FIFA is facing criticism over its proposal to sell a stake in its commercial operations to private equity investors. The organization plans to create a new entity, FIFA Forward Enterprise (FFE), to manage revenue-generating activities related to the World Cup, such as broadcasting rights and sponsorships, with an estimated valuation of $20 billion. FIFA is collaborating with JP Morgan to establish this entity, with Thrive Capital leading the search for investors.
The proposal has drawn immediate backlash, particularly from UEFA, which stated that the sport should not be treated as a commodity. UEFA emphasized that the governance of football should not be traded without transparency regarding financial beneficiaries. U.K. Prime Minister Andy Burnham also criticized the plan, asserting that football belongs to the fans and not to investors.
FIFA claims that the FFE could generate an additional $10 billion for its member organizations, potentially increasing annual funding from $8 million to $20 million for each of the 211 national soccer leagues. FIFA President Gianni Infantino defended the initiative as a means to democratize football globally. However, critics argue that FIFA's recent commercialization efforts, including expanding the World Cup and introducing new ticketing practices, reflect a focus on profit rather than the sport's integrity.
Concerns have also been raised regarding potential conflicts of interest due to connections between FIFA and U.S. President Donald Trump, particularly through Joshua Kushner, who is involved in the investment search. An investigation has been launched by Jamie Raskin, a Democratic member of the House Judiciary Committee, into FIFA's ties to Trump's administration and businesses.