FIFA Withdraws 20% Equity Financing of $20 Billion Subsidiary Amid UEFA, AFC Review Demands
FIFA has withdrawn a plan announced in late July to sell about 20% of a new subsidiary valued at $20 billion that would run the World Cup and other international tournaments, a move that drew fierce opposition from European and other confederations. UEFA, the Asian Football Confederation and CONCACAF have demanded an independent third-party review of FIFA's decision-making. The equity sale was expected to raise over $4 billion and expand development funds to above $10 billion. The withdrawal followed threats by UEFA members to exit all FIFA tournaments.
FIFA has withdrawn a financing plan unveiled in late July to establish a subsidiary fully responsible for operating the World Cup and other international tournaments, and to sell about 20% of its equity to private investors. FIFA estimated the subsidiary to be valued at $20 billion, with the equity sale expected to raise over $4 billion. The plan also proposed expanding the global football development fund to above $10 billion after bringing in external capital, for use in stadium renovation, youth development and coach training. After the plan was published, UEFA was the first to respond, stating that its members would withdraw entirely from all FIFA tournaments if the equity sale plan was not revoked. The Confederation of North, Central America and Caribbean Association Football (CONCACAF) and the Asian Football Confederation (AFC) subsequently joined the opposing camp. Under pressure from all sides, FIFA withdrew the financing plan.
On August 10, UEFA, together with AFC and CONCACAF, issued a statement strongly criticizing FIFA for advancing a major commercial proposal without adequate multi-party consultation, and formally demanded a comprehensive, independent third-party review of the World Cup equity financing controversy. FIFA operates a "one country, one vote" voting system, under which football-developed countries such as Germany, England and Spain hold equal voting power with small football associations with sparse populations. FIFA President Gianni Infantino's governing base relies mainly on the support of smaller football associations, whose annual budgets depend largely on FIFA's special allocations. FIFA has in recent years continued to expand its tournament portfolio, including the enlargement of the Club World Cup and the World Cup, while more broadcasters and sponsors have entered FIFA events. These changes have created conflicts with the distribution of interests in the European professional football market. Although the financing plan has been withdrawn, questions over FIFA's decision-making procedures and demands for review continue.