Fifa investment plan branded ‘deeply troubling’ as confederations say they were kept in the dark

Fifa’s $20bn plan to sell stakes in a new commercial subsidiary has triggered an angry reaction from major regional confederations, who say they first learned of the proposal through the media rather than from world football’s governing body.

On Tuesday, Fifa confirmed it wants to create a new vehicle, Fifa Forward Enterprise, to run commercial and event operations for the World Cup and other Fifa competitions. The governing body intends to retain overall control but is prepared to sell up to 20% of the subsidiary to private investors, potentially raising as much as $4.2bn.

The move – which would effectively open a slice of the World Cup’s future revenues to private equity – has been met with fierce opposition from across the game’s power base.

Concacaf and AFC condemn lack of consultation

CONCACAF and the Asian Football Confederation (AFC) issued sharply worded statements on Wednesday, accusing Fifa of bypassing key governance structures.

“CONCACAF was only made aware of this matter through media reports and, subsequently, via a media release. We are deeply concerned by the lack of due process,” the confederation said.

“We share the disappointment of many within our region and the game that this level of detail has been designed and shared publicly before any discussion with the relevant governance bodies and stakeholders has taken place.

“As leaders within football, we are the custodians of the game. Collectively, Fifa, the confederations and every member association have a responsibility to always act in the best interests of the sport.

“Every decision we make must be guided by good governance, robust processes and long-term stewardship.”

The AFC struck a similar tone, saying that while it acknowledged the need to “explore innovative approaches”, it was unhappy with how the proposal had been unveiled.

“Such initiatives should be founded upon the principles of good governance, transparency and meaningful consultation,” it said.

“Decisions that may reshape the commercial and financial future of the game require comprehensive prior engagement with confederations, member associations and other relevant stakeholders before any proposal is made to the appropriate decision-making body(ies),” the AFC added.

Between them, the AFC and CONCACAF represent 88 national associations. Together with Uefa’s 55 members, that means confederations representing 143 of Fifa’s 211 member associations have either openly criticised the plan or expressed serious reservations.

Fifa declined to comment when contacted.

Uefa accuses Fifa of ‘using our sport to enrich themselves’

Fifa’s strategy has provoked an especially strong backlash from Uefa, which has accused the organisation of putting the “soul” of football up for sale.

According to The Times, Fifa president Gianni Infantino wrote to all member associations with a financial offer linked to the plan. The report said each association was told it would receive $40m if it backed the proposal by 19 September, with a total package worth $10bn available from 1 January next year.

If the project is rejected, the amount on offer would be cut to $2.7bn, the newspaper said.

Infantino is reported to have told associations the plan would only go ahead if it gained the support of more than half of Fifa’s members by the deadline and if the Fifa Council approved the required changes.

Uefa responded in a statement: “Today we have learned of Fifa’s deadline to associations to support their proposals or have the one-off payout offer withdrawn.

“This says everything you need to know about this plan.

“Fifa cannot continue to use our sport to enrich themselves and their friends. We can grow the game correctly. It’s time to prioritise associations, clubs, leagues, players and fans.”

A Uefa official said the idea of calling an emergency meeting to discuss Fifa’s initiative was raised on Tuesday, while another source indicated virtual discussions were under way on Wednesday.

Former Fifa president Blatter attacks ‘investment product’ vision

Former Fifa president Sepp Blatter, who oversaw the World Cup for 17 years before leaving office in 2015, argued that football’s showpiece tournament must not be turned into a vehicle for private equity returns.

“The Fifa World Cup is not a commercial asset that belongs to a handful of executives. It is part of the cultural heritage of world football,” Blatter said.

“Fifa is the guardian of the World Cup, not its owner.”

Fifa staged an expanded 48-team World Cup earlier this year in the United States, Canada and Mexico – the largest edition in the competition’s history and a key driver of its commercial growth.

National associations voice anger over being ‘uninformed’

The discontent has spread to individual national federations, several of whom say they were not consulted or properly briefed.

French Football Federation president Philippe Diallo said his organisation had also been left out of the loop.

“Given its direction – specifically, as I understand, bringing investment funds into a commercial entity alongside Fifa – it obviously raises many questions,” he told French radio station France Inter.

England’s Football Association said it was “completely unaware” of the detailed proposal and still lacked substantive information.

“Based on the limited information, we are deeply concerned about the lack of process and governance to get to this point, and the apparent substance and principles involved,” the FA said.

Some support for Infantino’s vision

While the dominant reaction has been critical, there has been at least some backing for Fifa’s approach from within Europe.

Czech Football Association president David Trunda said he could see advantages in the proposal, even as he called for greater clarity.

“Of course, we need more details, but my personal point of view is that I can see the positive impact of Fifa’s intentions,” Trunda told Sky News.

“I was elected a little more than a year ago. For me, personally, all the projects I have experienced in co-operation with Fifa have been very positive for the development of European football.”

With a hard deadline reportedly set for associations to sign up, and three of the six confederations either attacking the plan or questioning its process, the future of Fifa’s proposed $20bn enterprise is now at the centre of an escalating global power struggle over the direction of the world game.