Visa threatens to pull World Cup sponsorship -- but doesn't

 By 
Patrick Kulp
 on 
Original image replaced with Mashable logo
Original image has been replaced. Credit: Mashable

FIFA, the world body that oversees the World Cup, is the least surprisingly corrupt organization in history.

The U.S. Justice Department raided a ritzy Zurich hotel on Wednesday and brought down indictments against 14 people tied to the worldwide soccer governing body for charges that include racketeering, bribery, wire fraud and money laundering.

None of this should come as much of a shock -- corruption has run deep in the organization for decades, and accusations of shady practices reliably surround each World Cup host country selection.

As furor over FIFA's rampant corruption swells, the corporate sponsors that back the World Cup are growing uneasy with their brands appearing alongside the world soccer championship's increasingly tarnished name.

On Wednesday, Visa warned that it may pull its sponsorship unless FIFA cleans up its act. The credit card giant said it expects the global soccer governing body to take "swift and immediate steps" to iron out the ethical issues within the organization or it will reassess its support.

"Our disappointment and concern with FIFA in light of today’s developments is profound," the company said in a statement.

Other major sponsors including Adidas, Coca-Cola and Hyundai have also issued statements this week voicing their concern about the news. McDonald's and Budweiser said they are "monitoring the situation" closely.

But -- crucially -- they are not doing anything. Sponsors have typically greeted each recent scandal with the obligatory tongue-clucking statements, but they have yet to actually throw weight behind their words.

The sponsors may not be able to afford strict principles. Corporate sponsors have the means to put a squeeze on the soccer rulemaker, but any real action would come at the risk of losing a lucrative partnership. Visa's sponsorship, for instance, is reportedly worth at least $25 million a year.

Andrew Woodward, a former PR exec at Visa, wrote in a LinkedIn post on Wednesday that the company shouldn't bother trying to sort out the politics from the sports, and advised it to unapologetically stand by FIFA.

"Should 'we' issue a ‘strongly worded statement’? My advice, nope," Woodward wrote.

The development came on top of mounting public frustration over perception that FIFA is turning a blind eye to slave-like labor conditions at the future World Cup venue in Qatar and the organization's tendency to pick host countries with poor human rights records.

But with the latest revelations galvanizing public outrage, these companies may be squirming in their seats when it comes to questions of their implicit support of such practices.

On Wednesday, protesters took aim at the corporations online with redesigns of their logos that shamed the brands for tacitly endorsing human rights abuses.

Hey @Visa. Huge fan of your human rights violation in Qatar. Here is your new free logo pic.twitter.com/3OTLRtClbA— Astro Sid (@ssaig) May 23, 2015

Visa's threat comes as FIFA president Sepp Blatter is seeking re-election this week for a fifth four-year term at the head of the organization, despite prominent figures in the soccer world calling for him to give up the effort.

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