Wednesday, August 24, 2011

FIFA is $occer


- 18th FIFA President and corrupt mofo, Sepp Blatter

Check out this excellent piece on the evolution of FIFA into its modern, corrupted form. Here's a key excerpt on how FIFA revolutionized the way the rest of the sports world thinks about sponsorships and money:

At his first dinner as [FIFA's 17th] president, [João] Havelange encountered the German businessman Horst Dassler, the son of the founder of adidas. Dassler, an aggressive, manipulative entrepreneur who was then serving as the CEO of adidas France, had thought a great deal about how to capitalize on the explosion in the popularity of televised sport. Over a series of meetings, Havelange, Dassler, and Dassler's partner, Patrick Nally, devised what eventually became the template for modern sports sponsorship. As the soccer historian David Goldblatt writes in The Ball is Round, the plan had four components:

First, only the very largest multinational companies, whose advertising budgets could bear the load and whose global reach matched the TV audience on offer, should be approached as sponsors. Second, sponsorship and advertising would be segmented by product type: There could be only one soft drink, one beer, one microelectronics firm, or one financial services company that could be the official World Cup product or supplier. Third, FIFA would have total control over all forms of TV rights, advertising, stadium space, etc. Any and all existing deals in a host country would have to go. Fourth, FIFA itself would not handle the details of the sponsorship and TV deals. Marketing and TV rights would be handed over for a guaranteed sum of money to an intermediary who would sell them on.

To cover the last part, the selling of TV rights and sponsorships, Dassler created a marketing company called ISL, short for International Sports and Leisure, and established an office across the street from FIFA headquarters in Zurich.

The combined effect of Havelange's two insights [the other being support of Africa and Asia as a new power base] was to co[n]vert FIFA into a sort of hydraulic cash-flow machine.

3 comments:

  1. Ugh. I'd love to see a similar piece on the IOC

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