European countries announce boycott of all FIFA tournaments over $20 billion private equity play

Europe just drew its line in the sand, and it runs straight through FIFA’s balance sheet. UEFA and its 55 member nations are moving to boycott all FIFA tournaments, including the World Cup, after the governing body announced plans to sell commercial rights to private investors in a deal targeting a $20 billion valuation. The proposal would create something called the FIFA Forward Enterprise (FFE), a vehicle designed to raise up to $4.2 billion initially by letting private equity firms buy into the commercial rights of the men’s and women’s World Cups and the Club World Cup. The money and the mutiny FIFA’s pitch to its 211 member associations is straightforward. The deal would increase annual funding distributions from $8 million to $20 million per member, with potential increases in subsequent cycles. But UEFA isn’t buying it. The European governing body has described the proposal as crossing an unpassable line for football’s governing structures, and has convened an emergency virtual meeting of all 55 member nations to coordinate a response. UK Prime Minister Andy Burnham publicly criticized the proposal, stating that “football does not belong to investors.” FIFA President Gianni ...