World Cup sponsors could face higher costs or reduced value for their investments if FIFA proceeds with its planned sell-off of commercial rights, according to expert warnings. Sponsors currently account for approximately a quarter of FIFA's $15bn income over a four-year period, with major global companies such as Coca-Cola, Visa, and Adidas among them.
FIFA's strategy involves establishing a new vehicle to manage all commercial rights for its tournaments, followed by the sale of $4bn in minority stakes to private investors. This move could intensify pressure on FIFA to generate greater returns by creating additional sponsorship opportunities.
Steve Martin, a founding partner at MSQ Sport and Entertainment, noted that this represents a significant shift in FIFA's commercial structure. He suggested that sponsors might be concerned about rising prices and the dilution of their brand exposure, drawing parallels to Formula 1's multi-layered sponsorship model. Stuart Pinnington, global head of asset owners at IQ-EQ, added that private investment could prompt FIFA to adopt a more sophisticated approach to monetising its commercial rights, potentially leading to increased sponsorship fees and new ways to monetise moments within matches.
FIFA has already introduced new revenue streams, such as adverts during hydration breaks and half-time shows at this summer's World Cup in North America. However, institutional investors might demand even greater asset exploitation. Pinnington cautioned that FIFA will need to find a balance, as pushing commercialisation too far risks diminishing the authenticity and excitement that make its sponsorship rights valuable.