MasterCard International has filed a complaint in a US court seeking an injunction against FIFA to prevent it proceeding with a deal with Visa International to sponsor the 2010 and 2014 FIFA World Cups. The complaint was filed in the U.S. District Court for the Southern District of New York after it was recently revealed that FIFA had entered into the Visa relationship, despite apparently having a contractual agreement giving MasterCard the right of first refusal to continue to be the category-exclusive sponsor.
MasterCard’s complaint states that after a period of negotiation in which FIFA assured MasterCard that it was not going to enter into an agreement with a third party, it proceeded in doing so.
It is claimed FIFA did this despite the fact that it had already provided MasterCard with a written contract – including all terms – that MasterCard signed and returned to FIFA. Soccer's world governing body then advised MasterCard that a deal with Visa was completed.
"This action by FIFA is a blatant and deceitful violation of our right of first refusal," said Noah Hanft, general counsel, MasterCard International, "particularly as we had already signed and accepted FIFA’s offer."
"Among the key terms we bargained for in the 2002-2006 FIFA World Cup sponsorship negotiation was the right to obtain future FIFA World Cup sponsorship opportunities and a critical aspect of any sponsorship – particularly one as significant as FIFA World Cup – is continuity and the building of equity over time," continued Hanft.
"MasterCard will vigorously pursue legal action to compel FIFA to honor the 96-page written and binding agreement it has with MasterCard, providing for us to be an official sponsor of the next two FIFA World Cups," he said.
"MasterCard continues to move forward with the important customer and consumer programming related to the 2006 FIFA World Cup in Germany, which begins in June," said Lawrence Flanagan, chief marketing officer, MasterCard International.
MasterCard’s complaint states that after a period of negotiation in which FIFA assured MasterCard that it was not going to enter into an agreement with a third party, it proceeded in doing so.
It is claimed FIFA did this despite the fact that it had already provided MasterCard with a written contract – including all terms – that MasterCard signed and returned to FIFA. Soccer's world governing body then advised MasterCard that a deal with Visa was completed.
"This action by FIFA is a blatant and deceitful violation of our right of first refusal," said Noah Hanft, general counsel, MasterCard International, "particularly as we had already signed and accepted FIFA’s offer."
"Among the key terms we bargained for in the 2002-2006 FIFA World Cup sponsorship negotiation was the right to obtain future FIFA World Cup sponsorship opportunities and a critical aspect of any sponsorship – particularly one as significant as FIFA World Cup – is continuity and the building of equity over time," continued Hanft.
"MasterCard will vigorously pursue legal action to compel FIFA to honor the 96-page written and binding agreement it has with MasterCard, providing for us to be an official sponsor of the next two FIFA World Cups," he said.
"MasterCard continues to move forward with the important customer and consumer programming related to the 2006 FIFA World Cup in Germany, which begins in June," said Lawrence Flanagan, chief marketing officer, MasterCard International.