Defiant FIFA doubles down on private investment plan, says ‘nobody is selling football’

FIFA said on July 31 it would push ahead with consultations on a plan to bring private investment into the World Cup and its other tournaments, after Europe’s football federation threatened a boycott and other regional confederations issued stinging rebukes of the plan.

Switzerland-based FIFA said that “incorrect media reports” had disrupted its planned consultation process, but it would press on.

“We will proceed with this consultation process to ensure that each MA (member association) has the ability to express its vote based on facts,” it said in a statement issued in the middle of the European night.

FIFA is pushing to create a US$20 billion (S$25.7 billion) subsidiary, FIFA Forward Enterprise (FFE), to run the World Cup and its other events, with a stake of up to 20 per cent to be offered to external investors.

Thrive Eternal, a fund run by Joshua Kushner-founded Thrive Capital, is expected to lead the proposed investor group, FIFA said. Joshua is the brother of Jared Kushner, US President Donald Trump’s son-in-law.

‘Nobody is selling football’

UEFA has led the criticism of the proposal, accusing FIFA of putting the sport’s “soul” up for sale. On July 30, UEFA’s 55 member nations voted unanimously to boycott all FIFA tournaments, less than two weeks after Spain were crowned World Cup champions.

“Nobody is selling football. This is not something FIFA would ever entertain,” FIFA said.

“Everyone has the right to express their opposition and to seek further clarification, but no single entity can claim to represent all 211 MAs around the world.

“Each MA should be allowed to review the proposal and have a say in shaping their own future. These are the democratic principles of FIFA.”

CONCACAF, the regional football federation for North America, Central America and the Caribbean, rejected the proposal during a meeting on July 30, but the 41-member body did not follow UEFA with a boycott threat.

The Asian Football Confederation (AFC) also issued a scathing letter to the continent’s 47 member associations and warned that the proposal would never succeed without the support of all six regional blocs.

“The AFC stands in solidarity with UEFA and CONCACAF in expressing serious concerns over FIFA’s proposal to introduce private investment into FIFA’s flagship competitions,” the Kuala Lumpur-based body said in a statement on July 31.

“The fact that the situation has reached the point where the real possibility of a FIFA World Cup boycott has entered public discourse should concern everyone who cares about the future of our game,” said the AFC, which represents 47 member nations, including Australia, China, Japan, Saudi Arabia and Singapore.

“In light of the clear positions expressed by UEFA and CONCACAF, as well as the unprecedented divisions that have emerged across the football world, the AFC believes that the proposed FFE cannot realistically achieve the necessary broad consensus and unity required to move forward,” the AFC added. 

‘Keep football for the fans’

FIFA president Gianni Infantino said in a letter to all football associations this week that they would receive US$40 million each if they agreed to FIFA’s proposal by Sept 19.

UEFA and CONCACAF combined have 96 associations, just under half of FIFA’s 211 members.

On July 31, FIFA stressed that it would not go ahead with the plan without the support of the majority of its member associations.

“These principles underpin the FFE proposal: unprecedented development funding, truly global ownership of the commercial opportunities of our sport and full self-determination through a democratic process for all MAs,” it added.

On the same day, Infantino’s senior advisor, Carlos Cordeiro, resigned with immediate effect in protest at the proposal, calling it “a bad deal for football”.

Noting that FIFA sits on billions of dollars in reserves and has no debt, he said in a statement: “The FIFA President himself has highlighted the $15 billion in revenue generated between 2022 and 2026.

“Against that backdrop, selling a permanent stake in football’s most valuable asset to raise $4.2 billion makes little sense.”

Spanish World Cup winner Xabi Alonso also said on July 31 that football had to prioritise the people who watch the game, not private interests.

“The way we love football is like this, and we have just seen a great World Cup. If things stay this way, then good. We have to defend the interests of all the people,” the Chelsea coach told reporters in Sydney.

“I think this is a common feeling among football people. We want to keep football for the fans, for everyone, not for other interests. So hopefully, this will not happen.” REUTERS, AFP