Fifa boss Sepp Blatter has joked that gay people "should refrain from sexual activities" at the 2022 Qatar World Cup.
He was asked what he would say to gay football fans who want to go to Qatar for the 2022 competition, given that homosexuality is banned in the Middle East country.
Grinning, he said: "I would say they should refrain from any sexual activities."
Mr Blatter went on to insist that he believed discrimination would not be an issue in Qatar by 2022, saying "we are living in a world of freedom".
His comments came hours after England's 2018 bid sponsor Morrisons demanded compensation for the £1m the firm spent on a process it has since described as "unfair".
We hope Fifa will do the right thing and offer £1m to be invested in grassroots football.Supermarket chain Morrisons
Mr Philips said he believes England did not ever have a hope of winning the competition, in light of Fifa's comment that the World Cup finals "should go to new lands".
In a statement, Morrisons said it was disappointed on behalf of its customers that the merits of the England bid were not recognised by Fifa, "which clearly was intent on locating the 2018 World Cup in an emerging country".
"As we think the decision-making process was unfair, we have instructed lawyers in Switzerland to examine our options under Swiss law," the company told Sky News.
Morrisons Anger Over World Cup Bid
Other top-tier sponsors of the England bid - Umbro, BT and BA - would not say whether they would seek any reimbursement for their campaign donations.
Mr Blatter told the Johannesburg news conference that the decision to take the World Cup to Russia and then Qatar had nothing to do with money, but was instead about the development of football.
"We have to go with our game somewhere where it can improve social cultural impact," he said.
Proud to back the bid: Morrisons ran a World Cup advertising campaign
Morrisons announced in February it had signed up to be a partner in the England bid, and it collected 1.65 million customer signatures to demonstrate public enthusiasm.Mark Gunter, Group Retail Director at Morrisons, said then: "We're sure that our customers would be delighted if the World Cup came to England in 2018 and by becoming a commercial partner we can help them to play their part in supporting the bid."
The FA spent some £15m in its attempt to become the 2018 World Cup host and counted on support from Prince William, David Cameron and David Beckham.
Mr Blatter described the England bid as "excellent and remarkable", but judges decided not to send the tournament back to the country for the first time since 1966.
Final results showed that, out of a total of 22 votes, England gained just two, one of which was from Geoff Thompson, the vice-president of Fifa.
The lack of support meant England was knocked out in the first round, putting it last out of bids from Russia, Spain-Portugal and Belgium-Holland.
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