Football’s governing body FIFA is working on plans to raise as much as US$4.2 billion (S$5.43 billion) from external investors by creating a new commercial entity that would house its media and commercial rights, according to a person familiar with the matter.
The proposed vehicle, named FIFA Forward Enterprise, would include the organisation’s broadcasting and sponsorship assets and is expected to be valued at around US$20 billion at launch. FIFA is reportedly working with JPMorgan Chase & Co on the proposal.
Joshua Kushner’s investment firm, Thrive Eternal, is among the potential investors being considered, although representatives for both FIFA and Thrive did not immediately comment on the reported plans.
The proposal would mark the first time FIFA has opened part of its commercial business to outside investment, representing a major shift from its traditional funding model.
Under the structure currently being discussed, investors would not receive dividends or regular cash payouts. Instead, returns would depend on any increase in the value of FIFA Forward Enterprise, allowing investors to profit by selling their stakes in the future.
FIFA intends to channel most of the capital generated by the entity into its FIFA Forward programme, which distributes funding to member associations for football development projects worldwide.
The move comes as FIFA looks to build on the commercial success of the recent World Cup in the United States, Canada and Mexico, while capitalising on strong global demand for premium live sports broadcasting and sponsorship rights.
Oluwagbemisola Babalola
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