Is football AI-proof? Why tech investors wanted a slice of the World Cup

Is football immune to AI? Why tech investors sought a share of the World Cup.

Fifa has reversed its decision to sell a portion of the World Cup, following strong opposition, including threats of future boycotts and demands for the resignation of its president, Gianni Infantino. Joshua Kushner leads the investment group behind the proposal to acquire a minority stake in the World Cup.

But what initially drew a group of tech investors to the World Cup, and are similar proposals inevitable in the future?

In a world where artificial intelligence (AI) could disrupt human leisure and hobbies, executives at Thrive Eternal, a spin-off of venture capital firm Thrive Capital, identified an opportunity to spearhead an investor group to inject capital into the planet's largest sporting competition. The football World Cup was viewed as the latest move in a new strategy by the firm, which believes that sport will not only endure the AI revolution but also increase in value.

Thrive, managed by Joshua Kushner, brother of Donald Trump's son-in-law and adviser Jared, primarily invests in technology companies developing AI and has been a significant financial supporter of OpenAI. However, in April of this year, the New York City-based entity established the new investment arm, Thrive Eternal, to invest in sectors possessing "qualities that cannot be replicated by technology."

Sport is central to this strategy, and that is where football—and securing a minority stake in the World Cup under Fifa's proposed Forward Enterprise (FFE)—presented an opportunity. The perspective is that football's tradition, cultural significance, and identity aspects will safeguard the sport from AI disruption, unlike other entertainment forms such as movies and music, where technology is already beginning to replace humans.

Professor Simon Chadwick, who has worked in the global sports industry for 30 years, including with fan groups, football clubs, and governing bodies Fifa and Uefa, noted that investment interests and commercialization, in general, mean many decisions are being made on behalf of football and fans "in Wall Street and Silicon Valley."

"It is almost as though it's crept up on us and a lot of people haven't really thought about what's happening," he told the BBC. While it raised governance questions for Fifa, he added, "Whether people like it or not, private equity investment in sport is happening."

Uefa indicates a boycott may still proceed as the FA withdraws support for Infantino. Faisal Islam outlines four reasons why Fifa's World Cup plan was unfeasible.

Despite this summer's World Cup, co-hosted by the US, Canada, and Mexico, offering a clear illustration of World Cup commercialization, the BBC understands that discussions regarding the FFE proposal involving Thrive began last year, with former Disney chief executive Bob Iger hired as an adviser.

Thrive Eternal already invests in other sports. As part of its launch, it announced an agreement to acquire a stake in the San Francisco Giants baseball team. There are also reports that the firm is considering a bid for a new NBA franchise in Las Vegas. According to its website, it believes that such "iconic franchises and cultural institutions rooted in tradition, identity, and shared experience" will not only survive the AI revolution but "will matter even more."

Kushner and Thrive Eternal have remained silent on the Fifa investment plan and its subsequent repercussions. However, a source close to the firm informed the BBC that the strategy behind the plan, which would have required the backing of Fifa's member associations, was not that of a "typical investment fund looking for a speedy return on investment."

The source stated that investors preparing to provide the initial $4.2 billion (£3.1 billion) investment were doing so with the expectation of not seeing any return for a "long period of time—decades," due to Thrive Eternal being structured as a holding company. They emphasized that had the FFE proposal been activated, it would have given each member association a stake worth as much as $91 million each, based on its $20 billion valuation—stressing that the equity would be controlled by Fifa, not investors, and that the decision would have rested with individual member associations.

"The idea of outside investment...was to channel more resources upfront to countries that wouldn't typically get access to outside funding—so they could invest in things like stadiums and training to be able to develop their game domestically," the source said.

According to Fifa, the objective of FFE was "to separate the business of football from the governance of the sport." In England, the business of football has boomed, particularly since the establishment of the Premier League, to the extent that financial rules, transfer deals, and boardroom gossip have become as popular conversation topics among fans as the action on the pitch.

US investment in football is not new, and the amount of American capital flowing into English and other European clubs has generally increased since the Glazer family acquired Manchester United over two decades ago. However, some question whether Fifa—and the World Cup—needed this cash injection.

Fifa has claimed the World Cup is "under-monetized," but hydration break advertisements, dynamic ticket pricing, and record broadcast and sponsorship rights are positioning the 2026 edition to generate record revenues. The 48-team tournament and the potential for an even larger 64-team competition offer a glimpse of further commercial opportunities. More countries mean more viewers, which translates to more money.

Christina Philippou, an associate professor in accounting and sport finance at the University of Portsmouth, noted that Fifa's approach to seeking external investment has been observed in other sports and by individual football clubs when cash flow has been an issue. "Fifa are not in a position where they are desperate for money. In fact, they could very easily, with the money they already have, increase those payouts to the member associations. So there is no need to go external."

Thrive Eternal is understood to respect the decision to withdraw the plan, but it is clear that interest, whether with or without this specific investment group, remains focused on football.