Cup for sale? New FIFA commercial plan faces global resistance

Why does the project generate controversy? In addition to concerns about possible conflicts of interest arising from the proximity between Infantino and Trump, critics point to a lack of transparency, risks of corruption and question whether FIFA has the legitimacy to make a decision of this magnitude without broad consultation with football entities. "The World Cup is one of the few truly global sporting events, and that involves a responsibility that goes beyond maximizing revenue," Bret Myers, professor of sports business at Villanova University in the United States, told DW. The proposal follows a common model in American sports, in which the participation of private investors is widely accepted. Formula 1 went through a similar process after being acquired by Liberty Media in 2017. Greg Maffei, the company's former executive president, currently serves as FIFA's commercial advisor on the FFE project. “North American sports have long operated under a more commercial logic, based on private ownership, franchise valuations and the presence of investors,” said Myers. "In football, especially in Europe, clubs and competitions are still seen as cultural institutions, not just commercial assets." The proposal to open up part of the World Cup's commercial rights would yield transfers to confederations Markus Ulmer/Pressefoto Ulmer/picture alliance For many critics, the main concern is that the initiative represents the first step towards an eventual privatization of world football's main competition. “A minority stake is very different from giving up control,” Myers said. "Still, this is a significant change in the way the World Cup will be financed and commercially exploited." Although it is formally a non-profit organization, FIFA accumulates reserves estimated at 8 billion dollars (R$40 billion), boosted by the results of the last World Cup. As the entity's declared mission is to promote the development of football, and not to maximize profits, critics also interpret the measure as an attempt to expand Infantino's political influence. Another focus of dissatisfaction is the lack of prior consultations with continental confederations. How does FIFA intend to make the proposal viable? The entity states that the resources will be reinvested in football. The main incentive offered to federations is a linear transfer of 20 million dollars (R$102 million) to each of the 211 national associations in 2027, a value that would rise to 24 million dollars (R$122 million) in 2035. Federations have until September 19 to inform whether they accept the plan. Otherwise, these amounts may be reduced or even withdrawn. "The president controls an enormous volume of resources and uses them to reward those who are loyal to him and punish those who do not support him," said Miguel Maduro, former president of FIFA's Governance, Audit and Compliance Committee. According to him, the lack of effective control and inspection mechanisms raises doubts about the allocation of resources. "FIFA could do a lot of positive things with this money. But there is no adequate system of checks, balances and accountability to ensure that resources are well used by national associations. Everything that has happened in the past makes me suspicious about how this money will end up being spent," he said. Negative reaction The response from international football was mostly critical. National federations, managers and fan groups rejected the proposal, mainly due to the lack of prior consultations. The Asian Football Confederation (AFC) said it had not been consulted and declared disappointment with the way the project was presented. Asia and Africa form Infantino's main political base, bringing together 101 of the 211 associations affiliated to the FIFA. Similar positions have been adopted by influential federations, including the German Football Federation (DFB). There is a strong consensus among national associations on this topic, as I saw in recent conversations with Aleksander Ceferin and other colleagues," said Hans-Joachim Watzke, vice-president of the DFB. "If European football remains united against these plans, this will carry great weight." Infantino's management has already been at the center of controversies involving the football calendar, the expansion of competitions and measures adopted at World Cups, such as hydration breaks Photo: Marco Bader/HMB-Media/IMAGO The Confederation of Football Associations of North, Central America and the Caribbean (Concacaf) said it was "deeply concerned" with the proposal. The African Football Confederation (CAF) invited its associations to "examine" FIFA's project and "participate in the consultation process".