Sponsors dismayed by corruption allegations
Ask FIFA to increase transparency and resolve the controversy
FIFA President Sepp Blatter’s bid for presidency received a major blow on Wednesday. PHOTO: AFP
NEW YORK:
Football World Cup sponsor Nike Inc said it was cooperating with authorities after bribery and corruption charges against senior FIFA officials were announced by US prosecutors and arrests were made in Switzerland.
US prosecutors issued an indictment on Wednesday accusing nine officials from football’s world governing body and five sports media and promotions executives of bribes involving more than $150 million over 24 years.
The indictment also said that in 1996, a global sports company, which was not identified in court documents, agreed to pay $160 million over 10 years to become the Brazil team’s exclusive footwear, apparel, accessories and equipment supplier.
That was an apparent reference to Nike Inc, which sponsored the Brazil national team. The indictment said the company agreed to financial terms, not in the initial contract, which included paying an additional $40 million to an affiliate of the team’s marketing agent with a Swiss bank account and referring to the amount as “marketing fees.”
US Attorney General Loretta Lynch was asked at a news conference if there was any liability for companies that had won marketing rights and if they were being investigated. She said she could not comment on specifics of who else was a target or subject of the investigation “except to say that the investigation is continuing and covers all aspects.”
Meanwhile, German sportswear company Adidas and beverage company Coca-Cola Co called on FIFA to increase transparency and resolve the controversy, while Anheuser-Busch InBev and McDonald’s Corp said they were in contact with FIFA and were monitoring the situation.
Visa threatens to ditch FIFA
Visa Inc has told FIFA it could end its sponsorship of soccer’s world governing body if it does not act fast to restore the reputation of the game.
The statement from Visa, which became a FIFA partner in 2007 and recently extended the relationship until 2022, was the strongest so far.
“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 organisation,” read the statement. “Should FIFA fail to do so, we have informed them that we will reassess our sponsorship.”
Published in The Express Tribune, May 29th, 2015.
Football World Cup sponsor Nike Inc said it was cooperating with authorities after bribery and corruption charges against senior FIFA officials were announced by US prosecutors and arrests were made in Switzerland.
US prosecutors issued an indictment on Wednesday accusing nine officials from football’s world governing body and five sports media and promotions executives of bribes involving more than $150 million over 24 years.
The indictment also said that in 1996, a global sports company, which was not identified in court documents, agreed to pay $160 million over 10 years to become the Brazil team’s exclusive footwear, apparel, accessories and equipment supplier.
That was an apparent reference to Nike Inc, which sponsored the Brazil national team. The indictment said the company agreed to financial terms, not in the initial contract, which included paying an additional $40 million to an affiliate of the team’s marketing agent with a Swiss bank account and referring to the amount as “marketing fees.”
US Attorney General Loretta Lynch was asked at a news conference if there was any liability for companies that had won marketing rights and if they were being investigated. She said she could not comment on specifics of who else was a target or subject of the investigation “except to say that the investigation is continuing and covers all aspects.”
Meanwhile, German sportswear company Adidas and beverage company Coca-Cola Co called on FIFA to increase transparency and resolve the controversy, while Anheuser-Busch InBev and McDonald’s Corp said they were in contact with FIFA and were monitoring the situation.
Visa threatens to ditch FIFA
Visa Inc has told FIFA it could end its sponsorship of soccer’s world governing body if it does not act fast to restore the reputation of the game.
The statement from Visa, which became a FIFA partner in 2007 and recently extended the relationship until 2022, was the strongest so far.
“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 organisation,” read the statement. “Should FIFA fail to do so, we have informed them that we will reassess our sponsorship.”
Published in The Express Tribune, May 29th, 2015.