FIFA is seeking to raise $4.2 billion by selling a minority stake in FIFA Forward Enterprises, which would manage the business side of the World Cup, valuing the subsidiary at approximately $20 billion. However, this plan has faced strong opposition from UEFA and Concacaf, who collectively represent 96 of FIFA's 211 member associations.
UEFA has threatened to boycott FIFA competitions if the proposal proceeds, emphasizing that the World Cup should not be treated as an investment product. FIFA has defended its proposal, stating it will continue with a vote among its member associations despite the backlash.
The organization has also faced internal dissent, with Carlos Cordeiro resigning in protest, calling the deal detrimental to FIFA's member associations and the future of football. The controversy underscores the growing unease regarding private equity's role in sports, as stakeholders express concerns that financial motivations could compromise the integrity of the game.
While private equity has shown interest in sports due to their stable cash flows, the backlash against FIFA's plan indicates that there are limits to how much influence these investors can exert in the soccer world