Former FIFA president Blatter criticises World Cup stake sale plan
Former FIFA President Criticises Investment Plan
Former FIFA President Sepp Blatter has voiced strong opposition to the football governing body’s proposal to establish a $20 billion subsidiary for managing the World Cup. Blatter stated that the tournament is not a commercial asset to be owned by a select group of executives, emphasising that “Football belongs to no individual and to no institution. It belongs to the people.” He served as FIFA president for 17 years until 2015.
FIFA announced on Tuesday its intention to create a subsidiary, named FIFA Forward Enterprise, to oversee the World Cup and other events. The plan includes offering up to a 20 percent stake in this new entity to external investors. This move has drawn considerable criticism from various football authorities, including UEFA, which has suggested that FIFA is commercialising the sport.
Blatter expressed his shock at the idea, noting that such a plan would never have been considered during his tenure. He believes that if FIFA were to transform into a profit-driven corporate structure, it would lose its fundamental essence. He further added that the World Cup should not become an investment product for private equity firms seeking financial returns, asserting that FIFA is merely the guardian of the World Cup, not its owner.
Widespread Opposition and Potential Boycott
The proposed plan by FIFA to sell minority stakes in the World Cup is set to be put to a vote among its 211 member associations in September. Reports indicate that the deal aims to raise an estimated $4.2 billion in 2026 through the sale of a 20 percent minority stake in the new subsidiary, with an equity valuation of $20 billion. FIFA confirmed that this new company would manage the organisation’s commercial and event operations.
Under the proposal, each of FIFA’s 211 member associations would receive $20 million in funding if the deal proceeds, with annual funds to members projected to increase through 2038. FIFA has stated it would remain the primary owner of the new subsidiary, retaining control over scheduling, governance, and regulatory decisions. Thrive Eternal, a fund associated with Josh Kushner’s Thrive Capital, is reportedly leading the investor group, with bankers from JPMorgan advising FIFA.
The plan has faced significant backlash from football governing bodies across the Americas, Asia, and Europe. UEFA is reportedly considering a boycott of FIFA events, including the World Cup and the Club World Cup, in response to the investment scheme. An emergency meeting of UEFA is scheduled to address the issue, with French sports minister Marina Ferrari highlighting the importance of European stakeholders presenting a unified front against a project that could profoundly alter the sport.
UEFA has stated that there is “significant and growing opposition to FIFA’s scheme,” and views the prospect of member associations losing the $20 million payment as indicative of the plan’s nature. Other confederations, including CONCACAF and the Asian Football Confederation, have also expressed concerns, citing a lack of consultation and transparency regarding the deal. The Football Association in England also stated it was “completely unaware of this proposal” and was “deeply concerned” about the lack of information.
British Prime Minister Andy Burnham also weighed in, asserting that “football does not belong to investors. It belongs to the people who fill the stands and who stand on the touchline week in, week out, rain or shine.” He emphasised that the World Cup is not a “product” but belongs to the fans. FIFA generated $15 billion in revenue from the 2026 World Cup.
Source: aljazeera.com
