing with the way soccer plays its sordid game off the field" (PHILADELPHIA INQUIRER, 5/28).

FINDING A LOOPHOLE: ADWEEK's Garett Sloane asked in the "age of Twitter, Snapchat, Instagram and Tumblr, who needs to be an official partner" of the World Cup? Media and marketing agency Mindshare Chief Strategy Officer Jordan Bitterman said, "Brands have found great ways to be involved in big events like the World Cup without actually being an official sponsor." Bitterman said that FIFA "could see sponsors revolt, but marketers will still spend on Twitter, Instagram and the rest come game time." He added that it "doesn't matter how many indictments FIFA has, 'brands are activating their affiliation with the game,' not the governing body" (ADWEEK.com, 5/27).

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