UEFA Plans Independent Valuation of FIFA World Cup Investment Proposal
UEFA is preparing an independent valuation of an abandoned FIFA plan to sell a 21% stake in future commercial assets, amid questions about how the proposed $20 billion valuation was reached.
In short
- UEFA is preparing an independent valuation of an abandoned FIFA plan to sell a 21% stake in future commercial assets, amid questions about how the proposed $20 billion valuation was reached.
UEFA is preparing to commission an independent valuation of an abandoned FIFA proposal to sell a stake in the governing body’s future commercial assets, as scrutiny continues over the financial assumptions behind the plan.
The proposal involved selling a 21% stake to the US investment firm Thrive Capital for $4.2 billion, implying a valuation of $20 billion. FIFA abandoned the plan last week after opposition from UEFA’s 55 member associations, according to the Guardian.
UEFA has consulted market analysts and is likely to seek a formal study of how the valuation was calculated. The sales material circulated for the proposal reportedly did not explain the valuation process or show evidence of a competitive tender.
The planned review follows an apology from FIFA president Gianni Infantino to the organization’s 211 member associations. Infantino acknowledged the proposal had been a mistake. UEFA is also pressing for a broader review of FIFA governance.
FIFA recorded $15 billion in revenue during the four-year cycle culminating in the 2026 World Cup. Some analysts consulted by UEFA believe a $20 billion valuation may not fully reflect the commercial potential of future tournaments, though an independent assessment has not yet been completed.
FIFA said Infantino retains the organization’s full support. It was approached for comment on UEFA’s valuation plans.
