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FIFA President Gianni Infantino has abandoned a plan to allow private investment in the commercial rights of the World Cup and other tournaments, following a wave of opposition from football confederations and the resignation of a senior adviser.
The proposal, known as FIFA Forward Enterprise, would have created a commercial subsidiary to run FIFA's main events, with external investors able to buy minority, non-controlling stakes. Reports valued a 20% stake at $20 billion, with private equity figures including Joshua Kushner, the brother of Donald Trump's son-in-law, linked to the plan.
Coverage comparison
The plan became public earlier this week after The Times newspaper broke the story, according to RFI. European football's governing body UEFA quickly condemned it, with its 55 member associations voting unanimously to boycott future FIFA competitions, including the next men's World Cup in 2030, if the plan had gone ahead, as reported by ABC Australia and RFI.
CONCACAF, which governs football in North, Central America and the Caribbean, and the Asian Football Confederation (AFC) also expressed opposition, with AFC president Shaikh Salman bin Ebrahim Al Khalifa welcoming the plan's withdrawal and emphasising the need for "proper consultation, collective dialogue and respect for the established governance structures of our game."
On Friday, Carlos Cordeiro, a former head of the United States Soccer Federation and senior adviser to Infantino, resigned in protest, describing the proposal as "a bad deal for football" that would "mortgage football's future," according to multiple sources. Cordeiro, a former Goldman Sachs partner, questioned why FIFA needed private investment given its strong financial position, noting the organisation had billions in reserves and no debt.
By Saturday, Infantino had pulled the plug on the plan. FIFA's chief operating officer Kevin Lamour said the governing body's own administration had been "deceived" about the project, as reported by Deutsche Welle.
Key claims
- The proposal involved selling a 20% stake in FIFA's commercial rights to private investors, valued at $20 billion, as reported by ABC Australia, citing former Football Federation Australia CEO David Gallop.
- Joshua Kushner, brother of Jared Kushner, was reported to be one of the private equity figures behind the plan, according to multiple sources.
- FIFA has $5 billion in cash, according to David Gallop in an interview with ABC Australia's 7.30 program.
- Opposition from UEFA, CONCACAF and AFC led to the plan's withdrawal, as reported by multiple outlets.
- Carlos Cordeiro resigned over the plan, calling it "a bad deal for football" and saying it would "mortgage football's future."
- Infantino's plan was designed to strengthen member associations, especially in countries where support is most needed, a claim reported by a single source and attributed to Infantino.
Perspectives
FIFA and Infantino
Infantino defended the proposal as a way to strengthen member associations, especially in countries where support is most needed. After withdrawing the plan, he said he intended to "bring all interested parties back together" in the "spirit of shared interest" in football.
UEFA
UEFA issued a statement saying, "None of us are the owners of football. It is not Fifa's to sell," and voted unanimously to boycott future FIFA competitions if the plan proceeded.
CONCACAF
CONCACAF expressed deep concern at not having been consulted, stating it "shared the disappointment of many within our region and the game that this level of detail has been designed and shared publicly before any discussion with the relevant governance bodies and stakeholders has taken place."
AFC
The AFC expressed disappointment at not being informed of the plans and stood in "solidarity" with UEFA and CONCACAF. AFC president Shaikh Salman welcomed the plan's withdrawal.
Carlos Cordeiro
Cordeiro resigned in protest, describing the proposal as "a bad deal for football" and warning it would "mortgage football's future." He questioned why FIFA needed private investment given its financial resources and criticised a lack of transparency, oversight and due process.
David Gallop
The former Football Federation Australia CEO called the proposal "a stink bomb in the middle of the pub," saying it failed the "pub test" and was poorly received. He questioned what FIFA was giving up for the money it would receive.
UK Prime Minister Andy Burnham
Burnham said Infantino was "the wrong man" to lead FIFA, as reported by Deutsche Welle.