SOCCER: FIFA private equity plan sparks power struggle with Europe

MELBOURNE — FIFA’s plan to open the World Cup and other major events to private equity investment is set to reshape the commercial landscape of global soccer while intensifying a long-running power struggle with Europe over control of the sport’s vast wealth.

The global governing body, led by President Gianni Infantino, plans to establish a $20 billion subsidiary to manage the World Cup and other FIFA competitions. The proposal would allow external investors to acquire stakes of up to 20%, a move criticized by UEFA as putting soccer’s “soul” up for sale.

Infantino has described the plan as an effort to promote greater “democratization” in soccer by allowing more countries to benefit from the sport’s financial growth.

Under the proposal, FIFA member associations would receive $20 million in immediate funding for special projects, followed by additional grants of $20 million or more during future four-year cycles. The financial support could be especially valuable for smaller and developing soccer nations that rely heavily on FIFA funding.

EUROPE’S FOOTBALL WEALTH

FIFA already earns billions of dollars through broadcasting rights, sponsorships and commercial partnerships. The organization is expected to surpass its $13 billion revenue target for the four-year cycle that ended with the recent World Cup and included last year’s expanded Club World Cup.

However, those figures remain far below the financial power generated by European soccer.

UEFA reported that its top club competitions generated €4.4 billion ($5 billion) during the 2024-25 season. Across Europe, soccer competitions generated more than €40 billion during the same period, with the “Big Five” leagues — the Premier League, Bundesliga, LaLiga, Serie A and Ligue 1 — accounting for more than half of that revenue, according to Deloitte’s annual football finance review.

FIFA has long sought to shift soccer’s financial influence away from Europe, which historically held significant control over the sport’s governing structures and its most valuable competition, the World Cup.

Former FIFA President João Havelange expanded the World Cup and strengthened the influence of nations from Africa, Asia and Latin America through alliances with smaller soccer associations.

EXPANDING FIFA COMPETITIONS

Successive FIFA presidents have continued that strategy, with Infantino further expanding the World Cup from 32 teams to 48 nations this year.

Infantino said last week that a 64-team World Cup remains an idea for discussion after South American soccer’s governing body CONMEBOL called for an expanded tournament for the competition’s centenary edition in 2030.

The proposal was strongly criticized by LaLiga President Javier Tebas, who said FIFA was “destroying” soccer in an interview with Italian newspaper La Gazzetta dello Sport.

Infantino has previously attempted to attract outside investment into FIFA projects. A proposal in 2018 to expand the Club World Cup through a consortium led by SoftBank failed to move forward after strong opposition from UEFA.

Like Havelange and former FIFA President Sepp Blatter before him, Infantino is expected to rely on support from FIFA’s 211 member associations rather than European soccer bodies to advance the private equity plan.

“If you’re a country from the global south, whose football competitions are not getting the current streams of gold that, let’s say, the European competitions are getting, this might be very enticing,” Eric Windholz, an associate professor at Monash University’s law faculty, told Reuters.

So far, none of soccer’s major continental confederations have joined UEFA in openly opposing the proposal.

The Asian Football Confederation, which represents 47 member associations, said it was unaware of the plan before FIFA publicly announced the initiative.

($1 = 0.8777 euros)

-Reporting by Ian Ransom; Editing by David Holmes/Reuters