Mini$-$Case The Global Soccer Industry and the Effect of the FIFA Scandal

The F$$d$$ration Internationale de Football Association $($FIFA$)$ was founded in Paris in $1904$ and was initially comprised of only European nations. By World War II$,$ FIFA had added a few South American members. Newly independent states in Africa, Asia, and the Caribbean joined later. However, it continued to be governed $"$as though it was an exclusive European club"$-$until $1974$ when Jo$\backslash$bar $($a$)$ o Havelange, a Brazilian, won the election as FIFA's president. Havelange was able to transform the organization and expand the World Cup competition to teams from nations outside Europe and South America and made the tournament a major money$-$making enterprise. With the amount of exposure and money involved, companies desired sponsorship rights because of the advertising potential. Adidas AG and Coca$-$Cola were original sponsors. Havelange also oversaw significant increases in revenue from television rights. In the process, Havelange was alleged to have participated in much corruption and eventually was suspected of amassing $$50$ million in bribes.