Fifa is currently embroiled in a dispute with its long-term partners, Adidas and Coca-Cola, regarding sponsorship rights for the upcoming Club World Cup in the United States next year. The Guardian has learned that separate cases have been filed at the Swiss Arbitration Centre in Zurich, with hearings expected to take place in the coming weeks.
Fifa has announced only one sponsor for the tournament, which is set to feature 32 clubs in an expanded format strongly supported by its president, Gianni Infantino. This is believed to stem from disputes with Adidas and Coca-Cola over an agreement in their contracts that stipulates they will be included as official sponsors of all Fifa competitions.
Sources have informed the Guardian that both companies are "less than thrilled with the situation" after Fifa attempted to negotiate new contracts for the revamped Club World Cup. Adidas and Coca-Cola signed deals extending to 2030, reportedly worth around $70 million for each four-year cycle, and are believed to have been reluctant to enter a tender process. The Swiss Arbitration Centre is a dispute resolution mechanism frequently favored by multinational corporations.
Insiders have accused Fifa of prioritizing the tournament and its projected new revenue streams over maintaining existing relationships with some of its most loyal sponsors. Among those thought to have been approached regarding Club World Cup sponsorship are the 2026 World Cup sponsor, Bank of America, and Saudi Arabia's Public Investment Fund.
A Fifa spokesperson stated: "We are in the process of contracting or negotiating with a range of tournament partners for the new Fifa Club World Cup, and will be announcing the first major partnerships in the coming month. The market's interest is very strong, and the deals being negotiated are with both new brands and existing Fifa sponsors."
Adidas has been a top-tier sponsor of the World Cup since 1970. Coca-Cola became Fifa's drinks partner in 1978 and has had stadium advertising at every men's World Cup since 1950. A spokesperson for Adidas said, "As a longstanding partner of Fifa for all their tournaments, we continue our work and planning for a successful Fifa Club World Cup 2025." A Coca-Cola spokesperson added: "As one of the longest-standing corporate partners of Fifa, we value our relationship and remain focused on continuing our successful partnership together and engaging fans around the world."
Concerns over sponsorship have been one of many issues faced by the organizers of the Club World Cup as Fifa continues to search for a broadcaster for a tournament described by one source as "Gianni's vanity project." Talks over a global streaming deal with Apple+ broke down this year, and US sponsors are said to be more focused on deals for the men's 2026 World Cup, which will be co-hosted with Canada and Mexico.
On Wednesday, Fifa unveiled the Chinese consumer electronics firm Hisense as its first sponsor for next year's Club World Cup. Hisense will display advertising during VAR checks throughout the tournament, which is scheduled to run from 15 June to 13 July.
Source link: https://www.theguardian.com
