London, July 29 (IANS) The Football Association (FA) stated that it is “deeply concerned” about FIFA’s plan to sell off stakes in the World Cup to private investors.
FIFA has proposed creating a commercial subsidiary and selling minority stakes to private investors to fund a sharp increase in development funding for its 211 member associations via FIFA Forward Enterprise (FFE), a new FIFA-owned and controlled subsidiary consolidating FIFA’s commercial and event operations.
This plan draw fierce criticism from UEFA, with European associations expected to meet this week to discuss their response.
In response to FIFA’s proposal, the FA said, “We were completely unaware of this proposal and have no substantive details, including what the proposition actually is, and what conditions are attached.”
It added, “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. When the proposal is shared in the full and transparent way now promised by FIFA, we will make our views clear, and comment further.”
FIFA would seek to raise up to 4.2 billion U.S. dollars by selling minority, non-controlling stakes in the company, based on an initial equity valuation of 20 billion dollars.
The proposal requires the support of a majority of FIFA’s member associations and relevant approvals from the 37-member FIFA Council.
UEFA, European football’s governing body, which represents 55 member associations and organizes the continent’s leading club competitions, rejected the proposal outright.
“This crosses a line that football’s governing institutions should never cross,” it said. “The soul and governance of football are not assets to trade — especially with zero transparency as to who gains financially.”
FIFA said if the plan approved, football development in every corner of the world would benefit immediately from increased funding available to all 211 FIFA Member Associations (MAs): (i) An optional USD 20 million per MA in exceptional and immediate funding for special projects from the new FIFA Fast Forward Programme (FFFP), (ii) USD 20 million per MA in Forward funding for 2027-2030 (currently budgeted USD 8 million), (iii) USD 22 million per MA in Forward funding for 2031-2034, and (iv) USD 24 million per MA in Forward funding for 2035-2038.
–IANS
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