FIFA proposes $20bn commercial entity amid UEFA objections

FIFA is moving forward with a proposal to establish a new commercial entity valued at around $20 billion, with plans to sell a minority stake to external investors. The initiative will be presented to member associations and the FIFA Council, amid objections raised by the Union of European Football Associations (UEFA).

The proposal involves creating a wholly owned subsidiary called "FIFA Forward Enterprise," which would consolidate FIFA's commercial activities and event operations. FIFA would retain full control and exclusive authority over the management of the sport, competitions, match calendars, and all regulatory and sporting decisions, according to Reuters.

Under the plan, FIFA intends to invite external investors to acquire non-controlling minority stakes in the new entity, aiming to raise up to $4.2 billion. FIFA has stated that all net profits will be fully reinvested in the development of football.

FIFA President Gianni Infantino said football is the world's most popular sport and a powerful driver of human and social development. He noted that the ability of some organizations to turn football's popularity into commercial value benefits the game, and emphasized FIFA's mission to ensure the sustainable and inclusive growth of the global football ecosystem.

Infantino added that every member association deserves a fair share of available financial resources to shape its own future, describing the project as an effort to democratize football worldwide.

In contrast, the proposal has faced strong criticism from UEFA, which argued that the project crosses a line that football's governing bodies should not overstep. UEFA called on national associations, leagues, clubs, players, fans, and governments to take the issue seriously.

UEFA asserted that the spirit and governance of football are not assets to be sold or traded, especially given the uncertainty over who would financially benefit from the project. The organization added that FIFA does not have the right to sell football.

A FIFA spokesperson confirmed that the proposal will soon be presented to its 211 member associations and the FIFA Council for a final decision.

Separately, a source familiar with the matter revealed that FIFA is working with bankers at J.P. Morgan to raise billions of dollars by attracting external investors, who could acquire up to a 20% stake in the new entity.

The source added that Greg Maffei, former CEO of Liberty Media, is serving as a commercial adviser on the project, while "Thrive Eternal" is expected to be the main investor in the new entity.

The source noted that Thrive Eternal focuses on long-term investments in commercial franchises and cultural institutions, and earlier this year acquired a minority stake in the San Francisco Giants, a Major League Baseball team.

The source also said Thrive Eternal was founded by Joshua Kushner, brother of Jared Kushner, son-in-law of former US President Donald Trump, and that Bob Iger, former CEO of The Walt Disney Company, serves as an adviser. The source confirmed that Jared Kushner is not among the potential investors in the deal.

The Financial Times was the first to report on FIFA's plans to sell a stake in the new commercial entity.