FIFA’s Plan to Sell World Cup Stake to Private Investors Sparks Outrage from UEFA
FIFA’s announcement of a plan to sell stakes in the World Cup to private investors has sent shockwaves through the football world, with UEFA swiftly condemning the move as a ‘line that football’s governing institutions should never cross.’
According to FIFA, the proposed sale would see the creation of a new organization, the FIFA Forward Enterprise (FFE), which would oversee commercial rights and operational delivery of the World Cup through a $20 billion company with private investors. The proposal would require significant private-sector investment, with FIFA seeking to raise up to $4.2 billion in capital.
The Times reported that FIFA boss Gianni Infantino is expected to become commissioner of the new entity, potentially after securing a further term as FIFA president next year. The proposal has already sparked controversy, with UEFA expressing its strong opposition to the move.
UEFA’s Reaction
UEFA’s swift response to the news has been characterized by a strong statement condemning FIFA’s plan as ‘extremely serious.’ The European soccer governing body emphasized that the soul and governance of football are not assets to be traded, particularly with zero transparency regarding who would gain financially from the sale.
UEFA’s statement read, in part, ‘This crosses a line that football’s governing institutions should never cross. 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 FIFA Forward Enterprise (FFE)
FIFA’s proposal for the FFE would see the creation of a new organization that would oversee commercial rights and operational delivery of the World Cup. The FFE would be a subsidiary of FIFA, with the organization retaining sole control over football governance, competitions, and regulatory decisions.
According to FIFA, the FFE would be led by a geographically diversified group of investors, reflecting the global nature of the game. The organization would invite third parties to make minority, non-controlling investments in the FFE, with any such investors selected against clear long-term, governance, and strategic criteria.
FIFA would retain majority board representation and exclusive authority over football governance, competitions, the international match calendar, and all regulatory and sporting decisions. The proposal would require the approval of FIFA’s 211 member associations, which would undertake a consultation process before any decision is made.
As part of the process, J.P. Morgan has been engaged to work alongside FIFA, while other advisers such as OpenEconomics are engaging with prospective long-term investors. The process is focused on assembling a geographically diversified investor group that reflects the global nature of FIFA and the game.
Greg Maffei and Thrive Eternal
Greg Maffei, CEO of BANN Ventures and formerly President and CEO of Liberty Media during its acquisition and ownership of Formula One, has been a key commercial adviser and will remain involved in the establishment of FFE in this next phase. Thrive Eternal, a permanent capital holding company, is expected to lead the proposed investor group for FFE.
As part of this process, J.P. Morgan has been engaged to work alongside FIFA, while other advisers such as OpenEconomics are engaging with prospective long-term investors. The process is focused on assembling a geographically diversified investor group that reflects the global nature of FIFA and the game.
Expressions of interest to date include investors from across every major region of the world: Europe, the Americas, Asia, and Africa.
The FIFA President and the FIFA administration have a duty to control the development of this project. Outside investors will have only a minority stake in FFE and will not play any operational role. Equally, they are investing in a subsidiary of FIFA, and not in FIFA itself. For FIFA, nothing changes.
In a similar way to other sports governing bodies with dedicated commercial subsidiaries, FIFA will invite third parties to make minority, non-controlling investments in FFE. Any such investors would be selected against clear long-term, governance, and strategic criteria. They would represent a geographically diversified group that reflects the global nature of the game, acting as minority, long-term partners that could contribute capital and commercial expertise in support of FIFA’s mission to grow the global game.
