The International Federation of Association Football (FIFA) is moving to establish a subsidiary to manage the commercial and event operations of the World Cup, with plans to sell a portion of its stake to private investors. This initiative comes amid FIFA's recent closeness to U.S. President Donald Trump, raising concerns about potential investments from Trump's family.
According to the Financial Times on July 28, FIFA is set to create a new company called 'FIFA Forward Enterprise' (FFE) and is in discussions with U.S. investment bank JP Morgan to raise up to $4.2 billion this year. The new entity will oversee FIFA's commercial operations and major events like the World Cup, with an estimated corporate value of around $20 billion.
Discussions are reportedly underway for a fund managed by Joshua Kushner, brother of Jared Kushner, Trump's son-in-law, to lead the investment. FIFA President Gianni Infantino has been showcasing a close relationship with Trump, particularly in the context of the 2026 North American World Cup, which has drawn attention to the potential involvement of investors connected to the Trump family.
The Times of London also reported that FIFA is considering establishing a company to oversee the commercial operations of both the men's and women's World Cups, as well as the Club World Cup.
Draft discussions between FIFA officials and potential investors indicate that FIFA intends to retain a majority stake in the new company. Private investors are expected to inject billions of dollars to secure a 20-30% stake, while the 211 member football associations of FIFA would collectively hold about 20% of the shares.
This plan is seen as an effort by Infantino, who has transformed FIFA into a large commercial organization, to attract private capital for further growth.
FIFA, a non-profit organization composed of 211 member football associations, enjoys tax-exempt status in Switzerland. Projected revenues for 2022-2026 are estimated at $15 billion, primarily from broadcasting rights, sponsorship deals, and ticket sales for the men's World Cup.
However, UEFA has immediately opposed FIFA's plans to sell private stakes. In a statement, UEFA declared, "Football is neither a possession nor a commodity," criticizing the move as crossing a line that football governing bodies should never breach.
Concerns have also been raised that private investors' involvement in FIFA's core operations could lead to pressures to expand the scale of the World Cup or shorten the current four-year hosting cycle. The Times reported that some potential investors have described the deal internally as akin to buying FIFA.
Infantino's future role is also a topic of speculation. The Times suggested that he might take on the role of 'Commissioner' or CEO of the new company after his FIFA presidency ends in 2031, potentially earning a substantial salary.
FIFA denied any discussions regarding Infantino's future position, stating, "Such matters have never been discussed." However, FIFA emphasized that if the plan is approved, it must continue to control the subsidiary in accordance with FIFA regulations that prioritize member interests, asserting that the FIFA president and executive board must play a leading role in the new company.
The commercialization controversy surrounding FIFA is intertwined with Infantino's efforts to expand his political influence. The New York Post reported on July 23 that President Trump is considering Infantino as a candidate for the next UN Secretary-General.
Infantino has maintained a close relationship with Trump, notably awarding him the inaugural 'FIFA Peace Award' during the preparations for the North American World Cup. As FIFA pushes for commercialization and Infantino seeks to enhance his political clout, concerns about FIFA's independence and governance structure are growing.
* This article has been translated by AI.
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