Plans by Fifa to pursue private investment in its competitions, including the World Cup, have been met with strong criticism from Uefa, European football’s governing body, and Andy Burnham, the Mayor of Greater Manchester. Fifa stated its intention to expand “football development funding” to more than $10bn (£7.5bn) and invite third-party investment into a new venture.
The proposals were initially reported in the Financial Times and The Times. Fifa outlined its plan to “invite third parties to make minority, non-controlling investments” in a new subsidiary, Fifa Forward Enterprise (FFE), designed to consolidate its commercial and event operations. The plan requires approval through a vote by Fifa’s 211 member nations. If approved, Thrive Capital, an American venture capital firm, is leading the search for investors for FFE. Thrive Capital was founded by Joshua Kushner, brother of Jared Kushner.
Concerns Over Football’s Future
Fifa president Gianni Infantino stated that every nation should benefit from the wealth generated by football. He remarked, “Our job is to make sure the rest of football grows with it: Fifa exists to support sustainable, inclusive development in every corner of the world.” As part of its proposal, Fifa indicated that all member associations would have access to up to $20m (£15m) in “one-off capital” for development funding.
However, Uefa issued a statement criticising the proposals, asserting that they “cross a line.” Uefa’s statement declared, “The soul and governance of football are not assets to trade – especially with zero transparency as to who gains financially. None of us are the owners of football. It is not Fifa’s to sell.”
Andy Burnham expressed his strong disapproval on social media, stating, “Football does not belong to investors. It belongs to the people who fill the stands and who stand on the touchline week in, week out, rain or shine. The World Cup is not a product. It is the greatest competition in world sport, and it was never anyone’s to sell. Dress the deal up however you like. Once you have sold a piece of it, you have sold out.”
The Football Association also stated it was not aware of Fifa’s plans when they were initially released. Fifa maintains that its plan, involving a dedicated commercial subsidiary, is similar to models used by governing bodies in other sports, citing Premiership Rugby’s partnership with CVC Capital Partners in 2018.
Potential Impact and Next Steps
Uefa views the announcement as a significant step, raising concerns about potential expansion of Fifa competitions in terms of size and frequency to generate revenue, which could impact its own lucrative competitions. An English football executive privately commented that the announcement was comparable in significance to the European Super League plan, raising similar concerns.
Football finance expert Kieran Maguire suggested that the proposals represent “an opportunity for Fifa to generate even more money” and that many interested parties in the game would want a share. He also noted that if the FFE organisation is established, there would likely be pressure for a 64-team World Cup and for it to occur every two years to satisfy shareholders.
Fifa confirmed it is collaborating with the US bank JP Morgan to establish the new FFE entity. This entity would aim to raise hundreds of millions of dollars by selling a substantial stake in the commercial rights of the men’s and women’s World Cups, and the Club World Cup, promising an increase in distribution of “over $10bn” (£7.5bn) to be redistributed to Fifa’s 211 member associations. Sources familiar with Fifa’s proposals indicate the new commercial venture is valued at approximately $20bn.
The matter is expected to be discussed at the next Fifa Council meeting in the autumn and during the Fifa Intercontinental Cup in December, which will feature Champions League winners Paris St-Germain. The proposal could be put to a vote by all 211 members at the Fifa Congress in Morocco in March.
Fifa stated that it would retain control of FFE and exclusive authority over football governance, competitions, the international match calendar, and all regulatory and sporting decisions. However, inviting private investment in commercial rights could subject decision-makers to external pressures. Fifa also insisted that the new enterprise would enable it to increase funding to each association from $8m to $20m annually.
Source: bbc.co.uk
Adam Rutherford is a Senior Football Correspondent at News-UK. He spent his early career filing match reports across the North West. He focuses on the Premier League, the EFL and the England national side and is known for clear, deadline-driven reporting. He holds a degree in Sports Journalism from Manchester Metropolitan University and completed an NCTJ diploma. Now based in Manchester, he coaches a youth team and watches grassroots football. “Every transfer window hides a dozen real stories.”
