Backlash to the proposed multi-billion private investment in FIFA, the organizer of soccer’s World Cup tournament, has come fast and furious, with cries of ruining ‘the beautiful game.’
According to one insider in the investor camp, however, a major cause of the vocal opposition comes down to a turf war—European soccer interests feeling threatened. What’s more: with FIFA recently offering lackluster financial projections, a deal that bolsters revenue-generating activities will help sustain the development of soccer worldwide.
“UEFA [the organizer of European soccer] is lashing out because this changes the balance of power in football from being European-centric to global-centric,” the source directly involved in the deal said. “It’s a shame to see.”
News of the plan to sell a stake in FIFA, the non-profit that oversees the World cup, and create the FIFA Forward Enterprise (a commercial subsidiary including ticketing, sponsorship, and broadcast) emerged early on Tuesday and triggered an immediate wave of backlash and recriminations. Among the most fiery: The UEFA Europa League issued a statement that declared: “None of us are the owners of football.”
The proposed deal, valuing FIFA’s commercial rights at $20 billion, would be led by Joshua Kushner’s Thrive Capital, and includes Greg Maffei, founder and CEO of BANN Ventures. Thrive would lead a group that would invest up to $4.2 billion to buy a stake. Apollo Sports Capital is also in talks to join the investor group, the source with direct knowledge of the deal said. (Apollo declined comment.)
