Key facts
- FIFA plans to raise $4 billion by selling minority stakes in a new commercial entity, FIFA Forward Enterprise.
- This entity would control commercial rights for the World Cup and Club World Cup.
- European Commissioner Glenn Micallef announced an investigation into the proposal.
- Concerns include governance, conflicts of interest, and competition law implications.
- UEFA and UK Prime Minister Andy Burnham have expressed strong opposition.
European Commissioner for Sport Glenn Micallef has announced that the European Commission will investigate FIFA's controversial proposal to sell stakes in a new commercial entity to outside investors. FIFA revealed plans to raise $4 billion by selling minority holdings in FIFA Forward Enterprise, which would control all commercial rights to the World Cup and Club World Cup. Micallef expressed strong opposition, stating on social media that the "relentless commercialisation of football has become corrosive" and threatens the sport's popularity. He raised concerns about FIFA's regulatory powers becoming aligned with private financial interests, creating potential conflicts of interest and questioning governance and independence. He also highlighted potential competition law issues, noting that sporting rules are subject to EU law when they have economic effects. The proposal has ignited a furious backlash from various football stakeholders. Prime Minister Andy Burnham criticized the plan, asserting that "football does not belong to investors" and that the World Cup is "not a product" to be sold. UEFA is reportedly considering withdrawing its member nations from future World Cups in protest, calling the move a crossing of a line that governing institutions should not cross. Both the Football Association (FA) and Concacaf expressed deep concern over the lack of transparency and due process. The FA stated it had been kept in the dark and lacked substantive details, while Concacaf noted it learned of the matter through media reports and expressed disappointment over the lack of prior discussion with governance bodies and stakeholders. FIFA President Gianni Infantino has framed the FIFA Forward Enterprise plan as an opportunity to equalize resources by increasing distributable capital for member associations.