FIFA has decided to drop a massive $20 billion plan that aimed to bring private investment into the World Cup. FIFA President Gianni Infantino announced the decision on Friday.
Under this plan, FIFA planned to create a new company called FIFA Forward Enterprise with a value of $20 billion. The company would have managed the commercial and business operations of the FIFA World Cup and other major tournaments. FIFA also planned to sell a 20% stake in the company to private investors for about $4.2 billion while keeping the remaining 80% ownership.
Infantino explained why he cancelled the plan. “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. He said “Our purpose has always been, and will always be, to unite and improve. As a result, this proposal will not proceed.”
The criticism grew quickly. UEFA, which represents 55 soccer associations across Europe, voted unanimously on Thursday to boycott FIFA competitions over the proposal. UEFA said the plan threatened the game’s values and governance.
The controversy also led to a high-profile resignation. Carlos Cordeiro, a senior advisor to Gianni Infantino and former president of U.S. Soccer, resigned on Friday. He said the proposal would harm FIFA’s member associations and the long-term future of the sport.
Cordeiro was not the only senior official to oppose the plan. FIFA Chief Operating Officer Kevin Lamour also criticized the proposal, saying staff had been misled. He also that he was willing to risk losing his job for speaking out.
FIFA had also set a September deadline for member groups to support the plan. FIFA warned that groups refusing to support it could lose funding. Many football associations pointed out the deadline left them with little time for proper discussion before making a decision.
Several major Wall Street firms were also involved in the proposal. FIFA selected J.P. Morgan to help manage the deal while Thrive Capital led by Joshua Kushner was expected to lead the group of private investors.
The Asian Football Confederation welcomed FIFA’s decision to cancel the plan. AFC President, Shaikh Salman bin Ebrahim Al Khalifa said football’s future should always be shaped through proper discussions and respect for the sport’s existing system.
This entire controversy also raises questions about Infantino’s political future He became FIFA president in 2016 after defeating Sheikh Salman in a five-candidate election. Infantino is expected to run for a fourth term at FIFA’s 2027 Congress in Morocco, which would keep him in charge until 2031 if he wins.
Before this controversy, he appeared likely to win that election without any serious challenger. Now, after so many powerful groups pushed back against his World Cup plan, it is now unclear whether he will have the same level of support ahead of next year’s election.
