Spain's kissing scandal comes for soccer's sponsors

Protesters hold a sign that reads “It’s over” during a demonstration called by feminist associations in support to Spain’s player Jenni Hermoso, at Callao square on 28 August 2023, in Madrid, Spain. Photo: Bloomberg

The walls look to be closing in on Luis Rubiales. The president of the Spanish football federation, who triggered a #MeToo moment for his sport and country by forcibly kissing star forward Jenni Hermoso on the lips after the Women's World Cup final, has a multiplying list of enemies. If world soccer's governing body, Spanish prosecutors, the government, the coaches, the players, their union or his own federation's regional heads don't get him first, commercial considerations may seal his fate.

The surrealist drama of Rubiales's defiance has overshadowed what should have been a period of extended celebration for the Spanish women's team, who won their first World Cup at the tournament in Australia and New Zealand this month. The 46-year-old former player has mounted a quixotic campaign in defence of his job, first calling critics of his unsolicited kiss "idiots," then making a qualified apology, only to pivot to belligerence again. At an emergency meeting of the federation last Friday, Rubiales sold the world's media a dummy that would have made Lionel Messi proud. Expected to announce he was stepping down, he instead denounced what he called "false feminism" and declared five times in succession: "I will not resign." His mother has gone on a hunger strike inside a church in southern Spain to protest her son's treatment.

All this is a problem for the sponsors that have invested millions of euros to associate their brands with Spanish football. This should be a golden period for commercial partners of the women's team, with a hugely successful tournament having positioned the game for an explosion of interest and potential marketing opportunities. Yet instead of positive narratives, the oxygen around the sport is being consumed by the Rubiales controversy. "There is only a short window to really capitalize on their partnerships and all this time is being lost," said Fraser Houlder, associate director of The Sports Consultancy, a London-based company that advises on sponsorship contracts.

Several have already spoken out. Iberia, a unit of International Consolidated Airlines SA, said it supports "appropriate and pertinent measures" to preserve the rights and dignity of athletes. Iberdrola SA, the energy group, said any attitude that goes against the defence of equal rights and the dignity of women "has no place in the world of sport or in society," the Financial Times reported. National rail operator Renfe said it supports measures by Spain's Sports Council, which is seeking Rubiales's removal, according to Spanish media.

One name that has been silent so far is Adidas AG, the kit supplier for the Spanish women's and men's teams. The German sportswear maker has sponsored Spain's national team since 1991 and should not mourn the departure of Rubiales. In 2019, he sought to end the federation's partnership with the German brand seven years early, according to Spanish sports daily Marca. The deal stayed and was subsequently extended to 2030. A compensation bill estimated by Marca at 100 million euros ($109 million) may have stayed the federation's hand.

What is Adidas thinking now? The company makes much of its commitment to gender equality but has been slow to react on similar occasions in the past. Last October, the company severed its relationship with American rapper and fashion designer Kanye West after a rash of offensive behaviour. Red flags over West's conduct, including toward ex-wife Kim Kardashian, had been apparent more than a year earlier. Adidas didn't respond to two emails seeking comment.

No sponsor has yet threatened to sever ties with Spanish football. That's understandable. Rubiales isn't the brand, only the figurehead. Sponsorship contracts typically have moral clauses that allow companies to criticize, suspend or terminate in the event of objectionable behaviour. Still, partners that have just backed a World Cup-winning team would be loath to pull out so early. In any case, cutting the relationship would only damage an innocent Spanish women's team. Companies are more likely to push privately for a resolution.

The Rubiales episode goes well beyond sports and has set off a wider cultural debate over patriarchal and chauvinistic attitudes in Spanish society. But football is also a business. Rubiales has increased the federation's revenue by more than 2.5 times since he became president in 2018. That may help to explain why he has maintained such a strong grip on the organization, surviving a series of controversies along the way,

Is he still good for business, though? One of the more bizarre sub-plots of this saga was the federation's request this week to European football's governing body, UEFA, to suspend it from international competition. That would have meant no Spanish clubs in the Champions League. Real Madrid earned 133.7 million euros ($146 million) in prize money from winning the competition in 2021/2022, or about a fifth of its annual revenue. Barcelona took home 64.7 million euros. That's without considering TV rights, ticket sales or other related income.

There was little chance of a suspension. It was a strong-arm tactic aimed at putting pressure on the Spanish government to back off from its efforts to have Rubiales removed (UEFA declined, and shortly afterwards Rubiales was suspended by FIFA, the global body). But a willingness to even contemplate such a gambit suggests that protecting Rubiales's personal fiefdom has superseded other considerations, including the financial health of Spanish football. That doesn't look like a recipe for career longevity.

When you want to know what's happening in a football match, keep your eye on the ball. If you want to know what's happening in business, follow the money. Set aside for a minute the cacophony of outrage Rubiales's behaviour has provoked: Commercial logic alone says his days at the top of Spanish soccer are numbered.

Matthew Brooker is an editor with Bloomberg Opinion. He previously was a columnist, editor and bureau chief for Bloomberg News. He is a CFA charterholder.

Disclaimer: This article first appeared on Bloomberg, and is published by a special syndication arrangement.