The proposal presented to members regarding the sale of the World Cup’s commercial rights says future financial expansion would rely on organizing additional competitions, increasing ticket prices and using debt-based funding.
A 25-page presentation called “Fifa Forward Enterprise Member Materials” outlines plans to establish a separate company responsible for Fifa’s commercial activities. Under the proposal, a 20% stake would be sold to US investor Joshua Kushner, the brother of Jared Kushner, Donald Trump’s son-in-law.
The prospectus was prepared by US bank JP Morgan, which was also involved in the unsuccessful European Super League project five years earlier.
Alongside the previously disclosed $20m (£15m) joining payment offered to each of Fifa’s 211 member associations, potentially available from January, the document forecasts that four-year Fifa Forward distributions could rise to $24m per member during the 2035-39 cycle.
The presentation says this expansion would be driven by “a growing tournament portfolio”, “third party sources of capital and debt financing”, and a greater emphasis on “high yield” events and commercial partnerships.
It also discusses increasing the annual number of global competitions from 200 to 450, a move that could place considerable additional pressure on players’ schedules.
Holding the World Cup more often would provide one of the clearest routes to higher income. Gianni Infantino previously suggested changing the competition to a biennial format five years ago.
The bank additionally raises the possibility that coverage of leading competitions, including the World Cup, could be offered through subscription broadcasters or streaming services as part of a plan to “expand and optimize media rights monetization”.
JP Morgan describes Fifa as “undermonetized”, although its analysis compares the organization with sports leagues whose income comes from clubs or franchises rather than with similar international governing bodies.
On that basis, Fifa’s reported annual income of $3.6bn appears substantially lower than the NFL’s $21.2bn, Major League Baseball’s $13.1bn and the NBA’s $12.5bn.
The materials were distributed to all 211 member associations on Wednesday evening and quickly prompted significant concern.
One senior official questioned why an organization holding about $4bn in cash reserves and generating $15bn during the current four-year period would need to borrow money.
Another official challenged the logic of comparing a global governing organization with privately operated leagues owned by their members. Questions were also raised about JP Morgan’s proposed timetable for finalizing the transaction.
The document states that “Investors will be given access to a term sheet and select materials” in August, before Fifa’s members have voted on the proposal.
The prospectus otherwise provides very limited information about the investor group, offering no details about its identity, anticipated returns or conditions for leaving the investment.
Another notable absence is women’s football, which is not mentioned anywhere in the 25-page presentation.
Fifa was contacted and invited to respond.
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