Budweiser Crunches Numbers: Demands 64 Billion Won Deduction in Upcoming Competition?

Legal Action Replaced by Maintaining FIFA Sponsorship Amid Beer Sales Ban
Budweiser-FIFA Sign 150 Billion KRW Sponsorship Deal for North and Central America World Cup

On the 16th, four days before the opening of the 2022 Qatar World Cup (local time), beer for sale was displayed at a booth inside the FIFA Fan Festival venue in Doha, Qatar. Photo by Yonhap News

[Asia Economy Reporter Yoon Seul-gi] Budweiser, which was suddenly notified of a 'ban on beer sales' two days before the opening of the 2022 Qatar World Cup, is reported to demand a deduction of about 64 billion KRW from FIFA in the sponsorship contract for the next tournament.

According to The Sun and others on the 22nd (local time), Budweiser plans to maintain its status as the official beer supplier of the North American World Cup but will request a deduction of 400,000 pounds (about 64 billion KRW) from FIFA. This is a measure following FIFA's sudden announcement on the 18th, two days before the World Cup opening, that beer sales around the stadium would be prohibited.

Previously, the Qatar government had initially allowed beer sales in designated areas before the match for ticket holders but abruptly reversed the decision. FIFA also stated, "After discussions with Qatari authorities, we decided to remove beer sales points around the stadium and focus on alcohol sales at fan festivals and authorized locations," adding, "The sale of Bud Zero (non-alcoholic beer) at the stadium will not be affected."

Budweiser, which had expected a World Cup boom, expressed bewilderment at the sudden policy change. Budweiser posted on its official Twitter account, "Well, this is awkward..." but deleted the post after 90 minutes. According to The New York Times (NYT), Budweiser had planned promotions such as acquiring luxury hotels in Doha, Qatar, to sell beer while broadcasting World Cup matches live.

As a result, there has been speculation that Budweiser may take legal action against FIFA for breaching the contract. It is known that Anheuser-Busch InBev, the manufacturer of Budweiser, and FIFA signed sponsorship contracts worth about 650,000 pounds (about 100 billion KRW) for the Qatar World Cup and about 950,000 pounds (about 150 billion KRW) for the 2026 North American World Cup.

However, instead of terminating the sponsorship contract, Budweiser appears to have chosen to reduce the cost burden for the 2026 North American tournament. Experts had previously predicted that Budweiser would not sever the sponsorship relationship, considering the market in North America, including the next host country, the United States.

Conrad Wysocki, a sports analyst at a UK data analysis and consulting firm, told CNN, "Since Budweiser can be greatly compensated at the 2026 tournament held in the United States, they will act cautiously," adding, "Leaving FIFA now would open the door for other beer brands."