After more than 30 years: McDonald's abandons the World Cup – here's why

Fast-food giant McDonald's has announced the end of its sponsorship agreement with the World Cup after 32 years of partnership. The decision came after the marketing campaign at the last tournament did not meet expectations, and the contract, estimated at around $40 million per year, will not be renewed. The move reflects a trend of major brands re-evaluating the viability of global sports sponsorships.

Fast-food giant McDonald's has announced the end of its historic sponsorship agreement with the FIFA World Cup, after 32 years of partnership. The surprising decision comes after the company's CFO stated that the extensive marketing efforts at the last tournament "did not meet expectations." The deal between the parties was valued at approximately $40 million per year. The move highlights the growing challenge for large companies to prove a return on investment in massive spending on sports sponsorships. A study by the consulting firm Forrester found that 76% of marketing executives in the US who invested in sports sponsorships reported difficulty in calculating the economic return. Additionally, the sponsorship market around the World Cup is becoming more crowded, and in the last tournament, FIFA even allowed host cities to sell local sponsorship packages. Experts estimate that other major brands may re-evaluate their sponsorship deals and shift focus to local and digital campaigns.