FIFA Losing Credit Over Sponsorship Dealings
FIFA has reportedly agreed to pay $90m to MasterCard, its long-standing financial services partner, as part of the out-of-court settlement of their bitter dispute relating to FIFA's decision to end negotiations with MasterCard for a new agreement and instead sign up with its rival, Visa. The settlement follows a public statement from FIFA that it would be appealing the decision of the US district judge who ruled earlier this year that, under Swiss law, FIFA was legally obliged to give MasterCard the first right to acquire sponsorship rights up to the 2014 World Cup and further that its conduct during negotiations violated the heightened obligation of good faith imposed by Swiss law. Following the settlement with MasterCard, FIFA has now confirmed its arrangements with Visa in an eight-year deal worth €170m although the controversy surrounding the sponsorship deals has failed to disappear entirely. It was widely understood that FIFA had sacked four top executives, including marketing head Jerome Valcke, after the judge ruled they had lied repeatedly in the negotiations but FIFA has clarified that the executives had only been suspended and, following his rehabilitation, Jerome Valcke has been appointed as the Federation's new general secretary.
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