Insta-FootPol. Is FIFA Selling the World Cup?

Just to sort of recap for people, just if they haven't already known, it came out sort of late on Monday evening.

that FIFA was talking about introducing a subsidiary that it wants to set up to enable investors to buy a stake in future events related to various commercial activities, whether it's broadcasting rights, sponsorship, ticketing, licensing, all of this to help it with the organization of events like the World Cup, but it would also be other ones.

FIFA has put this out in a statement late on Monday evening, as I said.

Outside investors would be welcome to buy minority non-controlling stakes.

And reportedly, the whole value of this subsidiary, if it goes ahead, would be worth $20 billion.

Wow.

With initial capital raising of around 4.2 billion.

Now, the interesting thing here is this, that FIFA doesn't own a lot of – most of its revenue generation comes from events like the World Cup and really the Men's World Cup.

That's where it gets its money.

And because the World Cup is on a four-year cycle, it means that that money that it generates through that competition and the other associated ones has to get it through the four years for the next four years.

Wow.

Just to give listeners an idea, the men's World Cup on its own is about over 80% of the revenues of FIFA, isn't it? That kind of scale of event compared to everything else that FIFA does is massive.

And I think it was for the last, for this World Cup that's just gone, they thought they actually went beyond, they got over what they were expecting.

I think they're estimating around 15 billion for this year.

Now, what's interesting, what's interesting, as I said, they want to set up the subsidiary that's going to be worth 20, that could be worth 20 billion.

What they think is that they can generate additional revenue through bringing in private actors, investors into the mix.

And so they've got an idea that in the next cycle, basically between next year and 2030, the next World Cup, they would generate 20 million dollars.

Sorry.

I should explain this, that when you break down the value of the total amount, that what they can do is they can generate individual amounts for individual member associations.

There's 211 member associations that make up FIFA.

Right now, under the current... those members get basically an equal share of around $8 million a year from the generated revenue through FIFA.

What FIFA is saying is that with this new subsidiary, that they can increase the amount of revenue that goes to individual member associations from $8 million to $20 million for the current site, for the next cycle.

And if it happens now, there's also like a bonus signing on of an additional $20 million.

So think about it.

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