May 2 – In a move that seems likely to fuel increasingly fraught relations between FIFA and UEFA, Europe’s leading federations have reportedly been offered up to $75 million every two years under plans by Gianni Infantino for a new global league, part of his ambitious proposed $25 billion overhaul of world football.
The Associated Press is reporting that the windfall is outlined in a letter from Infantino to members of his ruling council.
Under the project, the Club World Cup would be revamped and turned into a 24-team event from 2021 and a new global Nations League competition added to the calendar. The current Confederations Cup – played as a test event the year for the World Cup proper – would be scrapped completely.
The fact that the Nations League was first devised by UEFA as a Europe-only event and does not even due to start in September has not been lost on UEFA administrators who seem bound to be antagonised by potentially having their thunder stolen by FIFA from 2021.
Under the latest proposal, AP says FIFA forecasts that the five top European countries could each be guaranteed to receive $37.5 million to $50 million to play six games in the initial phase of a global Nations League. Each team qualifying for the ‘Final 8’ competition in the following year would bank $15 million and another $5 million for being runner-up or $10 million for winning the title.
FIFA would have a 51% stake in a joint venture company with a consortium of investors from Asia, Europe and North America who have signed non-disclosure agreements after pledging to deliver $25 billion in guarantees from 2021 to 2033.
“They are not only among the world’s most solid investors,” Infantino wrote to council members, “but also very motivated to work with FIFA and the world football community.”
The identities of the investors and the source of the money for the guarantees has not been revealed, though Japan’s Softbank is understood to be the conduit for the investors. While the investors may prove to be private investment funds and individuals, FIFA isn’t a privately held company but as a global association is meant to be pushing towards a new era of greater financial transparency. This deal as it is currently presented pushes it exactly in the opposite direction.
FIFA says it would run the new competitions and an agency would be used to commercialise the competitions, including selling television rights. It is unclear whether this would be an existing agency or a newly created one.
“Obviously, should you feel that more time is needed for the Nations League as it does not only concern FIFA, the project could also be split and the two competitions could be discussed separately,” Infantino wrote in the letter, according to AP. “This would probably entail a change in the financial terms related to the Nations League, but it could certainly be explored further.
“Should the confederations show their willingness to move forward, an extraordinary FIFA Council meeting would be called around mid-May to finalise FIFA’s position on the strategic matters impacting this project.”
Infantino, who hosted talks on the new competitions with officials from football’s six continental governing bodies on Monday, said the Nations League will “strengthen and enhance” international football with more competitive matches.
It remains to be seen whether Europe will buy into the project with FIFA seeking agreement before the World Cup kicks off in June.
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