FIFA’s proposal to attract external investors by selling a portion of its assets has been abandoned following opposition from officials worldwide and internal disagreements among the football governing body’s leadership.
Reports indicate that FIFA had aimed to generate up to $4.2 billion (£3.1 billion) by offering around a 20% stake in the organization, valuing the new segment at $20 billion (£14.8 billion).
The FIFA Forward Enterprise initiative, which faced significant resistance even from top executives, has now been scrapped, as confirmed by FIFA President Gianni Infantino and sources familiar with the matter.
Infantino, speaking to Sky News, acknowledged the project’s divisive nature, stating that it no longer aligns with the organization’s core objective of unity and progress. Consequently, the proposed deal will not move forward.
He expressed his intention to regroup with all stakeholders in the upcoming days and weeks to foster a shared interest in advancing football globally, particularly in nations requiring support.
The failed transaction involved Thrive Capital, a firm led by Joshua Kushner, brother of Jared Kushner, who is the son-in-law of US President Donald Trump. Sources suggest that there is reluctance to continue participating in the deal, leading to concerns about reputational damage.
The plan entailed transferring FIFA’s revenue-generating assets, such as TV rights, sponsor agreements, licensing, and ticketing, to a new entity named FIFA Forward Enterprise. Infantino had set a deadline of September 19 for FIFA’s 211 member nations to endorse the deal, offering potential payouts of up to $40 million each, which critics labeled as a time-constrained inducement.
The situation has sparked widespread backlash, with European soccer authorities threatening boycotts, FIFA’s North American bloc rejecting the proposal, and the Asian Football Confederation joining the opposition.
The dissent has even reached Infantino’s inner circle, with FIFA’s Chief Operating Officer Kevin Lamour expressing discontent over the lack of transparency in the process. Lamour emphasized that the controversial project was not a collective FIFA endeavor but rather the brainchild of one individual.
Furthermore, Infantino’s senior adviser and former Goldman Sachs partner, Carlos Cordeiro, resigned in protest against the proposal, citing concerns about selling a stake in the World Cup.
Many member nations view the ongoing dispute as a litmus test ahead of the upcoming presidential election in March.