Should I stay or should I go?: FIFA risks losing major sponsors
It has been close to six months since FIFA lost major sponsors amid last year’s bribery allegations, and they continue to risk losing even more.
On Wednesday, FIFA officials were arrested on allegations of racketeering, wire fraud, and money laundering. The scandal surrounding the FIFA corruption involves £100 million, and now millions in sponsorship revenue could be lost.
Shortly after Wednesday’s incident, Visa, one of FIFA’s biggest sponsors, threatened to withdraw their sponsorship with the organization. Visa is a top-tier with FIFA and pays up to £28 million annually for the title. Losing this sponsorship alone would be a big hit to the organization. Other sponsors, such as Hyundai, Coca Cola, Adidas, McDonald’s, and Budweiser, have also made statements expressing their concerns following the corruption scandal.
Despite FIFA’s risky situation, hope remains that sponsors won’t jump ship just yet. Sepp Blatter, re-elected as President of FIFA, resigned in light of the recent corruption scandal. He felt that his reinstatement in office was not “supported by everybody.” This decision may prevent sponsors from immediately backing out, but sponsors are expecting swift changes to be made should they choose to stay.
FIFA is on the verge of losing some of their biggest sponsors; how they handle their public relations in the coming weeks may dictate whether or not they lose millions in sponsorship revenue.
Do you think FIFA will lose sponsors? Can they make an immediate change? Leave a comment or talk to me on Twitter @Karbowski_Devon.