By Anjali Athavaley
NEW YORK, May 28 (Reuters) - Visa Inc's public warning to FIFA that it may end its sponsorship if world soccer's governing body does not quickly clean up its act will likely prompt other sponsors to take a tough stance as a major corruption scandal involving FIFA unfolds, brand experts said.
After U.S. prosecutors indicted nine FIFA officials and five sports media and promotions executives on federal corruption charges, other major sponsors including Coca-Cola Co, McDonald's Corp and Anheuser-Busch InBev urged FIFA to resolve its problems and repair its image. [ID:nL1N0YI2N1
But in the most forceful condemnation by a sponsor, Visa described its "disappointment and concern" with FIFA as "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 game for fans everywhere," Visa said in a statement.
A company spokeswoman declined further comment.
Toby Southgate, chief executive of the Americas region at Brand Union, a subsidiary of British advertising company WPP, said Visa's action puts pressure on other companies to strengthen their responses, given the growing emphasis investors and consumers place on corporate citizenship.
"There are notions of good governance and transparency that the financial services category is very alert to," said Southgate. "It won't stop people from buying cans of Coke, but it will at a market level or an analyst level impact perception of organizations associated with corruption."
Normally, companies give entities they sponsor time to resolve issues, but the gravity and scope of the FIFA scandal may make this situation unique, experts said.
"The sponsors' patience has already been tested and continues to be tested," said Rob Prazmark, president of 21 Sports & Entertainment Marketing Group, a global sports and event sales agency in Greenwich, Connecticut, that represented Johnson & Johnson in its negotiations to become a World Cup sponsor in 2014.
"That's where you may see a little bit more of an aggressive position out of Visa and some of the others."
Visa conveyed a sense of urgency in its statement. "Our sponsorship has always focused on supporting the teams, enabling a great fan experience, and inspiring communities to come together and celebrate the spirit of competition and personal achievement, and it is important that FIFA makes changes now, so that the focus remain on these going forward. Should FIFA fail to do so, we have informed them that we will reassess our sponsorship," the company said.