Fifa's sales pitch to persuade members to approve the sale of the World Cup's commercial rights explicitly states that financial growth will be achieved by staging more tournaments, increasing ticket prices, and using debt financing.
A 25-page sales deck titled "Fifa Forward Enterprise Member Materials", obtained by the Guardian, makes the case for creating a new company to run Fifa's commercial operations. Twenty percent of this company would be sold to Joshua Kushner, a US investor and brother of Donald Trump's son-in-law, Jared Kushner.
JP Morgan's role and financial projections
The prospectus was produced by JP Morgan, the US bank behind the failed European Super League breakaway five years ago. In addition to the previously reported $20 million sign-up payment to all 211 member associations, the document projects that four-year Fifa Forward payments would increase to $24 million per member by the 2035-39 cycle.
JP Morgan states that growth will come from "a growing tournament portfolio", "third party sources of capital and debt financing", and prioritising "high yield" partnerships and events. There is a reference to more than doubling the number of global tournaments each year, from 200 to 450, which would put a huge strain on player workload.
World Cup frequency and media rights
Staging the World Cup more frequently would be the most obvious revenue raiser. Gianni Infantino proposed making it a biennial tournament five years ago. The bank also raises the prospect of TV coverage of big events being sold to subscription channels or streamers, referencing a plan to "expand and optimize media rights monetization".
JP Morgan claims Fifa is "undermonetized" and makes comparisons with other sports leagues based on club or franchise earnings, not comparable governing bodies. Fifa's annual revenue of $3.6 billion compares unfavourably with the NFL's $21.2 billion, MLB's $13.1 billion, and the NBA's $12.5 billion.
Reactions and omissions
The document was sent to all 211 member associations on Wednesday night and provoked a strong reaction. One senior figure questioned why Fifa, with cash reserves of around $4 billion and accumulated revenues of $15 billion over the current four-year cycle, would need to take on debt. Another highlighted the odd comparison of a governing body with private leagues, and JP Morgan's proposed timeline was questioned.
According to the document, investors will be given access to a term sheet in August before a vote of Fifa members. There is little mention of the investor group elsewhere, with no reference to their projected returns or exit terms. Notably, there is no mention of women's football anywhere across the 25 pages. Fifa was approached for comment.
