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 The statement from Visa was the strongest so far as sponsors lined
up to express concern about the scandal engulfing the world's most
popular sport and their customers took to social media to threaten a
boycott of brands associated with FIFA.
Sponsors are trying to balance the growing sensitivity of consumers
to corruption, human rights abuses and environmental issues against
their relationship with the organization that holds the keys to a
billion soccer fans worldwide.
"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," Visa said.
"This starts with rebuilding a culture with strong ethical
practices," it said. "Should FIFA fail to do so, we have informed
them that we will reassess our sponsorship."
U.S. prosecutors issued an indictment on Wednesday accusing nine
officials from soccer's world governing body and five sports media
and promotions executives of bribes involving more than $150 million
over 24 years.
Airline Emirates [EMIRA.UL] and Japanese electronics maker Sony Corp
announced in November they would not renew deals with FIFA, as
corruption allegations mounted around the bidding process for the
next two World Cups in Russia and Qatar.
The two were among FIFA's six main partners who together paid a
total of $177 million in 2014 for the right to advertise in World
Cup stadiums and use the FIFA trademark.
A source familiar with the Sony decision said suspected corruption
was one factor behind Sony's withdrawal although the main reason was
the high cost of the sponsorship deal.
CLOSE TIES
FIFA's longest standing partners are German sportswear company
Adidas and Coca-Cola Co.
Adidas has been the provider of the World Cup match ball since 1970
and has a partnership lasting until 2030, while the current deal for
Coca-Cola, which has had a formal association since 1974 and has
advertised in every World Cup stadium since 1950, lasts until 2022.
That perhaps explains why their reactions to Wednesday's news were
more muted than Visa, the world's largest credit and debit card
company, which only became a FIFA partner in 2007 and recently
extended the relationship until 2022.
"This lengthy controversy has tarnished the mission and ideals of
the FIFA World Cup and we have repeatedly expressed our concerns
about these serious allegations," Coca Cola said.
Adidas, which is the world's biggest manufacturer of soccer balls,
boots and shirts, stopped short of outright criticism, calling
instead for FIFA "to continue to establish and follow transparent
compliance standards".
Meanwhile, Adidas' arch rival Nike Inc, which is not a FIFA partner
but sponsors many of the world's top teams, said it was cooperating
with authorities.
The indictment said that in 1996, a global sports company, which was
not identified in court documents, agreed to pay $40 million in
"marketing fees" to an affiliate of the marketing agent of the
Brazil national team with a Swiss bank account.
That was an apparent reference to Nike, which sponsors the Brazil
national team.
U.S. Attorney General Loretta Lynch declined to comment on whether
there was any liability for companies that had won marketing rights
and if they were being investigated. But she said "the investigation
is continuing and covers all aspects."
She declined to comment when asked if one of the companies was Nike.
Nike later said in a statement it was "concerned by the very serious
allegations, adding: "Nike believes in ethical and fair play in both
business and sport and strongly opposes any form of manipulation or
bribery."
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OTHER SPONSORS BRISTLE
FIFA's main sponsors were already getting uneasy even before the
latest revelations.
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 abuses at the 2022 World Cup
construction sites.
That came after campaigners designed spoof ads for major FIFA
sponsors subverting their brand images, including a Coca-Cola can
dripping with oil and the iconic three stripes of Adidas tweaked to
look like a line of gravestones.
The pressure only mounted after Wednesday's news, with social media
full of appeals for brands to cut ties with FIFA.
"Adidas, Visa, Coca-Cola, McDonald's, Budweiser, Hyundai: stop
supporting corrupt FIFA or I stop buying your brands," wrote
Stefan-Joerg Goebel on Twitter.
The Institute of Directors (IoD), a leading UK authority on
corporate governance, said risks were mounting for sponsors.
"They have a responsibility to their shareholders to make certain
that the company’s cash is not going towards sporting events mired
in bribery and corruption allegations," said Roger Barker, IoD
director of corporate governance.
South Korean automaker Hyundai Motor, the sole Asian FIFA partner
for the 2018 World Cup due to be held in Russia, said it was
"extremely concerned" about the legal proceedings, while
Anheuser-Busch InBev and McDonald's Corp said they were in contact
with FIFA.
Australian sportswear company SKINS, which announced in a
tongue-in-cheek campaign in January that it was the first "official"
FIFA non-sponsor, urged the brands to clean up FIFA.
"The only people FIFA will listen to are the sponsors. The real
money is with the broadcasters but their brands aren't exposed in
the same way as the sponsors," said SKINS chairman Jaimie Fuller.
But brand experts were skeptical of a mass exodus of FIFA sponsors.
“The value of the sponsorships is very high or they wouldn’t be
prepared to pay so much for it," said Interbrand Chief Executive Jez
Frampton. "Football is one of the few global properties that enables
you to connect with people around the world."
Rob Prazmark, president of 21 Sports & Entertainment Marketing
Group, a global sports and event sales agency said companies were
unlikely to pull their sponsorships altogether.
“These sponsors put a lot of money into associating with the World
Cup,” Prazmark said. “They’ll give them a little bit of time to get
their house in order.”
(Additional reporting by Lindsay Dunsmuir, Nate Raymond, Steve
Slater, Ando Ritsuko and Hyunjoo Jin; Editing by David Stamp and
Giles Elgood)
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