FIFA proposes creating FIFA Forward Enterprise (FFE), a subsidiary to manage the commercial business of its main competitions and attract private investors. The organization assures that the initiative will increase resources for the development of football, while several confederations demand more information about the project.
FIFA wants to create a company valued at around US$20 billion to manage the commercial business of its main competitions and capture around US$4.2 billion through the incorporation of private investors.
According to the organization, these resources will strengthen football financing in its 211 member associations. However, the initiative has sparked one of the most important debates in recent years about the future of FIFA’s business model.
What is FIFA Forward Enterprise?
FIFA plans to create a subsidiary called FIFA Forward Enterprise (FFE) to manage the commercial assets of its main tournaments.
According to the organization, the company would manage audiovisual rights, sponsorships, licenses, hospitality, ticket sales and other businesses linked to competitions such as the World Cup.
FIFA maintains that this model will allow commercial management to be professionalized and generate greater income to invest in the development of football.
What his critics question
UEFA, Concacaf, the Asian Football Confederation (AFC) and other organizations consider that a proposal of this scope should have been previously discussed with the member associations and demand more information on the operation and governance of the future company.
Is FIFA selling the World Cup?
According to FIFA, no.
The organization assures that the proposal does not imply selling the World Cup or ceding control of its competitions. What it proposes is to allow investors to acquire a minority stake in the company that would manage their commercial rights.
FIFA affirms that sporting decisions, such as the format of tournaments, the choice of venues or the number of participating teams, will remain under its control.
What his critics question
Some leaders believe that opening the World Cup commercial business to private investors could have future implications for one of soccer’s most important economic assets, although FIFA insists that it will retain sporting control.
What do you intend to sell?
FIFA proposes to sell up to 20% FIFA Forward Enterprise.
According to the organization, an assessment carried out by JP Morgan estimates that the company would have a value close to US$20 billionso this participation would allow us to capture some US$4.2 billion.
What would be sold are not the tournaments, but a shareholding in the company that would manage their commercial rights.
What his critics question
Until now, the potential investors and all the details of the structure of the operation are not known, which is why various organizations consider that the associations should have more information before making a statement.
Why do you want to do it?
FIFA affirms that the resources obtained will finance the program FIFA Fast-Forwardwith which it seeks to increase financial support to national federations.
According to the organization, each member association could receive up to US$20 million through that program, in addition to others US$20 million planned through FIFA Forward during the 2027-2030 cycle, if the initiative is approved.
What his critics question
Some leaders and international media consider that the increase in resources offered to the federations could influence support for the project. FIFA maintains that the objective is to strengthen the development of football.
Who could invest?
FIFA has not revealed who could acquire the minority stake in FIFA Forward Enterprise.
The American media Political reported that Thrive Capitala firm headed by Josh Kushner, would be interested in participating and collaborating with JP Morgan in the search for investors. Until now, that information has not been officially confirmed by FIFA.
Why does it generate criticism?
The main objections come from the UEFAthe Concacafthe AFCthe English Federation (FA) and organizations representing European clubs.
In general terms, they question three aspects: the lack of prior consultation with the member associations, the limited public information on the structure of the project and the incorporation of private investors in the commercial management of the main FIFA competitions.
The organization maintains that the initiative will strengthen football financing without modifying its sports governance.
What is missing for it to happen?
FIFA Forward Enterprise has not yet been created.
According to FIFA, the proposal must be supported by the majority of its 211 member associations and have the approval of the FIFA Council before setting off.
Key figures
- Estimated value of FIFA Forward Enterprise: US$20 billion.
- Participation that FIFA proposes to sell: up to 20%.
- Resources you hope to capture: US$4.2 billion.
- Member associations: 211.
- Planned support through FIFA Fast-Forward: up to US$20 million per federation.