FIFA Drops Commercial Stake Sale Plan Amid Backlash: Report
FIFA has reportedly dropped plans to sell a minority stake in its commercial arm after facing strong opposition from UEFA and internal criticism.
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FIFA has reportedly abandoned plans to sell a minority stake in a new commercial entity after fierce opposition from football officials and criticism from within its own leadership, a New York Post report said.
The plan would see FIFA raise as much as $4.2 billion by selling off around 20% of a new commercial arm called FIFA Forward Enterprise (FFE) that was valued at around $20 billion. The company was to take charge of the commercial rights of FIFA World Cup and other tournaments of the governing body.
UEFA swiftly opposed the plan, saying opening FIFA’s commercial operations to outside investors could threaten the values and governance of the sport.
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Growing Opposition:
The report said all 55 UEFA member associations voted unanimously on Thursday to boycott FIFA competitions in protest at the proposal.
It also exposed divisions in the leadership of FIFA. Carlos Cordeiro, a senior adviser to FIFA President Gianni Infantino, resigned Friday in protest over the plan, according to reports.
FIFA’s chief operating officer, Kevin Lamour, also slammed the proposal, saying staff had been “misled” by Infantino and calling the initiative “a one-man project”, the report said.
FIFA defended the proposal, saying it was not selling football and the plan had been widely misunderstood.
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Proposal Shelved:
However, FIFA said the FIFA Forward Enterprise would only oversee its commercial and event operations, with FIFA retaining overall control. It also stated the proposal would only proceed if it received the support of a majority of its member associations.
FIFA said the consortium of investors was expected to be led by Thrive Eternal, an investment fund run by Thrive Capital founder Joshua Kushner.
Infantino had also written to FIFA's member associations, stating that each association would receive $40 million if the proposal received approval by September 19.
However, mounting opposition from UEFA and criticism from senior FIFA officials ultimately led the governing body to shelve the proposal, according to the report.
