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Emirates May Drop WC Sponsorship


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#1 Rols O'Bertilsson

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Posted 02 November 2011 - 08:23 PM

Now, THIS may actually hurt FIFA where it really hurts.

And it's good that it's Emirates threatening this, not some UK, US or Oz company where everybody would just say it's "sour grapes":


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Emirates threaten World Cup sponsorship exit

Emirates Airlines has given the strongest indication yet that it will not renew its multi-million dollar sponsorship of the FIFA World Cup following the voting scandal that rocked the 2018 and 2022 bidding process.

In a stern rebuke to FIFA, Boutros Boutros, divisional senior vice president of corporate communications and one of the Dubai-based airlines most senior executives, said it has had no contact with the organisation about the crisis and felt it had been “overlooked” by it despite being one of its largest benefactors.

Emirates has now commissioned research into its association with FIFA to see if there has been any long term damage to its brand.

On a visit to Australia to attend the Emirates sponsored Melbourne Cup yesterday, Boutros told B&T: “We are seriously thinking about not renewing our partnership with FIFA beyond 2014.”

In 2006 Emirates signed a record-breaking US$195m (A$190m) deal with football’s world governing body to become its partner – the highest level of association a company can have with FIFA – from 2007 to 2014.

The agreement was the largest sponsorship association the airline has ever signed and followed its strategy of sponsoring football teams and major sporting events around the world.

Boutros added: “We don’t get into politics but we believe the situation with FIFA went beyond an internal problem and became much bigger.

“As a sponsor you expect they will come and write to you in the middle of the issue or at the end of it. To them they act as if it’s nothing for sponsors, he said. “For us, in our history of sponsorship, it is the only event that when it happened our clients started writing to us saying ‘why do you support this organisation?’

“You’d expect at certain times that FIFA would send you some assurances so that we don’t read about it in the newspapers or press conferences when you are one of the main partners. We are considered a partner, but if you are a partner in the business I think once a year you owe him a report. And that’s why we felt we were overlooked by FIFA. At the end of the day they were probably too busy, but at the end of the day we haven’t seen any changes. There is nothing telling you these things will not happen again.”

Boutros said he hoped Emirates’ association with FIFA had not damaged the brand, but said it was waiting the results of research before a final decision on its commitment for 2018 and 2022 had to be made by June next year. He added: “With social media when you get negative reports from your passengers questioning why you are supporting FIFA, that has never happened to us before.”

Emirates also plans to launch a major new advertising campaign at the start of next year to reflect a new brand positioning that moves it away from its ‘Keep discovering’ tagline and positions it is as a global airline.

It is currently reviewing which ad agency currently handles its Australian advertising business which is currently held by Saatchi & Saatchi. Six agencies are understood to have presented to Emirates executives last week, with a decision on the account imminent.

Boutros said that sponsorship which accounts for between 40% and 60% of Emirates’ marketing spend would remain the same and there were no new plans to associate the brand with new ventures.

B&T

Edited by Sir Rols, 02 November 2011 - 08:24 PM.

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#2 Ikarus360

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Posted 02 November 2011 - 08:29 PM

Can't believe it's been almost a year and the drama about the 2018/2022 WC still goes on....

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#3 Athensfan

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Posted 02 November 2011 - 08:32 PM

AWESOME! This is the only thing that will make any difference. Go after the money!

"...unforgettable, dream Games..."


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#4 MrCatra

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Posted 02 November 2011 - 08:57 PM

easily replaceable.
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FIFA is a corrupt organization!

Blatter, Teixeira, Leoz, Grondona, etc, all need to go!

#5 Rols O'Bertilsson

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Posted 02 November 2011 - 09:06 PM

View PostMrCatra, on 02 November 2011 - 08:57 PM, said:

easily replaceable.

But HUGELY embarrassing for FIFA - especially since Emirates explicitly cites the controversy over corruption as their main reason.

Teixera been jailed yet?
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#6 faster

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Posted 02 November 2011 - 09:16 PM

Not so easy when it comes to money. Really only Etihad and nevermind I will shut up now, Qatar Airways, could afford such a deal.

#7 Rols O'Bertilsson

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Posted 02 November 2011 - 10:47 PM

View Postfaster, on 02 November 2011 - 09:16 PM, said:

Not so easy when it comes to money. Really only Etihad and nevermind I will shut up now, Qatar Airways, could afford such a deal.

Aeroflot?
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#8 Soaring

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Posted 03 November 2011 - 03:11 PM

Very interesting that Emirates would do such a thing, especially since its the first WC held in the Middle East.

#9 baron-pierreIV

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Posted 03 November 2011 - 03:51 PM

View PostSoaring, on 03 November 2011 - 03:11 PM, said:

its the first WC .

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#10 RobH

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Posted 03 November 2011 - 05:18 PM

View PostIkarus360, on 02 November 2011 - 08:29 PM, said:

Can't believe it's been almost a year and the drama about the 2018/2022 WC still goes on....

It's not really about that any more. The Qatar bid still smells dodgy but no hard proof has come out about what they did or didn't do, and I think few begrudge Russia their World Cup given the size of the nation, the fact they have a decent footballing history and haven't hosted before.

Rather, this is about FIFA itself. The fact is that nearly weekly we have stories about new problems; TV deals awarded to Sepp Blatter's nephew, Jack Warner and Bin Hamman handing out cash for votes, Warner selling tickets on the black market, misuse of GOAL project funds by another ExCo member, the ISL cover-up looking like it might be unconvered, xenophonia from the top table, Blazer having his own offshore accounts taking slices from CONCACAF commercial deals etc etc etc.

Why would Emirates want to be associated with this? Is a month of sport worth three and half years of bad press and reputational damage by association? That's what they'll be asking themselves and what other sponsors ought to be thinking too.

Good on Emirates.

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easily replaceable.

So glib. :rolleyes:
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