FIFA could lose millions from sponsors in wake of £100m corruption scandal as Visa threaten to withdraw their backing

FIFA stands to lose millions if long-established sponsors withdraw
Top-tier ‘partners’ such as adidas and Visa pay up to £28m a year
World Cup sponsors pay up to £16m a year for the privilege
FIFA brings in £1bn from sponsorship over each four-year cycle
Leading officials were arrested as part of a corruption investigation
Sponsors have expressed their concern about the developments
READ: Putin BACKS Blatter and blasts the US for its FIFA investigation

Adam Shergold

Published:
11:19 GMT, 28 May 2015

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Updated:
18:40 GMT, 28 May 2015

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Major FIFA sponsor Visa has threatened to withdraw their backing and demanded world football’s governing body clean up its act in the wake of the £100million corruption scandal.

Visa said its ‘disappointment and concern’ were profound and demanded ‘swift and immediate’ action following Wednesday’s dramatic events, which saw a wave of football officials arrested and two investigations launched.

FIFA stands to lose millions if their stable of sponsors turn their back on them and Visa’s was the most strongly-worded of the statements released on Wednesday.

FIFA, led by Sepp Blatter, could lose millions if sponsors withdraw their backing in light of the corruption investigations launched into world football’s governing body on Wednesday

It read: ‘Our disappointment and concern with FIFA in light of (Wednesday’s) developments is profound.

‘As a sponsor, we expect FIFA to take swift and immediate steps to address these issues within its organisation. This starts with rebuilding a culture with strong ethical practices in order to restore the reputation of the games for fans everywhere.

‘Should FIFA fail to do so, we have informed them that we will reassess our sponsorship.’

Visa is one of five top-tier FIFA ‘partners’ along with adidas, Coca-Cola, Gazprom and Hyundai.

FIFA’s ‘partners’ pay between £15m and £28m a year for their association with the governing body.

Under-arrest FIFA officials are escorted out of the luxury hotel in Zurich early on Wednesday morning

US Attorney General Loretta Lynch described corruption in FIFA as ‘rampant, systemic and deep-rooted’

They were dealt a blow late last year when Sony and Emirates Airlines announced they were ending their relationship following allegations that Qatar had used bribes to win the 2022 World Cup.

Visa, adidas and Sony had issued warnings on the eve of the 2014 World Cup in Brazil after other string of bribery and corruption allegations, but only Sony withdrew their sponsorship.

German sportswear brand adidas has a long-standing relationship with FIFA and their deal was recently extended until 2030. Visa’s contract will run until 2022.

Second-tier World Cup sponsors, including Budweiser and McDonalds, pay FIFA between £6.5m and £16m a year.

In all, FIFA brings in nearly £1bn from its sponsors in every four-year cycle between World Cup finals.

FIFA SCANDAL: THE SPONSORS REACT

FIFA PARTNERS

VISA

‘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.

‘This starts with rebuilding a culture with strong ethical practices in order to restore the reputation of the games for fans everywhere.

‘Visa became a sponsor of FIFA because the World Cup is one of the few truly global sporting events with the power to unite people from around the world through a common love of football.

‘Our sponsorship has always focused on supporting the teams, enabling a great fan experience, and inspiring communities to come together and celebrate the spirit of competition and personal achievement – and it is important that FIFA makes changes now, so that the focus remain on these going forward.

‘Should FIFA fail to do so, we have informed them that we will reassess our sponsorship.’

HYUNDAI

‘As a company that place the highest priority on ethical standards and transparency, Hyundai Motor is extremely concerned about the legal proceedings being taken against certain FIFA executives and will continue to monitor the situation closely.’

COCA COLA

‘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.

‘We expect Fifa to continue to address these issues thoroughly. Fifa has stated that it is responding to all requests for information and we are confident it will continue to cooperate fully with the authorities.’

ADIDAS

‘We are fully committed to creating a culture that promotes the highest standards of ethics and compliance, and we expect the same from our partners.

‘Following today’s news, we can therefore only encourage FIFA to continue to establish and follow transparent compliance standards in everything they do.’

WORLD CUP SPONSORS FOR 2018

MCDONALDS

‘McDonald’s takes matters of ethics and corruption very seriously and the news from the U.S. Department of Justice is extremely concerning. We are in contact with FIFA on this matter. We will continue to monitor the situation very closely.’

BUDWEISER

‘We expect all of our partners to maintain strong ethical standards and operate with transparency. We continue to closely monitor the situation through our ongoing communications with FIFA.’

Visa’s was the strongest statement of those that followed Wednesday’s astonishing developments.

Motor company Hyundai said: ‘We are extremely concerned about the legal proceedings being taken against certain FIFA executives and will continue to monitor the situation closely.’

Long-time sponsor Coca-Cola said the ‘serious allegations’ had ‘tarnished’ the World Cup.

A statement read: ‘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.

Volunteers with flags walk in front of the FIFA Congress venue in Zurich on Thursday

‘We expect FIFA to continue to address these issues thoroughly. FIFA has stated that it is responding to all requests for information and we are confident it will continue to cooperate fully with the authorities.’

On Wednesday, adidas said it was ‘fully committed to creating a culture that promotes the highest standards of ethics and compliance’ and expects the same from its partners.

The company added that it encouraged FIFA ‘to continue to establish and follow transparent compliance standards in everything they do’.

A spokesman for Budweiser said: ‘We expect all of our partners to maintain strong ethical standards and operate with transparency.’

FIFA’S SPONSORS

adidas: The German sportswear giant is FIFA’s oldest sponsor, having been a partner since 1970. Their current deal runs until 2030 and is reported to be worth up to £95m over a four-year period.

Coca-Cola: The soft drinks manufacturer has a 16-year deal which runs until 2022. It is reported to be worth an estimated £75m over a four-year period.

VISA: The global digital payments network became a top-tier sponsor in 2007 and extended its partnership until 2022. It is the only sponsor to so far openly threaten to end its sponsorship over the latest allegations.

Hyundai: The South Korean car manufacturer is FIFA’s only Asian partner for the 2018 World Cup. Its deal, extended in 2010, runs until 2022 and its reported to be worth £182m.

Gazprom: The Russian state-owned gas company has a four-year deal with FIFA, including the 2018 World Cup in Russia.

FIFA World Cup sponsors

Budweiser: Budweiser has been a World Cup sponsor since 1986 in Mexico and has a deal in place for the 2018 and 2022 tournaments.

McDonalds: The fast food giant has been a sponsor since 1994.