FIFA Announces New Company and Equity Sale Days After World Cup; Indirect Trump Connection Emerges
Zurich (Switzerland): Just nine days after successfully staging the 23rd FIFA World Cup across the United States, Canada and Mexico, the Fédération Internationale de Football Association (FIFA) has taken a major and surprising decision. The move also has an indirect connection to US President Donald Trump.
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FIFA has announced that it will establish a new company and sell a 21 per cent stake in it to private investors.
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What will FIFA’s new company be called?
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The new company will be known as FIFA Forward Enterprises (FFE). It will be responsible for organising the FIFA World Cup and the FIFA Club World Cup every four years, while also handling FIFA’s commercial operations.
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How much equity stake will FIFA sell?
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FIFA has 211 member associations from across the world. Under the current format, 48 teams compete in the FIFA World Cup, while the number of participating teams could rise to 64 for the 2030 edition.
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FIFA plans to sell a 21 per cent equity stake in the new company, while retaining the remaining 79 per cent. Even after the formation of the new entity, FIFA will continue to remain the global governing body of football.
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How much money does FIFA want to raise?
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FIFA intends to triple its spending on football development programmes across its 211 member nations. To achieve this goal, along with funding several other initiatives, it plans to sell the 21 per cent equity stake.
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By selling the stake to private investors, FIFA aims to raise around $4.2 billion (approximately ₹402 billion).
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FIFA plans to channel the fresh investment into football development projects across its member nations. JPMorgan is the principal advisory firm for the new project. The initiative has been spearheaded by FIFA President Gianni Infantino. The prospective investor group backing the plan is being led by Joshua Kushner, the brother of Jared Kushner, who is the son-in-law of US President Donald Trump.
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