FIFA scandal: Coca-Cola, McDonald's say Sepp Blatter must go now

FIFA president Sepp Blatter : "No Coke, no Blatter": Top sponsors are calling for the FIFA president's departure to let soccer move on from its kickback sandal. Photo: Ennio Leanza

• What you need to know on the FIFA scandal
• World Cup sponsors putting pressure on FIFA to resolve scandal
• Swiss authorities open criminal proceedings against FIFA president Sepp Blatter

Coca-Cola and McDonald's, the top sponsors of FIFA, called for Joseph "Sepp" Blatter to step down immediately as president of world soccer's governing body following a scandal involving alleged bribes and kickbacks.

Budweiser owner Anheuser-Busch InBev and Visa have joined them demanding his swift departure in a strong push for change at the embattled organisation.

Blatter's leaving would allow a "credible and sustainable reform process" to begin, Coca-Cola said overnight in the US.

"Every day that passes, the image and reputation of FIFA continues to tarnish," the beverage giant said in an e-mailed statement. "FIFA needs comprehensive and urgent reform, and that can only be accomplished through a truly independent approach."

Moments after Coca-Cola's statement, McDonald's followed with the same call.

"The events of recent weeks have continued to diminish the reputation of FIFA and public confidence in its leadership," the fast-food chain said in an e-mailed statement. "We believe it would be in the best interest of the game for FIFA President Sepp Blatter to step down immediately so that the reform process can proceed with the credibility that is needed."

'Win back the trust'

The moves follow a push by Coca-Cola for FIFA to adopt an independent commission that can reform the organisation and "win back the trust of all who love the sport." FIFA -- the organiser of the World Cup tournament -- faces corruption investigations in the US and Switzerland.

Swiss prosecutors last week opened a criminal investigation into Blatter on suspicion of criminal mismanagement and misappropriation of funds that's raised pressure on the 79-year-old to give up his longstanding control over the organisation.

Blatter, who has led FIFA since 1998, said he will not leave office before a scheduled special election in February. "While Coca-Cola is a valued sponsor of FIFA Mr. Blatter respectfully disagrees with its position and believes firmly that his leaving office now would not be in the best interest of FIFA nor would it advance the process of reform and therefore, he will not resign," said Richard Cullen, Blatter's attorney.

Blatter was re-elected to the post on May 29. Four days later, he announced his plans to leave office this winter, following an indictment by the US Department of Justice that accused several senior current and former FIFA officials of engaging in corrupt practices dating back more than two decades.

Coca-Cola and McDonald's are among the sponsors that pay tens of millions of dollars annually to associate with FIFA and the tournament, which is the most watched sporting event in the world.

'No Coke, no Blatter'

Coke has a long history as one of FIFA's top sponsors and a relationship with Blatter that goes back 40 years. Blatter was plucked from relative obscurity in 1975 to lead a FIFA's then-new global development program, funded by Coca-Cola. It was called Project One, and its purpose was to spread the gospel of soccer to corners of the world where the sport was not the powerhouse it had become in Europe and South America -- and to provide Coke with a global audience.

"The whole foundation of FIFA and Blatter is built on the foundation of the marketing skills of the Coca-Cola company," said Patrick Nally, an Englishman whose marketing company West Nally was hired Blatter to lead the program. "No Coke, no Blatter."

Today, the relationship is more visible than ever. Part of the current marketing agreement -- worth about $US100 million ($142 million) per four-year World Cup cycle -- gives Coca-Cola the opportunity to take the World Cup trophy on a sponsored tour. It's made stops in 145 countries since 2006.

FIFA's finances have also exploded during this time. The quadrennial World Cup brings in more than $US5 billion, 30 per cent of which comes from sponsors including Coke and McDonald's. Contributions from TV companies that broadcast the 32-team event account for 43 per cent of FIFA's revenue and provide the platform for sponsors to blitz viewers around the globe.

Sponsors' responsibility

Hours before Coca-Cola and McDonald's released their statements, Transparency International, one of FIFA's harshest critics, told Bloomberg News that the sponsors had a huge responsibility to force change at the beleaguered soccer governing body.

"Money is central to FIFA's corruption problems. Sponsors provide a substantial amount to FIFA and as such should be particularly concerned about corruption in FIFA," Cobus de Swardt, managing director of Transparency International, said in an e-mail.

Coca-Cola had informally been associated with FIFA since the first World Cup, when its drinks were sold to spectators in Uruguay in 1930. Coke-branded boards started appearing on fields in the 1950s but the relationship wasn't formalized until 1974, when Coke's support for FIFA's global development project made it the organisation's first official sponsor.

Bloomberg