FIFA’s huge new TV deals – limited commercial pressure to reform so far

On 27 October FIFA announced new TV deals for 2015-2022 in Australia, Canada and the Caribbean. The way the money is rolling in, FIFA’s leadership must be comforted that the damage to its reputation in recent months seems to be having little financial impact.

Together with the recently concluded USA deal, the combined total for TV contracts so far for the World Cups in 2018 and 2022 plus the other FIFA events is $1.85bn USD. FIFA has also awarded a contract to sell the rights in numerous Asian countries (excluding Japan and Korea) to an agency called Infront Sports and Media. Rights for the still more lucrative European markets have not yet been finalised.

Add in some long-term sponsorship agreements (Heineken has just extended through to 2022) and it is clear that FIFA has already signed contracts which should bring in hundreds of millions of dollars a year, ten years into the future.

Few organisations of any kind can be so confident about their income for the next ten years, let alone an organisation which has just announced reform plans following serious allegations of corruption.

The plans received a cautious welcome from Transparency International and some other commentators but it will take at least a few months to see how the reforms are progressing. However, the big TV and sponsorship deals followed only days later, no doubt after a lengthy period of negotiation.

There are signs that FIFA is under some pressure from its commercial partners. Several sponsors expressed concern at the allegations involving FIFA in May this year and it’s possible that the private conversations went further than the mild public statements.

In addition, the renewed TV rights contract with Infront Sports and Media has been criticised by Transparency International because the company is headed by the nephew of FIFA President Sepp Blatter.

With the all-important European TV rights for 2018 and 2022 still to be sold and with various sponsorship packages to be negotiated, there is an opportunity for FIFA’s commercial partners to exert some influence.

Understandably, sponsors and broadcasters will be reluctant to do anything which damages their chances of securing a contract because the World Cup draws an enormous audience in many countries around the world.

It will therefore require a careful approach and good leadership but there is a chance for FIFA’s commercial partners to have a positive impact on the governance of football. After all, they pay the bills.

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