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Professional soccer

MasterCard Sues FIFA Over Visa World Cup Sponsorship

Strategic Insights

— 1 min read

MasterCard International has taken legal action against the Federation Internationale de Football Association (FIFA) over the awarding of Visa International sponsorship for the World Cup, the world's most-watched sporting event. According to MasterCard's 22-page complaint, FIFA's agreement with Visa violates their 2002-2006 Sponsorship Agreement, which granted MasterCard the right of first refusal for future World Cup sponsorships. The lawsuit claims that the FIFA-Visa deal would cause irreparable harm to MasterCard and jeopardize its marketing efforts and other soccer-related sponsorships.

Key Takeaways:

  • MasterCard has been a World Cup sponsor since 1990 and is currently sponsoring this year's event in Germany.
  • The Federation Internationale de Football Association (FIFA) has awarded Visa International sponsorship for the World Cup, violating MasterCard's right of first refusal.
  • MasterCard claims that the deal would give Visa a monopoly on the only two worldwide sports sponsorships available.
  • Visa is the longtime sponsor of the Olympic Games, including the 2008 Summer Olympics in Beijing and the 2010 Winter Olympics in Vancouver, Canada.
  • MasterCard is seeking temporary and permanent injunctions on the Visa/FIFA deal, claiming it would cause "irreparable harm" to their business.
  • The lawsuit highlights the global reach and breadth of penetration that the FIFA World Cup offers to sponsors, with the last World Cup in 2002 attracting a cumulative television audience of 28.8 billion viewers in 213 countries.

Statistics:

  • MasterCard has accepted a 96-page right of first refusal document from FIFA in March that covers FIFA events from 2007 to 2014.
  • Visa has signed an eight-year contract beginning January 1, 2007, with FIFA to become one of six worldwide FIFA partners.
  • The last World Cup in 2002 had a cumulative television audience of 28.8 billion viewers in 213 countries.
  • The FIFA World Cup is the world's most-watched sporting event, attracting a massive global audience.

Sources:

  • CardLine, 4/7
  • CardForum,
  • SourceMedia, Inc. (c) 2006 All Rights Reserved.

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