FIFA sponsors could lose $100 bln in brand value - CNBC Africa

FIFA sponsors could lose $100 bln in brand value

Special Report

by Thabile Manala 0

FIFA scandal could cost top brands up to 100 billion dollars in brand value loss. PHOTO: Telegraph

The FIFA scandal could cost top brands up to 100 billion US dollars in brand value loss.

VISA, McDonald, Coca Cola, Hyundai, Budweiser and Adidas are among the major companies that have built their brands through the association with international football and FIFA being the overseeing organisation.

Accusations of bribery and corruption that have been levelled against FIFA this week have been hard to ignore. This has led to any kind of association with the football federation increasingly risky for brand’s reputation.

(READ MORE: South Africa says bribe allegations `baseless and untested')

There has undoubtedly been a significantly positive effect on their brands over the years. Brand values for the top sponsors currently total nearly 100 billion US dollars.

This includes:

-Coca-Cola: 35.8 billion US dollars

-McDonalds: 22 billion US dollars

-Hyundai motors: 8.6 billion US dollars

-Kia: 5.2 billion US dollars

-VISA: 8.5 billion US dollars

-Gazprom: 7 billion US dollars

-Adidas: 6.8 billion US dollars

-Budweiser: 4.3 billion US dollars

According to a statement by Brand Finance, “Negative headlines now surround not just FIFA itself but the sponsors too. With FIFA apparently deaf to calls for change, activists and social media users are turning their fire on the top tier sponsors, accelerating the reputational risk.”

(READ MORE: Global FIFA officials arrested in US, Sepp Blatter not charged

FIFA’s brand is facing the most danger being heavily dependent on the support of fans and sponsors. It is down to 2.8 billion dollars after losing 400 million in the last few days as a results of the arrests and negative attention.

Even broadcast revenues could be under threat as the possibility of relocation of World Cups in Russia and Qatar creates significant uncertainty, said the statement.

Brand Finance CEO, David Haigh, said,” A lot depends on what happens in the next few days but without knowing how quickly FIFA are going to clean out the Augean stables, my recommendation to the major sponsors would be to move towards the exit.”

Haigh added that, “If Blatter were to stand down with immediate effect, that go a long way to securing its future and we estimate it would add over half a billion to FIFA’s brand value.”

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