FIFA involved in MasterCard lawsuit

A US appeals court will hear part of a case that credit card company MasterCard is bringing against rival company Visa, after losing out in negotiations with FIFA to sponsor football's World Cup.

MasterCard had sponsored World Cup events for 16 years and is suing FIFA over its move to award an eight-year sponsorship to Visa, beginning in January.

In a court filing in April, MasterCard claims that FIFA violated the terms of its contract by agreeing to a deal with Visa after it had already drafted an agreement with MasterCard.

It said the move by FIFA was "a blatant and deceitful violation" of a written agreement, which among other things gave MasterCard the right of first refusal if other companies attempted to take the sponsorship.

Both credit card companies are trying to boost their market share in football strongholds like Latin America and are competing for the sponsorship rights, which are estimated to cost about USD 35 million-USD 40 million.

Visa is appealing in a US appeals court, after the New York federal court denied a motion that Visa would be admitted as a party to the case.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.