Former FIFA president Blatter criticises plan to sell World Cup stake to investors
FIFA’s Proposed Subsidiary and External Investment
Former FIFA President Sepp Blatter has expressed strong disapproval of the football governing body’s proposal to establish a $20 billion subsidiary to manage the World Cup and other events. Blatter stated that the tournament is not a commercial asset owned by a select group of executives, but rather a part of the cultural heritage of world football. He emphasised that football belongs to the people, not to any individual or institution.
FIFA announced its intention to create this subsidiary, named FIFA Forward Enterprise, on Tuesday. The plan involves offering external investors stakes of up to 20 percent in the new company. This entity would oversee FIFA‘s commercial and event operations. The organisation also confirmed that it would remain the primary owner of the subsidiary, retaining control over scheduling competitions, matches, governance, and regulatory decisions.
The proposed deal aims to raise an estimated $4.2 billion in 2026 through the sale of a minority stake. Thrive Eternal, a fund from Josh Kushner’s Thrive Capital, which previously acquired a minority stake in the San Francisco Giants, is slated to lead the investor group. JPMorgan bankers are advising FIFA on this initiative.
Widespread Opposition and Concerns
The plan has drawn significant criticism from various football authorities globally, including UEFA, CONCACAF, and the Asian Football Confederation. UEFA, the European football governing body, stated that FIFA was effectively putting the game up for sale, describing the move as crossing a line that football’s governing institutions should never cross. UEFA also highlighted the lack of transparency regarding who stands to gain financially from the deal.
CONCACAF, which governs football in North America, Central America, and the Caribbean, expressed deep concern over the lack of due process, noting that it was informed about the deal through media reports rather than direct consultation. Similarly, the Asian Football Confederation stated it was not consulted and did not have the opportunity to examine and discuss the proposal through established governance channels. The Football Association in England also voiced its concern about the lack of information and transparency surrounding the proposal.
Blatter, who served as FIFA president for 17 years until 2015, expressed shock at the idea, asserting that he would never have considered such a plan during his tenure. He argued that if FIFA were to transform into a profit-oriented corporate structure, it would lose its soul. He also noted that investors seeking profits and influence run contrary to the interests of member associations.
Implications and Upcoming Vote
FIFA intends to ask its 211 member associations to vote on the controversial plan in September. If the deal is approved, each member association would receive $20 million in funding, with annual funds continuing to increase through 2038. UEFA has indicated that the prospect of member associations losing this payment if they do not approve the plan speaks volumes about the proposal.
An emergency meeting of UEFA is scheduled to take place on Wednesday, with French sports minister Marina Ferrari emphasising the importance of European stakeholders speaking with a unified voice on a project that could profoundly transform the sport. Reports suggest that UEFA is considering the threat of boycotting FIFA events, including the World Cup and the Club World Cup, in response to the investment plan.
FIFA President Gianni Infantino, who is up for re-election next year and is term-limited after 2031, has been mentioned in connection with a potential future role as a “commissioner” or chief executive of the new company, though he has stated this idea has never been discussed. FIFA‘s revenue from the 2026 World Cup was $15 billion, a significant increase from the $7.57 billion generated during the 2022 World Cup cycle, with Infantino previously vowing to “unleash the commercial potential” of FIFA.
Source: aljazeera.com
