FIFA’s grand plan to create a $20B commercial subsidiary just hit a wall made of its own member organizations. After announcing FIFA Forward Enterprise, a new entity designed to manage World Cup commercial operations and attract private capital, the governing body has effectively shelved the initiative following fierce pushback from some of the sport’s most powerful confederations.
What FIFA was trying to do
FIFA wanted to create a commercial subsidiary called FIFA Forward Enterprise, valued at $20B, that would handle commercial and event operations for the World Cup and other competitions.
FIFA intended to retain majority control while selling a minority stake of up to 20% to private investors. That 20% was expected to raise roughly $4.2B in fresh capital.
J.P. Morgan was tapped to facilitate the investment. Thrive Eternal, led by Joshua Kushner, was expected to lead the investor group on the buy side.
