European football associations to boycott World Cups if FIFA investment plans proceed
UEFA and its 55 member associations have voted to boycott World Cups and other FIFA competitions if the global football governing body proceeds with its plans to sell stakes in its events to private investors. This decision was made at an emergency meeting called to discuss proposals announced by FIFA on Tuesday.
The boycott would encompass all FIFA competitions, including the men’s and women’s World Cups and the Club World Cup. It would be triggered if FIFA president Gianni Infantino’s proposals are approved by member associations. The first instance where this stance could be tested is in October, when the Women’s World Cup play-offs are scheduled.
Rejection of Investment Plans
In a statement released after the meeting, UEFA affirmed that it and its member associations “stand as one.” The statement explicitly rejected FIFA’s proposal to transfer ownership interests in the World Cup and other competitions to private investors, asserting that the World Cup “cannot be treated as an investment product.” It highlighted the tournament’s legacy, built over generations by players, national teams, and supporters, and stated that “no part of it should ever be surrendered to private investors.”
FIFA aims to establish a commercial subsidiary to manage its primary events, including the World Cup, with external investors having the opportunity to acquire stakes in this new entity. Gianni Infantino reportedly wrote to all 211 FIFA member associations, indicating that they would receive $40m if they supported his plan to sell stakes in major competitions. A deadline of 19 September was set for football federations to accept these plans to access an initial $20m.
In response, UEFA accused FIFA of using football “to enrich themselves and their friends.”
Details of FIFA’s Sales Pitch
FIFA’s strategy to gain approval for the sale of the World Cup’s commercial rights reportedly involves staging more tournaments, increasing ticket prices, and utilising debt financing. A 25-page sales document, titled “Fifa Forward Enterprise Member Materials,” outlines the case for creating a new company to manage FIFA’s commercial operations. 20% of this new company would be sold to Joshua Kushner, a US investor.
The prospectus, prepared by JP Morgan, suggests that the four-year Fifa Forward payments could increase to $24m for each member by the 2035-39 cycle, in addition to the previously reported $20m sign-up payment. This growth, according to JP Morgan, would stem from an expanded tournament portfolio, third-party capital sources, debt financing, and a focus on “high yield” partnerships and events.
The document also mentions a potential increase in the number of global tournaments held annually, from 200 to 450, which could significantly impact player workload. Making the World Cup a more frequent event, such as a biennial tournament, was a proposal made by Gianni Infantino five years ago as a way to boost revenue. The sales pitch also raises the possibility of selling TV coverage of major events like the World Cup to subscription channels or streamers to “expand and optimize media rights monetization.”
JP Morgan claims that FIFA is “undermonetized,” comparing its stated annual revenue of $3.6bn unfavourably with leagues like the NFL’s $21.2bn, Major League Baseball’s $13.1bn, and the NBA’s $12.5bn. However, this comparison has been questioned by some, as FIFA is a world governing body, not a private, member-run league.
The document was distributed to all 211 FIFA member associations on Wednesday night. Concerns have been raised regarding why FIFA, which reportedly has cash reserves of around $4bn and accumulated revenues of $15bn over the current four-year cycle, would need to incur debt. Another significant omission in the document is the lack of any mention of women’s football across all 25 pages.
According to the document, investors will be granted access to a term sheet and select materials in August, prior to a vote by FIFA members.
Source: bbc.co.uk