FIFA is planning to create a subsidiary, FIFA Forward Enterprise, to manage the commercial rights of the World Cup and other tournaments, offering up to a 20% stake to external investors. This move aims to raise up to $4.2 billion, with the organization stating that it would reinvest the revenue into global soccer development. Thrive Eternal, a firm run by Joshua Kushner, is expected to lead the investor group, and J.P. Morgan has been hired as an adviser.
This controversial proposal has faced significant backlash, particularly from UEFA, Europe's governing body for soccer. UEFA's 55 member nations unanimously voted to boycott all FIFA competitions if this plan is pursued, citing concerns over the lack of transparency, the rapid timeline for approval, and what they perceive as the selling of football's "soul" for private gain. UEFA argues that the governance and commercial aspects of football are not assets to be traded, especially without proper oversight and approval processes.
Despite the criticism, FIFA President Gianni Infantino has defended the plan, emphasizing that it would ensure "truly global ownership of the commercial opportunities" and provide unprecedented development funding. FIFA also stated it would retain a majority share in the new entity and would not proceed without the support of a majority of its 211 member associations. The organization anticipates generating a record income from the 2026 World Cup, exceeding the $7.6 billion from Qatar 2022, especially with the expanded 48-team format, yet still seeks billions through private investment.
Economic benefits for host cities and fans often fall short of expectations, according to experts. For instance, initial forecasts for hotel bookings in U.S. host cities were not met, with some reporting bookings below previous years. While the World Cup creates jobs, many are lower-paid positions in hospitality, and long-term economic windfalls for host cities are often minimal. FIFA, however, stands to be the primary financial winner, with revenues approaching $13 billion over the four-year cycle, generating income from broadcasting, licensing, hospitality rights, sponsorships, and ticket sales, including a 15% fee on a secondary resale market. Advertising slots, for example, reached up to $750,000 during U.S. matches.
Gambling companies are also set to benefit significantly, with the 2026 World Cup projected to be the largest gambling event ever, with an estimated $50 billion wagered. Flutter Entertainment, which owns Paddy Power and Betfair, anticipates this will be double the amount from the previous tournament due to growth in the U.S. and Brazil. Fans, on the other hand, often face increased costs for tickets, flights, food, and accommodation, classifying them as financial losers in the overall economic landscape of the World Cup.
