SOCCER-FIFA/BLATTER-SPONSORS Sponsors relieved at Blatter resignation, according to experts

Record ID: 150024

  • Title: SOCCER-FIFA/BLATTER-SPONSORS Sponsors relieved at Blatter resignation, according to experts
  • Date: 3rd June 2015
  • Summary: SEOUL, SOUTH KOREA (FILE) (REUTERS) VARIOUS OF HYUNDAI HEADQUARTERS EXTERIORS LOS ANGELES, CALIFORNIA, UNITED STATES (FILE - OCTOBER 2011) (REUTERS) VARIOUS OF MCDONALD'S RESTAURANT EXTERIORS
  • Embargoed: 18th June 2015 13:00
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  • Topics: General
  • Reuters ID: LVA2LO7BUHK19QU6HJO8QA2Y2MAV
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  • Story Text: FIFA president Sepp Blatter's decision to resign amid corruption allegations at soccer's governing body is a relief for corporate sponsors who have called for more transparency at the organization, according to marketing and brand experts.
    Blatter, 79, announced the decision at a hastily arranged news conference in Zurich on Tuesday (June 2), six days after police raided a hotel in the city and arrested several FIFA officials, and just four days after he was re-elected for a fifth term as president.
    Sponsors Coca-Cola Co, Visa Inc, Adidas AG , Hyundai Motor Co and Anheuser-Busch InBev SA called the resignation a positive step, but some sponsors said they expected FIFA to do more to clean up its act.
    "This is a significant first step towards rebuilding public trust, but more work lies ahead," Visa said in a statement.
    Branding experts said the news eases concerns of sponsors, who have been in a tough spot: On one hand, they have signed long-term agreements with FIFA, and the World Cup presents a lucrative opportunity. But the recent corruption investigation could taint their brands and reputation with consumers.
    "The sponsors have been notoriously quiet about these kinds of issues and totally taken a 'wait and see' attitude, although I don't think they thought they were going to wait as short a period a time as they ended up waiting," explained Robert Passikoff, Founder and President of Brand Keys, Inc, on Wednesday (June 3).
    "You don't actually expect that one event is going to manage your fate and success on the balance sheet, but on the other hand the way that people pay attention to brands, the way that people engage with brands is different than it was," he said.
    According to initial surveys by Brand Keys in the wake of last week's arrests and indictments, consumer engagement in the U.S. of companies that sponsored FIFA and the World Cup dropped significantly.
    "The truth, though, is when consumers go to their own secret place inside, their heart of hearts, their souls, and they have a choice between the brand that didn't associate itself with an organization that has 47 indictment counts against it versus the company that did, it erodes how their going to behave. You're going to see it in behavior," explained Passikoff.
    While, the recent development does make it easier for companies to stick with their sponsorships, the resignation could also be a precursor to more sponsor demands, especially as the impact of traditional marketing on consumers continue to decline.
    "It really is something more than 'this is a sport that people like and watch.' You really need to get over that hump that 'biggest sporting event in the world'. That's fine. It is," said Passikoff.
    "But the way that consumers are engaging with brands, the way that consumers are consuming promotion and advertising and communication from brands has changed so dramatically that just counting number of eyeballs really isn't the safest thing to do anymore when you want your brand to do well."
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