Fifa has announced the extension of its top-tier partnership with South Korean-based motor giant Hyundai-Kia.
The company will continue as Fifa's official automotive partner until 2022. Signed over four years before the expiry of the existing deal, at the end of 2014, the new contract will see Hyundai remain a top-tier 'Fifa Partner', sponsoring all Fifa competitions up to and including the 2022 Fifa World Cup. That competition may be close to home for Hyundai, with its home country bidding against the USA, Australia, Japan and Qatar for the right to host.
Chung Mong-joon, who sits on the Fifa Executive Committee and has been widely tipped as a future president of the federation, is the controlling shareholder in Hyundai Heavy Industries Group and the son of the Hyundai conglomerate founder, Chung Ju-yung. His brother, Chung Mong-koo, is chairman and chief executive of Hyundai Motor Group
Financial terms of the sponsorship were not revealed and have prompted much discussion. The deal will certainly be worth a nine-figure sum, if not on the extent of the US$100 million per year cited by some outlets for Fifa Partners. IEG reports that the federation's top-tier partners pay between US$24 million and US$44 million annually, and sources indicate that Hyundai's deal is in the middle of the standard payment. If the company is paying Fifa US$35 million per year, the new deal would represent a US$280 million commitment to global soccer's governing body. Fifa has earned US$1.6 billion in sponsorship over the last four-year cycle, with money coming in from the Fifa Partners - Adidas, Coca-Cola, Emirates, Visa, Sony and Hyundai - as well as its World Cup Partners and National Partners for each tournament.
"We are extremely happy to extend the partnership with Hyundai-Kia as one of the top Fifa Partners who will provide active support for a further two editions of the Fifa World Cup in 2018 and 2022. Our partnership demonstrates a shared philosophy and passion for the game of football. We would like to thank Hyundai and Kia for their ongoing commitment and partnership," said Fifa president Sepp Blatter.
Hyundai Motor Company has been a major sponsor of Fifa since the 2002 Fifa World Cup co-hosted by Korea and Japan, offering significant logistical support for the various Fifa competitions by providing the fleets of official vehicles on-site.
"We are confident that this renewal will further enhance our business values and the vision that football can act as the driving force to make a better world. We are looking forward to taking an already successful partnership to the next level by working closely together, with the aim of achieving our common objectives," concluded Chung Mong-koo.