FIFA, the global governing body for soccer, announced plans to create a new subsidiary, FIFA Forward Enterprises (FFE), to manage the World Cup tournament and allow private investors to purchase up to 20% stakes in the entity. This move, orchestrated by FIFA President Gianni Infantino, aims to raise up to $4.2 billion from third parties, valuing the new subsidiary at $20 billion. FIFA stated it would retain ultimate control of FFE, emphasizing the need for a dedicated commercial structure to further grow the tournament's financial success [1].
The proposal has sparked significant controversy and backlash within the soccer community. UEFA, the European soccer governing body, strongly criticized the plan, accusing FIFA of 'crossing a line' and asserting that 'the soul and governance of football are not assets to trade - especially with zero transparency as to who gains financially.' UEFA further stated, 'None of us are the owners of football. It is not Fifa's to sell.' The U.K.'s new prime minister, Andy Burnham, also condemned the move, stating on X that the World Cup is 'not a product' [1].
The deal is reportedly backed by Joshua Kushner's Thrive Capital, with J.P. Morgan hired to manage the transaction. The article notes that Infantino's relationship with President Donald Trump has been scrutinized in the context of this deal, as Kushner's brother Jared is Trump's son-in-law [1].
For the plan to proceed, it requires approval from a majority of FIFA's 211 members and its 37-member council. UEFA and its European members are reportedly considering a boycott of the World Cup in response to the proposal. Infantino has offered FIFA members the opportunity to access up to $20 million in one-off capital, which could incentivize support for the plan, though each member retains voting rights [1].
CONCLUSION
FIFA's proposal to partially privatize the World Cup through a $20 billion subsidiary has triggered strong opposition from UEFA and political leaders, raising concerns about governance and transparency. The plan's passage remains uncertain, with potential boycotts and member votes looming. The controversy signals significant market and structural implications for global soccer.