UEFA World Cup boycott threat escalates fight over FIFA investment plan

The UEFA World Cup boycott threat puts one of soccer’s most valuable events at the center of a fight over who should profit from the sport. UEFA said Thursday that its national teams will refuse to play in FIFA competitions, including the World Cup, if FIFA continues with a plan to sell part of a new commercial business to private investors.

UEFA, the European governing body for soccer, represents 55 of FIFA’s 211 member associations. After an emergency meeting, UEFA said FIFA leadership had advanced the proposal without first getting input from the national associations that make up the global organization.

The dispute is also a sports business story. FIFA’s commercial rights, event operations and global tournaments are the assets that generate the money behind the game. Bringing in outside investors would give private capital a direct financial interest in a business tied to competitions watched by fans around the world.

Why is UEFA threatening a World Cup boycott?

UEFA objects to FIFA’s proposal to create FIFA Forward Enterprise, or FFE, and sell a 20% stake in that entity. FIFA said Tuesday that FFE would take over all commercial and event operations and could raise as much as $4.2 billion from third-party investors.

Private equity generally refers to investment firms that put money into businesses outside the public stock market with the goal of earning returns. UEFA’s argument is that soccer governance and competitions should not be shaped by investors seeking profit.

In its statement, UEFA called the proposal “irresponsible and indefensible.” The organization said “football’s future cannot be dictated” by financial stakeholders.

UEFA said its members would stay out of FIFA events as long as the proposal remains active, unless FIFA fully drops it and gives binding assurances that it will not open its governance or competitions to private ownership in the future.

What is FIFA proposing?

FIFA said its plan would put commercial and event operations into FIFA Forward Enterprise and sell a minority stake to outside investors. FIFA President Gianni Infantino has supported the plan, according to FIFA’s announcement.

FIFA also said Thrive Eternal is expected to lead the proposed investor group for FFE. Thrive Eternal is a private equity firm founded by Joshua Kushner, the brother of Jared Kushner, who is President Donald Trump’s son-in-law.

The proposed deal has brought new attention to Infantino’s relationship with Trump, according to CNBC. FIFA has not said that participation in the plan would be mandatory for its members.

Infantino addressed the backlash in a video Wednesday, saying the “beautiful game, and sport they watch and love will not change.” He also described the proposal as “simply a choice for our members” rather than an obligation.

Who else has raised concerns?

Concacaf, the governing body for soccer in North America, also criticized the way FIFA has handled the proposal. In a Wednesday statement, Concacaf said it shared disappointment that such a detailed plan had been developed and released publicly before discussions with the relevant governance bodies and stakeholders.

Concacaf did not announce a boycott in the statement. Its response still broadens the pushback beyond Europe and signals that FIFA faces questions from more than one regional governing body.

The next step depends on whether FIFA presses ahead, revises the plan or abandons it. For now, UEFA’s position raises the stakes: a commercial investment proposal has become a direct challenge to the structure of international soccer.

This story draws on original reporting from CNBC.