By Echo Wang and Rohith Nair
July 28 (Reuters) - FIFA plans to create a new commercial subsidiary valued at $20 billion, world soccer's governing body said on Tuesday, as it seeks backing from its 211 member associations for the proposal in a move already criticised by UEFA.
The ambitious plan would see FIFA establish FIFA Forward Enterprise (FFE), a wholly-owned subsidiary consolidating the organisation's commercial and event operations.
FIFA said it would retain sole control as well as "exclusive
authority" over football governance, competitions, the match calendar and all regulatory and sporting decisions.
Under the proposal, FIFA would invite external investors to purchase minority, non-controlling stakes in FFE to raise up to $4.2 billion.
FIFA is one of the world's wealthiest sporting organisations, generating billions of dollars in revenue, largely from broadcasting rights, sponsorship and other commercial deals linked to the World Cup.
But it says the money raised can be used to widen access to the sport and strengthen global participation, with all net benefits to be reinvested in the game.
"Football is the world's most popular sport and an extraordinary engine of human and social development," FIFA President Gianni Infantino said in a statement.
"Parts of the game have turned that popularity into remarkable commercial value – and we celebrate that success and want it to continue, because it lifts the whole game.
"Our job is to make sure the rest of football grows with it: FIFA exists to support sustainable, inclusive development in every corner of the world."
FIERCE CRITICISM FROM UEFA
The proposal immediately drew fierce criticism from European soccer's governing body UEFA, which said the proposal "crosses a line that football's governing institutions should never cross."
"UEFA takes it extremely seriously," it said in a statement. "So should every National Football Association. So should every stakeholder: leagues, clubs, players, supporters, governments and everyone who cares about the future of the game.
"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."
UEFA and FIFA have not seen eye to eye on soccer governance in recent years. UEFA President Aleksander Ceferin refused to attend the World Cup final following a series of disagreements over disciplinary procedures, refereeing logistics and match operations.
A FIFA spokesperson said the proposal will soon be presented to the 211 member associations and the FIFA Council, which would be the sole final decision-makers on the matter.
FIFA said it would also establish an optional program that would allow member associations to receive additional development funding and access up to $20 million in one-off capital.
It said it aims to increase funding per member association from $8 million to $20 million for the 2027-30 cycle and grow steadily, targeting $24 million by the 2035-2038 cycle.
Infantino, who is up for re-election as head of FIFA next year, said every member association should have the opportunity to seek a fair share of the available funding to shape its own future.
"This is about the democratisation of football worldwide," he said.
EXTERNAL INVESTORS
FIFA is working with bankers at JPMorgan to bring in external investors to take as much as a 20% stake in the entity, a source said.
The source added that former Liberty Media CEO Greg Maffei has been involved as a commercial adviser on the creation of the FIFA enterprise.
Thrive Eternal, a new investment strategy launched by venture capital firm Thrive Capital, is expected to be a lead investor in the entity, the source said.
The strategy is a permanent capital vehicle focused on making a small number of long-term investments in franchises and cultural institutions.
Thrive Eternal took a minority stake in Major League Baseball’s San Francisco Giants this year.
The vehicle was founded by Joshua Kushner, the brother of Jared Kushner, U.S. President Donald Trump’s son-in-law. Former Walt Disney CEO Bob Iger serves as an adviser.
Jared Kushner is not a potential investor, the source said.
"Outside investors will have only a minority stake in FFE and will not play any operational role," FIFA said. "Equally, they are investing in a subsidiary of FIFA, and not in FIFA itself. For FIFA, nothing changes."
The Financial Times first reported on the stake sale.
(Reporting by Echo Wang and Rohith Nair; Editing by Ed Osmond and Rosalba O'Brien)
