Intantino’s business

As if the controversies that arose during the World Cup in the United States weren’t enough, Gianni Infantino continues to make headlines and is preparing a major shift in FIFA’s business model. The president has announced the launch of FIFA Forward Enterprise, a subsidiary of the world football governing body into which the organisation’s main commercial activities and tournament organisation will be consolidated. The aim is to ‘unlock FIFA’s commercial potential’ following the record-breaking results of the World Cup and to convert part of future revenue into immediate resources. The new entity is expected to have an initial valuation of $20 billion and could raise up to $4.2 billion by selling a stake of up to 20 per cent to external investors. FIFA has given assurances that it would retain control of the company and exclusive authority over rules, fixtures, formats and sporting decisions. The plan provides for an optional one-off contribution of up to $20 million for each association, in addition to an increase in FIFA Forward funds from the $8 million currently budgeted to $20 million for the 2027–2030 cycle.

However, the proposal has caused an unprecedented rift with UEFA. The European confederation and all 55 of its member associations have announced that their respective national teams will not take part in any FIFA competitions whilst the plan remains in place. For UEFA, the World Cup must not become ‘an investment product’ nor be subordinated to shareholder returns. FIFA was subsequently accused of having drawn up the plan in secret and without any genuine consultation. The boycott will only be lifted if the plan is abandoned in its entirety and binding guarantees are provided against future openings of tournaments to private ownership.