FIFA is under pressure to increase transparency after backing down on a $4.2 billion plan to sell its stake in the world of football.

FIFA is under pressure to increase transparency after withdrawing plans to sell a 20% stake in its $4.2 billion World Cup football business, following objections from UEFA and several other federations who argued that sufficient consultation had not been conducted.

On August 1, 2569, Reuters reported that FIFA is facing pressure to improve its transparency and governance after deciding to withdraw from plans to sell a 20% stake in a new business unit that would manage the commercial interests of the World Cup. The sale was originally aimed at raising approximately $4.2 billion, with the unit valued at around $20,000 billion.

The plan is part of FIFA's business restructuring plan to separate assets related to World Cup licensing, marketing, and sponsorship under a new company, before opening up to external investors for minority stakes in order to raise investment and enhance future business expansion potential.

However, the proposal faced opposition from several football confederations, particularly the Union of European Football Associations (UEFA) and its 55 national associations, who stated that they had not received sufficient detailed information and that there had been no consultation with member nations before the matter was brought up for consideration. This raised concerns about the long-term impact on FIFA's revenue structure and governance.

Under such pressure, FIFA decided to withdraw the agenda item from the meeting, stating that it would continue to listen to the opinions of its 211 member associations before considering appropriate courses of action in the future.

Several sports governance experts have commented that the incident reflects concerns about transparency and decision-making processes within FIFA, noting that the organization should disclose financial details, ownership structures, and reasons for accepting external investors more clearly, as the World Cup is FIFA's most revenue-generating asset.

Some analysts also view FIFA's withdrawal from this plan as a rare political defeat for FIFA president Gianni Infantino, who has previously enjoyed the support of a majority of members and successfully pushed through many important policies.

Although FIFA has affirmed that it has not permanently abandoned the idea and remains open to discussions with all members, this incident reflects the fact that restructuring the business model of a global sports organization requires consensus and transparency to build trust among member nations, investors, and all stakeholders.

Reference: reuters.com

Related news:

• (August 1, 69) FIFA is proceeding with consultations on its plan to sell shares in the World Cup football business, despite strong opposition and threats of a boycott from UEFA.
• (July 31, 69) UEFA threatens to boycott the World Cup if FIFA proceeds with its $4.2 billion sale to raise capital.