FIFA tests the limits of private equity in sports with World Cup subsidiary sale

Skip NavigationMarketsPre-MarketsU.S. MarketsEurope MarketsChina MarketsAsia MarketsWorld MarketsCurrenciesPrediction MarketsCryptocurrencyFutures & CommoditiesBondsFunds & ETFsBusinessEconomyFinanceHealth & ScienceMediaReal EstateEnergyClimateTransportationInvestigationsIndustrialsRetailWealthSportsLifeSmall BusinessInvestingPersonal FinanceFintechFinancial AdvisorsOptions ActionETF StreetBuffett ArchiveEarningsTrader TalkTechCybersecurityAIEnterpriseInternetMediaMobileSocial MediaCNBC Disruptor 50Tech GuidePolitics & PolicyWhite HousePolicyDefenseCongressExpanding OpportunityEurope PoliticsChina PoliticsAsia PoliticsWorld PoliticsVideoLatest VideoFull EpisodesLivestreamTop VideoLive AudioEurope TVAsia TVCNBC PodcastsCEO InterviewsDigital OriginalsWatchlistInvesting ClubTrust PortfolioAnalysisTrade AlertsMeeting VideosHomestretchJim's ColumnsEducationSubscribePROPro NewsJosh BrownMike SantoliCalls of the DayMy PortfolioLivestreamFull EpisodesStock ScreenerMarket ForecastOptions InvestingChart InvestingSubscribeLivestreamMenuMake ItselectUSAINTLLivestreamSearch quotes, news & videosLivestreamWatchlistSIGN INCreate free accountMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenu (function() { const userMembershipOnLastVisit = localStorage.getItem("cnbcMeta__cachedUserMembership"); if (!userMembershipOnLastVisit) { // If no user membership is stored, user is likely not logged in. // These users will typically see the banner. return; } const { isPro, isInvestingClubUser } = JSON.parse(userMembershipOnLastVisit); if (!(isPro || isInvestingClubUser)) { // We’re rendering the top banner for users who are not pro or investing club members. return; } // Hide the banner for pro and investing club users. const style = document.createElement("style"); style.id = "top-banner-placeholder-style"; style.innerHTML = "[data-top-banner-placeholder] { display: none; }"; document.head.appendChild(style); })() Sign up today for the CNBC Sport NewsletterValuationsLeaguesPartnershipsMediaNewsletter Sign-UpSport PodcastEventsCNBC SportFIFA tests the limits of private equity in sports with World Cup subsidiary salePublished Fri, Jul 31 202612:00 PM EDTUpdated Fri, Jul 31 20264:40 PM EDTAlex Sherman@in/alex-sherman@sherman4949WATCH LIVEKey PointsUEFA and Concacaf have both rejected FIFA's plan to sell a 20% stake in a new venture that would control the World Cup's commercial operations.FIFA blamed "incorrect media reports" for the negative response and said it will proceed with the consultation and voting process among its member associations.Global soccer's pushback highlights uneasiness with private equity influence on sports. watch nowVIDEO3:3903:39FIFA faces global backlash over proposed commercial stake saleThe ExchangeGlobal soccer may be finding the limits to private equity's stampede into sports. A plan by FIFA to sell a minority stake in a new subsidiary — FIFA Forward Enterprise, or FFE — that would control the business side of the World Cup has faced swift backlash. UEFA, the governing organization of European soccer, and Concacaf, the organization controlling North American, Central American and Caribbean soccer, have both rejected the proposal out of concern for outside influence. FIFA said earlier this week it plans to raise $4.2 billion from third parties, valuing FFE at about $20 billion. Thrive Capital, a private equity firm led by Joshua Kushner, has already backed the plan. But on Thursday, UEFA threatened to boycott FIFA competitions and the World Cup if the plan moves forward. "The World Cup cannot be treated as an investment product," UEFA said in a statement. "No part of it should ever be surrendered to private investors. The World Cup is not for sale."Get the CNBC