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FIFA announced a controversial plan to sell stakes in the World Cup to private investors on Tuesday, one that UEFA quickly slammed as a "line that football's governing institutions should never cross."
FIFA boss Gianni Infantino unveiled the FIFA Forward Enterprise (FFE), a new organization that would oversee commercial rights and operational delivery via a $20 billion company with private investors including the Kushner family.
FIFA announced this plan in a release claiming immediate financial benefits across the world to "expand football development," but the main sticking point was the creation of a subsidiary "bringing together FIFA's commercial rights – spanning broadcast, sponsorship, ticketing, and licensing – with the operational delivery of FIFA tournaments." FIFA added that a consultation process has begun.
The proposal would require significant private-sector investment, making it one of the most controversial elements of the plan. The Times reported that Infantino is expected to become commissioner of the new entity, potentially after securing what is anticipated to be a further term as FIFA president next year.
FIFA is seeking to raise up to $4.2 billion in capital and has approached Josh Kushner's Thrive Capital as one of its prospective cornerstone investors, while J.P. Morgan is working with FIFA as a strategic partner on the project.
Josh Kushner is the brother of Jared Kushner, married to U.S. president Donald Trump's daughter Ivanka. This all comes after the president of the United States admitted his involvement in the controversial red card overturn of U.S. men's national team star striker Folarin Balogun during this summer's FIFA World Cup .
FIFA says it would retain sole control of the organization, with "exclusive authority over football governance, competitions, the match calendar, and all regulatory and sporting decisions."
According to FIFA, the objective is to also expand football development funding to more than $10 billion.
The proposal will be subject to approval by FIFA's 211 member associations, which will undertake a consultation process before any decision is made. Alongside FFE, FIFA also plans to launch the FIFA Fast Forward Programme (FFFP), under which all 211 members would be eligible to access up to $20 million in one-off capital funding.
In a similar way to other sports governing bodies with dedicated commercial subsidiaries, FIFA will invite third parties to make minority, non-controlling investments in FFE.
Any such investors would be selected against clear long-term, governance, and strategic criteria. They would represent a geographically diversified group that reflects the global nature of the game, acting as minority, long-term partners that could contribute capital and commercial expertise in support of FIFA's mission to grow the global game. FIFA would retain sole control of FFE via majority board representation and exclusive authority over football governance, competitions, the international match calendar and all regulatory and sporting decisions.
While FIFA regularly creates subsidiaries for specific ventures unilaterally, FIFA is now engaging the MAs and the FIFA Council in this instance given its strategic importance. In keeping with the democratic processes of FIFA, the FIFA administration will launch the new structure only if a majority of the MAs decide to support it, as well as approval of the required regulatory updates by the FIFA Council.
Subject to these final agreements and required approvals, Thrive Eternal, a permanent capital holding company, is expected to lead the proposed investor group for FFE. Greg Maffei, CEO of BANN Ventures and formerly President and CEO of Liberty Media during its acquisition and ownership of Formula One, has been a key commercial adviser and will remain involved in the establishment of FFE in this next phase.
As part of this process, J.P. Morgan has been engaged to work alongside FIFA, while other advisers such as OpenEconomics are engaging with prospective long-term investors. The process is focused on assembling a geographically diversified investor group that reflects the global nature of FIFA and the game; expressions of interest to date include investors from across every major region of the world: Europe, the Americas, Asia and Africa.
The FIFA President and the FIFA administration have a duty to control the development of this project. Outside investors will have only a minority stake in FFE and will not play any operational role. Equally, they are investing in a subsidiary of FIFA, and not in FIFA itself. For FIFA, nothing changes.
The European soccer governing body immediately reacted to the news and wrote a strong statement against FIFA and Gianni Infantino:
This crosses a line that football's governing institutions should never cross. UEFA takes it extremely seriously. So should every National Football Association. So should every stakeholder: leagues, clubs, players, supporters, governments and everyone who cares about the future of the game. The soul and governance of football are not assets to trade -- especially with zero transparency as to who gains financially.
None of us are the owners of football. It is not FIFA's to sell.
CBS Sports will have more on this story shortly.
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