FIFA Makes U-Turn, Releases Statement After Backlash Over Failed World Cup Investment Plan
- FIFA President Gianni Infantino announced on Friday that the plan to sell stakes in World Cup tournaments to private investors would not go ahead
- UEFA had voted to boycott World Cups if the plans proceeded, while Concacaf and the Asian Football Confederation also came out against the proposal
- FIFA's chief operating officer said the governing body's own administration had been deceived about the project, as a senior adviser resigned over the matter
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FIFA has abandoned its controversial plan to bring private investors into its flagship competitions, including the men's and women's World Cups, after opposition from several of football's most powerful governing bodies made the proposal unworkable.
FIFA President Gianni Infantino confirmed the reversal on Friday, July 31, saying the project had created divisions that were "no longer in the interest" of its original objective.
Source: Getty Images
"As a result, this proposal will not proceed," he said, adding that he intends to bring all interested parties together "in the coming days and weeks in the spirit of shared interest in our game."
What the Infantino plan involved
According to BBC Sport, FIFA had proposed creating a commercial subsidiary called FIFA Forward Enterprise (FFE), through which outside investors would hold minority, non-controlling stakes in its major tournaments.
A 25-page document prepared by investment bank JP Morgan outlined how the arrangement could significantly increase payouts to member associations by the 2035-2039 cycle.
Infantino had offered each of FIFA's 211 member associations $40 million if they backed the proposal, with an initial $20 million available to those who agreed by September 19.
The investor group was expected to be led by Thrive Eternal, an American venture capital firm founded by Joshua Kushner, the brother of Jared Kushner, son-in-law to US President Donald Trump.
Trump, who addressed the matter for the first time on Friday, said he had not spoken to Infantino about the plans.
Opposition forces FIFA's hand
UEFA was the first major confederation to push back, voting to boycott World Cups if the proposal moved forward.
Concacaf followed, with its members formally rejecting the plan, and sources saying the vast majority of associations from the region had lost confidence in Infantino.
The Asian Football Confederation then joined the opposition, saying it stood in solidarity with UEFA and Concacaf.
Mathematically, this made passing the plan nearly impossible.
According to Al Jazeera, FIFA needed 106 of its 211 member associations to vote in favour. With UEFA holding 55 votes, Concacaf 35, and Asia 46, a full bloc vote against the plan would have produced 136 votes in opposition.
The backlash also came from within FIFA itself as Chief operating officer Kevin Lamour said the governing body's own administration had been "deceived" about the project.
Senior adviser Carlos Cordeiro resigned over the matter, describing the proposal as "a bad deal for football" that would "mortgage football's future."
UK Prime Minister Andy Burnham said Infantino was "the wrong man" to lead FIFA.
AFC president Sheikh Salman bin Ebrahim Al Khalifa welcomed the withdrawal, saying the future of global football "must always be shaped through proper consultation, collective dialogue and respect for the established governance structures of our game."
The collapse of the plan adds pressure on Infantino as he seeks re-election for a fourth term at the FIFA Congress in March.
How much Nigeria was set to receive
In a related development, Legit.ng reported details about FIFA President Gianni Infantino's proposed new commercial structure that aims to boost funding for member associations, including an increase in grants for the Nigeria Football Federation (NFF).
As the deadline for voting on this initiative approaches, the controversy surrounding UEFA's opposition raises questions about the future governance and financial independence of football federations worldwide.
Source: Legit.ng
