Visa May Pull Sponsorship Amid FIFA Controversy

In the wake of the scandal enveloping FIFA, in which multiple officials were arrested Wednesday for alleged involvement in a bribery sting — and with allegations stretching over decades’ worth of possible criminal activities – Visa fired a warning shot across the bow.

Visa said in a Thursday (May 27) release that its disappointment in the sporting organization is “profound” and that if FIFA does not make changes to its culture to embrace stronger ethics, “we will reassess our sponsorship.”

That may be a not-so-thinly veiled threat that Visa may indeed end its relationship with FIFA, which stretches out to 2022, and which is worth roughly $25 million annually, according to The Guardian. And Visa is not alone in reconsidering its relationship with FIFA, as FIFA sponsors Coca-Cola, McDonald’s, Anheuser-Busch and other fellow sponsors are airing similar concerns.

“Visa became a sponsor of FIFA because the World Cup is one of the few truly global sporting events with the power to unite people from around the world through a common love of football,” Visa’s statement read. “Our sponsorship has always focused on supporting the teams, enabling a great fan experience, and inspiring communities to come together and celebrate the spirit of competition and personal achievement – and it is important that FIFA makes changes now, so that the focus remain on these going forward.”

Certainly the relationship is a lucrative one, and it runs both ways. Visa saw a big boost in its sales during the World Cup last year. The influx of international tourists to Brazil boosted spending on Visa cards, as the company said last year during the mega sporting event there was mega spending. According to Visa, tourists charged about $27 million in just four days to their Visa accounts – up 73 percent from the same period in 2013 during the opening four-day period of the Confederations Cup.

FIFA, too, had much to say about the recent controversy, with a May 27 statement from the organization’s president, Sepp Blatter, saying that FIFA welcomes the investigations by the U.S. and Swiss authorities, and understands the widespread criticism and disappointment that has been expressed.

“We will continue to work with the relevant authorities and we will work vigorously within FIFA in order to root out any misconduct, to regain your trust and ensure that football worldwide is free from wrongdoing,” Blatter said in the prepared statement.

But will it be too little, too late for Visa and fellow FIFA sponsors?

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