FIFA Scraps Plan to Create Commercial Arm

In a major U-turn, FIFA has announced that it will not proceed with a plan to create a $20 billion commercial arm of the world governing body. The proposal, which was met with widespread criticism from soccer confederations, aimed to sell stakes in the World Cup and other events to private investors.

The plan, known as FIFA Forward Enterprise, was intended to provide a basis for further strengthening FIFA Member Associations and the sport worldwide, especially in countries where support is most needed. However, the proposal was met with opposition from major groups representing Europe, Asia, and the Americas, with UEFA, CONCACAF, and the AFC condemning the plan in emergency meetings.

UEFA, which represents 55 member states, including World Cup winner Spain, semifinalists England and France, and six of the eight quarterfinalists, stated that the World Cup cannot be treated as an investment product. It emphasized that the tournament is one of football’s greatest sporting legacies, built over generations by players, national teams, and supporters across every continent.

CONCACAF and the AFC also formally opposed the plan, questioning the need for private equity investment to fund new and existing FIFA Forward programs following the most profitable FIFA World Cup in history. The number of countries in the three federations is more than 140, well above the majority needed to reject the plan.

FIFA President Gianni Infantino released a statement announcing the decision to scrap the plan, citing divisions of a nature that are no longer in the interest of the objective set out in the first place. He emphasized that the purpose of FIFA has always been, and will always be, to unite and improve.

The FIFA Forward Enterprise project was valued at $20 billion and would have operated the commercial side of the sport as a dedicated business, with profits shared with member associations. However, the plan was met with opposition from investors, including Thrive Capital, an investment firm led by Joshua Kushner, the brother of President Donald Trump’s son-in-law Jared Kushner.

Infantino announced the plan on Tuesday, contingent on a member vote, and it was expected to be ratified at the FIFA Congress. However, the opposition from major soccer confederations and investors has forced FIFA to abandon the plan.

The decision to scrap the plan is a significant victory for soccer confederations and fans who opposed the commercialization of the World Cup. It highlights the importance of preserving the integrity and values of the sport, rather than prioritizing profits and commercial interests.

The next major tournament on the FIFA schedule is the 2027 Women’s World Cup in Brazil, followed by the 2030 men’s World Cup co-hosted by Spain, Portugal, and Morocco.