Explainer-What does Infantino's proposal to sell stakes in FIFA subsidiary entail?

July 29 : FIFA plans to create a $20 billion subsidiary to run the World Cup and its other events, offering stakes of up to 20 per cent in FIFA Forward Enterprise to external investors, in a heavily criticised proposal by president Gianni Infantino that would provide member associations with a dramatic increase in funding.

WHAT IS BEING PROPOSED

FIFA wants to create FIFA Forward Enterprise (FFE) — a separate subsidiary that would bundle together all of FIFA's money-making activities (broadcast rights, sponsorship, ticketing, licensing, and event delivery) into one commercially-focused company.

KEY NUMBERS

FIFA is valuing the new commercial venture at around $20 billion based on JPMorgan's estimate.

FIFA would sell a minority stake (up to 20 per cent) to outside investors while keeping majority control. FIFA is working with bankers at JPMorgan to raise billions of dollars by bringing in external investors.

FINANCIAL BENEFITS FOR MEMBER ASSOCIATIONS

If approved, each of the 211 member associations could unlock up to $40 million for the 2027-30 cycle: up to $20 million in a one-off Fast-Forward funding and $20 million in FIFA Forward development funding for the 2027-30 cycle.

This would continue increasing to $22m for the 2031-34 cycle and $24m for 2035-38.

HOW THE DECISION WORKS

Infantino says the decision on the new FFE subsidiary will be a fully democratic one and approval requires: (1) support from a majority (over 50 per cent) of the 211 associations, and (2) FIFA Council sign-off.

INFANTINO'S ULTIMATUM

According to a letter seen by The Times from Infantino to member associations, if the plan is rejected, associations will receive the much smaller pre-planned increase from the Forward Programme, worth roughly $10m per