UEFA has turned down FIFA’s proposal for a $20 billion investment plan for the World Cup
UEFA has expressed its opposition to FIFA’s plan for a $20 billion commercial entity, asserting that the World Cup is “not FIFA’s to sell” to private investors.
UEFA has firmly rejected FIFA’s suggestion to establish a new commercial entity that would permit private investors to acquire minority stakes in the governing body’s World Cup operations, stating that this move represents a boundary “football’s governing institutions should never cross.”
FIFA president Gianni Infantino announced the establishment of a new entity, FIFA Forward Enterprise (FFE), which will manage the organization’s commercial and event activities, encompassing the FIFA World Cup and Club World Cup. The entity aims to secure up to US$4.2 billion from long-term investors, predicated on an initial valuation of US$20 billion.
FIFA has stated that it will maintain ownership of FFE, while investors will obtain minority, non-controlling stakes. The governing body is collaborating with JPMorgan on the proposal, with Joshua Kushner’s investment firm, Thrive Eternal, listed as one of the potential investors.
UEFA criticized the proposal, stating that the governance of football should remain free from commercialization.
“The essence and management of football are not commodities to be exchanged,” UEFA stated in a declaration. “None of us own football.” It does not belong to FIFA to sell.
The proposal necessitates the endorsement of FIFA’s 211 member associations, with each potentially eligible for a one-time funding of up to US$20 million should the plan be approved. FIFA announced that the capital raised would aid in the global development of football through its funding programs.
Infantino described the initiative as an effort to “democratize football worldwide,” while reports also suggest he could lead the new company after his tenure as FIFA president ends, should he secure re-election next year and complete his final term in office through 2031.
The proposal reflects Infantino’s earlier effort in 2018 to obtain a US$25 billion investment for new global competitions, a plan that encountered significant opposition from UEFA due to worries regarding the commercialization of football’s top tournaments.
