According to reports from various US media outlets, FIFA, the world football governing body, is preparing to allow external investors into its commercial operations. The plan involves establishing a new entity named “Fifa Forward Enterprise,” which would handle the bundling and marketing of media rights, broadcasting rights, and sponsorship agreements.
Private players would reportedly be able to invest in this marketing company, initially taking only a minority stake. The objective is to raise approximately four billion US dollars from investors, based on a preliminary valuation of the enterprise set at 20 billion US dollars. A US investment firm has been named among the potential financial backers.
This move would mark the first time in the governing body’s history that external investors are being involved in its commercial assets. The impetus for this shift is the sustained high global demand for sports rights.
Under the currently discussed plans, investors would not receive regular dividends or distributions. Instead, their return would stem from any potential appreciation in the company’s value. Profits would likely only be realized through a future sale of their shares.
Regarding the proceeds from the deal, sources close to the negotiations indicate that FIFA intends to pass the majority of the revenue through its “Fifa Forward” development program to its member associations. This program funds football development projects worldwide.
The World Cup remains the most significant income source for the organization, regularly generating substantial revenue. FIFA had not yet provided an official statement on the matter.
