Fifa changes commercial model to sell regional World Cup deals from 2015
World soccer's governing body Fifa has confirmed it will open up regional sponsorship packages for the World Cups in Russia and Qatar.
The regional categories will replace the existing national supporter level sponsorships in place for the 2010 tournament in South Africa and next summer's event in Brazil.
The other elements of Fifa's major event sponsorship model will remain unchanged, with 14 companies to occupy the Fifa partner and Fifa World Cup sponsor positions.
The new regional categories will open up slots for up to 20 companies in North America, South America, Europe, Middle East & Africa and Asia, areas pre-defined by Fifa.
The changes, the first to Fifa's commercial model since 2007, were confirmed by the organisation's marketing director Thierry Weil on Tuesday, following a board meeting with the local organising committee for the 2018 World Cup in the Russian city of Kazan.
“The current commercial structure has proven to be very successful for the last two editions of the Fifa World Cup, with no packages left unsold,” Weil said. “However, we felt it was time for a change.
“The demand is there,” he added. "Having observed our current structure it became clear that there is an interest from brands in broadening the scope of the national supporter engagements, not only to cover the host country.
“The regional approach also offers a more targeted way for commercial affiliates to engage with their target audience, offering companies who do not have the desire or the means to enter into a global sponsorship agreement to acquire rights which cover a significant geographical region. For example, a company who is interested in the region of South America can now acquire the corresponding rights and not have to purchase a global package. The value proposition is much stronger."
Although precise figures were unconfirmed, Fifa expects an uplift of some 30 per cent in revenues derived from its new third-tier category. By widening its net, it also avoids restricting itself to finding national partners in Russia and Qatar, two countries where many major companies are government-owned or controlled.
Fifa global partners in the current cycle, brands which make up around half of the organisation's commercial revenues, are Hyundai-Kia, Coca-Cola, Hyundai-Kia, Emirates, Sony and Visa. Its World Cup-level sponsors for 2014 are Budweiser, Castrol, Continental, Johnson & Johnson, McDonalds, Brazilian telecoms firm Oi, Yingli Solar and food supplier Seara.
National supporters for 2014 are government trade and investment agency Apex-Brasil, sportswear retailer Centauro, confectionary manufacturer Garoto, bank brand Itau, insurance company Liberty Seguros, chocolate brand Nesau and adult language school Wise Up.
Fifa will begin selling the new regional positions in 2015, ahead of the World Cup in Russia three years later. It already has commercial partnerships covering both the 2018 and 2022 competitions in place with Coca-Cola, Gazprom, Anheuser-Busch InBev and Hyundai-Kia.blog comments powered by Disqus
Manchester City follow United as new signing confirmed - 16 April 2013
Infront Ringier to sell World Cup hospitality in Switzerland - 11 October 2011
Fox and Telemundo win US World Cup rights - 24 October 2011
IEC in Sports to sell fly fishing rights - 14 June 2013
Fifa names accommodation agency for Russian events - 14 December 2012
Related blog posts
Legacy Lives returns to London in 2010 - 05 January 2010, Notes & Insights
Commercial gold - 10 June 2010, Notes & Insights
England Rugby 2015 opens headquarters and names board - 09 January 2012, Notes & Insights