FIFA World Cup Controversy

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The FIFA World Cup hosted in Russia for 2018 is upcoming. FIFA struggles to find sponsors for the world’s most popular sport, soccer. The organization has been mired in controversy throughout the past several years, possibly deterring brands from wanting to sponsor them.

However, this year seems to be an outlier. Compared to the 2014 World Cup in Brazil the organization had less sponsorship deals, which is troubling. FIFA maintained it usual sponsors such as Coca-Cola, Hyundai-Kia Motors, Visa and Adidas. The organization has attracted additional sponsors such as Qatar Airways, Gazprom and Wanda Group. However, it is has issues attracting newer sponsors beyond the aforementioned. FIFA reported it lost £136.4million in 2017.

Why is the organization struggling to get sponsors for a highly celebrated international event? The answer in pat lies with the host country, Russia.
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The Crimea annexation in 2014 had a political backlash against the country. Also, Russia has been accused of interfering in the U.S. presidential election in 2016. Recently, the poisoning of a former Russian spy Sergei Skripal and his daughter Yulia through a nerve agent in Salisbury on England soil had a worldwide backlash against the country. Russia has denied any part in the poisoning but British intelligence officials belief otherwise.

These news events and more has potential sponsors in a conundrum. If they support FIFA, they risk possible social media backlash and protests of their products. If they do not support FIFA they risk losing advertisement worldwide during the World Cup. FIFA reported the 2014 FIFA World Cup Brazil had over 3 billion viewers.

A professor, Mark Riston who teaches marketing at Melbourne Business School shared his thoughts on the FIFA

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