Michael Stirling - FIFA World Cup and Corporate Supremacy

June 09 2010
With the World Cup starting on Friday, have you ever wondered about the sheer scale of the sponsorship deals that surround what has been unoffically been called, 'The Greatest Show on Earth'? Inspirational Speakers Michael Stirling gives us insight into a few facts surrounding this aspect of the World Cup...

The FIFA flagship event, the World Cup, kicks off on 11th June in Johannesburg. The hosts South Africa will play Mexico in the first game of the world's most popular global sporting event. The World Cup is not only about the excitement of seeing who is the World Champion but also of corporate supremacy. The extravaganza that occurs once every four years and lasts one month attracts many of the world biggest brands, Adidas, Sony, Coca-Cola, Budweiser, Emirates, McDonalds and Visa an opportunity to show case themselves as leaders to a global audience.

In an uncertain economic environment multinationals have fought vigorously to maintain their association with the competition. Visa replaces MasterCard from the 2006 World Cup as the official credit card of the competition. However, MasterCard filed a law suit against FIFA for not allowing it to retain the rights to the 2010 and 2014 Word Cup. The stakes are high with a global audience projected at a cumulative 32 billion viewers.

Sports shirt maker Adidas has paid more than 350 million USD to be associated with the event for 2010 and 2014. FIFA offers official sponsors unparalleled exclusivity not only within the host cities and at stadiums but also in marketing opportunities associated with its trademarks. FIFA impose significant barriers and polices its rights forcefully to prevent ambush marketing by unofficial brands.

But when you have the most commercially attractive competition in the world taking place unofficial brands will still find ways to get their corporate messages across. Nike the US sport clothing giant does not have the rights to the main event or to supply the official match ball or rights to bill board advertising during World Cup that right belongs to Adidas. However, Nike still believes it is still have a big part in the biggest show on earth. Charles Denson President said “We are more part of it than most because we are on the pitch and that is where we should be that is where our investments and our interests and our passion is to make all of those players better” Nike’s is the shirt sponsor Brazil, Nederland’s, Portugal and six other teams that will be competing in the finals in South Africa.

Worldwide sales of televisions are set to increase in the lead to the World Cup. Sony the Japanese electronics company has taken up the rights from their fierce South Korean competitors Samsung who previously had the rights to be the official FIFA electronic brand. Samsung is the world’s largest manufacturer of TV’s and LCD screens followed by Sony. Yoshihisa Ishida, the head of Sony's television arm, said he expects the company to sell 25 million LCD TVs in the next financial year to March, with 10 per cent of those being 3D. This would see sales of its sets increase by 67 per cent on this year's sales estimates. He said: "Fiscal 2010 is really a year when we think we can attack." Sony is launching its new 3D generation in Japan to coincide with the event.

However, other peer electronic companies have created their own marketing initiatives. Toshiba is offering its UK customers a refund on the purchase of television sets and laptops purchased in the run up to the World Cup if England win."

Anheuser Busch InBev, the Belgium brewing company’s flagship brand is Budweiser. The World Cup gives it the opportunity to own a greater worldwide proportion of market share and improve upon last year’s profits $10.2 billion USD as the official alcoholic beverage.

Coca-Cola is the sponsors is the most longstanding official partner. Whereas Castrol an engine oil brand which is part of the UK oil company British Petroleum is the newest partner. For Coke the FIFA World Cup is part of is an essential to its global communications strategy. For Castrol, an association with this competition is an innovation and builds on its recent association with the Euro Cup 2008.

PEPSI as an unofficial partner adopted a similar strategy to Nike and has sponsored Lional Messi FIFA World Cup Player of the Year to feature in its global advertising. Nike has Cristiano Ronaldo as its brand ambassador who was the previous player of the year. However, multinationals do not have it all their own way, McDonalds the US fast food company has had to react to pressure from an ethical perspective questioning why should a fast food company sponsor sporting events. The company has responded by showing that their options can be part of a life style choice. This event is not just about sport but also about national pride, corporate power and the crowning of new champions.

One party in all the celebrations that is guaranteed to be the biggest winner of all is FIFA itself who are guaranteed a windfall from the sale of television rights, match day tickets, merchandising and sponsorship rights much of which were priced and sold before the start of the recession. For FIFA the streets of South Africa are certainly paved with gold.

Michael Stirlng