FIFA Seeks Support for $20 Billion Venture
FIFA is seeking approval from its 211 member associations to establish a new commercial subsidiary valued at $20 billion and sell minority stakes to outside investors.
The proposal is intended to raise billions of dollars for the global development of soccer, but it has already faced strong opposition from UEFA, European soccer’s governing body.
FIFA plans to create FIFA Forward Enterprise, or FFE, as a wholly owned subsidiary that would bring together the organization’s commercial and event operations.
Under the proposal, FIFA would maintain full ownership and “exclusive authority” over soccer governance, competitions, the international match calendar and all regulatory and sporting decisions.
Outside investors would be allowed to purchase minority, non-controlling stakes in the company. FIFA said the transaction could raise to $4.2 billion, with all net proceeds reinvested in the sport.
“Football is the world’s most popular sport and an extraordinary engine 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, because it lifts the whole game.
“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.”
UEFA strongly criticized the plan and warned that it could threaten the principles governing the sport.
“This crosses a line that football’s governing institutions should never cross,” UEFA said in a statement.
“UEFA takes it extremely seriously. So should every National Football Association. So should every stakeholder: leagues, clubs, players, supporters, governments and everyone who cares about the future of the game.
“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.”
Infantino defended the proposal, arguing that every FIFA member association should have the opportunity to benefit from soccer’s commercial success.
“This is about the democratization of football worldwide,” he said.
A FIFA spokesperson said the proposal would be submitted to the FIFA Council and the organization’s 211 member associations, which will make the final decision on whether the project moves forward.
A source familiar with the discussions said FIFA is working with JPMorgan to raise billions of dollars by selling as much as a 20% stake in the new company to outside investors.
The source also said former Liberty Media CEO Greg Maffei advised FIFA on the creation of the venture.
Thrive Eternal, a new long-term investment strategy launched by venture capital firm Thrive Capital, is expected to serve as a lead investor, according to the source.
The Financial Times was the first outlet to report on the proposed stake sale.
