FIFA has unveiled plans to create a $20 billion commercial subsidiary to manage the FIFA World Cup and other major tournaments, a proposal that has drawn strong criticism from UEFA over concerns about the future governance of football.
The world football governing body announced on Tuesday that the new entity, to be known as FIFA Forward Enterprise, would oversee the commercial operations of the World Cup and other FIFA competitions.
While FIFA would retain a majority stake and full control over football governance, the organisation plans to sell minority shares to private investors, aiming to raise up to $4.2 billion.
The proposal is still subject to approval by FIFA’s 211 member associations.
According to FIFA, the investor group is expected to be led by a vehicle founded by Joshua Kushner, the brother of US President Donald Trump’s son-in-law, Jared Kushner.
FIFA president Gianni Infantino defended the proposal, saying it would generate additional revenue to support football development across the globe.
“Football is the world’s most popular sport,” Infantino said.
“Parts of the game have turned that popularity into remarkable commercial value, and we celebrate that success because it lifts the whole game.
“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.”
FIFA insists all net profits generated through the new subsidiary will be reinvested into football, particularly in expanding access to the sport and supporting member associations.
Despite those assurances, UEFA has fiercely opposed the proposal, describing it as a dangerous step towards the commercialisation of the sport.
In a strongly worded statement, European football’s governing body said the move “crosses a line that football’s governing institutions should never cross.”
The latest development comes just weeks after FIFA staged its first-ever 48-team World Cup across the United States, Canada and Mexico, the largest edition in the tournament’s history.
FIFA maintains that it will continue to have sole authority over football governance, competition formats, the international match calendar and all sporting and regulatory decisions, even if the investment proposal is approved.
