FIFA has announced a proposal to sell stakes in its football competitions, including the World Cup, to private investors. This move, championed by FIFA President Gianni Infantino, has been framed as a way to democratise football, with a significant funding offer to all FIFA member countries once the deal is finalised. The plan has generated considerable discussion among fans, politicians, and regional governing bodies.
Infantino’s proposal suggests that all FIFA countries would receive funding to develop the game. This initiative is seen as one of the most significant actions taken by Infantino since he became FIFA president. If the plan proceeds, it could solidify his influence for the long term and benefit investors.
Infantino’s Support and Controversial Decisions
Infantino’s ability to advance this controversial plan stems from substantial support he has cultivated since his election in 2016. Many countries in Africa, Asia, and the Americas have financially benefited from his policies, including the expansion of the World Cup to 48 teams, increased commercial and broadcast revenues, and a programme that provides funding directly to member countries annually. This backing gives him a majority among FIFA‘s 211 members, as FIFA votes require a simple majority for proposals to pass.
The prospect of a substantial financial boost is particularly appealing to smaller football nations, for whom such an amount could exceed their typical earnings over several years. This strong support appears to have influenced Infantino’s approach to his presidency. Decisions like introducing hydration breaks and a musical half-time show at the World Cup were implemented without a member vote, a practice that would have been considered unlikely a decade ago.
A key aspect of this plan involves Thrive Capital, an investment fund led by Josh Kushner, who is related to Donald Trump‘s daughter. FIFA also notes that Greg Maffei, a former president of Formula 1 owner Liberty Media and a past donor to Trump’s political campaigns, is serving as a key commercial advisor. Infantino has previously made efforts to strengthen his and FIFA‘s connections with Trump, including establishing a Peace Prize for him and opening a FIFA office in Trump Tower.
The proposal has been discussed unilaterally by FIFA, leading to frustration among nations and regions who feel they were not consulted. Despite the risks associated with this move, the strong support Infantino enjoys suggests that the likelihood of him being undermined by it is low.
Financial Implications and Criticisms
If approved, the plan would provide FIFA with a significant cash injection. Funds designated for national federations would be available from 1 January 2027, according to a letter from Infantino. He stated that the decision rests with the members, requiring only their trust in exchange, with everything else remaining unchanged.
The appeal is clear: a vote in favour would enrich both FIFA and the member associations. However, each successive World Cup typically generates more revenue than the last. If stakes are sold now, private investors would share in the future growth of these revenues, rather than FIFA and football alone. As a non-profit organisation under Swiss law, FIFA‘s theoretical goal is the long-term well-being of football, not profit generation.
Critics, such as Miguel Maduro, a former chairman of FIFA‘s governance committee, have raised concerns about how national federations spend their money and whether the funds reach the intended levels of football development. Maduro, who resigned from his role, described FIFA‘s system as one of patronage, with instances of corruption. He believes the proposal is likely to be approved and views it as a form of legalised bribe.
The plan aligns with a trend in sports economics, where private equity investment has transformed sports in the USA, with rule changes allowing for more minority investments in baseball, basketball, American football, and ice hockey. Leagues like La Liga and Ligue 1 have also sold portions of their operations to private equity firms for immediate financial boosts. Infantino’s success with this plan could further consolidate his power.
Growing Opposition and Potential Boycotts
Infantino’s proposal has intensified his ongoing conflict with UEFA, the most powerful and affluent regional football organiser. The UEFA President, Aleksander Ceferin, previously boycotted the World Cup final in protest of FIFA‘s decision to overturn USA striker Folarin Balogun‘s suspension after an intervention. This followed a series of UEFA announcements indicating disagreement with FIFA policies on issues such as dynamic ticket pricing and hydration breaks.
A major point of contention is FIFA‘s revamped and expanded Club World Cup, which poses a direct challenge to UEFA‘s Champions League. While UEFA previously dominated international club football competitions, FIFA has now entered this space by adding teams from other continents. Some national federations have expressed anger over learning about these plans only after FIFA made them public.
Many UEFA members are reportedly upset about the plan, and a meeting is scheduled to discuss a response. There have been suggestions of a potential boycott of the World Cup by European nations, theorising that a tournament without European participation would significantly diminish its value to FIFA. However, the feasibility of such a boycott is debated.
Concacaf also expressed concern, stating it was unaware of the proposal until media reports and a subsequent media release. The confederation highlighted a lack of due process and shared disappointment regarding the design and public sharing of details without prior discussion with relevant governance bodies and stakeholders. Concacaf emphasised the importance of good governance, robust processes, and long-term stewardship in decision-making.
The FA, while having its chair, Debbie Hewitt, as a FIFA vice-president, stated it had no substantive details about the proposals and raised concerns about the lack of process and governance. The FA indicated it would clarify its views once the proposal is shared transparently. UEFA has accused FIFA of using the sport to enrich themselves and their associates, calling for an emergency meeting to plan a coordinated response, potentially including legal action.
The new prime minister, Andy Burnham, also criticised the plan, stating that football belongs to the fans, not investors, and that the World Cup is not a product to be sold. FIFA‘s plan to sell stakes in the World Cup and other events to private investors has sparked widespread condemnation across the game.
Source: bbc.com
