FIFA presents 211 federations with two options: support the project or lose $30 million

The International Federation of Association Football (FIFA) has entered a decisive phase in its project to restructure its commercial sources of income, after granting the 211 member national federations a time limit of 53 days to determine their position on a new investment plan aimed at introducing an external financial partner into one of the organization’s commercial entities.

The move comes as part of a strategy led by FIFA President Gianni Infantino, according to the Financial Times, to maximize the economic value of the International Federation’s brand, benefiting from the significant growth in World Cup revenues and the high investment attractiveness of the tournaments organized by the Federation.

FIFA is considering selling a minority stake in a new commercial entity with an estimated value of about $20 billion, in a deal that would represent a major change in the way commercial rights associated with the largest football tournament in the world are managed and invested.

Circulating estimates indicate that the proposed share may reach 21% of the commercial rights to the World Cup, within an agreement with a private investment alliance, which opens the door to a new model in financing global football through the participation of private capital in assets that were completely managed by sports bodies.

In an attempt to obtain the support of the national federations for the project, FIFA is preparing to grant financial increases to the federations that support its plan, as financial flows could reach $40 million in installments, compared to the traditional support of only $10 million for federations that do not receive the exceptional increase.

This step means that there is a financial difference of up to 30 million dollars between the option of supporting the project and relying on basic allocations, which makes the decision more influential for small and developing federations that rely heavily on the financing programs provided by the International Federation.

On the other hand, the plan raised concerns within European football circles, as the European Football Association (UEFA) warned of the repercussions of the entry of external investors into commercial assets related to the World Cup, stressing that the future of the game must be subject to a broad discussion that includes federations, clubs, leagues, players, fans and governments.

The new step places international football in front of a broad economic debate about the future of ownership of commercial rights, between a trend that seeks to maximize the financial value of the game by attracting private investments, and fears of the impact of this on the independence of sports institutions and the way revenues are distributed in the future.