FIFA has decided to abandon its divisive plan to sell World Cup profits to private equity after receiving pushback from all corners of the soccer world.
FIFA has abandoned its controversial plan to sell stakes in a company which would run the commercial and operational aspects of its competitions, including the men’s and women’s World Cups.
The plan was rejected by three continental confederations with powerhouse UEFA insisting its nations would boycott FIFA events.
In a statement released early on Saturday, FIFA president Gianni Infantino said: “The FIFA Forward Enterprise project was intended to provide a basis for further strengthening our FIFA Member Associations and our sport worldwide, especially in those countries where support is most needed.
“And more so, as we said from the outset, to do this only if a majority of the FIFA Member Associations were in support and always subject to a consultation process with them, the FIFA Council, the Confederations and wider stakeholders.
“Having listened carefully to all the views, it has become clear that the project has created divisions of a nature that, regardless of the level of support, are no longer in the interest of the objective set out in the first place.
“Our purpose has always been – and will always be – to unite and improve.
“As a result, this proposal will not proceed.
“Moving forward, my intent is to bring all interested parties back together in the coming days and weeks in the spirit of shared interest in our game, and with the objective to continue growing football everywhere, particularly in those countries that mostly need our support.”
In a statement released on Saturday, Football Australia chairman Anter Isaac said his organisation welcomed the decision, questioning the due process that took place that led to the announcement of the plan.
“Football Australia welcomes FIFA’s decision to withdraw the FIFA Forward Enterprise (FFE) proposal.
“The discussions of recent days have reinforced an important principle of good governance: proposals of global significance should be developed through robust consultation, appropriate governance processes and meaningful engagement with Member Associations before they are presented for consideration.
“Football has never stood still, nor should it. Some principles, however, should never change. Integrity. Independence. Good governance. Transparency. Meaningful consultation. Due process.
“These are not constraints on progress. They are what make lasting progress possible. Ultimately, the strength of football’s institutions depends on the confidence and trust of the global football family. That trust is earned not simply through good decisions, but through the integrity of the processes that lead to them.
“Our attention must now turn to the future.”
Football Australia chair Anter Isaac and CEO Martin Kugeler.
Infantino had proposed creating a $20-billion subsidiary, FIFA Forward Enterprise (FFE), to run the World Cup and its other events, with a stake of up to 20 per cent to be offered to external investors.
Thrive Eternal, a fund run by Thrive Capital, which is founded by Joshua Kushner, was expected to lead the proposed investor group, FIFA said. Joshua is the brother of Jared Kushner, US president Donald Trump’s son-in-law.
UEFA’s 55-member nations agreed to boycott the World Cup and all other FIFA competitions over Infantino’s plan.
North America’s CONCACAF and the Asian Football Confederation – Australia’s parent body – also opposed it.
“Some things are simply too important to sell,” UEFA said in a statement. “The FIFA World Cup belongs to football. It always will. And so long as Europe has a voice, it will never be for sale.”
Senior FIFA adviser Carlos Cordeiro, who represented the soccer body on the White House Task Force for the World Cup, has resigned in protest at its private equity plan.
“I cannot stand by while FIFA considers selling a stake in the World Cup,” Cordeiro, a former Goldman Sachs banker, said in a Friday statement resigning as adviser to FIFA President Gianni Infantino that urged other senior FIFA staff to speak out.
Cordeiro often joined Infantino on working visits to meet US President Donald Trump at the White House in recent years.
“Let me be clear. I had no involvement in this proposal, and I oppose it unequivocally,” Cordeiro, the former US Soccer Federation president said, calling the $US20 billion commercial subsidiary “a bad deal for football.”
“Football has been central to my life, and after more than 35 years in banking, I understand both the value of this asset and the consequences of giving part of it away” he said. “That is why this proposal should be rejected.”
Infantino has proposed spinning off FIFA’s commercial businesses — including World Cups and Club World Cups for men and women — into a $US20 billion subsidiary with 20 per cent owned by private investors.
The “anchor investor,” described by FIFA, is a New York-based investment firm created by Joshua Kushner, the younger brother of Trump’s son-in-law Jared Kushner.
Gianni Infantino and Donald Trump. Photo: Getty Images
“FIFA already has access to extraordinary financial resources. The organization sits on billions of dollars in reserves and no debt,” Cordeiro said, noting FIFA’s revenue of $US15 billion over the last four years tied to the men’s Wold Cup just ended.
“Against that backdrop, selling a permanent stake in football’s most valuable asset to raise $4.2 billion makes little sense. It is mortgaging football’s future without any compelling justification,” he said.
Cordeiro said he shared five years working for FIFA alongside Infantino with “dedicated, principled people who care deeply about the game.”
“I hope they, too, will speak up,” he wrote, “because decisions of this magnitude should be made in the interests of football, not those who stand to profit from it.”
Infantino has been president of FIFA for more than 10 years and had seemed sure to be reelected unopposed next March. FIFA has set a November 18 deadline for challengers to come forward.
FIFA had previously said on Friday it would push ahead with consultations on a plan to bring private investment into the World Cup despite European football threatening a boycott and other regional confederations rebuking the scheme.
“We will proceed with this consultation process to ensure that each MA (Member Association) has the ability to express its vote based on facts,” it said in a statement.
“Nobody is selling football. This is not something FIFA would ever entertain,” it added.
“Everyone has the right to express their opposition and to seek further clarification but no single entity can claim to represent all 211 MAs around the world.
“Each MA should be allowed to review the proposal and have a say in shaping their own future. These are the democratic principles of FIFA.”
FIFA and UEFA are at war. Photo: Getty Images
Meanwhile, Asia’s soccer body joined UEFA and CONCACAF in rejecting Gianni Infantino’s plan for private investors to buy stakes in the World Cup and called for FIFA to review its governance.
European nations said they will boycott all FIFA competitions until the global body drops its controversial plan to sell stakes in a World Cup company.
On Friday, CONCACAF, the regional body for North and Central America and the Caribbean, rejected the plans, although stopped short of threatening a boycott.
The Asian Football Confederation (AFC), which counts Australia among its members, joined the condemnation in a hammer blow to Infantino’s grand plans – and potentially his FIFA presidency.
“The AFC stands in solidarity with UEFA and CONCACAF in expressing serious concerns over FIFA’s proposal to introduce private investment into FIFA’s flagship competitions and the decision-making process around FFE,” it read.
“The fact that the situation has reached the point where the real possibility of a FIFA World Cup boycott has entered public discourse should concern everyone who cares about the future of our game. Football should never have been placed in such a position.”
The AFC said the debate had exposed “fundamental weaknesses in FIFA’s consultation and decision-making processes” that needed addressing.
“The AFC calls upon FIFA to undertake an urgent review of its governance and decision-making framework to ensure that proposals of global significance are developed through proper consultation, meaningful engagement and appropriate oversight by FIFA’s statutory bodies,” it said.
FIFA earlier said it was not “selling football” and broadcast its intent to push ahead with consultations on the plan, which requires approval from a majority of FIFA’s 211 member associations.
But collective opposition from AFC’s 47 members, added to CONCACAF’s 41 and UEFA’s 55, would mean 143 now stand against it.
UEFA member associations had gathered virtually for a crisis meeting and afterwards issued a statement that puts them on a direct collision course with the world’s governing body.
“No UEFA national teams will participate in any FIFA competition for so long as these proposals remain alive, unless this proposal has been abandoned in its entirety and binding assurances have been given that FIFA will never again open its governance or competitions to private ownership,” it read.
FIFA issued details of their plans to create FIFA Forward Enterprise (FFE) after media reports were published on Tuesday afternoon.
FFE would be owned and controlled by FIFA but the intention is to sell minority stakes to private investors.
The lead investor is proposed to be Thrive Eternal, a company founded by Joshua Kushner, the brother of United States President Donald Trump’s son-in-law, Jared Kushner.
“UEFA and its 55 member associations stand as one,” European football’s governing body said in their statement.
“We unanimously and unequivocally reject FIFA’s proposal to transfer ownership interests in the World Cup and other FIFA competitions to private investors.
“The World Cup cannot be treated as an investment product. It is one of football’s greatest sporting legacies. No part of it should ever be surrendered to private investors. The World Cup is not for sale.”
CONCACAF said their membership expressed “deep concerns about the lack of due process surrounding the proposal, a short deadline and the absence of any review or approval by relevant FIFA governance bodies.”
FIFA said the plans would enable them to make significant increases to the development funding available to national associations – up to $A14.2 billion ($US10 bn) – in the three-year cycle between 2027-2030.
Associations were asked to make a decision by September 19 on whether they supported the idea of private investment.
— Additional reporting from AAP and PA.