FIFA is set to ask its 211 member associations to vote in September on a plan to sell minority stakes in the World Cup. This proposal has drawn criticism from football governing bodies across the Americas, Asia, and Europe. The plan involves raising an estimated $4.2 billion in 2026 by selling a reported 20% minority stake in a new subsidiary, valued at $20 billion.
The new company, named FIFA Forward Enterprise (FFE), would manage the non-profit organisation’s commercial and event operations. Each of FIFA’s member associations would receive $20 million in funding if the deal is approved, with annual funds to members continuing to increase through 2038. FIFA has stated it would remain the primary owner of the new subsidiary, maintaining control over scheduling competitions, matches, and regulatory decisions.
Thrive Eternal, a fund established by Josh Kushner’s Thrive Capital, is expected to lead the investor group. This firm previously acquired a minority stake in the San Francisco Giants. Bankers from JPMorgan are advising FIFA on the deal. The proposal requires approval from a majority of FIFA’s member associations.
Concerns and Criticisms
UEFA, Europe’s football governing body, has called an emergency meeting to discuss the matter. French sports minister Marina Ferrari emphasised the importance of European stakeholders speaking with a unified voice on a project that could significantly alter the sport. UEFA is reportedly considering the threat of boycotting FIFA events, including the World Cup and the Club World Cup.
Tensions between UEFA and FIFA have been evident, with UEFA president Aleksander Ceferin having boycotted the World Cup final due to various issues, including FIFA’s decision to suspend U.S. striker Folarin Balogun’s red card earlier in the tournament. UEFA has engaged in discussions with various stakeholders and noted significant and growing opposition to FIFA’s scheme. The organisation acknowledged FIFA’s September deadline and the potential for member associations to miss out on the $20 million payment.
The proposed deal has generated considerable controversy among football fans, analysts, and other governing bodies. UEFA stated that the plan “crosses a line that football’s governing institutions should never cross,” adding that the soul and governance of football are not assets to trade, especially without transparency regarding financial beneficiaries. They asserted that football does not belong to FIFA to sell.
CONCACAF, the confederation for football in the Americas, and the Asian Football Confederation (AFC) both expressed deep concern over the lack of consultation and transparency. They reported being informed about the deal through media reports and felt disappointment that the proposal was presented without prior discussions. The Football Association (FA) in England also stated it was unaware of the proposal and lacked substantive details, expressing deep concern about the lack of information.
British Prime Minister Andy Burnham also voiced opposition, stating that football belongs to the fans and not to investors. He described the World Cup as the greatest competition in world sport, not a product to be sold. FIFA president Gianni Infantino has been criticised for his close relationship with former President Donald Trump, to whom he presented the inaugural “FIFA Peace Prize” last December. FIFA reportedly consulted with the Trump administration on these plans.
Potential Implications and Future Steps
FIFA argues that its plan, involving a dedicated commercial subsidiary, is similar to models used by governing bodies in other sports, citing Premiership Rugby’s partnership with CVC Capital Partners in 2018. However, UEFA views this announcement as a significant step, raising concerns about potential further expansion of FIFA competitions to generate revenue, which could impact its own lucrative competitions.
Football finance expert Kieran Maguire suggested that the proposals offer FIFA an opportunity to generate more money, noting that many interested parties in the game seek a share of the action. He also indicated that if the FFE is established, there could be pressure for a 64-team World Cup and for the tournament to occur every two years to satisfy shareholders.
The matter is expected to be a key topic at the next FIFA Council meeting in the autumn and during the FIFA Intercontinental Cup in December, which will feature Champions League winners Paris St-Germain. A vote by all 211 member nations on the proposal could take place at the FIFA Congress in Morocco in March.
FIFA’s revenue from the 2026 World Cup was $15 billion, a significant increase compared to the estimated $7.57 billion generated during the 2022 World Cup cycle. Infantino had previously spoken about unleashing FIFA’s commercial potential, a sentiment the organisation has repeatedly referenced in announcing the new venture.
Source: forbes.com
