Legal Action: MasterCard Takes Back World Cup Heads Roll At FIFA - Event Marketer

Legal Action: MasterCard Takes Back World Cup Heads Roll At FIFA

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A New York federal district court ruling this month gave MasterCard International the right to continue as a sponsor of the next two soccer World Cups blocking FIFA’s agreement with rival Visa.
The ruling came eight months after Visa announced a seven-year sponsorship of FIFA; incumbent sponsor MasterCard filed for an injunction two weeks later on the grounds that the company was not given right of first refusal in its sponsorship category which MasterCard contends was part of its initial deal. “We now look forward to reforms in FIFA’s business practices going forward ” Noah Hanft general counsel for MasterCard Worldwide said in a statement.
FIFA last week dismissed four marketing employees including Jerome Valcke director-marketing and TV for the organization. FIFA said the staffers “were accused of repeated dishonesty during negotiations and of giving false information to the FIFA deciding bodies in question.”
A statement from Visa read in part: “We were assured by FIFA that the agreement was valid and binding and did not conflict with any of MasterCard’s rights. During the trial Visa was surprised and dismayed to learn that during the negotiations FIFA had not been truthful with Visa regarding its obligations to MasterCard. Nevertheless we are disappointed by the court’s ruling… and we are currently considering all of our options.”    

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