FIFA is planning to create a commercial arm for the several revenue-generating parts of the nonprofit’s business, and sell roughly 20% of that new entity to investors.
The announcement of the $20 billion FIFA Forward Enterprise, seeking to raise $4.2 billion from outside investors this year, sent shockwaves through the soccer world on Tuesday.
The strongest response came from Europe. The continental confederation, UEFA, released a statement condemning the plan, and member nations are reportedly holding an emergency meeting this week to consider boycotting future World Cups.
FFE still needs approval from the majority of the 211 national soccer federations that make up FIFA’s membership, and approvals from FIFA council. Infantino sent a letter to the member organizations saying they have until September 19 to accept, according to Sky Sports.
The plan would see the World Cup and other FIFA tournaments’ media rights, sponsorship, ticketing, licensing, and tournament operations all housed under the FIFA-owned company. The lead private investor would be Thrive Eternal, a holding company owned by venture capitalist Joshua Kushner, a minority owner of the Miami Heat and San Francisco Giants, and brother of U.S. President Donald Trump’s son-in-law, Jared Kushner. FIFA confirmed to The Athletic that president Gianni Infantino, who is up for reelection next year, “will and must have” a major role in leading the new entity.
