McDonald's surprise exit from the FIFA World Cup shows how big brands are rethinking sports sponsorships
McDonald's decision to leave FIFA shows how global brands are reassessing the cost, clutter and return on sport's biggest sponsorships.
McDonald's has ended its 32-year sponsorship of the FIFA World Cup, citing underperformance and a desire to reassess the commercial returns of sports sponsorships. The decision comes after the fast-food giant's largest-ever World Cup marketing push during the 2022 tournament, which the company's CFO said failed to meet expectations.
While sports sponsorships allow brands to reach large global audiences and associate themselves with positive emotions, measuring the ROI can be challenging. Research shows that 76% of US business-to-consumer marketing executives found it difficult to calculate the ROI of their sports sponsorships. McDonald's, valued at $40 million annually, may not have provided a sufficient return on investment compared to other potential sponsorship opportunities.
The company remains committed to sports marketing, focusing on its own IP and other sports properties, such as France's Ligue 1 and the All-American Games. The 2026 World Cup is expected to reach an estimated 6 billion people worldwide, making it an attractive opportunity for brands to associate themselves with the event. However, the increasing number of host-city partners could dilute McDonald's share of the commercial attention.
Smaller, newer sports properties may offer more flexibility and targeted marketing opportunities for mature global brands like McDonald's.
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