FIFA And Aramco Agree Global Partnership

Aramco, the Saudi state-owned oil and gas major, agreed a four-year global partnership with FIFA, global soccer’s governing body. The deal makes Aramco FIFA’s Major Worldwide Partner, and gives it sponsorship rights at the 2026 FIFA Men’s World Cup being hosted in the U.S. Mexico and Canada, as well as the 2027 Women’s World Cup. Aramco’s deal with FIFA is reported to be with $100 million annually and follows on the coattails of its new partnership with CONCACAF.

Signing lucrative financial agreements with state-run companies is nothing new for FIFA. Ahead of the 2018 Men’s World Cup in Russia, it signed a deal with Gazprom, the Russian gas company. In 2022 it did the same, making state airline Qatar Airways the main sponsor of the tournament. It also attempted to make Saudi Tourism the title sponsor of the 2023 Women’s World Cup, only to see the deal scuppered by public outcry. The larger issue is that by bringing on Aramco as a sponsor — the world’s largest oil and gas producer and the main source of funding for an authoritarian state — FIFA is eroding what limited credibility existed in its climate change strategy and human rights agenda.

As the climate crisis continues to accelerate, positive impact and emissions reduction plans are what is expected from global leaders, including soccer’s governing body. Sports’ power to change the world, and solve complicated political issues is routinely talked about, yet in a moment of need, FIFA has abdicated its leadership responsibilities, showing a lack of concern for climate change and human rights violations.

FIFA President Gianni Infantino says, “Aramco has a strong track record of supporting world-class events, but also a focus on developing grassroots sport initiatives.” Infantino is right about the former, over the past several years, Saudi Arabia — including Aramco, the Public Investment Fund and other state-owned companies — has secured over 300 sponsorship deals in 21 sports. There is no question the oil company has excelled at pumping money into elite-level sporting events and competitions. Excellent reporting from Danish research organization Play the Game has explained why Saudi Arabia is making these investments, and what the cost is for the integrity of the sports we hold dear.

Amin H. Nasser, President and CEO of Aramco said, “Through this partnership with FIFA we aim to contribute to football development and harness the power of sport to make an impact around the globe. It reflects our ambition to enable vibrant communities and extends our backing of sport as a platform for growth.” This is the same CEO who just weeks ago at the CERAWeek Conference called on policymakers to “abandon the fantasy of phasing out oil and gas, and instead invest in them adequately, reflecting realistic demand assumptions.” It is therefore hard to understand how Aramco’s partnership with FIFA will “enable vibrant communities.”

In 2022, Aramco had Scope 1 and 2 greenhouse gas emissions of roughly 71.8 million tons of CO2e. This is equivalent to those of Norway, and greater than those of over 140 countries. Forbes estimates Aramco’s 2023 profits to have been $156.4 billion, and lists the Saudi company's assets at $661 billion. Moreover, the Saudi Arabian state has routinely attempted to slow and obstruct UN climate talks and has developed an Oil Demand Sustainability Programme with the express purpose of creating new demand for oil and gas in Africa, and in the shipping and aviation industries. When asked how its new partnership with FIFA furthers both parties push towards net-zero, Aramco declined to comment.

Despite being a signatory of the United Nations Sports for Climate Action Network, FIFA has seen fit to seek sponsorship from the very industry that causes climate change. Furthermore, soccer’s governing body remains convinced that the sponsorship deal will help develop the sport globally. When asked how the agreement can be reconciled with FIFA’s Climate Strategy a FIFA Spokesperson said the following:

“In line with its statutes, FIFA reinvests its revenue, including the income of the Aramco sponsorship, in developing football worldwide. It is expected that in the 2023-2026 cycle FIFA will invest in excess of a record USD 3.9 billion in development and education. This includes FIFA Forward 3.0, the Football Development Fund and other initiatives such as women's football promotion and development, refereeing and technical development.

Without FIFA’s support more than half of FIFA’s member associations simply couldn’t operate and properly equip their youth and women’s national teams to participate in international competitions.”

What FIFA’s statement neglects to recognize is that by signing an agreement with Aramco, the governing body of the world’s most popular sport is giving the world’s largest oil and gas producer the license to continue operating in the same manner, which according to last year’s figures means producing 12.8 million barrels of oil equivalent per day at a time when production and emissions must cease. Moreover, the deal will provide Aramco the largest sports advertising platform available, spreading its name, image and influence around the world, everyday, during multiple game broadcasts for over a month.

As if the climate grievances surrounding this partnership did not create enough alarm, Amnesty International has condemned the Aramco becoming FIFA’s Major Worldwide Partner due to human rights concerns. “There is a cruel irony that a Saudi Arabian state-owned company should be considered fit to sponsor the Women’s World Cup when women like Salma al-Shehabopens and Manahel al-Otaibiopens remain imprisoned in the Kingdom for peacefully speaking out for gender equality,” said Steve Cockburn, Amnesty International's Head of economic and Social Justice.

Cockburn went on to say “With Saudi Arabia also currently being the sole bidder to host the 2034 Men’s World Cup, world football could be dogged by human rights violations for years to come unless urgent action is taken to address the country’s atrocious human rights record,” before calling on FIFA to seek binding agreements to protect the people from exploitation before awarding the Gulf kingdom the rights to the 2034 Men’s World Cup.

In just over 24 hours, there was fierce public backlash to the sponsorship deal. Badvertising, the British organization campaigning “to stop adverts and sponsorships fuelling the climate emergency,” drew up a petition demanding the deal be terminated immediately. Fossil Free Football said the deal “sets the world’s most popular sport on a regressive course just as the global community must lower emissions by around 50% this decade.” Moreover, major U.K. media outlets including the BBC, the Daily Mirror and SportsPro Media have all published pieces laying out similar concerns with the deal.

Speaking several days later, during the Athlete Session at the British Association for Sustainable Sport’s Annual Conference, Wycombe Wanderers midfielder David Wheeler said that one of the biggest obstacles to real action on climate in the soccer industry was “the distinct lack of moral leadership and gutlessness of FIFA.” A clear rebuke of FIFA’s general approach and its new partnership with Aramco.

What remains to be seen is if this backlash will create any change in behavior from FIFA or Aramco, or more importantly increase awareness among fans about the hypocrisy of this agreement.