FIFA to Sell 20% Stake in World Cup Commercial Arm Amid Controversy Over Trump Family Links

[Financial News]  

The Fédération Internationale de Football Association (FIFA) has moved aggressively to commercialize the FIFA World Cup. The effort is expected to draw controversy because it is also linked to the family of U.S. President Donald Trump.
The Financial Times reported on the 28th (local time) that FIFA plans to launch a new commercial entity, FIFA Forward Enterprise (FFE), and raise as much as $4.2 billion by selling about a 20% stake.
The move comes after Infantino reportedly saw major gains from this summer's North American World Cup despite the controversy, prompting him to push ahead with full-scale commercialization. Infantino has faced criticism for turning FIFA into a money-making machine during his 10 years in office.
The Switzerland-based nonprofit said on the day that, with help from JPMorgan Chase bankers, it would sell a 20% stake in FFE to outside investors by the end of the year and raise up to $4.2 billion.

The fundraising effort is being led by Joshua Kushner, a tech investor and the brother of Jared Kushner, President Trump’s son-in-law.
Infantino had been building a close relationship with Trump even before this North American World Cup. In December last year, FIFA created the FIFA Peace Prize and gave the award to Trump. The move drew heavy criticism for violating FIFA’s principle of political neutrality by creating a prize and naming Trump as its first recipient.

Against this backdrop, Infantino has now fully embarked on a path of commercialization.
FIFA said it is seeking minority investors for a long-term stake in FFE, adding that the entity will be responsible for FIFA’s commercial operations and event management.
The Union of European Football Associations (UEFA) immediately pushed back. It said flatly that football is "not something to be sold."
UEFA warned that "the football association has crossed a line that should never be crossed" and that "UEFA takes this very seriously." It added, "The soul and governance of football are not assets to be traded," and stressed that this is especially true "when there is zero transparency over who is financially benefiting."
As UEFA voiced strong opposition, FIFA also offered incentives, saying it would pay each of its 211 member associations a one-time $20 million. Starting next year through 2030, it plans to raise annual payments from $2 million to $5 million.
The plan will move forward if member associations approve it by majority vote.

U.S. Democrats are focusing on the fact that FIFA’s commercialization is taking place amid a close relationship with the Trump administration.
On the 27th, Rep. Jamie Raskin of the House Judiciary Committee sent Infantino a letter as part of an investigation into the relationship between FIFA and the Trump administration, demanding that he appear at a hearing.
House Democrats also sharply criticized FIFA’s sale of a stake in its commercial arm and reports that Trump allies are involved.
In a post on social media platform X, Democrats said, "FIFA is Trump’s favorite corrupt criminal extortion racket in global sports," adding, "Now it wants to do business directly with the Trump family."
They continued, "It is clear that the fake peace prize and the massive Trump Tower lease deal were not enough," and added, "Now Infantino is trying to sell World Cup equity to private investors through a multibillion-dollar deal with Jared Kushner’s brother."

Buoyed by the strong commercial performance of this North American World Cup, FIFA is expected to secure at least $13 billion in revenue over its four-year cycle. Some of that money will also go toward replenishing FIFA’s reserves. FIFA’s reserves fell from $3.9 billion immediately after the 2022 FIFA World Cup in Qatar to $2.7 billion in December last year.
FIFA revenue, which stood at $7.6 billion at the Qatar World Cup, is projected to rise to $13 billion at this year’s tournament in the United States, Mexico and Canada, and to reach at least $14 billion at the 2030 FIFA World Cup in Spain, Portugal and Morocco.
Infantino is also preparing a Club World Cup, a tournament for professional teams. Because regional and national football associations already host such club competitions, the plan has created friction with them.
FIFA is also considering expanding the number of teams in the World Cup finals from 48 to 64. It has already benefited from increasing the field from 32 to 48 teams starting with this year's tournament.


[email protected] Song Kyung-jae Reporter