FIFA and UEFA clash over US$4.2bn World Cup investment plan
FIFA and UEFA have escalated their dispute over the abandoned FIFA Forward Enterprise investment plan, with the row now centred on the proposed US$4.2bn valuation of FIFA commercial assets and the governance process behind the deal.
FIFA has accused UEFA of pursuing a “smear campaign” against its leadership as the two governing bodies intensify a legal and commercial dispute over the abandoned plan to sell a 20% stake in FIFA’s commercial and event operations.The proposed FIFA Forward Enterprise transaction would have seen investment firm Thrive Eternal acquire the stake for US$4.2bn, covering commercial interests linked to the men’s and women’s World Cups and other FIFA competitions.FIFA said in a US court filing: “While these applications are styled as legal pleadings with captions and docket numbers, they are little more than press releases in further support of UEFA’s smear campaign against FIFA and its leadership.”UEFA has challenged the proposed valuation and governance process, alleging that the US$4.2bn price was substantially below market value and was not established through an open competitive auction or independent valuation.The organisation has sought disclosure of documents in the US as it considers potential legal action in Switzerland involving FIFA president Gianni Infantino. UEFA has also requested material from Thrive, Joshua Kushner, JPMorgan, Bann Ventures and adviser Greg Maffei.FIFA is seeking to have the disclosure requests deferred or rejected, arguing that UEFA is seeking evidence for criminal proceedings that have not been initiated and that UEFA does not itself have authority to launch.The financial stakes behind the dispute extend beyond the valuation of the proposed transaction. FIFA had said the structure could substantially increase the money distributed to its 211 member associations during the 2027–30 cycle.Under the plan, FIFA said funding for each association could have risen from around £5.9m to £14.7m, potentially giving smaller football markets significantly more capital for infrastructure, development and domestic programmes.FIFA has argued that this distribution model also explains UEFA’s opposition, claiming stronger investment outside Europe could increase competition for players, audiences and commercial revenues currently concentrated in European football.The governing body said: “If soccer is strengthened in the developing world, global competition increases, which ultimately reduces UEFA’s market power and provides more competition for its flagship tournaments.”UEFA’s position raises a different commercial concern around whether FIFA was prepared to monetise a major portion of its future rights business at an appropriate valuation and with sufficient oversight.The proposed deal was abandoned following opposition from within international football, leaving unresolved questions over how FIFA could raise external capital in future and whether private investment will remain part of its strategy for funding member associations.Thrive’s Kushner has since expressed regret over participating in the process, saying the investor had underestimated the political dynamics surrounding global football governance.FIFA now has until September 28 to submit its full opposition in one of the US proceedings, with related actions also under way in New York and Colorado.