FIFA has announced its intention to sell a stake in the operational aspects of the World Cup and other competitions, aiming to raise $4.2 billion through the establishment of a semi-private subsidiary known as FIFA Forward Enterprise (FFE). The governing body of world football plans to maintain a majority share in FFE while seeking long-term investors to acquire minority, non-controlling interests.

Details of the Proposal

This announcement comes in response to reports from British newspapers, including The Times and The Financial Times, which revealed details of the plan based on leaks from two sources. FIFA President Gianni Infantino, who is 56 years old, is reportedly expected to benefit from this initiative by becoming the commissioner of FFE after his term ends in 2031, although FIFA has denied that this has been discussed.

Investor Interest and Reactions

FIFA has begun discussions with financial advisors and potential investors, including Thrive Capital, led by Joshua Kushner, and an arm of JP Morgan Chase. The latter was previously involved in financing the unsuccessful European Super League. Sepp Blatter, Infantino's predecessor, criticized the American influence in the deal, stating that the financial ties between FIFA and the U.S. President could harm football.

UEFA, the governing body for European football, has also expressed concerns about the proposal. In a statement, UEFA emphasized that the governance of football should not be treated as a tradable asset, especially without transparency regarding financial gains. They reiterated that football does not belong to FIFA to sell.

The proposed plan will require approval from the 38-member FIFA council and a majority of the member associations (MAs). FIFA intends to present the proposal to the council in the near future. The organization believes that FFE could achieve an initial equity valuation of $20 billion, and each of its 211 member associations will have the opportunity to invest a one-off stake of $20 million in FFE, representing a small fraction of the total valuation.