FIFA President Gianni Infantino proposed to sell a stake in the World Cup to private investors, sending shockwaves through global football.
As per the proposal, a $20 billion commercial subsidiary referred to as FIFA Forward Enterprise (FFE) would take control of broadcast rights, sponsorship, ticketing, and operational aspects of this tournament. Private investors led by Joshua Kushner’s (President Donald Trump’s son-in-law) Thrive Eternal would buy minority stakes.
Each of FIFA’s 211 member associations has been offered an immediate $20 million payment if they approve the plan before September 19.
What could change for fans?
With the investors expecting returns on their billions of dollars invested, the fear is that there will be major price increases. This was witnessed with the recent World Cup, with tickets at exorbitant levels. It has been reported that the hydration breaks during games were each worth $7-9 million for the broadcaster. With private investments, there will be more such interruptions.
Moreover, investors will need more games to increase revenue. Expanding the number of participating countries to 64 or even holding the World Cup every two years instead of four is a possibility. Additionally, there will be a consumer-based streaming channel that viewers must pay to access. This leads to the trend that nations which can provide maximum profits might become more important than rotation among continents.
What happens next?
European soccer governing body UEFA held an emergency meeting Thursday, July 30, with its 44 member associations to discuss a potential World Cup boycott responding to FIFA’s proposal.
U.S. lawmakers have also criticised the proposal, with Congressman Jamie Raskin demanding that Infantino appear before the House Judiciary Committee, citing concerns about “FIFA going directly into business with the Trump family.”
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