Mastercard has blocked a deal for financial business Visa to sponsor Fifa’s prestigious World Cup tournament, seen by more than 30 billion people worldwide. Rival company Mastercard has sponsored Fifa for the past 16 years and earlier this year began a legal challenge alleging that it was being ousted from its incumbent position by Fifa without first refusal for ongoing rights.
Despite the fact that Visa is believed to have paid up to $200m to sponsor Fifa events until 2014, Judge Loretta Preska said that Fifa had broken its contract with Mastercard by failing to give first refusal on future rights. Fifa has said it will appeal.
So what do you think? Is the World Cup such a big boost for a brand that it is worth potentially millions in legal costs? Mastercard obviously thinks that the tournament brings it such great exposure and brand positioning, that it is unwilling to let the game go to its greatest rival.
How will Mastercard and Fifa work together now? Can a partnership still work when it has to be established by legal routes? Let us know what your view is…..
December 12, 2006 at 7:41 pm |
What a bizarre situation indeed. On the one hand this is bad PR for Fifa, who clearly have let the relationship go down hill to the extent that one of their closest partners is prepared to take legal action against them. On the other hand though it is the legal action is argue its right to remain as a paying sponsor, which is quite an endorsement on the benefits of the partnership.
Whilst I see a huge range of benefit in sponsoring one of the few events to draw a truly massive multi-national audience I have my doubt on its effect and would questions how many consumers would correctly guess which of the two brands has been involved over the past 16 years (certainly bring up Mastercard unprompted). I think the money could be better spent elsewhere and I am sure it would be if we were not talking about two of the greastest brand rivals. The fact they are arch enermies means that even in today’s world of ensuring marketing activity provides adequate ROI, the dynamics are different and the Ego factor creeps in.
Stephen Cheliotis, Chairman, Superbrands Council UK