FIFA announced plans to establish a new company that will manage the commercial rights of the World Cup and Club World Cup, football's biggest tournaments. The project, named 'FIFA Forward Enterprise' (FFE), will be discussed with the 211 member federations and the FIFA Council.
The company, which will be wholly owned and controlled by FIFA, aims to raise up to $4.2 billion in initial capital by selling minority shares to long-term investors. FIFA stressed that investors will only be minority shareholders and will have no control rights in management.
The financial assessment of the plan was carried out by US-based investment bank J.P. Morgan. As a result of the bank's standard valuation analysis, the equity value of the planned FFE was determined to be $20 billion.
Approval deadline and offer for federations
FIFA President Gianni Infantino's proposal gave the 211 member federations until September 19 to approve the plan. According to a report by British newspaper The Times, if the offer is accepted, each federation will receive up to $40 million in support. If the plan is rejected, federations will be paid $10 million.
Infantino's initiative drew sharp reactions from the Union of European Football Associations (UEFA), the Confederation of North, Central America and Caribbean Association Football (CONCACAF), and major leagues such as the English Premier League, Spain's LaLiga and Italy's Serie A.