UEFA to Boycott FIFA Competitions Over World Cup Stake Plan

UEFA and its 55 member associations will boycott FIFA competitions over a proposal to sell part of the World Cup’s commercial operations.

European football’s governing body announced the decision after an emergency virtual meeting on Thursday, escalating its dispute with FIFA over the proposed creation of a $20 billion commercial subsidiary.

“No UEFA national teams will participate in any FIFA competition for so long as these proposals remain alive,” UEFA said in a statement.

UEFA said it would only reverse its position if FIFA abandoned the proposal completely and provided binding assurances that its governance and competitions would never be opened to private ownership.

“The World Cup is not for sale,” the statement added.

The English Football Association supported the decision, saying it stood alongside the other European associations and that they “oppose FIFA’s plans – the FIFA World Cup belongs to football and always will.”

The boycott could initially affect FIFA’s inaugural Under-15 World Cup in Azerbaijan in October. Brazil will also host the Women’s World Cup next year.

The decisions came after FIFA announced on Tuesday that it wanted to establish “FIFA Forward Enterprise,” a new subsidiary consolidating its commercial and event operations.

The company would handle commercial activities connected to the World Cup and other FIFA competitions, including broadcasting, sponsorship, ticketing, licensing and hospitality rights.

FIFA plans to sell non-controlling stakes of up to 20% to outside investors, potentially raising $4.2 billion based on an initial company valuation of $20 billion.

The governing body said it would retain sole control of the company and exclusive authority over tournament formats, regulations, the international match calendar and all sporting decisions.

Joshua Kushner’s Thrive Eternal is expected to lead the proposed investor group. FIFA is working with JPMorgan on the project, while former Liberty Media chief executive Greg Maffei has acted as a commercial adviser.

The plan still requires the support of a majority of the 211 member associations and approval from the FIFA Council.

FIFA President Gianni Infantino described the plan as an opportunity to generate over $10 billion for “football development worldwide.”

He later said the proposal was part of a consultation process and “not an obligation” after several confederations complained that FIFA had developed it without their involvement.

The Asian Football Confederation and Concacaf have joined UEFA in criticising FIFA’s consultation process.

The global players’ union FIFPRO has also warned that private ownership could permanently change the financial incentives behind FIFA competitions.

CAF has taken a more cautious position. The African governing body confirmed that it had received FIFA’s proposal and said that president Patrice Motsepe, who is an ally of Infantino, would convene an Executive Committee meeting next week to evaluate it.

Under the proposed funding structure, the Egyptian Football Association could receive up to $40 million if the plan is approved and it meets the conditions for accessing both funding programmes.

The EFA has not publicly declared its position on the proposal. CAF’s decision next week could prove influential as FIFA attempts to secure the majority required to proceed with the share sale.

The post UEFA to Boycott FIFA Competitions Over World Cup Stake Plan appeared first on KingFut.