FIFA has decided not to sell the rights to the championships due to the threat of a boycott
Gianni Infantino, president of the International Federation of Association Football (FIFA), officially announced the cancellation of plans to sell a stake in the management of the World Cup to private investors. This decision was made following sharp criticism from the soccer community and threats of a mass boycott by national federations.
Earlier this week, FIFA presented a proposal that called for raising $4.2 billion by selling a 20% stake in a new company, FIFA Forward Enterprise.
The total value of the structure was estimated at $20 billion.
The company was expected to be responsible for organizing the World Cups, and Thrive Eternal, a fund linked to Jared Kushner’s family, was named among the potential investors.
However, the initiative met with unprecedented opposition.
The major soccer confederations spoke out strongly against the proposed model.
Specifically:
- UEFA, together with 55 national associations, declared its readiness to boycott all FIFA tournaments;
- CONCACAF, which unites 41 countries, supported the Europeans’ position;
- The Asian Football Confederation (AFC), which comprises 47 associations, expressed similar solidarity.
In total, 143 out of 211 national soccer associations opposed the proposal, effectively making its implementation impossible.
Even the offer to pay each association $40 million did not change the position of the majority of FIFA members.
“After hearing all sides, it became clear that the project had created a rift that no longer aligns with our mission. Our mission is to unite. Therefore, this proposal will not be implemented,” said Gianni Infantino.
The initiative also led to internal conflict within the organization’s leadership.
In particular, FIFA President’s Senior Advisor Carlos Cordeiro resigned, calling the proposed deal “bad for soccer.”
At the same time, FIFA Chief Operating Officer Kevin Lamour stated that the organization’s staff had been “misled” in order to carry out the leadership’s personal initiative.
The abandonment of this large-scale investment project could significantly affect Gianni Infantino’s standing ahead of the FIFA presidential election, which is scheduled to take place next year.
According to Reuters, CONCACAF President Victor Montagliani is considered one of the possible challengers to the organization’s current head.
This was reported by Reuters.
The Union of European Football Associations (UEFA) held an emergency meeting on Thursday to discuss a possible response to the International Federation of Association Football (FIFA)’s plans to bring in outside investors for the organization’s commercial projects.
As a reminder, European soccer associations will discuss this week the possibility of boycotting the World Cup if FIFA President Gianni Infantino proceeds with plans to create a new commercial structure and bring in private investors.
FIFA plans to change the management model for its major soccer tournaments. The organization is creating a new company to which the commercial rights to the World Cups will be transferred, and it intends to sell a portion of its shares to investors. One of the main contenders to participate in the project is said to be the fund of American billionaire Joshua Kushner—the brother of Ivanka Trump’s husband.
