FIFA is embroiled in a $20 billion World Cup controversy. Here's what's going on

The World Cup is officially for sale — at least a portion of it. FIFA, world soccer's governing body, announced on Tuesday that it plans to form a subsidiary to run the tournament, opening the door for investors to buy stakes of up to ​20% in the spinout firm. 

Orchestrated by its president Gianni Infantino, the move has drawn backlash across the sport. UEFA – European soccer's governing body – accused FIFA of "crossing a line" and said the tournament was not its to sell. 

CNBC explores what FIFA is planning and why the proposal is so unpopular across the world of soccer.

Encouraged by the largest and most commercially successful World Cup on record, Infantino is pushing for even greater commercialization via the new venture, FIFA Forward Enterprises (FFE). 

In a statement published on Tuesday, FIFA said FFE would raise up to $4.2 billion from third parties, which values the subsidiary at $20 billion. The organization added that it would retain ultimate control of the venture.

"Parts of the game have turned that popularity into remarkable commercial value – and we celebrate that success and want it to continue, because it lifts the whole game," Infantino said in the statement. 

"...Our next stage of growth needs a structure built for it, one where the commercial side of the game operates as a focused, dedicated business, with its value shared more and better all around the world," he added.

Allowing private investors to influence soccer's most prestigious international competition risks handing them undue influence in how the sport is run, critics argue.  

The proposal has reignited the bitter rivalry between FIFA and UEFA.

"The soul and governance of football are not assets to trade - especially with zero transparency as to who gains financially," UEFA said in a statement. "None of us are the owners of football. It is not Fifa's to sell."

In a separate statement published on Wednesday, UEFA added:

"FIFA cannot continue to use our sport to enrich themselves and their friends. We can grow the game correctly. It's time to prioritize associations, clubs, leagues, players and fans."

The U.K.'s new prime minister, Andy Burnham, also waded in, writing on X that the World Cup is "not a product." 

Infantino's close relationship with President Donald Trump has been well-publicized and came under intense scrutiny during the World Cup.

The deal is backed by Joshua Kushner's Thrive Capital, whose brother Jared is a son-in-law of Trump. 

J.P. Morgan has also been hired to manage the deal, FIFA added.

To be approved, the plan requires approval from a majority of its 211 members, as well as FIFA's 37-member council. UEFA and its European constituents are reportedly mulling a boycott of the World Cup, representing a smaller portion of influential nations. 

Fifa's status as a not-for-profit means its money is redistributed to build footballing infrastructure in those nations. Infantino plans to offer its members the chance to access up to $20 million in one-off capital, which may give him an advantage when looking to pass the bill.

But each member also holds voting rights, which creates a circular relationship between the governing body and and its underlying participants.

"FIFA under Infantino gives lots of money to small countries, who in turn vote for him to be re-elected as president," football finance professor Kieran Maguire told CNBC last week.