FIFA officially announced plans to sell "World Cup equity", triggering a power struggle in the football world
As for how much the World Cup is worth, FIFA, the governing body of the football world, has given its own price tag. In an announcement released on Tuesday local time, FIFA announced that it plans to establish a new entity called "FIFA Promotion Enterprise" (FFE) to house FIFA's commercial rights (covering broadcasting, sponsorship, ticketing and licensing) and sell non-controlling minority shares to external investors. FIFA's commercial rights include the World Cup and youth international events, but the largest commercial value is still the Men's World Cup.
As for how much the World Cup is worth, FIFA, the governing body of the football world, has given its own price tag. In an announcement released on Tuesday local time, FIFA announced that it plans to establish a new entity called "FIFA Promotion Enterprise" (FFE) to house FIFA's commercial rights (covering broadcasting, sponsorship, ticketing and licensing) and sell non-controlling minority shares to external investors. FIFA's commercial rights include the World Cup and youth international events, but the largest commercial value is still the Men's World Cup. FIFA said in a statement that FFE's initial equity valuation is US$20 billion and it plans to raise US$4.2 billion from external investors, which is the sale of 21% of the equity. So-called "outside investors" also surfaced on Tuesday. FIFA said New York-based investment vehicle Thrive Eternal will lead the formation of the proposed investor group for FFE. The agency was founded by Joshua Kushner, whose brother Jared Kushner is the son-in-law of current US President Trump. JPMorgan has been hired to work collaboratively as part of the effort to sell World Cup rights. FIFA emphasized in its statement that external investors only hold a minority stake in FFE and will not participate in any operational work. It is reported that this adjustment requires majority approval of FIFA's 211 member associations. And FIFA's efforts to promote this project are also simple: distribute money. FIFA said that after approving the plan, member associations will have the opportunity to receive a one-time funding of US$20 million. In addition, the development funds allocated to each association in the next World Cup cycle (2027-2030) will increase from the current expected US$8 million to US$20 million; in the next two World Cup cycles, this amount will increase to US$22 million and US$24 million. FIFA will receive a record revenue of approximately US$12 billion from the 2026 World Cup in the United States, Canada and Mexico, with ticket and hospitality service prices reaching record highs. It is unclear whether the 2030 World Cup, co-hosted by Spain, Portugal and Morocco, and the 2034 World Cup in Saudi Arabia can replicate this level. In order to increase revenue, this World Cup has historically increased the number of participating teams in the finals from 32 to 48. FIFA is also currently considering expanding the number of teams to 64 in the next World Cup. Due to the huge commercial success in the just-concluded World Cup cycle, FIFA President Infantino will most likely be re-elected next year to start his fourth and final term. For years, there has been speculation that Infantino might seek other managerial roles in the football world, given that he will only be 61 when he steps down in 2031, and the FFE boss is the latest option on the table. According to media reports, FIFA may set up a CEO-like position for Infantino in FFE. FIFA said in a statement on Tuesday that the FIFA president and FIFA management must play a leading role in the new entity if approved by member associations. Will it be disturbed by UEFA again? As the two major players in the football world, UEFA immediately issued a strongly worded statement, emphasizing that the move "crossed a bottom line that football governing bodies should never cross" and also declared that "the soul and governance of football are not assets that can be traded." Obviously, in addition to defending the "soul of football," UEFA's move is more for its own commercial interests. The first to bear the brunt of FIFA's commercial expansion is the UEFA Champions League and European Cup. The first new version of the Club World Cup to be held in 2025 will expand the participating teams to 32 and set up a huge prize pool of US$1 billion. With more and more international events taking place, clubs that pay players' salaries have been under pressure to reduce international events to reduce the risk of player fatigue and injury. As early as 2018, Infantino proposed a global event co-organized with SoftBank Group and funded by Saudi Arabia, including a new Club World Cup. That attempt ultimately collapsed due to strong opposition from UEFA.
Although UEFA only has 55 FIFA member units, which is not enough to directly veto the latest proposal, the European football governing body with the most powerful national teams and clubs has a "ultimate move": withdrawing from FIFA-sponsored events. According to media reports citing people familiar with the matter, UEFA is considering boycotting events organized by FIFA, which may include the World Cup and Club World Cup. A UEFA spokesman declined to comment.
Although UEFA only has 55 FIFA member units, which is not enough to directly veto the latest proposal, the European football governing body with the most powerful national teams and clubs has a "ultimate move": withdrawing from FIFA-sponsored events. According to media reports citing people familiar with the matter, UEFA is considering boycotting events organized by FIFA, which may include the World Cup and Club World Cup. A UEFA spokesman declined to comment.