FIFA considers selling its commercial activities to external investors

FIFA revealed yesterday a project to establish a company responsible for managing its commercial activities, organizing the World Cup and other tournaments, and increasing “funding allocated to football development,” by attracting external investors, a move that sparked negative reactions. FIFA clarified in a statement that its management is considering the idea of consolidating all commercial rights, including broadcasting, sponsorship, ticket sales, and licensing, through the creation of a company called “FIFA Forward Enterprise.” It added that “FIFA will invite external parties to make minority investments without control rights” within this company. The FIFA statement came as a swift response to a report published by the British newspaper The Times, based on leaks from two sources regarding the project. The newspaper reported that FIFA President Gianni Infantino could benefit from the plan by taking on the role of company commissioner after his expected next term ends in 2031. The report added that discussions have already begun with potential investors.

The Union of European Football Associations (UEFA) did not delay in responding to this initiative, stating: “The spirit of football and its governance are not capital to be speculated upon, especially in the absence of transparency regarding the destination of financial profits. None of us owns football, and FIFA has no right to sell it.” FIFA affirmed that it “will retain exclusive control over the company through a majority on its board of directors,” and will maintain “exclusive authority” regarding the governance of football, competitions, the calendar, and regulatory decisions. As a non-profit association, FIFA retains a portion of its revenues, particularly to organize its competitions and pay its employees, including its president Infantino, who earns several million Swiss francs annually. The remaining portion is allocated to game development programs, which FIFA asserts will benefit from increased funding thanks to the creation of this new company.

FIFA predicted that the new company would raise “$4.2 billion” by the end of the year, and that “all its net profits will be reinvested in football,” promising its members economic returns through a new financing mechanism called the “FIFA Fast Forward” program. By consolidating all currently existing financing programs, FIFA hopes to provide more than $10 billion over the next four years to fund football development. Under the current arrangement, FIFA intended to distribute approximately $2.7 billion to member associations during the period from 2027 to 2030. To implement this project, which still requires approval from the FIFA Council, the governing body clarified that it is working with JPMorgan Chase and the investment fund Thrive Eternal, which “is expected to lead a group of potential investors in the new company.” This fund was founded by Joshua Kushner, brother of Jared Kushner, son-in-law of US President Donald Trump.