Bidness ETC - Coca-Cola and Visa Inc. Amongst Other FIFA Sponsors Welcome Blatter’s Resignation

Now calling on football organization to clean up their act and regain the public trust after scandalous week.

Soccer fans have expressed their rejoice once news spread like wildfire that Joseph “Sepp” Blatter has stepped down from the position of FIFA president, just days after being re-elected in a vote with fraud, and after having served the football federation for less than two decades.

The ones who are more likely to rejoice from hearing this news will be none other than the brand sponsors themselves – namely Visa Inc. and Coca-Cola Co. (NYSE:KO). There is no question regarding why they are jubilant over this news. Coca-Cola and Visa are both long time sponsors of FIFA, so much so that one of Forbes contributor has estimated that both the companies have poured in more than $24 million to have their brands attached to the international soccer body and its tournaments. With this amount of money, it brings with it enormous stake in the investment and reputation.

According to a statement issued by the bottled beverage company as well as a soft drink maker, it stated that Mr. Blatter’s resignation would serve as a positive step for the good of sports, football, as well as its fans. It has expressed hope that the resignation will help “FIFA transform itself rapidly into a much-needed 21st Century structure and institution.”

Similarly, Visa also expressed its joy as a first development towards the rebuilding of the public trust. At the same time though, it has taken a swipe at Mr. Blatter with regard to the dire need to reorganize the structural issues of the company and to rebuild the organization with strong ethical cultures – an indirect reference to the way football tournaments are awarded to host nations.

Other FIFA sponsors McDonald’s and Budweiser welcomed Mr. Blatter’s decision to leave the organization, both calling upon organizers to start the hard work of putting the house in the right order again.

There was a risk that the 2022 tournament sponsors might pull back their sponsorship deals, if FIFA did not clean up its ‘house’ in order, particularly with the labor rights violation occurring in Qatar that has prompted companies, such as Coke and Visa, to raise the pressure on the Qatar government to improve its human rights record after facing unprecedented pressure from the civil rights society to get into the act.

Now that the cleanup has begun with Mr. Blatter’s resignation that threat has all but subsided, if not eliminated, though there is still a lot of work ahead.

Coca-Cola stock price ended the day at $40.86, down 0.02% from the previous day.