SportBusiness.com

FIFA TO HIRE NEW AGENCY TO SELL 2002 SPONSORSHIP?

FIFA says it will confirm within the coming weeks if it will recruit a new marketing agency to help sell sponsorship for the 2002 World Cup, following the collapse of the ISMM Group.

FIFA president Sepp Blatter, who has said last week's bankruptcy of marketing firm ISL Worldwide could cost FIFA up to 100 million Swiss francs ($56 million), is under pressure to safeguard marketing contracts worth far more.
He said that sponsors are expected to turn over contracts signed with ISL to FIFA by June 4.
The World Cup finals are being backed by companies including brewer Anheuser-Busch , Coca-Cola , Hyundai Motor and McDonald's .
Blatter said FIFA would take one week, beginning on June 4, to determine if a new marketing firm would be needed to find enough sponsors for next year's finals.
"Five companies have already offered help," he said.
As a first step, FIFA has decided to hire 75 people from ISL, Blatter said, "in order to ensure service to the sponsors and service to the local organising committees".
"FIFA has started these activities and I will report in more detail to the executive committee of FIFA on June 12 in Zurich," he said.
Blatter is expected to face a thorough grilling at the meeting over a series of problems topped by the collapse of ISL Worldwide and parent International Sports Media and Marketing (ISMM), which had been handling World Cup TV broadcast marketing.
He has been criticised for not moving faster to avert trouble with ISL, whose problems first emerged last year.
The problems forced FIFA earlier this month to cancel July's World Club Championships in Spain, an event Blatter created.
They have also embroiled FIFA in a fight over $60 million that it alleges ISMM received last year from Brazilian broadcaster TV Globo and held in an account to which FIFA had no access.
FIFA filed criminal charges against ISMM officials in Switzerland on Thursday. FIFA said the charges were "based on suspicion of fraud ....embezzlement ....and disloyal business management".
Despite the dispute, Blatter said enough broadcasting rights for next year's World Cup finals had already been sold to ensure FIFA is paid the 650 million francs promised by the marketing firm.
He also reiterated that German media giant Kirch might step in to handle the World Cup television rights.
Blatter and other top FIFA officials are in South Korea this week for the start of the Confederations Cup, a key warm-up for hosts Korea and Japan as they prepare for the 2002 World Cup finals.
Reuters