Zurich: FIFA President Gianni Infantino is standing firm on the proposed commercial spin-off plan amid increasing criticism from several football associations and officials. Infantino emphasized that member associations would not be forced to endorse the new subsidiary, which is intended to exploit the commercial benefits of the World Cup. He clarified that the initiative is merely an opportunity, not an obligation, for the associations.
According to France24.com, the plan involves the creation of FIFA Forward Enterprise (FFE), a private subsidiary where FIFA would maintain a majority share. The goal is to raise $4.2 billion by attracting long-term investors who would acquire minority, non-controlling stakes. Infantino communicated this plan to FIFA's member associations, offering each $40 million if they agree to support the initiative by September 19.
Infantino defended the proposal in a video, describing it as a democratic process aimed at unlocking untapped commercial value for the benefit of FIFA's 211 member associations. He reassured that this commercial strategy would not alter the game itself, but instead enhance global football development. He further argued that fans worldwide would benefit from the plan's transformative potential.
The proposal has sparked a continental backlash. UEFA criticized the plan as crossing a line, arguing that football governance and its essence are not commodities for sale. They emphasized the absence of transparency in the financial gains. Similarly, the EU expressed strong opposition, with EU commissioner for Sport Glenn Micallef posting a critical message online. CONCACAF and the Asian Football Confederation also voiced concerns about the lack of consultation and due process.
FIFA assured that it would retain full control over the new entity, FFE, and uphold exclusive authority over football governance and competitions. The organization projected an initial equity valuation of $20 billion for FFE, offering member associations a chance to partake with a $20 million stake, a significant sum for smaller or less affluent members.
This move comes in the wake of past controversies, including a failed $25 billion investment plan for an expanded Club World Cup, which was rejected by FIFA stakeholders in 2019. Despite this, FIFA has plans to expand the Club World Cup from seven teams to 32 by 2025. The Times reported dissenting voices within the football community, labeling the new plan as potentially more damaging than the failed European Super League, with far-reaching impacts on global football.