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Fifa launches plan to sell World Cup commercial rights via new entity
Fifa said the “Fifa Forward Enterprise” vehicle would raise hundreds of millions and target a valuation of about $20bn for the commercial venture.
Fifa has announced plans to sell commercial rights tied to its tournaments, including the men’s and women’s World Cups and the Club World Cup, using a new private-investment structure that immediately drew backlash from Uefa and major European clubs, The Guardian reports.
The federation said it is working with US bank J.P. Morgan to set up a new entity called Fifa Forward Enterprise (FFE), designed to sell a significant stake in those rights to investors. Fifa’s plan includes a promise of increasing distributions to member associations by over $10bn, with the additional value redistributed back to its 211 member associations.
Uefa issued a strongly worded statement accusing Fifa of attempting to sell the soul of football and is believed to be considering its legal position, while sources at elite clubs were critical of the proposal in private. Fifa said the plans require approval by a majority of member associations, but declined to say when a vote would take place.
The Guardian reports that Thrive Capital, an investment firm founded by Joshua Kushner, is leading the search for investors. Multiple sources told the outlet that Fifa is valuing the new venture at around $20bn, as it looks to monetize football’s global popularity after this summer’s World Cup in the United States, Canada and Mexico.