SoftBank Chair & CEO Masayoshi Son, as part of a $25B proposal for two new FIFA tournaments, would "play a major role in the new joint venture, FIFA Digital Corp.," and his consortium would "take over some of FIFA's most valuable operations," according to Tariq Panja of the N.Y. TIMES. FIFA would be a 51% "partner in the new joint venture." The consortium, which includes Japan-based SoftBank's British subsidiary, SB Investment Advisers, as well as London-based asset management firm Centricus Partners and some Middle East and U.S. investors, also is "seeking to control the right to FIFA's gaming and merchandise business." That includes FIFA's $150M-a-year deal with EA Sports for the "popular FIFA video game." Son and FIFA President Gianni Infantino would serve as co-Chairs of a 10-member "supervisory board of FIFA Digital, with each appointing half the board's members." Son's "biggest challenge, though, is that he is seeking to acquire a multi-billion dollar stake in a governing body that many executives at the top levels of soccer say should not be for sale." For Son, who has an estimated net worth of $20B, FIFA is "just the latest target in what has been a dizzying spending spree." Infantino had "hoped to persuade board members to reconsider" the deal at an emergency meeting at FIFA HQ, but he was "forced to scrap those plans amid opposition from several members." FIFA officials now say further talks "will not be held until after the conclusion" of this summer's World Cup (N.Y. TIMES, 5/26).
HOW SOCCER EXPLAINS THE WORLD: ESPN.com's Matt Scott noted the largest single investment in SoftBank is $45B "ploughed in by the sovereign wealth fund of Saudi Arabia," while another minority investor is the Emirate of Abu Dhabi, whose global profile has "gained much from soccer through its ownership" of EPL club Manchester City. It is "unlikely" that Saudi Arabia's big soccer investments are a "mere coincidence." There have been geopolitical "tensions in recent months between Saudi Arabia and its neighbor, Qatar," which is slated to host the '22 FIFA World Cup. By taking a large stake in a revamped FIFA Club World Cup -- which would start in '21 -- and a new Global Nations League tournament, Saudi Arabia "would have enormous influence over club and international soccer" (ESPN.com, 5/28).
