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Mark Ritson: Which sponsors would trust the World Cup



Mark Ritson: Which sponsors would trust the World Cup

to protect their brand in 2018?

FIFA is short of sponsors for the 2018 World Cup in Russia, which is unsurprising given recent brand safety scandals and the tarnished reputations of both the host country and governing body.

In the mighty world of sports sponsorship there is no such thing as a small deal. But there are only two properly gigantic opportunities that dwarf all others: the Olympic Games and the FIFA World Cup. There is simply no comparison in terms of gigantic cost, global reach and the potential brand impact of being associated with one of the ‘big two’.

FIFA is offering three tiers of sponsorship for the World Cup in Russia next summer. The eight top-tier ‘partners’ are granted global rights to promote their brand alongside the tournament for what is widely thought to be an annual fee of around £100m. Beneath them are the six ‘sponsors’, each thought to be paying around £50m a year for the association. Finally, in a new development for Russia 2018, there are also 32 regional ‘supporter’ deals available for an asking price of around £8m each.

The problem for FIFA is that many of these sponsorship deals look unlikely to be signed. FIFA is still searching for a final partner, it is short of two sponsors and, with only one regional supporter so far signed up, a local Russian bank, and there are still 31 spots available at the third tier.

It takes at least a year for a big brand to prepare to execute a major sponsorship like a World Cup association, so while it might appear inconceivable, it seems increasingly likely that the World Cup will kick off with an incomplete sponsorship roster. Perhaps more likely, a series of last-minute discount deals will be done to sell the remaining sponsorship opportunities to brands at knock down prices.

But with existing sponsors already paying agreed rates, even this solution could also cause significant trouble. Either way FIFA – which needs around £1.5bn to run the World Cup, managed to lose £300m in 2016 and is on schedule to lose £400 million this year – really needs the revenue.



  

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