World Cup sponsors could face higher costs and diminished value from their investments if FIFA proceeds with a plan to sell off minority stakes in its commercial rights, industry experts have cautioned.

Sponsors currently account for roughly a quarter of FIFA's $15 billion revenue over each four-year cycle. The organization's top-tier partners include some of the world's largest corporations: Coca-Cola, Visa, Aramco, Qatar Airways, Lenovo, Hyundai-Kia, and Adidas.

FIFA intends to establish a new entity that would consolidate all commercial rights to its tournaments and then sell $4 billion in minority stakes to private investors. The proposal echoes structures already adopted across global sport: CVC Capital Partners has acquired stakes in Premiership Rugby, the Six Nations, and previously held a majority stake in Formula 1's commercial rights before Liberty Media's 2017 takeover, while private capital has also flowed into club football through investments in leagues and multi-club ownership groups.

This structure, however, could create pressure to expand sponsorship inventory and generate greater returns for those investors.

"This is a big changing dynamic in the commercial structure around FIFA and the World Cup, particularly if it aligns broadcasters, sponsors, and other partners within that element that they're going to try and sell off to an investor or private equity," Steve Martin, a founding partner at agency MSQ Sport and Entertainment, told City AM.

"From a sponsor perspective, the concern will be that prices will go up, and also dilution. If you look at Formula 1, there's so many different layers and so many different partners and sponsor opportunities across a much bigger portfolio," Martin continued.

"You could see that happening at the World Cup. It's been reasonably protected with a number of very, very big partners — top partners, like they do in the Olympics. So it could be that there'd be a much greater need for return on investment for many private equity businesses buying that inventory."

Martin noted that value dilution would be a particular concern for major partners. FIFA's second-tier sponsors include AB InBev, Unilever, Bank of America, Hisense, McDonald's, and Verizon.

Hydration breaks and half-time shows just the tip of the iceberg

FIFA has already demonstrated aggressive commercialization strategies. During this summer's World Cup in North America, the organization introduced adverts during hydration breaks and half-time shows, both of which created new revenue streams.

Ticket prices were also set at record levels. Stuart Pinnington, global head of asset owners at advisory firm IQ-EQ, told City AM that institutional investors could push for even deeper monetization, with current initiatives representing just the beginning.

"For sponsors, private investment could lead to FIFA taking a more sophisticated approach to packaging and monetising its commercial rights," Pinnington said.

"But with that, it could create pressure to increase sponsorship fees, introduce more commercial inventory, and find new ways to monetise moments within matches and tournaments. We've already seen football moving in this direction with adverts during hydration breaks and greater emphasis on in-game entertainment," he added.

"FIFA will therefore need to strike a careful balance. If it pushes commercialisation too far, it risks diluting the authenticity and excitement that make its sponsorship rights valuable in the first place."

"For brands, it's a question of not just how much exposure a sponsorship offers, but also whether that sponsorship will remain meaningful — and in turn — commercially viable in the long run."