European Commissioner vows to probe Fifa sell-off amid furious backlash
Furious European Commissioner for Sport, Glenn Micallef, has vowed that the EC will investigate Fifa’s controversial proposals to sell stakes in a new commercial entity to outside investors.
Football’s world governing body on Monday revealed plans to raise $4bn by selling minority holdings in a new vehicle, Fifa Forward Enterprise, that would control all commercial rights to the World Cup and Club World Cup.
The bombshell provoked a furious backlash, with Prime Minister Andy Burnham and European governing body Uefa among those slamming the scheme in echoes of the revolt which greeted the aborted European Super League five years ago.
“This isn’t baseball. The Fifa World Cup remains the greatest sporting tournament on the planet, despite Fifa exploiting every commercial opportunity. But enough is enough,” Micallef wrote on social media.
“The relentless commercialisation of football has become corrosive. It’s threatening the things that made football the world’s most popular sport. This means we all have a responsibility. Players, fans, clubs, leagues, national associations, confederations and the media all have a voice, and all should use it.
“Particular concern arises when Fifa’s regulatory powers become aligned with the financial interests of private entities. When the value of investments depends on decisions made by Fifa. That raises profound questions about governance, independence and conflicts of interest.
“These are also proposals that raise important competition law considerations. As the CJEU [European Court of Justice] consistently recognised, sporting rules are subject to EU law where they produce economic effects. Within the scope of its competences under the Treaties, the European Commission will study these proposals carefully.
“I also support Uefa and calls from stakeholders for more scrutiny. Every FA must engage meaningfully including with leagues, clubs, players and supporters before taking a position. Commercial success should strengthen football, not consume it. Hands off our game.”
FA: We were kept in dark over Fifa plan
Fifa president Gianni Infantino has presented the FFE plan as an opportunity to equalise resources in world football by increasing distributions to all 211 member associations.
Critics fear that institutional investors may seek to increase the size and frequency of World Cups – and keep ticket prices high – in order to maximise returns.
There is also alarm at links to Infantino ally President Trump, given that his son in law’s brother, Josh Kushner, is among those in talks over investing.
England’s Football Association said it had been kept in the dark about Fifa’s plans “and have no substantive details, including what the proposition actually is, and what conditions are attached. Based on the limited information we are deeply concerned about the lack of process and governance to get to this point, and the apparent substance and principles involved. When the proposal is shared in the full and transparent way now promised by Fifa, we will make our views clear, and comment further.”
Those concerns echoed those of Concacaf, which represents the FAs of North and Central America and the Caribbean.
“Concacaf was only made aware of this matter through media reports and, subsequently, via a media release. We are deeply concerned by the lack of due process,” it said.
“We share the disappointment of many within our region and the game that this level of detail has been designed and shared publicly before any discussion with the relevant governance bodies and stakeholders has taken place.
“As leaders within football, we are the custodians of the game. Collectively, Fifa, the confederations and every member association have a responsibility to always act in the best interests of the sport.
“Every decision we make must be guided by good governance, robust processes and long-term stewardship. This is the framework within which Concacaf operates. We trust that all within the Fifa family will act in the same manner.”
How Burnham and Uefa reacted
Burnham was quick to slam Fifa’s plan on Monday night, saying: “Football does not belong to investors. It belongs to the people who fill the stands and who stand on the touchline week in, week out, rain or shine.
“The World Cup is not a product. It is the greatest competition in world sport, and it was never anyone’s to sell. Dress the deal up however you like. Once you have sold a piece of it, you have sold out. Football belongs to the fans. It always has, and it always will.”
Uefa, a regular critic of Infantino’s Fifa, is reported to be considering withdrawing its nations from future World Cups in protest at the move.
“This crosses a line that football’s governing institutions should never cross,” it said on Monday. “Uefa takes it extremely seriously. So should every National Football Association. So should every stakeholder: leagues, clubs, players, supporters, governments and everyone who cares about the future of the game.
“The soul and governance of football are not assets to trade – especially with zero transparency as to who gains financially. None of us are the owners of football. It is not Fifa’s to sell.”