Zurich, Switzerland. FIFA’s proposal to sell minority stakes in a new $20 billion commercial subsidiary has drawn criticism from regional soccer confederations, which said they were not consulted before the plan became public.
FIFA’s proposal
FIFA said on Tuesday it plans to establish FIFA Forward Enterprise to oversee commercial and event operations, including the World Cup and other tournaments.
The governing body would retain control of the enterprise while offering external investors stakes of up to 20%, seeking to raise up to $4.2 billion.
FIFA this year staged a 48-team World Cup across the United States, Canada and Mexico, the largest tournament in the competition’s history.
Confederation concerns
The Confederation of North, Central America and Caribbean Association Football (CONCACAF) and the Asian Football Confederation (AFC) criticised the proposal on Wednesday, saying they had learned about it through media reports rather than official channels.
“CONCACAF was only made aware of this matter through media reports and, subsequently, via a media release. We are deeply concerned by the lack of due process,” CONCACAF said.
It said the proposal had been designed and shared publicly before discussions with relevant governance bodies and stakeholders.
CONCACAF said FIFA, the confederations and member associations had a responsibility to act in the sport’s best interests, with decisions guided by good governance, robust processes and long-term stewardship.
Blatter’s response
Former FIFA president Sepp Blatter said the World Cup should not become an investment product for private equity investors seeking returns.
