"Over the Line": FIFA Moves to Raise $6 Billion by Selling Stake in $29 Billion Golden Egg

FIFA to Establish World Cup Operations Subsidiary
Company Valued at $20 Billion; Minority Stake to Be Sold to Private Investors
UEFA Criticizes, Calling It "A Line That Must Never Be Crossed"

The International Federation of Association Football (FIFA) has proposed establishing a subsidiary dedicated to exclusively managing the commercialization and event operations of the World Cup, and selling a portion of its shares to external investors.

The International Federation of Association Football (FIFA) proposed establishing a subsidiary to exclusively manage the commercialization and event operations of the World Cup and plans to sell part of its shares. Reuters Yonhap News

On July 28 (local time), Yonhap News, citing the UK daily Financial Times (FT), reported that "FIFA is discussing attracting external investors together with American investment bank JP Morgan in order to raise up to 4.2 billion dollars (approximately 6 trillion won) this year for the newly established entity, FIFA Forward Enterprises (FFE)". FT projected that the value of the new entity could reach approximately 20 billion dollars (about 29 trillion won).

FIFA issued a statement that day, announcing it will retain FFE as a 100% subsidiary. The organization emphasized that FIFA will maintain sole and exclusive authority over football governance and tournament operations, match schedules, regulations, and all sports-related decisions, and that only minority, non-controlling stakes will be transferred to external investors. FIFA also stated that the full net proceeds from the capital raised would be reinvested into football. FIFA President Gianni Infantino said, "Every member association should have the opportunity to receive a fair allocation of funds to plan for their own future," describing it as the 'democratization of football worldwide'.

One of the leading candidates to drive the transaction is tech investor Joshua Kushner, younger brother of Jared Kushner, son-in-law of former U.S. President Donald Trump. His vehicle, Thrive Eternal, is a permanent capital unit launched by venture capital firm Thrive Capital, focused on making long-term investments in a select group of sports teams and cultural institutions. Earlier this year, the firm purchased a minority stake in Major League Baseball’s San Francisco Giants.

According to a draft plan for the subsidiary previously reported by The Times, which cited multiple sources, FIFA will retain a majority stake in the new company, while private investors are expected to initially acquire 20–30%. The 211 member associations will also collectively hold roughly 20%. The Times warned, "If the plan goes ahead as proposed, the pursuit of profitability could lead to pressure to further expand the size of the World Cup or shorten the interval between tournaments to less than four years," adding, "Some potential investors are internally describing the deal as 'buying FIFA'.

Gianni Infantino, FIFA President. Photo by Reuters and Yonhap News Agency

There is also speculation that after his term ends in 2031, President Infantino, who is up for re-election next year, could take on the role of 'commissioner' or CEO of the new company, potentially earning substantial income. In response, FIFA stated, "That issue has never been discussed," but added to The Times, "However, should this plan be approved, according to FIFA regulations aimed at serving the interests of members, the FIFA President and the executive board will take a leading role in overseeing the subsidiary, as they must."

FIFA is a nonprofit organization effectively owned by its 211 member associations. Expected revenue for the period from 2022 to 2026 is 15 billion dollars (approximately 21.8 trillion won), with broadcast rights, sponsorships, and ticket sales for the Men's World Cup accounting for the majority of those revenues. A FIFA official stated, "This proposal will soon be presented to the 211 member associations and the FIFA Council, who are the sole final decision-makers."

The Union of European Football Associations (UEFA) immediately voiced strong criticism. UEFA stated, "This crosses a line that football governing bodies must never cross," adding, "We take this extremely seriously, and so will all national football associations, leagues, clubs, players, fans, governments, and everyone concerned for the future of football." The statement continued, "The spirit and governance of football are not assets to be commercialized - especially not in a situation that lacks transparency regarding who stands to gain financially. No one owns football, and this is not something FIFA can sell."

This content was produced with the assistance of AI translation services.