FIFA defends commercial subsidiary plan amid opposition

Written by

in

World football governing body says member associations will decide the future of FIFA Forward Enterprise through a democratic voting process.

FIFA has reaffirmed its commitment to a proposed commercial restructuring plan despite strong criticism from major football confederations, including UEFA, CONCACAF, and the Asian Football Confederation (AFC).

The world football governing body stated on Friday that consultations with its member associations would continue and that any final decision would depend on approval from a majority of its 211 members.

The proposal centers on the creation of FIFA Forward Enterprise (FFE), a commercial subsidiary that would oversee the commercial operations and event management of FIFA’s flagship tournaments, including the FIFA World Cup.

Under the plan, FIFA would retain full ownership and control of the subsidiary while offering minority stakes to private investors.

FIFA argued that some media reports had inaccurately portrayed the initiative, disrupting discussions among stakeholders.

The organization stressed that consultations would move forward to ensure all member associations can assess the proposal based on accurate information before casting their votes.

According to FIFA, the FFE model could significantly increase financial support for member associations. Funding distributed through the FIFA Forward Programme is expected to rise from the currently budgeted $8 million per association to $20 million during the 2027-2030 cycle. This figure would further increase to $22 million and $24 million in the following funding cycles.

The governing body believes the initiative could help raise total development spending beyond $10 billion over the next four years. These resources would be directed toward football infrastructure, coaching programs, national teams, competitions, grassroots development, and women’s football worldwide.

However, the proposal has triggered strong resistance from continental football organizations. UEFA has reportedly warned that its member associations could refuse to participate in FIFA competitions, including the World Cup, if the proposal remains under consideration. Other confederations have also raised concerns regarding governance and commercial control.

FIFA strongly rejected suggestions that the plan amounts to selling football assets. The organization emphasized that FFE is designed to allow member associations to benefit directly from football’s commercial growth while preserving FIFA’s governance structure and the integrity of the sport.

Industry analysts estimate that FIFA Forward Enterprise could be valued at around $20 billion, with minority stakes potentially generating more than $4 billion from external investors. Nevertheless, FIFA reiterated that the proposal remains subject to consultation and could be amended, rejected, or approved by member associations.

The governing body concluded by emphasizing that no changes would be implemented without majority support, underscoring that the final decision rests with its global membership.