By Ellen Emmerentze Jervell
FRANKFURT--FIFA chief Sepp Blatter's resignation has provided a
breather for Adidas AG, the soccer body's top sports-industry
sponsor, as it grapples with slumping sales and a image
problems.
Mr. Blatter's announcement on Tuesday that he would resign after
17 years leading the global soccer body prompted applause from
several big FIFA sponsors. Adidas called his exit a "step in the
right direction."
The U.S. corruption probe of FIFA has been particularly rough on
the German sportswear maker, which has sponsored FIFA's World Cup
for decades and has a sponsorship contract that runs until
2030.
Following the U.S. Justice Department's indictment of FIFA
officials late last month, all FIFA sponsors faced negative
chatter. However, none was tarred as badly as Adidas, according to
Freemavens, a company in London that analyzes social media. On
Twitter in the two days following the May 27 indictments and
arrests in Zurich, negative tweets about Adidas increased more than
300 times, according to Freemavens.
Adidas declined to comment on the issue.
In late March Adidas unveiled a new strategy to boost sales,
profits and market share. The company is focusing heavily on the
U.S., where it last year fell to third place behind U.S. brands
Nike Inc. and Under Armour Inc., both of which are pushing hard
into the global soccer market that Adidas dominates.
The Justice Department's move came as Adidas was launching
several new soccer shoes in time for the UEFA Champions League
final in Berlin on Saturday.
The negative response from the scandal has prompted some
analysts to renew longstanding questions about the value that
companies achieve sponsoring sports associations. Matt Powell, a
sports industry analyst at NPD group, said he thinks "all sponsors
will have to assess the return on this investment."
Write to Ellen Emmerentze Jervell at GERCORP@dowjones.com