Fifa’s sales pitch to persuade members to approve the sale of the World Cup’s commercial rights clearly states that their plans for financial growth will be achieved by staging more tournaments, having higher ticket prices and debt financing.
- Prospectus proposes selling 20% of a new Fifa commercial company to Joshua Kushner, raising governance and transparency concerns.
- JP Morgan produced the sales deck, noted for its role in the failed European Super League and controversial advisory history.
- Deck proposes more than doubling annual global tournaments from 200 to 450, which would strain player workload and calendar.
- The 25-page prospectus makes no mention of women's football, a glaring omission given Fifa's global role.
A 25-page sales deck titled “Fifa Forward Enterprise Member Materials”, which has been seen by the Guardian, makes the case for the creation of a new company to run Fifa’s commercial operations, 20% of which would be sold to Joshua Kushner, a US investor who is the brother of Donald Trump’s son-in-law, Jared Kushner.
The prospectus has been produced by JP Morgan, the US bank that was also behind the failed European Super League breakaway five years ago.
In addition to the previously reported $20m (£15m) sign-up payment Fifa has offered to all 211 member associations, which could be made available as soon as next January, the document projects that the four-year Fifa Forward payments would increase to $24m for each member by the 2035-39 cycle.
JP Morgan makes clear in the sales deck that such growth will come from “a growing tournament portfolio”, “third party sources of capital and debt financing”, and prioritising “high yield” partnerships and events.
There is also a reference to more than doubling the number of global tournaments held each year, from 200 to 450, which if followed through would put a huge strain on player workload.
Staging the World Cup more frequently would be most obvious way of raising revenue, with Gianni Infantino having previously proposed making it a biennial tournament five years ago.
The bank also raises the prospect of TV coverage of the biggest events such as the World Cup being sold to subscription channels or streamers, by referring to a plan to “expand and optimize media rights monetization”.
JP Morgan claims that Fifa is “undermonetized” but significantly makes comparisons with other sports leagues with the revenue figures based on club or franchise earnings, rather than with comparable governing bodies.
Fifa’s stated annual revenue of $3.6bn therefore compares unfavourably with the NFL’s compared revenue of $21.2bn, Major League Baseball’s $13.1bn and the NBA’s $12.5bn.
The document was sent to all 211 member associations on Wednesday night and immediately provoked a strong reaction.
One senior figure queried why Fifa, which has cash reserves of around $4bn and accumulated revenues of $15bn over the current four-year cycle, would need to take on debt.
Another highlighted the odd comparison of a world governing body with private, member-run leagues, while JP Morgan’s proposed timeline for completing the deal was also questioned.
According to the document “Investors will be given access to a term sheet and select materials” in August before a vote of Fifa members has taken place.
Significantly there is little mention of the investor group elsewhere in the prospect, with reference to their identity, their projected returns or exit terms.
There is one more major omission in the document, as there is not a single mention of women’s football anywhere across the 25 pages.
Fifa was approached for comment.
