Federation Internationale de Football Association

New York, NY: (Jun-21-07) MasterCard Inc. filed charges against the Federation Internationale de Football Association (FIFA), alleging that it breached contract when it awarded sponsorship rights to MasterCard's rival, Visa International Inc. The fight over MasterCard's right to sponsor the tournaments ended when FIFA agreed to pay the credit card issuer $90 million settlement to discontinue its sponsorship of the 2010 and 2014 World Cup soccer tournaments, after a US district judge ruled in December 2006 that FIFA did not honor its agreements with MasterCard when it awarded sponsorship rights Visa International Inc.

In May 2007, a federal appeals court asked a lower court judge to review her ruling due to uncertainties over whether a 2006 contract was valid. MasterCard had served as the tournament's official sponsor since 1994. After the settlement was made final, officials said the $90 million settlement payment represents half of the sponsorship amount. Of the settlement payment, $87.5 million is being paid in the second quarter and $2.5 million will be paid in the third quarter, according to a regulatory filing with the Securities and Exchange Commission. [USA TODAY: MASTERCARD SPONSORSHIP]

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Published on Jun-27-07