Gianni Infantino’s plan to sell up to 20% of a new FIFA subsidiary that would administer tournaments such as the World Cup and Club World Cup has been met with swift and fierce backlash. The subsidiary, to be called FIFA Forward Enterprises, would oversee FIFA’s commercial activities.
Proposal and opposition
UEFA, Europe’s soccer governing body, lashed out almost immediately. The English Football Association and North and Central America’s Concacaf say they are “deeply concerned” by the plan, which is far from a done deal. The proposal must be approved by a majority of the 211 countries in FIFA, each with an equal vote.
Infantino made it clear in his letter to member nations that if they don’t approve the deal, they’ll lose access to $40m worth of funding and have to settle for a far smaller figure. The head of the potential investment group is Thrive Eternal, the handiwork of Josh Kushner, brother of Donald Trump’s son-in-law Jared Kushner.
Commercialization concerns
UEFA stated plainly that it believes FIFA is “using the sport to enrich themselves and their friends.” However, the amateurist spirit of the Olympics went out the window decades ago, as TV rights and sponsorships made the International Olympic Committee a non-profit worth nearly $5bn. Soccer jerseys in top leagues already have sponsorships, and stadium naming rights are sold to companies.
Dave Schilling, the author, questions the need for further growth, asking: “What’s the goal here? To have a World Cup on Mars? To clone Lionel Messi?” He sees more branding, commercial advertising masquerading as “hydration breaks”, and higher ticket prices in the future. The World Cup, he argues, is under siege with the risk of becoming a private equity–swallowed chain.
