FIFA Sponsors Weigh Up The Cost Of Scandal

After US prosecutors charged 14 members of FIFA, soccer's governing body, with corruption for unsavory business practices like bribe-taking, policymakers and fans around the world cheered saying that the organization was long overdue to be investigated for its questionable operations. However, FIFA's corporate sponsors are finding it difficult to take a hardline against the alleged corruption as the sport offers them a global platform for brand recognition unlike any other. Visa Speaks Up So far, Visa Inc V has been the only sponsor to formally condemn FIFA; the company issued a statement saying it would abandon its sponsorship if the organization doesn't clean up its practices. The statement said that Visa expects Fifa to rebuild itself to foster a culture of strong ethical practices and take "swift and immediate steps" to address the alleged bribe taking among senior officials. Walking A Tightrope Other sponsors like Coca-Cola Co. KO and McDonald's Corp MCD expressed their concern over the scandal, but stopped short of threatening their sponsorship deals. As the world's most watched game, soccer gives international brands unrivaled global exposure, something many are unwilling to give up despite public outrage over the bribery allegations. Adidas In A Tough Spot Adidas AG ADDYY has perhaps the most difficult position as the game's only athletic apparel sponsor. The company's sponsorship is decades old and the Adidas name has become synonymous with soccer. At the moment, Adidas' contract with FIFA runs until 2030 and the company isn't expected to reconsider in light of the scandal. Adidas officials expressed their disappointment in FIFA's leadership following the indictment, but the company is unlikely to reevaluate its sponsorship.