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FIFA plans to sell stake, triple development funds
28 Jul
Summary
- FIFA aims to sell up to 21% of a new company for $4.2 billion.
- This funding will triple development money for member associations.
- A group led by Joshua Kushner's Thrive Eternal is expected to invest.
FIFA announced plans to sell a minority stake of up to 21% in a newly formed company, FIFA Forward Enterprises (FFE), with the goal of raising $4.2 billion. This capital infusion is designed to triple development funding for its 211 member associations through the FIFA Fast-Forward Programme (FFFP).
JP Morgan has advised FIFA on this strategic initiative, and Thrive Eternal, an investment vehicle associated with Joshua Kushner, is expected to lead the investor group. The proposed funding aims to provide significant financial support for football development worldwide, allowing member associations to access funds for special projects and regular grants.
This plan, spearheaded by FIFA president Gianni Infantino, aims to democratize football funding by sharing its commercial value more equitably. However, UEFA has expressed strong opposition, viewing the sale of valuable assets to private investors as crossing a critical line for football governance.
Despite criticism, the move mirrors commercial strategies adopted by other major sports leagues. FIFA itself is generating record revenues, with projections indicating continued growth, particularly with expanded competition formats.
