Comments on: Satyam Fraud Gives the World Cup a Satyam-Fraud-Shaped Black Eye http://www.runofplay.com/2009/01/08/satyam-fraud-gives-the-world-cup-a-satyam-fraud-shaped-black-eye/ Attacking Football Sat, 11 Feb 2012 05:36:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: ursus arctos http://www.runofplay.com/2009/01/08/satyam-fraud-gives-the-world-cup-a-satyam-fraud-shaped-black-eye/#comment-3524 ursus arctos Fri, 09 Jan 2009 08:28:15 +0000 http://www.runofplay.com/?p=5597#comment-3524 The opacity is of course intentional, as it serves each of the parties' interests for their role to appear to be as grand as possible. One can draw parallels to the US grading system for olives, in which "jumbo" is one of the smallest sizes to be found on supermarket shelves. The most effective measure of sponsors' respective influence (and contributions) is who has the best sideline hoardings and largest hospitality tents. It's quite possible that events will allow FIFA to save its blushes without taking any extraordinary action. Satyam is very unlikely to survive in anything like its pre-crisis form, and the sponsorship contract likely gives FIFA an automatic out in the event of a change in control. The opacity is of course intentional, as it serves each of the parties’ interests for their role to appear to be as grand as possible. One can draw parallels to the US grading system for olives, in which “jumbo” is one of the smallest sizes to be found on supermarket shelves. The most effective measure of sponsors’ respective influence (and contributions) is who has the best sideline hoardings and largest hospitality tents.

It’s quite possible that events will allow FIFA to save its blushes without taking any extraordinary action. Satyam is very unlikely to survive in anything like its pre-crisis form, and the sponsorship contract likely gives FIFA an automatic out in the event of a change in control.

]]> By: Brian Phillips http://www.runofplay.com/2009/01/08/satyam-fraud-gives-the-world-cup-a-satyam-fraud-shaped-black-eye/#comment-3520 Brian Phillips Thu, 08 Jan 2009 23:51:42 +0000 http://www.runofplay.com/?p=5597#comment-3520 That's my fault; thanks for clarifying, ursus. It's a point that's being misreported all over the internet. The source of the confusion is the way FIFA describes their sponsorship tiers; for instance, <a href="http://www.fifa.com/worldcup/organisation/media/newsid=644235.html" rel="nofollow">here</a>, in their 2007 announcement of their partnership with Satyam: <blockquote> Satyam is the fourth company - after Anheuser-Busch, McDonald's and MTN - to join the proposed six-member FIFA World Cup Sponsor line-up under FIFA's commercial hierarchy, which comprises six FIFA Partners, six FIFA World Cup Sponsors and six National Supporters. FIFA has already signed contracts with adidas, Hyundai, Sony, Coca-Cola, Visa and Emirates Airline as FIFA Partners. In addition, Telkom SA was recently announced as the second National Supporter of the 2010 FIFA World Cup™ after FNB. </blockquote> If you don't read that carefully, you come away with the idea that there are six main World Cup sponsors, and as Satyam has just joined the six-member FIFA World Cup Sponsor lineup, they must be one of them. Actually, of course, the FIFA World Cup Sponsor level is beneath the FIFA Partner level. I'd assumed that the Partner level described a more general relationship with FIFA that wasn't as World Cup-focused, but actually the Partners---not the World Cup Sponsors---are the main World Cup sponsors. It all makes a kind of gruesome sense. Anyway, it'll be interesting to see what Zurich does about this. I'll give them a few days to deliberate before I decide that Satyam won't be dropped. How could a course of action be settled on if no one had talked for 72 straight hours, after all. That’s my fault; thanks for clarifying, ursus. It’s a point that’s being misreported all over the internet.

The source of the confusion is the way FIFA describes their sponsorship tiers; for instance, here, in their 2007 announcement of their partnership with Satyam:

Satyam is the fourth company – after Anheuser-Busch, McDonald’s and MTN – to join the proposed six-member FIFA World Cup Sponsor line-up under FIFA’s commercial hierarchy, which comprises six FIFA Partners, six FIFA World Cup Sponsors and six National Supporters. FIFA has already signed contracts with adidas, Hyundai, Sony, Coca-Cola, Visa and Emirates Airline as FIFA Partners. In addition, Telkom SA was recently announced as the second National Supporter of the 2010 FIFA World Cup™ after FNB.

If you don’t read that carefully, you come away with the idea that there are six main World Cup sponsors, and as Satyam has just joined the six-member FIFA World Cup Sponsor lineup, they must be one of them. Actually, of course, the FIFA World Cup Sponsor level is beneath the FIFA Partner level. I’d assumed that the Partner level described a more general relationship with FIFA that wasn’t as World Cup-focused, but actually the Partners—not the World Cup Sponsors—are the main World Cup sponsors.

It all makes a kind of gruesome sense. Anyway, it’ll be interesting to see what Zurich does about this. I’ll give them a few days to deliberate before I decide that Satyam won’t be dropped. How could a course of action be settled on if no one had talked for 72 straight hours, after all.

]]> By: ursus arctos http://www.runofplay.com/2009/01/08/satyam-fraud-gives-the-world-cup-a-satyam-fraud-shaped-black-eye/#comment-3519 ursus arctos Thu, 08 Jan 2009 23:17:43 +0000 http://www.runofplay.com/?p=5597#comment-3519 To be legalistic (I can't help myself sometimes), Satyam aren't really one of the "six major sponsors". Like most organisations of its ilk, FIFA tiers its sponsorship levels, and Satyam only made it into the second tier. The "FIFA Partner" label is reserved for those icons of social responsibility at Coca Cola, Emirates, addias, Sony, Hyundai and Visa. Satyam were only able to buy their way into the second circle (or should that be the eighth?). Some bumf on the wonders of the FIFA system from the horse's mouth (or other orifice): http://www.fifa.com/aboutfifa/marketingtv/marketing/sponsorship/index.html And Satyam still are featured on the WC2010 website, see the bottom of the home page: http://www.fifa.com/worldcup/index.html and here: http://www.fifa.com/worldcup/organisation/partners/index.html To be legalistic (I can’t help myself sometimes), Satyam aren’t really one of the “six major sponsors”. Like most organisations of its ilk, FIFA tiers its sponsorship levels, and Satyam only made it into the second tier. The “FIFA Partner” label is reserved for those icons of social responsibility at Coca Cola, Emirates, addias, Sony, Hyundai and Visa.

Satyam were only able to buy their way into the second circle (or should that be the eighth?).

Some bumf on the wonders of the FIFA system from the horse’s mouth (or other orifice): http://www.fifa.com/aboutfifa/marketingtv/marketing/sponsorship/index.html

And Satyam still are featured on the WC2010 website, see the bottom of the home page: http://www.fifa.com/worldcup/index.html and here: http://www.fifa.com/worldcup/organisation/partners/index.html

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