FIFA $20 billion plan has drawn global attention as president Gianni Infantino defended the organisation’s proposal to create a new commercial subsidiary that could attract external investment for football’s biggest competitions. FIFA recently announced that it will set up a subsidiary valued at about $20 billion, with up to 20 per cent of it potentially being sold to outside investors.
The company would manage commercial activities and other big events related to the FIFA World Cup. There has been criticism from a number of football authorities as the proposal came as a surprise. There were some worries about these issues from some governing bodies: The effect of outside investment, and the process of decision making on the process. In reply, Infantino noted that the solution is part of a democratic consultation process, and that it is not an obligation for FIFA member associations.
The president said in a video from FIFA that the project was an opportunity not a duty for stakeholders. He said he would be speaking with member associations and football authorities and that the following steps would be being considered. The subsidiary is expected to seek out new commercial opportunities and, potentially, the hone in on new ways to generate more income for FIFA through its global competitions. FIFA feels the framework might be capable of boosting the financial base of worldwide soccer.
It has, however, stirred up discussion about how it will be governed, how transparent it will be and the involvement of external investors in the commercial future of football. The coming consultation period will be closely monitored by national associations and other stakeholders. However, Infantino has responded that FIFA’s commitment is to keep in touch with the football community, while continuing negotiations. The final form of the subsidiary and the extent of investors’ participation will depend on the outcome of the consultation process.Â
