Visa to sponsor World Cup

Credit card network Visa International announced on Wednesday that it has reached a deal to sponsor the 2010 and 2014 World Cup soccer tournaments.

Visa, owner of the world's largest credit card network, said the 8-year deal with the Federation Internationale de Football Association, commonly known as FIFA will provide access to competitions, special events and development programs worldwide.

The deal has taken some time to finalise and is likely to leave Mastercard feeling bitter about the deal.  Visa's largest rival Mastercard had been a main tournament sponsor for 16 years.  When FIFA first announced plans for the sponsorship deal last year Mastercard sued FIFA claiming they had the right of first refusal to sponsor future tournaments.  Sporting sponsorships form a major part of credit card companies advertising spend and with the World Cup being the worlds most watched sporting event it's no wonder this sponsorship is the one to have.

Under the deal agreed this week, Visa will pay US $170 million for the sponsorship, $10 million less than the original bid made last year according to FIFA President Joseph Blatter.
"We look forward to activating our FIFA partnership," said John Elkins, executive vice president at Visa International. "We know first hand how valuable a global sporting property can be in driving business."

Visa now holds sponsorship rights to some of the world's largest sporting events including the Olympic Games and the Rugby World Cup.

The next FIFA World Cup will be in South Africa in 2010.

Visa is the most accepted of all credit card networks worldwide.  In Australia a large number of Visa cards are issued from issuers such as HSBC and ANZ.