Explainer-Soccer-What does Infantino's proposal to sell stakes in FIFA subsidiary entail?

July 29 (Reuters) - FIFA plans to create a $20 billion subsidiary to run the World Cup and its other events, offering stakes of up to 20% in FIFA Forward Enterprise to external investors, in a heavily criticised proposal by president Gianni Infantino that would provide member associations with a dramatic increase in funding.

WHAT IS BEING PROPOSED

FIFA wants to create FIFA Forward Enterprise (FFE) — a separate subsidiary that would bundle together all of FIFA's money-making activities (broadcast rights, sponsorship, ticketing, licensing, and event delivery) into one commercially-focused company.

KEY NUMBERS

FIFA is valuing the new commercial venture at around $20 billion based on JPMorgan's estimate.

FIFA would sell a minority stake (up to 20%) to outside investors while keeping majority control. FIFA is working with bankers at JPMorgan to raise billions of dollars by bringing in external investors.

FINANCIAL BENEFITS FOR MEMBER ASSOCIATIONS

If approved, each of the 211 member associations could unlock up to $40 million for the 2027-30 cycle: up to $20 million in a one-off Fast-Forward funding and $20 million in FIFA Forward development funding for the 2027-30 cycle.

This would continue increasing to $22m for the 2031-34 cycle and $24m for 2035-38.

HOW THE DECISION WORKS

Infantino says the decision on the new FFE subsidiary will be a fully democratic one and approval requires: (1) support from a majority (over 50%) of the 211 associations, and (2) FIFA Council sign-off.

INFANTINO'S ULTIMATUM

According to a letter seen by The Times from Infantino to member associations, if the plan is rejected, associations will receive the much smaller pre-planned increase from the Forward Programme, worth roughly $10m per association for the next cycle, as part of a $2.7bn total package rather than $10bn.

"Should you wish to proceed, this USD 10bn package will become available as of 1 January 2027, ushering in the next phase of our journey together," Infantino wrote in the letter.

"In exchange, all that is required is your continued trust — everything else remains the same."

The one-off Fast-Forward funding will only be available to those member associations who decide to participate and make their decision by September 19, 2026.

NO CHANGE TO FIFA GOVERNANCE MODEL

Infantino says that the rights and obligations of member associations and the retention of FIFA's existing governance structure will remain unchanged.

FIFA would retain a perpetual majority ownership of FFE, and would continue to have exclusive control over all competition-related matters.

REACTION AND CRITICISM

FIFA announced the proposal on Tuesday, following media reports detailing the plan, leading to criticism from governing bodies who had not been consulted or made aware of Infantino's idea.

UEFA said the proposal "crosses a line that football's governing institutions should never cross," and "the soul and governance of football are not assets to trade — especially with zero transparency as to who gains financially. None of us are the owners of football. It is not FIFA's to sell."

After learning of Infantino's letter on Wednesday, UEFA released another statement.

"Today we have learned of FIFA's deadline to associations to support their proposals or have the one-off payout offer withdrawn," UEFA said.

"This says everything you need to know about this plan."

CONCACAF said they "share the disappointment of many within our region and the game that this level of detail has been designed and shared publicly before any discussion with the relevant governance bodies and stakeholders has taken place".

The English FA said they were "completely unaware of this proposal and have no substantive details, including what the proposition actually is, and what conditions are attached".

Infantino's predecessor Sepp Blatter told Reuters that "football belongs to no individual and to no institution. It belongs to the people".

"If FIFA were transferred into a profit-oriented corporate structure, it would lose its soul," he added, noting he would never have considered such a move while he was in charge.

(Reporting by Trevor Stynes, additional reporting by Rohith Nair, editing by Pritha Sarkar)