Regional confederations left blindsided by FIFA’s $20 billion investment plan
FIFA’s proposal to sell stakes in a $20 billion commercial subsidiary has drawn strong criticism from football’s regional confederations, which said they were blindsided by the world governing body’s plan to bring private investors into the sport. The Confederations of North America, Central America and the Caribbean (CONCACAF) and Asia (AFC) delivered stinging rebukes on Wednesday, saying they learned of FIFA’s equity sale proposal through media reports rather than official channels. FIFA said on Tuesday that it plans to create a $20 billion subsidiary to run the World Cup and its other events, offering stakes of up to 20 percent in it to external investors. Under the plan, FIFA would establish FIFA Forward Enterprise to oversee commercial and event operations. FIFA, which this year held a 48-team World Cup across the US, Canada and Mexico that was the biggest in the tournament’s history, would retain control of the enterprise, but offer minority stakes to private investors to raise up to $4.2 billion. According to a source at JPMorgan, which is working with FIFA to bring in external investors, the bank has been fielding a lot of incoming calls and that “demand is off the charts” even before an official outreach began. According to a proposal FIFA sent around to member associations, FIFA plans to begin formally soliciting investors through its Fast Forward Program in August, with initial expressions of interest due in September and binding commitments expected in October as it targets completing the fundraising by the end of that month. ‘Lack of due process’ “CONCACAF was only made aware of this matter through media reports and, subsequently, via a media release.