Judge: Mastercard May Sponsor World Cup http://www.chron.com/disp/story.mpl/ap/fn/4386229.html NEW YORK — MasterCard International Inc. can sponsor the next two World Cup soccer tournaments because soccer's international governing body didn't play fair when it awarded the rights to Visa International Inc., a judge said Thursday.
A 125-page opinion by U.S. District Judge Loretta A. Preska disqualified Visa from going forward with a contract that was supposed to install it Jan. 1 as the new sponsor for the 2010 and 2014 World Cups.
Preska blamed the Federation Internationale de Football Association, known as FIFA, for misleading Mastercard, a Purchase, N.Y.-based company, the nation's second-largest credit card brand behind Visa, which had a right of first refusal after sponsoring the 2006 World Cup in Germany.
She said FIFA misled MasterCard into believing it had an exclusive 90-day period from Feb. 8, 2005 to May 8, 2005 to consider a sponsorship deal for the next two World Cups when FIFA was actually "simultaneously and aggressively" negotiating with Visa as well.
Preska noted that FIFA's slogan is "fair play." Yet, she added, its dealing "with FIFA's long-standing `partner' MasterCard constitutes the opposite of `fair play' and violates FIFA's own requirement that `its negotiators deal honorably with its business partners.'"
FIFA said in a statement that it will appeal the ruling over who gets to be the exclusive payments sponsor.
"FIFA is dismayed by the decision," it said. "FIFA remains convinced that at all times it acted in good faith and it will therefore continue to vigorously pursue its case."
In a statement, Visa said it was considering its options and was disappointed by the ruling, but acknowledged that it was "surprised and dismayed to learn that during the negotiations, FIFA had not been truthful with Visa regarding its obligations to MasterCard."
It said it negotiated its global sponsorship agreement with FIFA in good faith after FIFA assured it that the deal was valid and binding and did not conflict with any of MasterCard's rights.
"This ruling stands as a victory for sound business ethics over the deceptive and deceitful practices perpetrated by certain members of the FIFA management team," Noah Hanft, a lawyer for MasterCard Worldwide, said in a statement. "We now look forward to reforms in FIFA's business practices going forward."
MasterCard had proven it would suffer irreparable harm for which money could not adequately compensate it if it were deprived _ for at least the next eight years and likely longer _ of "the unique opportunity to sponsor the most popular and widely viewed sporting event in the world," Preska said.
On the other hand, FIFA "would suffer no discernible harm from an injunction, other than potential liability to VISA, potential liability for which FIFA is solely to blame," the judge said.
She said Visa cannot complain of the consequences of its decision to proceed with executing its contract with FIFA because it already was on notice that MasterCard believed it did not fairly acquire the rights.
MasterCard had argued that San Francisco-based Visa should not be allowed into the lawsuit because its interests were represented by FIFA. The 2nd U.S. Circuit Court of Appeals had agreed.
