Opposition Grows to FIFA World Cup Sell-Off Plan
Pushback to a controversial plan put forward by FIFA boss Gianni Infantino to sell off stakes in the World Cup and other commercial operations to private investors is growing.
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European soccer governing body UEFA has called an emergency meeting of its members on Thursday to discuss a coordinated response to the plan, with a European boycott of FIFA tournaments among the options being discussed.
UEFA has condemned Infantino’s proposal, calling it a plan to “sell the soul” of football. Other major regional soccer bodies, including the Asian Football Confederation (AFC) and Concacaf, which covers North and Central America as well as the Caribbean confederations, have also criticized the proposals, saying they were not consulted on the plan and only became aware of it through the media.
The plan would see FIFA set up a new entity, called FIFA Forward Enterprise (FFE), that would bundle all the money-making operations associated with the soccer World Cup — including broadcast rights, sponsorship, ticket sales and licensing fees — and sell a significant stake in the new operation to private investors. Thrive Capital, an investment company founded by Joshua Kushner, brother of Donald Trump’s son-in-law Jared Kushner, is leading the search for investors.
FIFA is valuing the FFE at around $20 billion and has said the plan to sell equity stakes in the commercial group could raise an additional $10 billion for its member organizations. Those members, the 211 national soccer associations that make up FIFA, would have to vote to approve the proposal.
The opposition by UEFA, Concacaf, and the AFC suggests Infantino could have a fight on his hands. Together, those three confederations make up 143 of the 211 FIFA members.
But opposition to the FFE is not a unified front. In Europe, Czechia’s soccer association has backed the plan. Despite the AFC’s disapproval, association member Saudi Arabia is also believed to support it. Saudi Arabia will host the 2024 World Cup and the Saudi soccer association is a close ally of Infantino.
It is not clear whether the FIFA plan can pass with a simple majority vote or if the proposal requires a change to FIFA statutes, which necessitates a 75 percent majority.
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Infantino released a video on Wednesday evening calling the FFE “a proposal, an offer,” that would be subject to a democratic and consultation process. “It is an opportunity but not an obligation,” he said. “It is a golden opportunity to turbocharge the development of the game globally.”
That “golden opportunity” will come with payments to FIFA members. FIFA has given members until Sept. 19 to decide whether to apply for an initial payment of $20 million from the proposed sell-off.
In a statement, UEFA said the $20 million payoff “says everything you need to know about this plan” and accused FIFA of “using our sport to enrich themselves and their friends.”
Concacaf and the AFC have not been as sharp in their criticism, but in a statement Concacaf said they were “deeply concerned by the lack of due process,” noting Concacaf “was only made aware of this matter through media reports and, subsequently, via a media release.”
The AFC issued a similar statement, saying they were “not consulted on the proposal and [are] disappointed that a matter of such significance entered the public domain before the AFC family had been afforded the opportunity to examine and discuss it through the appropriate and established governance channels. While the AFC recognizes the importance of exploring innovative approaches that can strengthen the future of global football, initiatives of this scale and consequence must be founded upon the principles of good governance, transparency and meaningful consultation.”
FIFA is could also face a backlash from elite clubs. The European Football Clubs organization, which represents more than 850 clubs, complained they were also not consulted on the FFE plan. “The EFC learned about this proposal in the same way as most global football stakeholders – without warning and through the media.”
UEFA could vote to boycott upcoming FIFA tournaments, including next year’s Women’s World Cup in Brazil, though that is considered an extreme option and could be seen as unduly punishing the women’s game for a proposal which is primarily focused on monetizing the men’s World Cup and men’s Club World Cup.
