FIFA has abandoned plans to create a commercial subsidiary to manage the business operations of the World Cup after fierce opposition from member associations, with president Gianni Infantino admitting the proposal had become too divisive to proceed.
The governing body confirmed on Friday that it had shelved the FIFA Forward Enterprise (FFE) project, saying the initiative no longer served its original purpose despite attracting support from some quarters.
“After listening carefully to all opinions, it has become clear that the project has generated such divisions that, regardless of the level of support, it no longer fulfills its initial purpose,” FIFA said in an official statement.
“Our ambition has always been, and will remain, to unite and progress. Consequently, this proposal will not be pursued.”
FIFA unveiled the proposal on Wednesday, outlining plans to establish FIFA Forward Enterprise as a new company responsible for overseeing its commercial and event operations, including the World Cup. The organisation also revealed its intention to sell a 20% stake in the subsidiary.
According to an explanatory document published by FIFA, investment bank J.P. Morgan valued the proposed entity at around $20 billion.
Reports from The Times claimed FIFA had given its 211 member associations just over 50 days to decide whether to support the proposal, with each association set to receive a promised payment of $53 million if the plan gained approval.
FIFA insisted the project was designed to strengthen football worldwide, particularly by increasing financial support for developing member associations.
“The FIFA Forward Enterprise project aimed to lay the foundations for further strengthening our member associations and our sport globally, particularly where support is most needed. As we emphasised from the start, this could only materialise with the approval of the majority of member associations, and after a rigorous consultation process with the FIFA Council, confederations, and other stakeholders,” the statement said.
The proposal effectively collapsed after UEFA firmly rejected the plan on Thursday. European football’s governing body, whose members have won 13 of the 22 men’s World Cups since 1930, warned that its associations could withdraw from FIFA competitions if the project went ahead.
CONCACAF had already voiced its opposition, while CONMEBOL announced it would begin an internal consultation process, stressing that “Football comes first.”
Infantino closed FIFA’s statement by calling for unity after the project’s withdrawal.
“Moving forward, my intention is to bring all stakeholders together in the days and weeks ahead, in a spirit of common interest for our sport and with the desire to continue promoting football everywhere, particularly in countries that most need our support.”
The decision marks a significant setback for FIFA’s plans to reshape the commercial structure of its flagship competitions, with resistance from major confederations ultimately proving decisive.
