FIFA eyes $20 billion stake sale in World Cup commercial arm
Translated from Slovenian, summarized and contextualized by DistantNews.
At a glance
- FIFA is reportedly planning to sell a significant minority stake in a new commercial entity valued at around $20 billion.
- The move aims to raise billions of dollars by bringing in external investors for a 20% stake in the new company, which would manage commercial rights for major FIFA competitions, primarily the World Cup.
- Critics warn this could lead to increased pressure for more matches, higher ticket prices, and aggressive monetization, potentially turning the World Cup into just an investor's asset.
FIFA is reportedly preparing to sell a substantial minority stake in a new commercial company, potentially valued at $20 billion. This strategic move, detailed by the Financial Times, aims to capitalize on the commercial success of recent World Cups and raise billions by allowing external investors to acquire approximately a 20% share.
Fifa is preparing to sell a significant minority stake in a new commercial company valued at around $20 billion.
The new entity would be responsible for managing and marketing the commercial rights associated with FIFA's premier events, with a particular focus on the World Cup. The organization, under Gianni Infantino's leadership, has seen a significant revenue jump, projecting at least $13 billion in income for the current four-year cycle, a notable increase from the $7.6 billion in the previous cycle.
The Times has labeled the project as Infantino's plan to sell stakes in the World Cup.
This infusion of capital could allow for increased payouts to national federations, a key element of Infantino's political strategy to broaden support for elections and reforms. Discussions have even touched upon Infantino potentially serving as a "commissioner" for the new company, adding a layer of political intrigue, especially given past interactions with the Trump administration.
More money for federations means broader support in elections and reforms.
While FIFA operates as a non-profit, this plan would move it closer to a global sports-media corporation model. Critics express concern that granting external investors a stake in the World Cup's commercial core could intensify demands for more games, expanded formats, and aggressive monetization strategies, potentially compromising the tournament's integrity for financial gain.
Critics warn that such a move could be a 'nuclear bomb' for football.
Originally published by Delo in Slovenian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.