Brazil keeps losing sponsors in wake of corruption scandals
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.