"Even the World Cup Is for Sale"... FIFA Pushes to Sell Stake in New 29 Trillion Won Subsidiary

[Financial News] Fédération Internationale de Football Association (FIFA) is pushing ahead with plans to establish a subsidiary that will handle the commercial operations of the FIFA World Cup and sell part of its stake to private investors. In the football world, criticism is growing that FIFA is trying to move beyond the framework of a nonprofit international organization and turn itself into a "World Cup corporation."
The Financial Times reported on the 28th local time that FIFA is seeking to set up a new entity, "FIFA Forward Enterprise (FFE)," which will handle commercial and event operations, and is in talks with JPMorgan Chase to raise as much as $4.2 billion, or about 6 trillion won, in investment.
The FT estimated the new entity's corporate value at about $20 billion, or roughly 29 trillion won.
It was also reported that discussions are underway over a plan for the investment fund "Thrive Eternal," managed by Joshua Kushner, the brother of Jared Kushner, son-in-law of U.S. President Donald Trump, to play a key role in raising the capital.
The Times also reported, citing multiple sources, that FIFA is considering establishing a company to manage the commercial rights to the men's and women's FIFA World Cups and the Club World Cup.
Under the draft plan, FIFA would retain a majority stake in the new company, while private investors would acquire 20% to 30%. The 211 member football associations under FIFA would collectively hold about 20%.
The plan is seen as an extension of the commercialization strategy pursued under Gianni Infantino's leadership as FIFA President. FIFA is a nonprofit organization effectively owned by its 211 member associations and maintains tax-exempt status from its base in Switzerland. Projected revenue for 2022 to 2026 is expected to reach $15 billion, or about 21.8 trillion won, with most of it coming from men's World Cup broadcasting rights, sponsorships, and ticket sales.
The Union of European Football Associations (UEFA) immediately voiced public opposition.
In a statement, UEFA said, "Football is not property, and it is not for sale," adding that this would be "a line that football's governing body should never cross."
It continued, "The spirit and governance of football are not assets that can be traded. That is especially true when there is no transparency over who benefits economically." It added, "None of us owns football, and FIFA has no right to sell it."
The Times said private capital involvement could increase pressure to boost commercial appeal, such as by expanding the number of World Cup participants or shortening the tournament cycle, in order to raise investment returns.
The newspaper also reported that some investors privately describe the deal as "buying FIFA."
It also raised the possibility that Infantino could take on a role as commissioner or CEO of the new company after his term ends in 2031 and receive substantial compensation. FIFA denied the claim, saying that "such a matter has never been discussed at all."
FIFA added, however, that "even if the plan is approved, the FIFA President and the executive leadership will continue to control the affiliate in accordance with the rules and operate it for the benefit of the members."

[email protected] Kim Kyung-min Reporter