FIFA plans to form new commercial subsidiary and sell stake

World football's governing body, FIFA, announced Tuesday its intention to create a new commercial subsidiary, the FIFA Forward Enterprise (FFE), valued at $20 billion. The organization plans to sell non-controlling minority stakes to investors, aiming to raise up to $4.2 billion this year.

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would benefit immediately from increased funding.

FIFA stated that all net benefits from FFE would be reinvested into football worldwide, though it did not specify what constitutes "net benefits" or the potential gains for investors. The new entity will manage FIFA's commercial rights, including broadcast, sponsorship, and ticketing, with the World Cup contracts being the most valuable.

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crosses a line that football's governing institutions should never cross.

FIFA President Gianni Infantino pitched the plan as a way to "unleash the commercial potential and opportunity" of the organization, aiming to democratize the game and spread funding more evenly. "Our next stage of growth needs a structure built for it, one where the commercial side of the game operates as a focused, dedicated business, with its value shared more and better all around the world," Infantino said in a press release.

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unleash the commercial potential and opportunity

However, the plan immediately drew sharp criticism from UEFA, the European football federation. UEFA issued a fierce statement, asserting that the move "crosses a line that football's governing institutions should never cross." The announcement follows this summer's World Cup, hosted primarily in the US, with FIFA listing potential investors and advisors from the country. Infantino's close ties to former US President Donald Trump had previously drawn scrutiny.

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As its global governing body, FIFA is responsible for making sure the game reaches every corner of the world, and that the value it creates supports federations and communities everywhere. Our next stage of growth needs a structure built for it, one where the commercial side of the game operates as a focused, dedicated business, with its value shared more and better all around the world.