World soccer governing body FIFA and its controversial CEO Gianni Infantino are under fire over plans to sell off a stake in FIFA’s commercial operations to private equity investors.
The plan would see FIFA set up a new entity, called FIFA Forward Enterprise (FFE), that would bundle all the money-making operations associated with the soccer World Cup — including broadcast rights, sponsorship, ticket sales and licensing fees — and sell a significant stake in the new operation to private investors. FIFA is valuing the new commercial venture at around $20 billion.
After news of the plan broke on Tuesday, FIFA confirmed it is working with U.S. investment bank JP Morgan to set up the new entity. Thrive Capital, an investment company founded by Joshua Kushner, brother of Donald Trump’s son-in-law Jared Kushner, is leading the search for investors.
The backlash was immediate.
European soccer governing body UEFA condemned the plan, saying the sport “isn’t FIFA’s to sell.”
