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Emirates airline pulls out of backing Fifa and could be followed by Sony Emirates airline pulls out of backing Fifa and could be followed by Sony
(35 minutes later)
Fifa could lose two of its biggest sponsors after the Emirates airline decided not to renew its contract and the electronics giant Sony said it was also considering ending its links with the world governing body. Emirates has become the first of Fifa’s top level sponsors to end its relationship with world football’s governing body since a fresh wave of corruption allegations engulfed the organisation over the summer.
The confirmation comes four months after a number of Fifa’s World Cup partners expressed concerns about the negative publicity surrounding the latest allegations of corruption. As a Fifa taskforce met in Zurich to discuss the timing of the 2022 World Cup in Qatar, likely to start in either January or November of that year, the airline confirmed it would end its sponsorship agreement at the end of 2014.
Emirates’ contract expires next month and the Dubai-based airline has confirmed it will not renew its sponsorship. Fifa said it has known of the decision since 2012. Another of Fifa’s six top level partners, Sony, is also understood to be reviewing its position as the latest four year World Cup cycle draws to a close at the end of 2014.
It is understood Qatar Airways, owned by the 2022 World Cup hosts Qatar, is considering becoming a sponsor in Emirates’ place. Those campaigning for Fifa reform amid endless allegations of cronyism and corruption have long hoped that pressure from sponsors could finally lead to meaningful change. But it is understood that potential replacements for Emirates and Sony have already been lined up in the shape of Qatar Air, the national carrier of the country that will controversially host the 2022 World Cup, and Samsung.
Talks are continuing with Sony, with Samsung, which is a major Olympic sponsor, a candidate to take over from Sony. The Korean electronics giant could replace Sony if the Japanese company decides against renewing a deal that contributes to the £900m that pours into Fifa’s coffers from sponsors over each four year cycle.
Emirates and Sony are among Fifa’s partners – the six top-tier sponsors who provided hundreds of millions of pounds in sponsorship income. In June, sponsors including Sony, Adidas and Visa demanded that new allegations of corruptions concerning the bidding process for 2022 World Cup be taken seriously. But despite admitting that the “negative tenor of the public debate” around Fifa was bad for football, Adidas renewed its sponsorship until 2030.
Fifa said: “Emirates had already informed Fifa back in June 2012 about the restructuring of its sponsorship concept and Fifa respects this. Due to the ongoing negotiations, we cannot give any further information about future partners in this category at this stage. For all the bad publicity surrounding Fifa’s scandal hit executive committee and the bidding process that led to the 2018 World Cup being awarded to Russia and the 2022 tournament to Qatar, it has continued to go commercially from strength to strength. Even if a sponsor falls away, a direct rival is usually only too keen to step up and take its place.
“The contract with Sony still runs until 31 December 2014 and we are in ongoing discussions with Sony.” Emirates said only that the contract proposal did not meet with its expectations and Fifa said it had known since 2012 that the airline was not going to renew.
Emirates also confirmed its plans: “Emirates can confirm a decision has been made not to renew the sponsorship agreement with Fifa past 2014. This decision was made following an evaluation of Fifa’s contract proposal which did not meet Emirates’ expectations.” But the Conservative MP Damian Collins said he hoped the Emirates decision would be the first of many among sponsors starting to question Fifa’s credibility.
In June, a number of partners including Sony made public their concerns about the effect of continuing negative publicity around Fifa. “When sponsors start to become wary, that is where Fifa will start to hurt – it’s an organisation that is set up to make as much money as possible out of football. That’s something they will take notice of,” he said.
It followed publication of allegations of corruption surrounding World Cup voting and elections for Fifa positions. The latest meeting of a taskforce set up to draw up an international match calendar for 2018 to 2024, hastily convened after Sepp Blatter’s plan to unilaterally move the Qatar World Cup to November 2022 to avoid the searing summer heat was opposed by broadcasting partners and European leagues, narrowed the debate down to two main options.
Adidas, which is perhaps Fifa’s most important partner and has a deal until 2030, said at the time: “The negative tenor of the public debate around Fifa is neither good for football nor for Fifa and its partners.” A European Clubs Association presentation proposed May 2022 as a new option in a bid to minimise disruption.
Sony said in June the corruption claims should “be investigated appropriately” and called for Fifa to observe “its principles of integrity, ethics and fair play”. But the Qatar 2022 chief executive Hassan al-Thawadi expressed a preference for a winter tournament for the first time and Fifa general secretary Jerome Valcke said: “We are getting closer to narrowing the dates for the Fifa World Cup to two options – January/February 2022 or November/December 2022.”
Fifa earned more than £230m from sponsors and other marketing partners last year. The task force, chaired by Asian Football Confederation president Sheikh Salman Bin Ebrahim Al Khalifa, will meet again early next year with a decision expected by spring 2015.