FIFA might lose the sponsorship of Visa Inc (NYSE:V) if they don’t shape up to fix its injured reputation as a result of the corruption cases within the football governing body.
Visa is one of the most important sponsors for FIFA. The company claimed to be severely disappointed by the cloud of corruption that is now looming over the soccer governing body. In one of the press releases, Visa officials announced that they would revoke their association with FIFA if the organization did not act quickly to fix the situation.
FIFA is equally important to sponsor organizations because it holds a major link to billions of soccer fans all over the world. Sponsors, therefore, have a huge task to try and uphold good relationships with the organization and their clients. It has been increasingly difficult to do this, especially because consumers are now more than ever sensitive to negative social issues such as corruption, environmental issues, and racism.
Visa Inc (NYSE:V)’s statement revealed the company’s concern and disappointment with FIFA’s predicament. It claimed that the situation was of a massive magnitude and urged FIFA to take rapid corrective measures. Visa went on to add that the measures should start with fixing their culture with solid ethical practices. The company threatened to revoke their sponsorship if the soccer governing body does not live up to these expectations.
On Wednesday, prosecutors in the United States handed out an indictmentaccusing nine officials from FIFA and five sports advertising executives of corruption. The accused were linked to a bribery scandal revolving around more than $150 billion which they are said to have handled over 24 years.
Other companies have also joined Visa’s complaints. Sony Corp and Emirates Airlines announced that they will not renew their contracts with FIFA as planned in November. The corruption charges are also linked to the bidding procedure for the subsequent world cups in Qatar and Russia.
The Emirates Airlines and Sony are among the top six companies partnering up with FIFA. In 2014, they collectively paid FIFA $177 million for advertising rights.
