FIFA, as per current plans, has decided to sell its current large minority stake to new companies that will take control of the main events, such as the World Cup & Club World Cup, in a move aimed at dramatically increasing its financial support for football associations around the world.
The latest proposal which requires approval from FIFA’s member associations & their 37 member council an entirely new entity known as Fifa Forward Enterprises (FFE) will govern over commercial operations, while FIFA remains the main governing body & retains a majority stake in FFE.
FIFA was forced to rush out a press release confirming it would sell 21 per cent to FFE and private investors, with the aim of raising $4.2 billion to be immediately released to its new development initiative, the FIFA Fast-Forward Programme (FFFP).
FIFA claims each of its 211 member associations would be eligible to receive an optional $20 million for special infrastructure and development projects under the new scheme.
The governing body also plans to significantly increase its funding for the FIFA Forward Programme. During the next four-year cycle, grants are expected to rise from the current $8 million to $20 million, then to $22 million between 2031 – 34 and $24 million from 2035 to 38.
Further, if this is approved, the total development funding would exceed $10 billion over the next four years.
Naturally, this vision is the brainchild of FIFA president Gianni Infantino, who has been working on this project with chief operating officer Kevin Lamour, formerly of UEFA, for months.
Infantino has also said every FIFA member association should have a fair opportunity to seek a fair share of the available funding to shape its own future, deciding for itself rather than relying on others. This is about the democratisation of football worldwide.
The press release also confirmed that Global Bank JP Morgan has been FIFA’s chief advisor on this project, along with Thrive Eternal, a long-term investment group set up by Joshua Kushner, the brother of Donald Trump’s son-in-law, Jared Kushner, who is expected to lead the proposed investor group for FFE.
The proposal has already drawn criticism from UEFA, including over the controversies during the World Cup, and it has expressed opposition to the idea of selling the sport’s most valuable assets to private investors.
The proposal has come in at a time when the governing body is already expected to generate $13 billion in revenue during the current four-year revenue cycle, driven by the expanded FIFA Men’s World Cup & Club World Cup.
Currently, FIFA will retain a majority ownership & ultimate control of the new company if it receives approval from its members.
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Also see – Was Argentina’s World Cup Final Defeat Fixed? Viral Conspiracy Theories Debunked After Spain Loss
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