In brief
- European football's governing body UEFA said it would boycott the World Cup if FIFA's privatisation proceeds.
- Football Australia has asked for more time to consider the proposal.
Football's international governing body, FIFA, is facing a problem where some of its members have vowed to boycott all competitions if it creates a planned commercial subsidiary, valued at up to US$20 billion ($28.47 billion), that would sell a minority stake of up to 20 per cent to private investors.
On Wednesday, FIFA announced a proposal to create the entity, FIFA Forward Enterprise, which would be responsible for selling commercial rights such as broadcasting, sponsorship, ticketing, and licensing, as well as operating FIFA tournaments, including the men's and women's World Cups.
FIFA has promised each of its 211 member countries and territories US$40 million ($56.9 million) in funding for the 2027-2030 cycle if they agree to the plan.
However, the proposal received strong rejections from some of FIFA's six regional football bodies, with the Union of European Football Associations (UEFA) launching a boycott of all FIFA's competitions.
In a strong statement on Friday, UEFA said FIFA's proposed model "has no place in world football".
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"Europe's position is clear. We will never lend this model our legitimacy. No one has the moral authority to sell what they merely hold in trust for the next generation," UEFA said.
The Confederation of North, Central American and Caribbean Association Football (CONCACAF), which represents 41 national teams in the Americas, also objected to the proposal but did not say whether it would boycott FIFA's competitions.
"History has shown FIFA and the football family what happens when the custodians of the game lose sight of these values," CONCACAF said.
Why did FIFA's proposal spark backlash?
According to FIFA, the entity was proposed after an address by FIFA president Gianni Infantino on the eve of this year's World Cup final in July.
During the address, Infantino said he intended to "unleash the commercial potential" of FIFA's competitions, including the World Cup.
"Football is the world's most popular sport and an extraordinary engine of human and social development," Infantino said.
"Parts of the game have turned that popularity into remarkable commercial value — and we celebrate that success and want it to continue, because it lifts the whole game."
Besides managing FIFA's commercial rights, the proposed FIFA Forward Enterprise would allow private investors to make "minority, non-controlling investments" in the entity.
FIFA claimed the move was similar to other sports governing bodies that had "dedicated commercial subsidies", and stressed investors would be selected against "clear long-term, governance, and strategic criteria".
Infantino's funding promise to all 211 associations would include US$20 million ($28.44) as a one-off payment available from January for special projects, and the same amount in standard development funding over the course of the 2027-2030 cycle. Under the previous plans, member associations are set to receive around US$10 million in funding over that period.
However, the announcement was greeted by ire from bodies such as UEFA, which warned private investment in global football competitions would "change football forever".
UEFA also criticised FIFA for the short notice of the proposal, accusing it of "a profound failure of leadership" and "an abdication of FIFA's duty as the custodian of world football".
"It is both irresponsible and indefensible that a proposal of such significance for football was conceived in secret and brought to the brink of approval without any meaningful consultation with those entrusted with stewarding the game," UEFA said.
Australia's response
On Thursday, the Asian Football Confederation (AFC), which Australia is a member of, also criticised FIFA's lack of consultation for its proposal.
AFC president Sheikh Salman bin Ebrahim Al Khalifa called the move "totally unacceptable".
"The AFC notes with great concern and disappointment that it was not consulted by FIFA at any level prior to the public announcement of this proposal," Salman wrote in response to Infantino's letter.
"Furthermore, the AFC is deeply concerned that FIFA's unilateral actions appear to undermine the very foundations of continental football, which are based on solidarity, cooperation and transparency."
Salman also requested all member associations await the outcome of the consultations before taking any position regarding the proposal.
In a statement, Football Australia confirmed it has received correspondence from FIFA regarding the latest commercial proposal.
"As this is the first time we have been made aware of the initiative, we are now working to understand the proposal in full," it said.
"We have requested further information from FIFA to properly assess the strategic, commercial and governance implications of such a significant step."
Football Australia said it would only be able to form a position after receiving the information and engaging with peer member associations and the AFC.
— With additional reporting by the Reuters news agency.
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