Fifa could sell €3.6bn share of commercial rights to outside investors   

Fifa seeking to capitalise on momentum generated by the World Cup in the US, Canada, and Mexico

Fifa president Gianni Infantino. Fifa is working on a plan to raise as much as €3.69bn from external investors as football’s governing body opens itself to outside investment for the first time. Picture: Bradley Collyer/PA 

Fifa is working on a plan to raise as much as €3.69bn from external investors as football’s governing body opens itself to outside investment for the first time.

Joshua Kushner’s Thrive Eternal is among potential backers for a new vehicle called Fifa Forward Enterprise that will house media and commercial rights, a person familiar with the matter said, asking not to be identified discussing confidential information.

The proposed entity, which will include broadcasting and sponsorship assets, would initially be valued at about $20bn (€17.5bn), the person said. Fifa is working working with JPMorgan Chase on the plans.

Representatives for Fifa and Thrive couldn’t immediately be reached for comment.

The move represents a significant departure from Fifa's traditional funding model and comes as the body seeks to capitalise on the commercial momentum generated by the World Cup in the US, Canada, and Mexico.

The plan would give outside investors exposure to the future value of Fifa's broadcasting and sponsorship portfolio, while providing the organisation with a substantial pool of capital to distribute to member associations.

Under a proposed structure being discussed, investors would not receive dividends or regular cash distributions. Instead, their potential return would come from any increase in the value of Fifa Forward Enterprise, allowing them to sell their stake at a later date.

The majority of the money generated by the entity would ultimately be distributed to Fifa's member associations through the Fifa Forward program, which provides funding for football development projects around the world.

The new entity would allow Fifa to put a market value on some of its most valuable commercial assets at a time when demand for premium live sports rights is high. The World Cup is Fifa's principal revenue generator, attracting broadcasters, sponsors and advertisers seeking access to one of the world’s largest sporting audiences.

Bloomberg