FIFA faces global backlash over plan to sell World Cup stakes

FIFA faces global backlash over plan to sell World Cup stakes

FIFA President Gianni Infantino has proposed the creation of a commercial subsidiary to sell minority, non-controlling stakes in the World Cup and other major events to private investors. The plan, revealed on Tuesday, has sparked immediate condemnation from several of the world's most powerful football governing bodies, who cite a lack of transparency and a failure of governance.

The proposed entity, titled FIFA Forward Enterprise (FFE), would be valued at approximately 20 billion US dollars. According to FIFA, the subsidiary would integrate the operational delivery of tournaments with the sale of commercial rights, including ticketing, licensing, sponsorship, and broadcasting. FIFA intends to raise up to 4.2 billion US dollars through external investors.

The project is being led by Thrive Capital, a firm launched in April by Joshua Kushner, the brother of Jared Kushner. J.P. Morgan is acting as the financial adviser for the process. While FIFA maintains it will retain control over the international match calendar, regulatory decisions, and the governance of football, critics argue the move commodifies the sport.

Financial Incentives and Deadlines

The proposal comes with significant financial lures for FIFA's 211 member associations. If the plan is approved, FIFA claims it will increase development funding to more than 10 billion US dollars over the next four years. Specifically, funding for the 2027-2030 cycle would rise from the current 8 million US dollars to 20 million US dollars per association.

Infantino has set a deadline of September 19 for member associations to accept a one-off 20 million US dollars offer via a new FIFA Fast Forward Programme. He has indicated that associations rejecting the plan would see their earnings drop to 2.7 billion US dollars—a decrease of almost 75%.

Infantino defended the move as a way to democratise football worldwide, stating that the commercial success of the game should be reinvested into global development projects. He argued that the sport needs a structure where the commercial side operates as a focused business to ensure value is shared better across the world.

Global Opposition

The reaction from continental bodies and national associations has been overwhelmingly negative. UEFA, the governing body for European football, described the move as crossing a line, stating that the soul and governance of football are not assets to trade. UEFA further asserted that the World Cup is not FIFA’s to sell and accused Infantino of using the sport to enrich friends.

Similar sentiments were echoed by other major organizations:

• The FA: A spokesperson for the English Football Association stated they were completely unaware of this proposal and expressed deep concern over the lack of process.
• CONCACAF: The North, Central American and Caribbean body said it only learned of the matter through media reports and a media release, citing a lack of due process.
• Asian Football Confederation (AFC): The AFC expressed disappointment that a matter of such significance entered the public domain before the organization could examine it through established governance channels.
• European Leagues: Representing the Premier League and others, the group's board president, Claudius Schafer, warned that private investors would gain a permanent claim on football tomorrow.

Political opposition has also emerged. British Prime Minister Andy Burnham stated in a video message that football does not belong to investors and that selling a piece of the World Cup constitutes selling out.

Political and Leadership Context

The proposal is the latest in a series of ambitious moves by Infantino, who has served as president for 11 years. The project aligns him with figures in the orbit of U.S. President Donald Trump; Infantino previously created a FIFA peace prize awarded to Trump in December and allowed Trump to intervene in a case regarding forward Folarin Balogun.

Some observers suggest the creation of FFE could provide Infantino with a CEO or commissioner role after his presidency ends, though FIFA has dismissed this, stating it has never been discussed.

Opposition is currently coalescing in Europe. UEFA called for an emergency meeting on Thursday, which will include SFA chief executive Ian Maxwell and President Mike Mulraney. There are indications that European nations could potentially boycott the next World Cup if the plan proceeds. This mirrors a 2021 effort where UEFA-led opposition stopped a plan to hold the World Cup every two years.

However, not all members are opposed. Czech Republic FA president David Trunda told Sky News that he sees pragmatic benefits and a positive impact in the intentions of Infantino's team.

The future of the plan now rests with the FIFA Council and the member associations. Meanwhile, Infantino is eyeing a fourth term, with the candidate entry deadline set for November 18 and the election scheduled for March 18 in Rabat, Morocco.