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Pressure piles on Fifa as sponsors threaten to pull out

Coca-Cola, Adidas, McDonald’s and Visa have all told Fifa to clean up its act.

TOP FOOTBALL SPONSORS Coca-Cola, Adidas, McDonald’s and Visa have pressed Fifa to clean itself up as the newest corruption scandal threatens efforts to market their products through the world’s most popular sport.

Soccer - FIFA World Youth Championship - Final - Argentina v Ghana Sepp Blatter EMPICS Sports Photo Agency EMPICS Sports Photo Agency

The companies that pay hundreds of millions of dollars to place their ads around World Cup and other global football venues said Fifa needed stronger ethical standards, after seven of its officials were arrested in Switzerland for bribery.

The arrests came as part of a US Justice Department case that named nine officials of football’s governing body, and five sports marketing officials, in a number of instances of bribes and kickbacks involving sponsorships over the past two decades.

Visa said that if Fifa’s ethical problems aren’t addressed it may pull its sponsorship.

WCup Marketing Ambush Soccer Associated Press Associated Press

“Our disappointment and concern with FIFA in light of today’s developments is profound,” the company said in a strongly-worded statement, adding that it expects the football organisation to rebuild with “strong ethical practices”:

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

Coca-Cola, which pays an estimated $30 million (€27 million) a year to be one of five official Fifa partners, issued a stern rebuke to the organisation.

South Korea Soccer World Cup Ahn Young-joon / AP Ahn Young-joon / AP / AP

“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,” the company said.

“McDonald’s takes matters of ethics and corruption very seriously,” the US fast-food company, an official sponsor of the 2018 World Cup in Russia, said.

We are in contact with FIFA on this matter. We will continue to monitor the situation very closely.

Also speaking out were Adidas and Budweiser.

The German sportswear group said it would encourage football’s global governing body “to establish and follow transparent compliance standards in everything they do.”

And Budweiser, the US beer unit of Belgian brewing giant AB InBev, said:

We expect all of our partners to maintain strong ethical standards and operate with transparency.

Money pressure

Complaints against Fifa from global consumer-goods giants that pump hundreds of millions of dollars annually into the world’s leading sport have mounted over the past two years.

None of the official sponsors has been implicated in the scandals. But all clearly worry that the cloud over the organisation could stain their own reputations and hurt sales.

They have been especially worried over corruption allegations behind Fifa’s award of the World Cup to Qatar in 2022.

Mideast Qatar FIFA Sponsors Two Nepalese men working on stadiums in Qatar Associated Press Associated Press

Last year five top sponsors — Coca-Cola, Hyundai, Adidas, Sony and Visa — called for a proper investigation of the 2022 bid process.

And last week Coke and Visa expressed worries over the treatment of hundreds of thousands of immigrant workers in Qatar who are building the facilities for the tournament, after human rights groups and journalists exposed dire work conditions.

None of the sponsors, whose funding is essential to Fifa, has gone so far as to withdraw its sponsorship of the sport.

Mideast Qatar FIFA Sponsors A worker at the Al-Wakra stadium in Qatar. Associated Press Associated Press

But amid likely pressure from the public and shareholders to avoid being tainted by the Fifa investigation, sports marketing expert David Carter of the Sports Business Group said they “have to look as though they are part of the solution.”

The scandal is a risk for their brands, he said, and that could lead to pressure “to reallocate their dollars” for advertising.

“They need to be proactive in calling for a complete cleansing or threaten, if not actually pull, their sponsorship over time,” he told AFP.

“The large majority of sponsors will hang in there,” said Andrew Zimbalist, an economist and sports business expert at Smith College.

Most sponsors who were putting money into FIFA knew about FIFA’s problems, so this was not new for them.

- © AFP, 2015

Explainer: What on earth is going on at FIFA? > 

Read: FIFA presidential election to go ahead – despite overnight arrests of officials > 

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    Mute ⚡ Seánie ⚡
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    Jul 25th 2018, 3:08 PM

    I’m off to cut a Mars Bar into 4… Feck the begrudgers

    135
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    Mute Harry Whitehead
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    Jul 25th 2018, 4:41 PM

    @⚡ Seánie ⚡: it’s even more fun when you glue four Kitkat Chunkies together and see the reaction from others.

    55
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    Mute Seriously stunned
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    Jul 25th 2018, 5:47 PM

    @Harry Whitehead: brilliant :)

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    Mute Donal Desmond
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    Jul 26th 2018, 1:35 AM

    @Harry Whitehead: All Kit Kat lovers will never forgive you for that scurrilous comment. Sacrilege of the highest order. Will not sit at table in canteen at work with the unbelievers who produce supermarket home brands of Kit Kat. Peasants who do not know the true meaning of four fingers.

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    Mute Martin Sinnott
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    Jul 25th 2018, 3:40 PM

    Did they give two fingers to KitKat

    68
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    Mute Dlow Brown
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    Jul 25th 2018, 3:15 PM

    Ah here…… take a break lads

    100
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    Mute Fat Face 99
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    Jul 25th 2018, 4:20 PM

    Just as well they stamp their name on each bar or I wouldn’t have a clue what I was eating……..

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    Mute Pixie McMullen
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    Jul 25th 2018, 4:19 PM

    Can i have a Kit Kat chunky?
    Sorry, we only have the ordinary ones…
    That`s what i meant, you fa..

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    Mute Tony Harris
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    Jul 25th 2018, 8:35 PM

    @Pixie McMullen: 10/10

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    Mute Ger
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    Jul 25th 2018, 3:16 PM

    My whole life has been a lie

    39
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    Mute Chipstix
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    Jul 25th 2018, 3:55 PM

    I’m never satisfied by one kit-kat, I need about 3 of them they’re all finger and no chocolate if you ask me

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    Mute Andy
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    Jul 25th 2018, 4:11 PM

    Tough Break..

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    Mute Shane Cormican
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    Jul 25th 2018, 3:39 PM

    Two fingers to them so

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    Mute Irish Political GIF
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    Jul 25th 2018, 4:52 PM

    The fact that they even asked has put me off kitkats

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    Mute Fiona Fitzgerald
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    Jul 25th 2018, 8:59 PM

    Mind you, people were familiar with the real Toblerone shape before the other company took chunks out of it at their discretion. I didn’t hear that company arguing that people had come to expect the usual trademark shape. With all the usual triangles.

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    Mute Shane Cormican
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    Jul 25th 2018, 3:39 PM

    Two fingers to them so!!

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    Mute Maggie O'Sullivan
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    Jul 25th 2018, 9:00 PM

    FFS REALLY!!!!

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    Mute Red Ruskie
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    Jul 25th 2018, 3:52 PM

    Have a break have a quick crap…

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    Mute Your Ma
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    Jul 25th 2018, 6:10 PM

    Have a break have a tandem!

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    Mute Brendan T. M. P. Bur
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    Jul 25th 2018, 4:49 PM

    Two fingers by two to Nestle! Nice to be mid silly season !!

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    Mute Liam Treacy
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    Jul 25th 2018, 4:54 PM

    Its the twox2 fingers for Nestle so.

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    Mute
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    Jul 25th 2018, 11:06 PM

    Leo bars are much more wide spread in Belgium I’d say the average Belgian would think ok Leo if you showed them the Kitkat shape can’t nestle just be happy with their regional trademarks can’t have an Eu one if it’s not popular or even we’ll known in EU.

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    Mute BMJF
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    Jul 26th 2018, 12:02 PM

    I guess the court gave them the..eh…two fingers!!

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