The FA says it was not consulted over FIFA’s proposed $20bn commercial company, which would seek billions from private investors.
The Football Association has gone public with its concerns over FIFA’s plans to bring in private investment for a new company that would take charge of the commercial and operational running of the World Cup and other major tournaments.
In a statement issued to media on Wednesday, the FA said it had been “completely unaware of this proposal” before details emerged publicly.
The FA also pointed out that it still hasn’t been given any real detail on how the proposal would actually work, or what strings might be attached.
“"Based on the limited information, we are deeply concerned about the lack of process and governance to get to this point, and the apparent substance and principles involved," the FA said.
The FA’s statement didn’t just question the process, but also the principles behind the plan. For now, they’re holding back on a full response until FIFA lays out exactly how this new structure would work.
FIFA revealed on Tuesday that it is looking into launching a new arm, FIFA Forward Enterprise or FFE, as it’s already being called.
This new subsidiary would bundle together FIFA’s commercial rights; everything from broadcasting and sponsorship to ticketing and licensing and pair them with the day-to-day running of its men’s, women’s and youth tournaments.
That portfolio would include the men’s and women’s World Cups and the Club World Cup.
FIFA is aiming to bring in as much as $4.2bn from outside investors before the year is out, valuing the new company at $20bn from the start. Any investors would only be able to buy minority stakes, with FIFA keeping the final say at board level.
FIFA has been quick to stress that it would still call the shots on football regulations, its competitions, the international calendar and all key sporting decisions.
Gianni Infantino has pitched the plan as a way to boost investment in football development worldwide.
If the proposal goes ahead, each of FIFA’s 211 member associations could tap into up to $20m in one-off funding for big projects like stadiums or national training centres.
Regular FIFA Forward funding would also jump from the current $8m to $20m per association for the 2027 to 2030 cycle.
Any launch would require support from a majority of FIFA’s member associations as well as the relevant approvals from the FIFA Council.
The promise of more development money hasn’t stopped many from reacting angrily to how the proposal was put together and revealed.
UEFA accused FIFA of crossing a line and argued that the “soul and governance of football are not assets to trade”.
“It is not FIFA’s to sell,” UEFA added.
Concacaf has also said it only became aware of the plan through media reporting and a subsequent FIFA release, despite its president Victor Montagliani serving as one of FIFA’s vice-presidents.
European associations are now expected to hold emergency talks to decide how to respond.
FIFA’s promise of extra funding is likely to appeal to many of its smaller member associations, especially those that depend heavily on its development programmes.
The FA has made it clear that England won’t just look at the financial upside. First, FIFA will have to explain how such a major proposal got this far without input from some of the most senior figures in the game.
