FIFA’s financial prospects have weakened as three of its biggest sponsors backed out from the agreement from the football’s governing body. FIFA already lost Emirates and Sony last year as they decided not to renew their contracts.
Now other major sponsors like Continental, Castrol and Johnson & Johnson have followed the suit as well. These five companies brought combined revenue of around £1 bn. Now this is some serious financial muddle for FIFA.
The major reason for these sponsor mutiny is being piled on due to Sepp Blatter’s corruption scandals. The FIFA prez is facing some serious allegations for graft charges and there is a considerable level of distrust amongst the sponsors.
The incumbent president has lost all his credibility over the Miguel Garcia report saga surrounding the World Cup bids of Qatar and Russia. The only challenger to Blatter has been identified in Prince Ali of Jordan. AFC president is looking to topple Blatter’s reign of 17 years at FIFA.
It seems the only way out for FIFA if it has to retain its brand image.
The Sponsors and their contracts details in a nutshell -
Sony: Signed a £160?million contract in 2005 as one of Fifa’s first 'partners’ after it revamped its sponsorship portfolio. Seven-year deal began in 2007, after Philips’ link with Fifa ended.
Johnson & Johnson: Signed in 2011 for one World Cup as Brazil tournament’s official health care sponsor. Decided against renewing deal for Russia 2018 or beyond.
Castrol: Joined the Fifa family in 2008 in a deal described as the biggest in its 100-year history. A World Cup sponsor, it signed on until after the 2014 tournament.
Continental: Commercial backer of Fifa since 2003, tyre company took up option of becoming World Cup sponsor ahead of 2010 event, with option to extend to 2014.
Emirates: Became sponsor at 2006 World Cup before getting partner status. Decided not to continue beyond 2014, as terms “did not meet expectations”.
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