FIFA plan to sell stake in $20 billion subsidiary draws sharp criticism from football confederations
Theo Al Jazeera
CONCACAF and AFC have sharply criticized FIFA's plan to sell up to 20% of a $20 billion subsidiary overseeing the World Cup, saying they were not consulted. The Asian and North American bodies, along with UEFA, France and England, expressed deep concern over the lack of process and governance.
FIFA's surprise plan to sell a stake in a $20 billion commercial subsidiary has drawn fierce criticism from regional football confederations, who said they were blindsided by the proposal to bring private investors into the sport.
The Confederation of North, Central America and Caribbean Association Football (CONCACAF) and the Asian Football Confederation (AFC) issued sharp rebukes on Wednesday, saying they learned of FIFA's share sale proposal through media reports rather than official channels.
FIFA announced Tuesday that it plans to create a $20 billion subsidiary to manage the World Cup and other events, and to offer up to 20% of shares to outside investors.
Under the plan, FIFA would establish Forward Enterprise to oversee commercial and event operations. FIFA, which will host a 48-team World Cup in the United States, Canada and Mexico this year — the largest in history — would retain control of the enterprise but offer a minority stake to private investors to raise up to $4.2 billion.
CONCACAF criticizes 'lack of process' from FIFA
“CONCACAF became aware of this matter through media reports and subsequently through a press release. We are deeply concerned about the lack of process,” CONCACAF said in a statement.
“We share the frustration of many in the region and in football to see that this level of detail has been designed and publicly announced before any discussions with the relevant governing bodies and stakeholders have taken place.”
“As leaders in football, we are custodians of the sport. The collective FIFA, confederations and every member association has a responsibility to always act in the best interests of the sport.”
“Every decision we make must be guided by good governance, robust process and long-term stewardship.”
Asian Football Confederation 'disappointed' by World Cup plan
The AFC said it recognized the importance of “exploring innovative approaches” but was disappointed that such a significant proposal was announced before the confederation had a chance to review the plan.
“Such initiatives should be grounded in principles of good governance, transparency and meaningful consultation,” the AFC declared.
“Decisions that could reshape the commercial and financial future of the sport require comprehensive prior engagement with confederations, member associations and other stakeholders before any proposal is brought to the appropriate decision-making body,” the AFC added.
“The AFC strongly believes that all stakeholders need to be provided with sufficient information and appropriate time to fully assess the proposal, including its governance, legal, commercial and strategic implications.”
While the AFC has 47 member associations, CONCACAF has 41. Combined with UEFA's 55 members, that totals 143 of the 211 member associations whose confederation has criticized or expressed concerns about the proposal.
FIFA President Gianni Infantino said: “Our job is to ensure the rest of football develops alongside it: FIFA exists to support sustainable, inclusive development in every corner of the world.”
France and England react to FIFA move
The backlash also spread to national governing bodies, with French Football Federation president Philippe Diallo saying his organization was also not informed.
“With its orientation — specifically, as I understand it, bringing investment funds into a commercial entity alongside FIFA — it clearly raises many questions,” he said on French radio station Inter.
“Especially when we, the member federations, are not involved and we lack the specific information needed to form an opinion on matters that are clearly fundamental to the future of football.”
The English Football Association (FA) said it was “completely unaware” of the proposal and had no details. “Based on the limited information, we are extremely concerned about the lack of process and governance to get to this point, as well as the nature and principles clearly involved,” the FA said in a statement.
“When the proposal is shared fully and transparently as FIFA has promised, we will make our views clear and comment further.”
UEFA may call emergency meeting
FIFA's move has triggered a backlash from UEFA, which accused the world football governing body of selling the “soul” of the sport.
UEFA is considering holding an emergency meeting with its 55 member associations this week to discuss FIFA's proposal, according to widespread reports. The meeting would be held online and seek an action plan for the European football body. A boycott of FIFA competitions is said to be on the agenda for potential responses.
European Union Sports Commissioner Glenn Micallef said he was concerned that FIFA's regulatory powers could become tied to the financial interests of private entities. “When the value of investments depends on FIFA's decisions, that raises profound questions of governance, independence and conflict of interest,” he wrote on social media platform X.
