UEFA is set to initiate an independent assessment of FIFA’s plans to sell future World Cup revenues following concerns that Gianni Infantino may have agreed to a deal with a private equity firm at an undervalued rate.
The European football governing body remains unsatisfied with the written apology Infantino issued to FIFA’s 211 member associations after emergency discussions in Morocco. UEFA is determined to advocate for his dismissal, employing strategies that include a thorough examination of a proposal that Infantino has since acknowledged as “a mistake.”
The now-defunct FIFA Forward Enterprise initiative aimed to sell a 21% stake to Thrive Capital for $4.2 billion. Thrive Capital is directed by Joshua Kushner, the brother of Jared Kushner, who is a senior advisor to former President Donald Trump.
UEFA played a pivotal role in prompting FIFA’s reversal, which occurred after all 55 member associations threatened to boycott the World Cup and other events. UEFA is now focused on understanding how FIFA arrived at a $20 billion valuation for its commercial assets.
The organization has engaged with various market analysts to gather insights for an independent valuation, with a formal study expected to take place once the situation surrounding Infantino stabilizes.
Last week, a presentation regarding the FIFA sale was distributed, but it lacked details on the valuation process and did not provide evidence of a competitive bidding process. An informed source stated, “We need to determine if they were offering the World Cup at a significantly reduced price. How did they arrive at the $20 billion figure? Was the evaluation process rigorous?”
FIFA generated $15 billion in revenue during the four-year cycle that concluded with this summer’s World Cup. Analysts believe that a $20 billion valuation is low, especially since the proposal did not include measures to prevent the expansion of tournaments or the introduction of new ones.
“The World Cup is the sole truly global mass entertainment event, so an increase of $5 billion over current revenues seems inadequate,” the source added. “This appears to be a lowball proposal. The potential for financial growth through expansion—such as more teams, additional World Cups, and more Club World Cups—has not been accounted for.”
UEFA has also demanded a comprehensive review of FIFA’s governance and has hinted at possible legal actions. Despite internal criticism of the sell-off plan from senior officials, including Secretary General Mattias Grafström, Chief Operating Officer Kevin Lamour, and Arsène Wenger, head of football development, FIFA is striving to present a united front.
Infantino was seen alongside Grafström at a Women’s Africa Cup of Nations match in Morocco after the crisis talks in Rabat, followed by a FIFA statement affirming the president’s “full support” from the organization.
This show of apparent backing suggests that dissent within FIFA is minimal, indicating that any push for reform will need to originate from external sources.
FIFA has been contacted for further comments.
