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Could American World Cup sponsors get burned if protests continue?

By: Kapitall
Posted: 6/9/2014 10:13:00 AM
Referenced Stocks:

By James Dennin for Kapitall.

We've written some about World Cup misfires, mainly that Brazilians aren't really feeling the games that much this year. Now that the final practice matches in Brazil's shiny new stadiums have taken place, the news doesn't seem to be getting better. 

70% of Brazilians are dissatisfied with the direction of the country. A whopping 60% believe that the World Cup-which Brazil wins more than anybody else-will be bad for their country. 

Among the chief concerns are the cost of the event and the fact that many stadiums aren't yet completed. A lot of Brazilians are frustrated with FIFA, international soccer's governing body, for insisting on expensive facilities few Brazilians will be able to afford.

Their concerns are so impassioned, people have even labeled this World Cup "football apartheid."

And yet, it's way too late for the current American sponsors of this year's content to back out. Which certainly begs the question of what, exactly, these marketers have signed up for. If protests continue or worse, the rest of the world comes to share the opinion of the event's most vocal detractors. 

Could sponsors get burned if the situation doesn't change between now and Thursday? Let us know what you think in the comments. 

Click on the interactive chart to view data over time. 

1. The Coca-Cola Company ( KO , Earnings , Analysts , Financials ): Distributes, and markets nonalcoholic beverages worldwide. Market cap at $179.89B, most recent closing price at $40.79.

2. Sony Corporation ( SNE , Earnings , Analysts , Financials ): Designs, develops, manufactures, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial markets worldwide. Market cap at $18.05B, most recent closing price at $16.24.

3. Anheuser-Busch InBev ( BUD , Earnings , Analysts , Financials ): Engages in brewing and selling beer in North America, Latin America, Europe, and the Asia Pacific. Market cap at $177.19B, most recent closing price at $110.15.

4. Johnson & Johnson ( JNJ , Earnings , Analysts , Financials ): Engages in the research and development, manufacture, and sale of various products in the health care field worldwide. Market cap at $291.91B, most recent closing price at $102.68.

5. McDonald's Corp. ( MCD , Earnings , Analysts , Financials ): Operates as a foodservice retailer worldwide. Market cap at $101.15B, most recent closing price at $102.44.

(List compiled by James Dennin. Monthly returns sourced from Zacks Investment Research.)

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