Uefa is reportedly planning to commission an independent valuation of Fifa’s World Cup sale plans. This comes amid concerns that Gianni Infantino, the president of Fifa, may have agreed to sell future profits from the tournament to a private equity firm at a valuation below market rate. The European governing body remains committed to scrutinising the proposal, which Infantino later described as “a mistake.”
The abandoned Fifa Forward Enterprise plan, which was dropped last week, involved selling a 21% stake to Thrive Capital for $4.2bn. Thrive Capital is led by Joshua Kushner. Uefa played a significant role in Fifa’s decision to reverse course, following threats from all 55 of its member associations to boycott the World Cup and other tournaments.
Scrutiny of Valuation Process
Uefa is now seeking to understand how Fifa’s commercial assets were valued at $20bn. Market analysts consulted by Uefa have suggested that this valuation might be low, especially given that Fifa’s revenues for the four-year cycle culminating in this summer’s World Cup were $15bn. The proposal also did not appear to include provisions for the expansion of tournaments, which could offer significant financial upside.
A source familiar with Uefa’s plans indicated a desire to determine if the World Cup was being sold at a “knockdown price” and questioned the robustness of the $20bn valuation process. The sales deck circulated by Fifa last week reportedly lacked information on the valuation process or evidence of a competitive tender.
The World Cup is considered a uniquely global entertainment event, and an increase of $5bn on current revenues was seen as potentially low by some analysts, particularly if further expansion, such as more teams or more frequent tournaments, was not factored into the valuation.
Apology and Continued Support
Gianni Infantino has apologised for “errors” related to the controversial plan, sending a letter with Fifa secretary general Mattias Grafström to the 211 member associations. The letter expressed sincere apologies and a commitment to prevent similar issues in the future. Despite internal criticism from figures like Mattias Grafström, chief operating officer Kevin Lamour, and head of football development Arsène Wenger, Fifa’s management board has reaffirmed its full support for Infantino as president.
This apparent support suggests that any further push for change may need to originate from outside Fifa. Infantino attended crisis talks in Rabat before appearing at a Women’s Africa Cup of Nations group game between Malawi and Zambia in Morocco. Fifa later issued a statement confirming the president retained the organisation’s “full support.”
Wider Criticism and Governance Concerns
The plan to sell parts of Fifa competitions to investors drew widespread criticism from various football bodies. Uefa explicitly stated that “The World Cup is not for sale” and should not be treated as an investment product. Concacaf, which governs football in North and Central America, expressed deep concern, while the Asian Football Confederation remarked that “Football should never have been placed in such a position.”
Critics have questioned why such a significant proposal, involving private investment in the commercial aspects of Fifa tournaments, was developed without sufficient discussion with the Fifa Council or member associations. Fifa acknowledged that the process “should have been handled differently” and that it was not its intention for these groups to “feel excluded.” However, Fifa maintains that all actions were within its rules, and a recent meeting in Morocco is expected to improve the organisation’s operational methods.
Uefa has also called for a comprehensive review of Fifa’s governance and has threatened legal action. The plan was officially dropped by Fifa on 1 August.
The Fifa Forward Enterprise plan, which was abandoned after four days last week, involved a 21% stake being sold to Thrive Capital for $4.2bn.
Source: theguardian.com
Freya Donnelly is the Sports Reporter at News-UK, covering tennis, cricket and athletics with seven years of reporting experience. She reported on Team GB through an Olympic cycle. She holds a degree in Sport and Media from the University of Brighton and completed an NCTJ diploma. Based in Brighton, she plays club cricket in the summer. “Listening is the most underrated skill in sports reporting.”
