UEFA and European nations agree to boycott World Cups over FIFA’s plan

football field / unsplash
Фото: football field / unsplash

UEFA and all 55 European national football federations have agreed to a conditional boycott of FIFA competitions over the global body’s plan to involve private investors in managing the tournaments' commercial rights.

European nations will not take part in FIFA competitions, including World Cups, until it completely drops its proposal. UEFA also demands legal guarantees that FIFA will not sell stakes in its tournaments to private equity in the future.

The decision was made during an emergency meeting of European federations. Earlier it was only reported about preparations for discussing a possible boycott, but now UEFA members have formed a united front.

What FIFA proposes

FIFA plans to establish a subsidiary called FIFA Forward Enterprise, which would combine the commercial and operational assets of the organization. It specifically covers the rights related to national team and club World Cups.

According to The Guardian, investors could buy 20% of the new company. Its total value is roughly estimated at about $20 billion, and FIFA aims to raise around $4.2 billion.

FIFA states it would retain a controlling stake and exclusive authority over football rules, the match calendar, tournament organization, and all sporting decisions.

The funds received from investors, the organization promises, will be channeled into football development. Every one of the 211 national federations is offered additional funding:

  • up to $20 million in one-time aid for special projects;
  • $20 million from the FIFA Forward programme in 2027-2030;
  • $22 million in 2031-2034;
  • $24 million in 2035-2038.

The total potential funding per association over 12 years could reach $86 million. National federations must announce support for the proposal by September 19.

Why UEFA opposes it

European football leaders criticize FIFA for the lack of transparency and adequate discussion of the project. UEFA fears that the injection of private capital would increase the influence of investors over football tournaments and put financial interests ahead of those of federations, clubs, players and fans.

The deadline set by FIFA for endorsing the plan has also sparked discontent. Critics consider that the promise of significant payments puts pressure on smaller national associations which greatly depend on the organization’s funding.

According to information from The Guardian, objections over the process have been voiced not only in Europe. Similar concerns about the project’s transparency have been raised by the Confederation du Football de l’Amérique du Nord, de l’Amérique centrale et des Caraïbes (CONCACAF) and the Asian Football Confederation (AFC).

FIFA insists that participation in the new programme would be voluntary and that no sporting rights are being transferred to private investors. In order to be launched, the project still needs to receive approval from the organization’s governance bodies. It will also require majority backing from national associations.

Based on: AS, The Guardian, FIFA

analytics