Key facts
- FIFA plans to sell up to 20% of its commercial rights for the World Cup through a new subsidiary, FIFA Forward Enterprise (FFE).
- The move aims to raise up to $4.2 billion to fund global soccer development programs.
- FFE is valued at an initial $20 billion and will consolidate commercial rights including broadcast, sponsorship, and ticketing.
- Critics, including UEFA, have voiced concerns about over-commercialization and potential conflicts of interest.
- The proposal has attracted scrutiny from U.S. lawmakers due to potential financial ties to the Trump family and Joshua Kushner's investment fund.
FIFA is moving forward with a controversial plan to sell a minority stake of up to 20% in its commercial rights for the World Cup, creating a new entity called FIFA Forward Enterprise (FFE). The organization claims this move will raise billions to fund global soccer development programs, with an initial valuation of $20 billion for FFE. FIFA President Gianni Infantino stated that the popularity of the sport generates significant commercial value that should be leveraged to lift the entire game.
However, the proposal has ignited backlash from various stakeholders, including soccer officials, fans, and political leaders. Critics argue that selling stakes in the World Cup would excessively commercialize the sport and compromise its integrity and governance. UEFA, the European soccer body, has called the plan a threat to football's soul and governance, and is reportedly planning an emergency meeting to discuss opposition, potentially including a World Cup boycott.
Adding to the controversy are concerns about potential financial entanglements with the Trump family. U.S. lawmakers, including Representative Jamie Raskin, have raised questions about FIFA's dealings with Joshua Kushner's investment fund, Thrive Eternal, which is expected to be the lead investor. Raskin has criticized the plan as a "kickback hat-trick" and has summoned Infantino to testify before the House Judiciary Committee, requesting documents related to any benefits provided to President Trump and FIFA's office space usage in Trump Tower.
FIFA maintains that it will retain sole control over the enterprise and its competitions, asserting that FFE will separate commercial operations from the sport's governance. The organization also highlighted that the increased funding from FFE could significantly boost development funds for its 211 member associations, potentially increasing their funding from $8 million to $20 million per cycle, with an option for an additional $20 million for special projects.