Have FIFA scored an own goal?

**Ed Butler** (0:01)
FIFA wants to sell football's commercial rights. UEFA, the EU, even prime ministers are outraged.

**Andy Burnham** (0:08)
Let me say this very clearly. The World Cup is not a product. It is the greatest competition in the world, and it was never anyone's to sell.

**Ed Butler** (0:15)
But with $40 million on offer, will smaller nations be tempted?

**Gary L. Smith** (0:20)
That is why many African football associations are not going to push back, because this is a lot of money they would need.

**Ed Butler** (0:26)
Selling football. This is World Business Report from the BBC World Service. I'm Ed Butler and today, once again, we are looking at the latest FIFA plan to sell off some of its commercial rights. We're also hearing from Cuba, the communist Caribbean island, which is bringing in wide-ranging market reforms, and why eBay executives sent cockroaches and a pig's mask to two critical journalists.
Before all of that, though, let's talk about interest rates. The US Federal Reserve has held them steady for the fifth time in a row. The decision by the Fed, which was broadly expected, means that rates remain between three and a half and 3.75 percent. I asked the BBC's North America business reporter, Samira Hussain, what the market reaction had been.

**Samira Hussain** (1:23)
Well, the reaction has been pretty strong. If you look at financial markets, we saw that the Dow has dropped some 1100 points, and there are real fears that the Federal Reserve is falling behind on inflation. Inflation continues to run well past the Federal Reserve's 2 percent target rate. But this month, the Federal Reserve said, nah, we're not going to make any changes to the rate of borrowing. A lot of people were actually asking the Fed Chair, well, you're not making any changes, but what gives? When are you going to make a change? Because it's so clear that this inflation continues to be a persistent problem.
Also, what's interesting about this Fed meeting was just the lack of clarity going into it. And it's just so different than what we've seen in the past with the previous three Fed Chairs who were really open communication, believed in a lot of guidance. This Fed Chair, it's very, very different.

**Ed Butler** (2:23)
And three committee members voted for an increase, we're told. So there is very much a split view within the committee itself.

**Samira Hussain** (2:32)
On the one hand, Kevin Warsh got exactly what he wanted. He always talks about, you know, good, healthy family fights. And that's how he characterized the discussions over the last two days. But it was not a unanimous decision in the end. You had three committee members that were saying, we really need to increase these interest rates. And it just probably means that going forward, there's going to be even more disagreements within the Fed family.

**Ed Butler** (3:01)
Samir Hussain, well, listening to that, Susan Schmidt, portfolio manager at Exchange Capital Resources in Chicago. Hi, Susan. I mean, how do you read the market response to the Fed's decision today?

**Susan Schmidt** (3:12)
Well, I think the market, 50% of investors expected no change as we went in today. That's what the market odds were showing. And I think that the market looked at this and said, all right, we would like to know, but we understand that Kevin Warsh is the new chairman of the Fed, very different in how he communicates from former Chairman Powell. So he doesn't like to give the market any hints in advance. He's not going to give them a lead as to when they might lower rates. But investors generally think it will happen at some point later in this year. And so you get one, maybe two decreases in interest rates before year end. But investors are looking at this. I think the more interesting thing is that there's been a pivot in the language from Chairman Warsh. We heard a lot about a 2% targeted inflation rate. That is what the Fed is trying to achieve. And with this statement and this call, we've heard now the 2% is not something we should think about. Ignore it and move on. That's not a number he wants the market focused on. Instead, he wants to create stability. And that's where investors should be focused.

**Ed Butler** (4:17)
OK. Well, we'll see how investors feel about that, of course, as the year unveils. More from you later in the show, Susan. For now, thank you. As we were telling you this time yesterday, a row has broken out in world football after its governing body, FIFA, announced it is considering selling a quarter share of the World Cup to private investors. And the row seems to have intensified today. FIFA would gain around $5 billion for the sale and distribute $40 million each to all of the 212 National Football Federations. UEFA, which governs Europe's football, well, it said that the plan showed FIFA was using the sport to enrich themselves and their friends, I quote.