Visa has reached an "eight-year sponsorship extension" valued at more than $170M to stay a FIFA World Cup sponsor though the '22 event in Qatar, according to Tripp Mickle of SPORTSBUSINESS JOURNAL. The deal ensures Visa, which also is an IOC TOP sponsor, will "have the rights to the two premiere global sports properties ... for the rest of the decade." Sources said that FIFA has "clawed back some of the rights that Visa has in its current deal," which runs through '14. The existing deal gives Visa the rights to "both the payment services category and the retail banking category." Visa has been able to "take the retail banking rights and sell them in many markets around the world, recouping some of its sponsorship cost by auctioning those rights in targeted countries." But FIFA will "keep control" of those rights in the new deal, leaving Visa as only the payment services category. The change gives FIFA the "chance to boost its total haul from the retail banking category by selling rights in Europe during the coming World Cups." It also will result in Visa "spending more for less," and the company will not be "able to offset its costs in the same way." It is "unclear whether Visa will be able to pass through, but not sell, rights to use the World Cup and FIFA logos to banks worldwide," something it does with its IOC deal (SPORTSBUSINESS JOURNAL, 4/1 issue).
Marketing and Sponsorship
The PGA Tour Monday announced a new three-year, China-based partnership with Bose Corporation, making Bose the first company to acquire PGA Tour category rights outside of the U.S. Bose will be the Tour’s official marketing partner in the home theater system, home audio system and headphone categories in China. As an official marketing partner, Bose will have the rights to PGA Tour and Champions Tour marks to promote products in China, Hong Kong, Taiwan and Macau. PGA Tour Global Commercial Officer Tom Wade said the sponsorship further expands the Tour brand in the Chinese marketplace. Bose’s subsidiary in Shanghai, Bose Greater China, will activate the sponsorship.
Private sector insurer Bajaj Allianz "may soon join the corporate bandwagon" sponsoring the Indian Premier League "as a principal sponsor of the Mumbai Indians team," according to the PTI. The deal would mark Bajaj Allianz Life Insurance’s second IPL sponsorship, "after being one of the founding sponsors of the Rajasthan Royal team during the first IPL tournament" in '08. While a spokesperson for Bajaj Allianz "declined to comment on its sponsorship association with Mumbai Indians," sources said that the deal for the insurer joining as a principal sponsor of the team is in the final stages. Beverage producer Pepsi "is the title sponsor of IPL this year, while its official partners include Vodafone, Star Plus and YES Bank" (PTI, 3/29).