FIFA plans to set up a new commercial subsidiary worth $20 billion, world football’s governing body said on Tuesday, as it seeks support from its 211 member associations for the proposal, a move already criticized by UEFA.
Under the ambitious plan, FIFA would establish Fifa Forward Enterprise (FFE), a wholly owned subsidiary that consolidates the organisation’s commercial and events activities.
FIFA said it would retain exclusive control and “exclusive authority” over football governance, competitions, the fixture list and all regulatory and sporting decisions.
Under the proposal, FIFA would invite outside investors to buy minority stakes in FFE to raise up to $4.2 billion, with the body saying any net benefits would be reinvested into the game.
“Football is the most popular sport in the world and an extraordinary driver of human and social development,” FIFA President Gianni Infantino said in a statement.
“Parts of the game have turned that popularity into remarkable commercial value – and we celebrate that success and want it to continue as it takes the whole game to the next level.
“It is our job to ensure that the rest of football grows with us: FIFA exists to support sustainable, inclusive development in all corners of the world.”
Strong criticism from UEFA
However, the proposal has drawn fierce criticism from UEFA, European football’s governing body.
“This crosses a line that football’s governing institutions should never cross,” UEFA said in a statement.
“UEFA takes it very seriously. Every national football association should do the same. Every stakeholder should do the same: leagues, clubs, players, supporters, governments and everyone who cares about the future of football.
“The soul and governance of football are not assets to be traded – especially when there is no transparency about who stands to gain financially. None of us own football. It is not FIFA’s business to sell.”
However, Infantino said that every member association should have the opportunity to obtain its fair share of available funding to shape its own future.
“This is about the democratization of football worldwide,” he added.
A FIFA spokesperson said the proposal will soon be presented to the 211 member associations and the FIFA Council, which will be the sole final decision-makers on the matter.
External investors
FIFA is working with bankers at JPMorgan to raise billions of dollars by attracting outside investors who could take as much as a 20% stake in the entity, a source said.
The source added that former Liberty Media CEO Greg Maffei was involved in the creation of the FIFA venture as a commercial advisor.
Thrive Eternal, a new investment strategy launched by venture capital firm Thrive Capital, is expected to be a lead investor in the entity, the source said.
The strategy is a permanent capital vehicle aimed at making a small number of long-term investments in franchises and cultural institutions.
Thrive Eternal this year took a minority stake in Major League Baseball’s San Francisco Giants.
The vehicle was founded by Joshua Kushner, the brother of Jared Kushner, the son-in-law of US President Donald Trump. Former Walt Disney DIS.N CEO Bob Iger is acting as an advisor.
However, Jared Kushner is not a potential investor, the source said.
The Financial Times first reported on the sale of the shares
