Brazil keeps los­ing spon­sors in wake of cor­rup­tion scan­dals

Malta Independent - - SPORT -

The Brazil­ian soccer con­fed­er­a­tion has lost five ma­jor spon­sors in the last 18 months as its pres­i­dent — and the pre­vi­ous two pres­i­dents — has been in­dicted on cor­rup­tion charges.

The lat­est to bail out is Sam­sung, which joins Miche­lin and Gil­lette as ma­jor spon­sors aban­don­ing the CBF, whose pres­i­dent Marco Polo del Nero is wanted by US pros­e­cu­tors on rack­e­teer­ing, fraud and other charges.

The CBF con­firmed Sam­sung's exit, but de­clined other com­ment. The CBF's web­site shows it has 10 spon­sors re­main­ing, in­clud­ing Nike, Chevro­let and MasterCard.

Re­ports in Brazil say Sam­sung may have to pay $20 mil­lion to get out of the deal. The South Korean com­pany has been buf­feted by re­cent fi­nan­cial losses re­lated to its Galaxy Note 7 phone.

The shav­ing brand Gil­lette, owned by Proc­tor & Gam­ble, left 11 months ago and told the news­pa­per Folha de S.Paulo at the time that "it is com­mit­ted to sound ethics and seeks part­ners who cor­re­spond with our val­ues."

Erich Bet­ing, the owner of Brazil­ian sports mar­ket­ing com­pany Maquina do Es­porte, said Brazil's eco­nomic cri­sis is also play­ing a role in the ex­its. He said spon­sors over­paid in the run-up to Brazil's 2014 World Cup.

The CBF's web­site shows in­come from spon­sor­ships soared in the run-up to the 2014 World Cup. Spon­sor­ship in­come for 2012 was 235 mil­lion re­als (now $70 mil­lion), and reached 359 mil­lion re­als ($107 mil­lion) in 2014 — a 50 per­cent in­crease.

It fell to 339 mil­lion re­als ($101 mil­lion) in 2015, the last year for which the CBF pro­vided data.

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