The International Federation of Association Football (FIFA) has announced a strategic move to sell a 20 per cent stake in the marketing of commercial rights for future World Cups. The aim of this move is to earn more than €3.5 billion, with a new company, named FFE, set to take over the organisation of the next major tournaments. FIFA will retain a majority ownership stake in this new entity, while private investors will be able to purchase the remaining shares.
The estimated value of the FFE company is €17.56 billion. This new subsidiary will have the task of consolidating all commercial rights for competitions under the patronage of FIFA. This includes the men’s and women’s World Cups as well as the Club World Cup. Although FFE will manage the commercial aspects, FIFA will retain key control over the competition calendar and the laws of the game.
All 211 FIFA member associations will have the opportunity to acquire smaller stakes in the newly established company. Members will be able to decide whether they wish to retain these shares or sell them on the market. It is planned that additional revenue from this transaction will be directed towards the development of football worldwide. FIFA intends to invest €8.8 billion for this purpose over the next four years.
According to media reports, individuals from the circle of US President Donald Trump were involved in preparing these plans. Leading the role in the investment project is technology investor Joshua Kushner, brother of Jared Kushner, who is married to Trump’s daughter Ivanka. Kushner leads a consortium of investors through his Thrive Eternal fund, and the entire process has been in preparation for several months.
The Union of European Football Associations (UEFA) reacted to media reports about the sale of commercial rights, expressing deep dissatisfaction. UEFA stated in a press release that a line had been crossed which all responsible football institutions should never have crossed. The association took the entire situation extremely seriously, warning of potential consequences for the structure of football. Final approval of this plan must be obtained from the FIFA membership.
