Former FIFA President Criticises World Cup 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 and other events. Blatter, who served as FIFA president for 17 years until 2015, stated that the World Cup is not merely a commercial asset to be controlled by a select group of executives.
Speaking on Wednesday, Blatter emphasised that “Football belongs to no individual and to no institution. It belongs to the people.” He further warned that if FIFA were to transform into a profit-oriented corporate structure, it would risk losing its fundamental essence. Blatter expressed his shock at the idea, noting that such a plan would have been unthinkable during his tenure.
FIFA announced on Tuesday its intention to create a new subsidiary, named FIFA Forward Enterprise, which would oversee the organisation’s commercial and event operations. The plan includes offering up to a 20 percent stake in this new entity to external investors. This move aims to raise an estimated $4.2 billion in 2026, based on an equity valuation of $20 billion for the subsidiary.
Widespread Opposition to Investment Plan
The proposal has drawn significant criticism from various football authorities, including UEFA, the governing body for European football. UEFA described FIFA’s actions as putting the game up for sale, asserting that “The soul and governance of football are not assets to trade – especially with zero transparency as to who gains financially.” They also highlighted that the prospect of member associations losing a $20 million payment if the deal does not go through “says everything you need to know about this plan.”
Blatter echoed these concerns, stating that the World Cup should not become an investment product for private equity firms seeking returns. He reiterated that the FIFA World Cup is not a commercial asset belonging to a few individuals but rather a part of the cultural heritage of world football. Blatter views FIFA as the guardian of the World Cup, not its owner, and believes that the principle of football belonging to the people should remain unchanged.
The plan requires approval from a majority of FIFA’s 211 member associations, who are expected to vote in September. If approved, each member association would receive $20 million in funding, with annual funds continuing to increase through 2038. FIFA has stated it would remain the primary owner of the new subsidiary, retaining control over competition scheduling, matches, governance, and regulatory decisions.
The investor group for this initiative is reportedly led by Thrive Eternal, a fund from Josh Kushner’s Thrive Capital. FIFA is also being advised by bankers from JPMorgan. However, the deal has been met with significant opposition beyond Europe, with governing bodies in the Americas and Asia also expressing concerns.
CONCACAF, the confederation for North, Central American, and Caribbean football, expressed deep concern over the lack of due process, stating they were only informed through media reports. Similarly, the Asian Football Confederation (AFC) reported not being consulted on the deal and not having the opportunity to discuss it through established governance channels. The Football Association in England also voiced its concern over the lack of information and transparency surrounding the proposal.
UEFA is reportedly considering a boycott of FIFA events, including the World Cup and the Club World Cup, as a potential response. An emergency meeting for UEFA was scheduled for Wednesday, with French sports minister Marina Ferrari emphasising the importance of European stakeholders speaking with a single voice on a project that could profoundly transform the sport. The tensions between UEFA and FIFA have been evident in recent weeks, including UEFA president Aleksander Ceferin’s boycott of the World Cup final over various issues.
FIFA generated $15 billion in revenue from the 2026 World Cup, a figure significantly higher than the estimated $7.57 billion from the 2022 World Cup cycle. FIFA president Gianni Infantino had previously spoken about unleashing the commercial potential of FIFA, a statement the organisation has referenced in announcing the new venture.
Source: aljazeera.com
Arjun Sharma
Sports Reporter