Is Hyundai and Kia’s FIFA Sponsorship hurting the Brands Reputation in the United States?

Hyundai and KIA are the currently the official car sponsors of FIFA
Hyundai and KIA are the currently the official car sponsors of FIFA

Back in 2010 Hyundai and Kia signed a 12 year sponsorship agreement to become the official Automotive Partner of FIFA until 2022.

In the wake of last week’s stunning U.S. federal indictments of top FIFA officials and executives, this is a good time to ask the question, “Is the Hyundai-Kia FIFA sponsorship hurting the brands’ reputation in the United States?”

It is obvious that Hyundai and Kia are taking a wait and see approach to the developing FIFA scandal.

Last week in a statement the company said, “As a company that places the highest priority on ethical standards and transparency, Hyundai Motor is extremely concerned about the legal proceedings being taken against FIFA executives and will continue to monitor the situation closely,” according to Automotive News Europe.

However other FIFA sponsors, such as VISA, are taking a much more proactive approach to last week’s news.

In a recent statement Visa said, “Our disappointment and concern with FIFA in light of these developments is profound. As a sponsor, we expect FIFA to take swift and immediate steps to address these issues within its organization. This starts with rebuilding a culture with strong ethical practices in order to restore the reputation of the games for fans everywhere.”

But obviously both companies are not ready or willing to sever ties with FIFA.  In this recent John Oliver video below, the host clearly states that FIFA has a growing international reputation of being one of the most corrupt sports organizations in the world. The recently reelection of FIFA’s President, Sepp Blatter, to a 5th term has not helped to change international public opinion that FIFA is currently doing more to hurt the sport of soccer than it is to helping the sport thrive and grow.

In his weekly news entertainment show John Oliver calls on the American sponsors of FIFA to help use their clout to change the organization that in his opinion is destroying the sport of soccer.

But he goes much further.

He takes a funny, yet very serious satirical poke at McDonalds and Budweiser for sponsoring and helping to maintain FIFA, a Swiss non-for-profit, that has been compared in structure to a mafia organization by the U.S. Justice Department in the recent indictments.

BTW: The video above had already been viewed by over 1.5 million people just on YouTube.

Perhaps the better question to ask is not, “Is the Hyundai-Kia FIFA sponsorship hurting the brands’ reputation in the United States?” but instead, “How much damage is the Hyundai-Kia FIFA sponsorship hurting the brands’ reputation in the United States?”

Of course time will tell. According to both the U.S. Justice department and Soccer Insiders, last week’s indictments are just the start of the investigation and prosecution of FIFA in the United States. If this is the case and the other shoe has yet to fall, the sooner sponsors like Hyundai and Kia distance themselves from FIFA, the better. However, if it is business as usual and Sepp Blatter manages to hold on as FIFA President for his entire 5th term, last week’s news may turn out to be a rather large, but not so significant tempest in a tea pot.

Either way there is no doubt that damage is being done to Hyundai and Kia’s reputation in the United States. The question is just how much?