Fifa gives associations 53 days to sign up to controversial World Cup plans

The Football Association of Ireland (FAI) and the rest of Fifa’s member nations have until September 19th to decide whether to sign up to a proposal to sell a stake in the World Cup and other Fifa competitions to private equity. Following a report in the UK Times, Fifa have confirmed plans to create a subsidiary company, Fifa Forward Enterprise, which would take control of the men’s and women’s World Cups along with other Fifa competitions. Fifa intends to sell a minority stake of up to 20 per cent of this new company to outside investors. Uefa has been heavily critical of the proposal, saying on Tuesday that it “crosses a line” and following that up on Wednesday by accusing Fifa of using football “to enrich themselves and their friends”.“Today we have learned of Fifa’s deadline to associations to support their proposals or have the one-off pay out offer withdrawn,” Uefa said in a statement. “This says everything you need to know about this plan.READ MORE“But having held discussions with many stakeholders across the game, Uefa knows there is significant and growing opposition to Fifa’s scheme. Fifa cannot continue to use our sport to enrich themselves and their friends. We can grow the game correctly.”Fifa president Gianni Infantino has explained the proposals in a five-page letter to member associations, which has been seen by The Irish Times. Within the letter, Infantino gives member associations until September 19th to agree to the new plan, painting its benefits in stark financial terms. Infantino writes that the equity value of the new company has been forecast at $20 billion by JPMorgan Chase, and that its adoption would lead to an increase of funding to $20 million per member association from January 1st next year. Infantino also believes this windfall would increase by $2 million in each World Cup cycle. In addition, Infantino is promising a bonus of $20 million as a “singular and unique funding opportunity only for those member associations who wish to participate”. Infantino says this decision must be made by 19th September “so we can plan ahead and with funds to be available immediately as of January 1st, 2027.” Infantino says this money will be raised by selling a minority stake of the new subsidiary company. JPMorgan will lead the search for international investors, and the initial outlay as described above will be underwritten by Thrive Capital, an investment group headed by Joshua Kushner, brother of Donald Trump’s son-in-law Jared. The Fifa president says the total package on offer is $10 billion, and, should it be rejected, member associations will share an existing funding pot that is almost 75 per cent smaller.[ Is the World Cup for sale? Here’s what Fifa’s plans mean and what happens nextOpens in new window ]“Should you wish to proceed, this $10 billion package will be available as of January 1st, 2027, ushering in the next phase of our journey together,” writes Infantino. “In exchange, all that is required is your continued trust – everything else remains the same. “Should you wish to retain the status quo and reject this proposal, we still have our planned expansion of the Forward programme of $2.7 billion as previously presented.” The proposals will be adopted if they achieve a simple majority in a vote among Fifa’s 211 member associations and are subsequently approved by the Fifa Council. The FAI has yet to comment on whether they intend to back Infantino’s proposals.Meanwhile, the chairs of two separate EU committees are issuing a request to Fifa to appear before a joint hearing of the European Parliament “at the soonest possible date.”Irish MEP Barry Andrews, chair of the Committee of International Development, and Nela Riehl, chair of the Committee on Culture and Education, are leading the call for Fifa to appear before them. They must first get approval from a majority of their respective committees before issuing an invite to Fifa.“Football’s social model has been eroded gradually over the last two decades and is now based on hyper capitalism,” Barry Andrews told the Irish Times. “The sugar rush of $20 million for each football association will quickly be dwarfed by the dividends paid out to investors. “The ultimate losers will be fans, small clubs and the millions of amateurs that love the game. The involvement of the Trump family adds insult to injury. Investment vehicles will surely look to carve out the more profitable elements of football and offload the less profitable - what this could mean for women’s football, for example, is concerning.”