FIFA has decided to scrap a contentious $20 billion investment initiative following widespread global backlash. Gianni Infantino, the organization’s president, acknowledged that the situation surrounding the shareholder sale project is “clear.” The plan involved creating a new company to manage the commercial rights of FIFA and selling a 20% stake to private investors, a move that faced intense criticism worldwide.
The decision to halt the investment plan comes after significant opposition from high-ranking FIFA officials, the European football federation UEFA, and other football confederations, as well as several days of outrage that erupted following the Financial Times’ disclosure of the proposal.
FIFA’s Reversal
Infantino faced mounting pressure as internal FIFA members criticized his idea of securing as much as $4.2 billion from a private investment group led by Thrive Eternal. This group would have acquired about 20% of the new commercial venture named FIFA Forward Enterprise, managed by Joshua Kushner, brother of Jared Kushner, who is married to Ivanka Trump, daughter of former U.S. President Donald Trump.
This week, Infantino was under intense scrutiny regarding the proposed share sale, which would have dramatically altered the governance of global football and the balance of power in the sport.
Infantino Under Pressure
The controversies surrounding this plan have raised questions about Infantino’s future in his position. Estimates suggest that dozens of national member associations have either lost trust in his leadership or are in the process of doing so, according to the Financial Times.
The Swiss official is expected to seek re-election next year. FIFA’s Chief Operating Officer Kevin Lamour stated on Friday that the share sale was “a project of one person,” claiming that he and his colleagues had been “misled” by its proponents.
In protest, one of Infantino’s top advisors resigned, while British politician Andy Burnham declared that, given these plans, Infantino is the “wrong person” to lead FIFA.
UEFA characterized FIFA’s handling of the process as “irresponsible and indefensible,” accusing Infantino of employing “intimidating methods.” The European organization announced that its 55 member associations would boycott all FIFA tournaments until the investment plan was withdrawn.
FIFA had presented the share sale proposal as a means to increase revenues and distribute profits among its 211 national member associations, promising each a preliminary payout of $20 million and a doubling of its annual grant to $5 million if they supported the plan—amounts that would have been transformative for associations from smaller and poorer nations.
The plan was set to be voted on September 19, requiring a simple majority of member associations’ support before final approval by FIFA’s Council.
Despite the ongoing criticism, Infantino indicated that he intends to continue leading the organization responsible for the World Cup. “I plan to gather all stakeholders again in the coming days and weeks, focusing on the common good of our sport,” he stated.
Source: Financial Times
