Cross posted from https://feddit.uk/post/53013925
Fifa’s president Gianni Infantino is planning to sell stakes in the World Cup to private investors under a scheme that could potentially earn him tens of millions of pounds, sources have told The Times.
The plan would lead to a company being formed to control Fifa’s top men’s and women’s competitions, the World Cup and Club World Cup. It could lead to pressure for both events to be further expanded or played more regularly than the present once every four years.
Two sources with knowledge of the discussions said that figures close to the Donald Trump administration have been consulted about the plan. Other sources said that Joshua Kushner, the brother of Trump’s son-in-law Jared, is seen as the main potential investor along with the bank JP Morgan.
Each of Fifa’s 211 member associations would also be given a stake, perhaps worth about $20million (£15million), which they could retain or sell to raise income for themselves. Sources claim Infantino, 56, would be lined up to run the company as a commissioner once his final presidential term expires — he is set to be re-elected unopposed until 2031.
Sources say figures close to the Trump administration have been consulted about the plan, which could mean Infantino, left, becomes the “commissioner” of a new company
Fifa did not respond when asked to comment.
Fifa is a not-for-profit organisation effectively owned by the 211 associations that make up its membership. As an association of associations, it enjoys a tax-free status in Switzerland where it is based. Its revenue for the 2022-26 cycle is expected to be $15billion, the majority of which comes from TV rights, sponsorship, ticket and hospitality sales from the men’s World Cup this summer.
It means the tournament would be hugely attractive to private investors with the potential for growth by expanding it or holding it more frequently. Infantino said earlier this month that a South American proposal to expand the World Cup to 64 teams would “definitely” be looked at. The number of competing nations was increased from 32 to 48 for this year’s finals in North America.
Other senior figures in football, however, regard the plan as being a potential “nuclear bomb” for the game.
Under the blueprint, which has been discussed among senior Fifa figures and potential investors who have been obliged to sign non-disclosure agreements, Fifa would own a majority stake in the company, private investors would buy 20-30 per cent initially — for multibillions of dollars — and Fifa’s 211 members would each have a small stake as well, totalling about 20 per cent.
Potential investors have talked internally about “buying Fifa”, say sources.
The plan to give individual shares to the 211 members is seen as a way of securing its approval by Fifa’s Congress and Council — for smaller associations the shares would be worth several times their annual revenue — even if there is strong opposition from some areas of football.
Joshua Kushner, the brother of Trump’s son-in-law Jared, has been cited as the main potential investor
Sources said some non-binding agreements setting out the terms of the arrangement have already been signed.
Infantino’s role could be to become the “commissioner” or chief executive of the new company, once his last presidential term expires in 2031. The salary for that position has not been confirmed but figures close to the plan are said to see it on a par with the NFL, whose chief commissioner earns about $64million a year. That is ten times as much as Infantino’s earnings for the most recent financial year in salary and bonuses.
Fifa would retain power over international football including, significantly, the international match calendar after 2030, but its decisions would have huge influence over the fortunes of the new company.
For example, if Fifa expanded the World Cup from 48 to 64 teams, or held the competition more regularly than every four years, that would inevitably boost the financial value of the company as it would mean vastly increased revenues.
It is not the first time that Infantino has tried to involve private investors and political allies in investing in Fifa’s competitions. In 2018, a $25billon deal with the Japanese bank Softbank, backed by Saudi Arabia’s sovereign wealth fund, for a new Club World Cup and global Nations League failed to achieve the necessary support. Infantino had reportedly eyed the chairmanship of the organisation that would have been set up to administer that arrangement.
The New York Times reported in June that Fifa officials previously discussed with the former US treasury secretary Steven Mnuchin an investment in a streaming service called Fifa +, though nothing materialised and the venture was put on hold.
This summer’s World Cup, won by Spain, was the first to include 48 teams
Infantino has had links with Jared Kushner dating back to before 2018 when the financier was heavily involved in the United States’ successful bid for the 2026 World Cup, but sources in the US said it was seen as being politically more sensitive for his brother Joshua to be the lead potential investor.
If the new venture does go ahead, there are concerns that private investors would put pressure on the men’s World Cup to be staged in countries where commercial success can be maximised. There are also worries that there could be similar pressure for the Club World Cup to be hosted in the Gulf in order to boost its revenues. This would mean interrupting the European domestic leagues, as with the 2022 Qatar World Cup, because it is too hot to hold the tournament during a Gulf summer.
One senior football figure described the plan as “potentially much worse than the European Super League” as it would impact all parts of football across the world.
Continue reading here - https://www.thetimes.com/sport/football/article/world-cup-for-sale-gianni-infantino-fifa-wdvtsqfc6
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