FIFA are proposing the sale of 20 per cent of a new subsidiary

“The news on Tuesday, first reported by the Financial Times, that FIFA is preparing to sell off part of its commercial operations spread shock and outrage across the sporting world. Football’s world governing body plans to sell a 21 per cent slice in FIFA Forward Enterprise (FFE), a new subsidiary under which commercial operations and events — such as the World Cup, which, as detailed recently by The Athletic, is the key driver in FIFA’s finances — will be consolidated. The intention is to raise $4.2billion (£3.2bn) from outside investors and the narrative quickly formed: FIFA wants to sell (part of) the World Cup. The rebukes have been swift. By Wednesday night, three of the six confederations under FIFA’s hand had criticised the move, as had several member associations — none of whom were apparently consulted before plans broke into the public domain. Shows of support have been a minority act. Money, as ever with FIFA and football generally, is central to the plot. But what, exactly, is FIFA proposing under these plans? How do they compare to other sports and other entities within football? And why all the controversy? As is often the case, FIFA led its argument on this with big numbers. FFE is designed to be a specific, purpose-built entity, maximising FIFA’s take from commercial and events operations. Citing valuation forecasts carried out by JP Morgan Chase, a global bank, FIFA reckons FFE will be worth $20billion. Of that, it hopes to raise $4.2bn via an equity sale — hence the 21 per cent stake on offer to external investors. …”
NYT/ATH (Video)

In a sport obsessed by money, is Gianni Infantino’s indecent proposal really such a surprise?
“When Gianni Infantino looks in the mirror, what does he see? How does he feel as he returns to his seat on the private jet provided by one of FIFA’s sponsors? What goes through his mind as he pulls a napkin over his lap at Cipriani and carries on dining with the FIFA legends? He must feel pretty good upon returning to the VVIP suite at Los Angeles’ $5.5billion (£4.1bn at the current rate) SoFi Stadium to pick up where he left off with the billionaire class, not to mention the stars of stage and screen. Bravo, Gianni. Not bad for the kid who didn’t fit in. The kid picked on at school for his freckles and ginger hair. The kid who didn’t speak good German upon arriving in Switzerland from Italy. The son of economic migrants. Look at him now, the self-made Infantino. …”
NYT/ATH (Video)
Guardian: Uefa agrees to boycott Fifa competitions if World Cup sell-off plans proceedjt
YouTube: FIFA in clash with UEFA over plan to sell World Cup stakes, How Did The World Cup Become A $40 Billion Crime Scene?