FIFA World Cup stake sale plan sparks backlash over $20 billion valuation

FIFA has proposed a FIFA World Cup stake sale that would value a new tournament subsidiary at $20 billion, according to a statement from soccer’s global governing body. For everyday investors, the fight is a clear look at how private capital is pushing deeper into sports, even into events that fans often see as public cultural assets rather than investment products.

FIFA said Tuesday it plans to create FIFA Forward Enterprises, a separate business that would run the World Cup’s commercial operations. The organization said the unit could raise as much as $4.2 billion from outside investors, who would be able to buy stakes of up to 20%.

A subsidiary is a separate company controlled by a parent organization. In this case, FIFA said it would keep ultimate control of FIFA Forward Enterprises, even if private investors take minority stakes.

What is FIFA's World Cup stake sale?

The plan, led by FIFA President Gianni Infantino, would shift the World Cup’s commercial side into a focused business vehicle called FIFA Forward Enterprises. FIFA said the structure is meant to support the tournament’s next phase of growth after what it described as the largest and most commercially successful World Cup on record.

In FIFA’s statement, Infantino said parts of soccer have converted the game’s popularity into significant commercial value and that FIFA wants that success to continue because it supports the broader sport. He said the next stage requires a structure where the commercial side operates as a dedicated business and shares value more widely around the world.

The money involved is the headline number. Raising up to $4.2 billion for as much as 20% implies a $20 billion valuation for the new entity, according to FIFA’s statement. That valuation is now at the center of a fight over who should profit from the World Cup and who should have influence over it.

Why UEFA and other critics object

UEFA, European soccer’s governing body, criticized the proposal and said FIFA had “crossed a line.” In a statement, UEFA said the “soul and governance of football are not assets to trade,” adding that there was no transparency over who would benefit financially.

UEFA also said the World Cup is not FIFA’s to sell. The criticism reflects a broader concern among opponents: if private investors own part of the business tied to the sport’s top international competition, they could gain too much influence over how the tournament is run.

Andy Burnham, the U.K.’s new prime minister, also criticized the idea, writing on X that the World Cup is “not a product.”

Who is backing the deal?

FIFA said J.P. Morgan has been hired to manage the deal. The proposal is also backed by Thrive Capital, the firm led by Joshua Kushner. His brother, Jared Kushner, is President Donald Trump’s son-in-law.

Infantino’s relationship with Trump has drawn scrutiny during the World Cup, according to CNBC. The deal’s connection to Thrive Capital has added another political angle to a proposal that was already controversial inside soccer.

What happens next?

The proposal needs approval from a majority of FIFA’s 211 members and from its 37-member council. CNBC reported that UEFA and European members are considering a World Cup boycott, though Europe represents a smaller share of the total voting membership.

FIFA’s not-for-profit status means money is redistributed to support soccer infrastructure among member nations. Infantino plans to offer members access to as much as $20 million in one-time capital, which could help him build support for the proposal.

Kieran Maguire, a football finance professor, told CNBC last week that FIFA under Infantino gives substantial funding to smaller countries, which then vote in FIFA presidential elections. That voting structure makes the approval fight about money, governance and power at the same time.

This story draws on original reporting from CNBC Markets.