Fifa has proposed creating a new commercial subsidiary that would allow private investors to take minority stakes in its competitions, including the World Cup, prompting criticism from European football officials and political figures over the future governance of the sport.
Fifa plans to establish a new entity, Fifa Forward Enterprise (FFE), to consolidate its commercial and event operations while inviting third-party, minority and non-controlling investment.
Fifa said the initiative is intended to increase funding for football development to more than $10 billion, with each of its 211 member associations eligible to receive up to $20 million in one-off capital for development projects. American venture capital firm Thrive Eternal, founded by Joshua Kushner, is expected to lead the investor group for the proposed venture.
The proposal is expected to be discussed at a Fifa Council meeting later this year before being put to a vote by Fifa’s 211 member associations at the Fifa Congress in Morocco in March.
The plan has drawn opposition from Uefa and politicians who argue that allowing private investment into Fifa’s commercial operations could alter the priorities of the sport.
Uefa said the proposal risked undermining football’s governance.
“This crosses a line that football’s governing institutions should never cross… The soul and governance of football are not assets to trade,” Uefa said in a statement.
“None of us are the owners of football. It is not Fifa’s to sell.”
Critics have also questioned the potential impact of private investment on the international match calendar.
Football finance expert Kieran Maguire said investors would likely expect increasing commercial returns.
“It [FFE] has got to make money in order to satisfy the shareholders,” Maguire said.
Some critics have expressed concerns that pressure to generate higher revenues could eventually lead to further expansion of competitions such as the World Cup and the Club World Cup, including proposals for larger tournaments or more frequent editions, increasing demands on the international calendar. Others have also raised concerns that scheduling pressures could eventually require major tournaments to be played during the northern hemisphere winter.
UK Prime Minister Andy Burnham also criticised the proposal, saying football should remain accountable to supporters rather than investors.
“Football does not belong to investors. It belongs to the people who fill the stands and who stand on the touchline week in, week out, rain or shine,” Burnham said.
“The World Cup is not a product. It is the greatest competition in world sport, and it was never anyone’s to sell.”
Fifa President Gianni Infantino defended the proposal, saying the governing body would retain control over football governance, regulatory decisions and the international match calendar.
“Our job is to make sure the rest of football grows with it: Fifa exists to support sustainable, inclusive development in every corner of the world,” Infantino said.
Fifa has said the proposed investment would apply only to the commercial operations of FFE and would not affect its authority over the governance of world football.
Source: https://www.tbsnews.net/sports/fifa-proposal-seek-private-investment-draws-criticism-uefa-1500611
