Source: Fortune
Summary
FIFA, the organizer of the World Cup, is facing backlash over a proposed deal to sell a stake in the organization to private investors, including Joshua Kushner’s Thrive Capital and Apollo Sports Capital. The deal, valued at $20 billion, would create a commercial subsidiary and increase funding to member associations. However, UEFA, the governing body for European soccer, has criticized the plan, saying it would change the balance of power in the sport. FIFA has defended the deal, saying it would help sustain the development of soccer worldwide.
Our Reading
The numbers tell one story.
The proposed deal has sparked a turf war between European soccer interests and FIFA. UEFA is feeling threatened, and the deal’s supporters claim it would help sustain the development of soccer worldwide. The investor group promises a hefty increase in annual funding to member associations. FIFA’s financial projections show a 7% increase in revenue per year, with 10% annualized growth in marketing and 4% annual decline in ticketing revenue.
Europe would be leaving $1.1 billion on the table by not signing this deal.
Author: Evan Null
