Topline
FIFA will ask its 211 member associations to vote on its controversial plan to sell minority stakes in the World Cup in September, multiple outlets reported—although the plan has already been criticized by soccer governing bodies in the Americas, Asia and Europe.
Key Facts
In a deal first reported by The Times and the Financial Times, FIFA is planning to raise an estimated $4.2 billion in 2026 by selling a reported 20% minority stake in a new subsidiary at an equity valuation of $20 billion.
FIFA confirmed the plans in an announcement on Tuesday morning, which said the new company would be called FIFA Forward Enterprise and would control the nonprofit organization’s “commercial and event operations.”
FIFA’s 211 member associations would each be given $20 million in funding if the deal goes through, the organization said, and annual funds to members would continue increasing through 2038.
FIFA said it would remain the primary owner of the new subsidiary and maintain control over scheduling competitions and matches, as well as governance and regulatory decisions.
Thrive Eternal, a fund created by Josh Kushner’s Thrive Capital that previously purchased a minority stake in the San Francisco Giants, will lead the investor group, FIFA said, and the nonprofit federation is being advised by bankers from JPMorgan.
The new plan would need to be approved by a majority of FIFA’s member associations.
UEFA was unaware of the plans before Tuesday, Sky News reported, and is planning to hold an emergency virtual meeting this week to discuss the plans.
Infantino set a deadline for member associations to vote on the plan for September 19, multiple outlets reported, if they want to access the immediate $20 million in funding.
What to Watch For
UEFA’s emergency meeting is set to take place on Wednesday, Agence France-Presse reported citing a statement from French sports minister Marina Ferrari. “Faced with a project that could profoundly transform our sport, it is essential that European stakeholders speak with a single voice,” Ferrari said. The European confederation is reportedly considering using the threat of a boycott of FIFA events, including the World Cup and the Club World Cup. Tensions between UEFA and FIFA have been high in recent weeks—UEFA president Aleksander Ceferin boycotted the World Cup final over multiple issues, Reuters reported, including FIFA’s decision to suspend U.S. striker Folarin Balogun’s red card earlier in the tournament. In a statement released later on Wednesday morning, UEFA said it had conversations with “stakeholders across the game,” and insisted there was “significant and growing opposition to FIFA’s scheme.” The organization said it was aware of FIFA’s September deadline, and the prospect of member associations losing the $20 million payment “says everything you need to know about this plan.”
Gianni Infantino’s Connections
FIFA president Gianni Infantino could play a major role in the new deal, the Times reported on Tuesday. Infantino is up for reelection as president next year, but is term-limited after 2031. Sources told The Times Infantino could serve as a “commissioner” or chief executive of the new company after his final term, although the FIFA president later told the paper the idea “has never been discussed.” FIFA’s own statement did not elaborate on Infantino’s role in the future company. Infantino has been heavily criticized for his cozy relationship with President Donald Trump, whom he gave the inaugural “FIFA Peace Prize” to last December. FIFA reportedly consulted with the Trump administration on the plans, two sources told the Times. However, Jared Kushner, the president’s son-in-law and older brother of the Thrive Capital founder, is not one of the investors lined up.
Chief Critics
The deal is highly controversial among soccer fans, analysts and other governing bodies for the sport. "This crosses a line that football’s governing institutions should never cross," UEFA, soccer’s governing body in Europe, said in a response to the reporting in the Times. “UEFA takes it extremely seriously. So should every National Football Association. So should every stakeholder: leagues, clubs, players, supporters, governments and everyone who cares about the future of the game. The soul and governance of football are not assets to trade – especially with zero transparency as to who gains financially. None of us are the owners of football. It is not FIFA’s to sell.” Hours after UEFA expressed outrage over the proposed deal, CONCACAF, the confederation governing soccer in North America, Central America and the Caribbean, said it was also only informed about the deal through media reports and was “deeply concerned by the lack of due process.” The confederation said it felt “disappointment” since the deal was presented without any discussions with the other soccer governing bodies. The Asian Football Confederation put out a similar statement, saying it was “not consulted” on the deal and was not given the “opportunity to examine and discuss it through the appropriate and established governance channels.” On Wednesday, the Football Association, the sport’s governing body in England, similarly said it was “completely unaware of this proposal and have no substantive details, including what the proposition actually is, and what conditions are attached.” The English organization said it was “deeply concerned” about the lack of information and transparency, but would comment further after details about the deal are made clear. British Prime Minister Andy Burnham also weighed in against the proposed deal, insisting “football does not belong to investors. It belongs to the people who fill the stands and who stand on the touchline week in, week out, rain or shine.” The prime minister said the World Cup was not a “product” and instead “belongs to the fans.”
Big Number
$15 billion. That’s how much FIFA made in revenue from the 2026 World Cup, according to the organization. It was a significantly higher haul compared to the estimated $7.57 billion made during the 2022 World Cup cycle. In a speech earlier this year, Infantino promised to “unleash the commercial potential and opportunity that FIFA has”—a comment the nonprofit has repeatedly pointed to in announcing the plans for the new venture.
Source: Forbes
