Fifa has announced plans to sell stakes in its football competitions, including the World Cup, to private investors. This move has been met with strong reactions from various football bodies, politicians, and fans. Gianni Infantino, the president of Fifa, has presented this as a way to democratise football.
The proposal involves creating a subsidiary, the Fifa Forward Enterprise (FFE), to manage the commercial rights of these events. Fifa states it would retain a majority share in the FFE, maintaining control over football governance, competitions, match calendars, and regulatory decisions. However, minority stakes would be offered to external investors.
Investor involvement and political ties
The investment fund involved in the process, Thrive Capital, is led by Josh Kushner, who is the brother-in-law of Donald Trump‘s daughter, Ivanka. Another figure in the process is Greg Maffei, formerly president of Formula 1 owner Liberty Media, who has contributed to Trump’s political campaigns.
Infantino has cultivated a close relationship with Trump over several years. This includes awarding Trump a Peace Prize, opening a Fifa office in Trump Tower, and allowing the Club World Cup trophy to be kept in the Oval Office. Recently, Infantino used language similar to Trump’s when addressing critics of the World Cup‘s organisation.
Working with Trump associates on this plan allows Infantino to leverage his connection with the former US President, potentially leading to mutually beneficial outcomes. Fifa has engaged in these discussions unilaterally, which has caused anger among some nations and regions who feel they were not consulted.
Reactions and potential consequences
The proposal has intensified an ongoing conflict between Infantino and the European governing body, Uefa. Aleksander Ceferin, the president of Uefa, boycotted the World Cup final in protest against Fifa’s decision to overturn USA striker Folarin Balogun‘s suspension after an intervention from Trump.
Uefa has expressed strong opposition to the plan, stating that it “crosses a line that football’s governing institutions should never cross.” They argue that the “soul and governance of football are not assets to trade.” The Confederation of North, Central America and Caribbean Association Football (CONCACAF) also voiced concerns about a lack of due process, stating they were not informed of the proposed sale.
The United Kingdom‘s Prime Minister, Andy Burnham, also condemned the move, asserting that football belongs to the fans and that the World Cup is not a product to be sold. Elite clubs have privately criticised the proposal, and Uefa is reportedly considering its legal position.
Despite the backlash, Infantino appears to have significant support from many countries in Africa, Asia, and the Americas. These nations have benefited financially from policies he has introduced, such as the expansion of the World Cup to 48 teams and increased funding for member countries.
Fifa votes require a simple majority, suggesting the plan is likely to proceed given Infantino’s base of support, which constitutes more than half of Fifa’s 211 members. If approved, Fifa would receive a large influx of cash, with a proportion earmarked for national federations to be made available from 1 January 2027.
However, critics like Miguel Maduro, a former chairman of Fifa’s governance committee, have raised doubts about whether the money would reach all levels of football as promised. Maduro described the proposal as a “form of legalised bribe” and claimed he resigned from his role due to disagreements with Fifa’s leadership.
The proposal follows a trend in sports economics, with private equity investment transforming sports in the USA and leagues like La Liga and Ligue 1 selling portions of their operations. While Fifa insists it would retain control, inviting private investment could subject decision-makers to external pressures, potentially influencing decisions about the sport’s future.
Uefa members are reportedly angry about the plan, and a meeting is scheduled to discuss a response. Some reports suggest a boycott of the World Cup by European nations could be a possibility, which would significantly impact the tournament’s value. However, the likelihood of such a boycott is debated.
Infantino is expected to be re-elected unopposed as president next year, and under Fifa statutes, he must step down in 2031 after serving three full terms.
Source: bbc.com
