MasterCard, which had sponsored World Cup events for 16 years, is suing the tournament’s governing body, FIFA, over its move to award an eight-year sponsorship to Visa beginning in January.
MasterCard said in a court filing in April that FIFA violated the terms of its contract by agreeing a deal with Visa after it had already drafted an agreement with MasterCard. It said the move by FIFA was "a blatant and deceitful violation" of a written agreement, which among other things gave MasterCard the right of first refusal if other companies tried to take the sponsorship.
The sponsorship rights, which are estimated to cost about $35 million- $40 million, are highly coveted among the rival credit card companies, both of which are vying to boost their market share in football strongholds like Latin America.
Visa wants to be admitted as a party to the case, a motion the New York federal court denied in September. Visa is appealing that order in a US appeals court today.
