A 25-page sales deck produced by JP Morgan for FIFA reveals that the governing body's financial growth strategy hinges on staging more tournaments, increasing ticket prices, and utilizing debt financing. The document, titled “Fifa Forward Enterprise Member Materials,” has been seen by the Guardian and makes the case for creating a new company to run FIFA's commercial operations, with 20% of it sold to US investor Joshua Kushner, brother of Donald Trump's son-in-law Jared Kushner.
Key proposals in the sales deck
The prospectus projects that FIFA's Forward payments to each of its 211 member associations would rise to $24 million per cycle by 2035-39, up from the current $20 million sign-up payment offered as soon as January. JP Morgan states that growth will come from “a growing tournament portfolio,” “third party sources of capital and debt financing,” and prioritizing “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 would significantly increase player workload. Staging the World Cup more frequently is the most obvious revenue-raising measure, with FIFA president Gianni Infantino having proposed a biennial World Cup five years ago.
Media rights and debt financing
The bank also raises the possibility of selling TV coverage of major events like the World Cup to subscription channels or streamers, under a plan to “expand and optimize media rights monetization.” JP Morgan claims FIFA is “undermonetized” and compares its revenue unfavorably with club-based leagues: FIFA's annual revenue of $3.6 billion versus the NFL's $21.2 billion, MLB's $13.1 billion, and NBA's $12.5 billion.
The document was sent to all 211 member associations on Wednesday night and provoked strong reactions. One senior figure questioned why FIFA, with cash reserves of around $4 billion and accumulated revenues of $15 billion 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, and questioned JP Morgan's proposed timeline for completing the deal.
Investor details and omissions
According to the document, “Investors will be given access to a term sheet and select materials” in August before a vote of FIFA members. There is little mention of the investor group elsewhere, with no reference to its identity, projected returns, or exit terms. Notably, the 25-page document contains no mention of women's football.
FIFA was approached for comment.
