FIFA’s Privatization Plan Fails

The sport generates billions annually, captivating more than half the planet and filling stadiums across continents. At the summit of this massive industry stands FIFA. Determining the ownership structure of FIFA reveals a unique arrangement. The organization has no single owner. It is not owned by a billionaire, it does not trade on stock markets, and no country owns it. Legally and formally, FIFA is a non-profit association established in Zurich under Swiss civil law. This structure prevents anyone from buying a “10% stake” because the organization does not have divided capital. Its only “partners” are the various national football associations, such as Argentina’s AFA, Spain’s RFEF, Mexico’s FMF, and England’s FA. The supreme body is the Congress, where the rule of “one country, one vote” applies, meaning the vote of a small federation carries the exact same weight as that of a power like Brazil or Germany.

Because FIFA operates as a non-profit entity in Switzerland, it cannot distribute utility among its directors or federations as private company dividends. Every dollar of excess revenue must be reinvested into organizing tournaments and developing the sport globally. The game grew rapidly in Europe in the early 20th century, but international matches were chaotic due to varying rules. On May 21, 1904, representatives of seven countries gathered in Paris to create an organization that would impose order on international fixtures. This gathering established FIFA. To maintain total control, the organization established a rule that only clubs and players affiliated with national federations could play official matches; independent leagues effectively faced bans from participating in professional football.

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Finally, in 1930, the group created the World Cup, which became the most valuable TV and sponsorship event, making the body financially invincible.

Despite earning over $13 billion per World Cup cycle, the non-profit status limits its ability to act like a Wall Street company or distribute profits to investors.

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The Privatization Plan

To bypass these limitations and maximize value, President Gianni Infantino designed “FIFA Forward Enterprise,” an indirect privatization plan. The group would create a separate commercial company named EFE and transfer its most famous rights, including TV broadcasting, sponsorships, licenses, and ticket sales for the World Cup and Club World Cup. EFE was valued at $20 billion, and the proposal involved selling a 20% stake to private equity funds, including Thrive Eternal, owned by Joshua Kushner, to raise $4.2 billion immediately.