The admission by Satyam chairman B Ramalinga Raju of billion dollar fraud could have repercussions on the biggest sporting event on the planet.
The admission by Satyam chairman B Ramalinga Raju of billion dollar fraud could have repercussions on the biggest sporting event on the planet... the 2010 football World Cup in South Africa.
Satyam is one of the six World Cup sponsors and has a crucial role to play as the official IT service provider for the FIFA spectacle in South Africa. FIFA hasn’t made an official statement yet. However, considering the scale of the scandal and the damage it has done to Satyam, FIFA may have to do a rethink on the entire deal.
There were reports on the internet about FIFA standing by the deal. However, a FIFA official told DNA that the statement, which was made in the initial stages, stood discarded. “Considering the new developments related to the extent of the scandal, we need more time. We are monitoring the situation,” the official said.
Given the uncertainty surrounding the extent of the fraud and the impact it will have on the company’s investors, there are chances that the deal may fall under the weight of Satyam’s financial losses.
In November 2007, Satyam created history by becoming the first Indian company, and the first from the sub-continent, to become a World Cup sponsor. The multi-million dollar deal was signed by Ramalinga Raju, the man in the eye of the storm and FIFA president Sepp Blatter in Durban, South Africa.
Satyam joined global giants Budweiser, Castrol, McDonalds, Continental and MTN as the six sponsors of the World Cup.
Besides becoming the global sponsor of the football event, Satyam is a service partner for IT, accommodation and hospitality for the 2010 and 2014 events.
The deal gave Satyam global rights for the 2010 FIFA World Cup in South Africa, the 2014 FIFA World Cup in Brazil and the two FIFA Confederations Cups falling between 2007 and 2014.
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