The 55 European federations unanimously rejected the project promoted by Gianni Infantino to incorporate private investors into FIFA competitions and warned that they will not participate in its tournaments as long as the initiative remains in place
The dispute between the UEFA and the FIFA has added a new chapter and raised the tension to an unprecedented level. The 55 federations that make up the European body unanimously rejected the project promoted by Gianni Infantino to incorporate private investors into the commercial exploitation of FIFA competitions, including the World Cup,and warned that they will not participate in any of its tournaments while the proposal remains in effect.
"The UEFA and its 55 member associations stand united. We unanimously and unequivocally reject FIFA's proposal to transfer ownership stakes in the World Cup and other FIFA competitions to private investors", the organization stated in a strong statement released after an extraordinary meeting.
The declaration was even more forceful in defending the nature of the top national team tournament. "The World Cup cannot be treated as an investment product. It is one of the most important sporting legacies in football. It has been built over generations thanks to players, national teams, and fans from all continents. No part of it should be handed over to private investors. The World Cup is not for sale", it maintained.
UEFA stands up to FIFA and blocks FIFA's private investment project
In addition to questioning the content of the initiative, UEFA criticized the way FIFA carried out the project. It described it as "irresponsible and indefensible" that a proposal of such magnitude was developed "in secret" and presented for approval without significant consultation with national federations. It even denounced that members were faced with an "ultimatum" and claimed that the procedure constitutes "a form of governance based on intimidation".
The European body also expressed its concern about the consequences that the entry of private capital could have on the management of international football. It warned that the presence of shareholders would turn economic profitability into a permanent objective and could condition decisions related to the calendar, the format of competitions, and the development of the sport.
As a pressure measure, UEFA announced that none of its teams will compete in competitions organized by FIFA while the project remains in effect, unless it is definitively withdrawn and there are guarantees that the ownership of the tournaments will not be reopened to private investors.
What the FIFA project is about
The proposal from the governing body of international football involves the creation of FIFA Forward Enterprise (FFE), a subsidiary that would manage the commercial rights and operations of the organization's competitions, from ticket sales to sponsorship contracts and audiovisual rights.
According to the project, FIFA would retain absolute control of the new company, with at least 80% of the capital and the majority of the positions on its board. The remaining percentage could be offered to private investors to finance development programs for federations that request it.
Infantino wants to create a FIFA subsidiary that allows private investment in its tournaments
FIFA claims that the creation of the FFE does not imply selling the World Cup or modifying the governance of football. Infantino argues that the structure will allow for greater revenue generation to reinvest in infrastructure, national teams, other categories within football, and development programs, while insisting that the final decision will depend on the approval of member federations and the FIFA Council.
