FIFA has abandoned a plan to sell a stake in its commercial rights for an estimated $20 billion after facing widespread opposition and a threatened boycott from European soccer leagues. The deal, which would have involved a firm run by Joshua Kushner, brother of former White House advisor Jared Kushner, is now dead, according to sources familiar with the matter.
Sources indicated that FIFA executives recognized the significant backlash and rift created by the proposal, leading to the decision to scrap the deal. "They are not the feeling this. There is no way they want to continue to be involved in this mess," one source briefed on the collapsed deal stated. Joshua Kushner's firm, Thrive Capital, was reportedly set to anchor the transaction, with JPMorgan advising FIFA.
The plan called for FIFA, a non-profit organization under Swiss law, to transfer its revenue-generating assets, including television rights, sponsorship deals, licensing, and ticketing, into a new for-profit entity named FIFA Forward Enterprise. FIFA President Gianni Infantino had set a deadline of September 19 for FIFA's 211 member nations to approve the deal, offering payouts of up to $40 million to each member.
However, the proposal encountered strong resistance, particularly from European soccer organizations, which generate a significant portion of the sport's revenue. UEFA, representing Europe's richest clubs and leagues, threatened to withdraw their teams from all FIFA events if the plan was not fully rescinded. Such a boycott would severely diminish the value of the World Cup, as major European teams would not participate, impacting broadcasting rights and sponsorships.
"This would be the (temporary) end of global football," an insider close to Infantino commented on the potential consequences. FIFA and its advisors reportedly misjudged the sentiment within Europe.
FIFA publicly stated on Friday that "nobody is selling football." With the external investment deal off the table, FIFA intends to continue managing its rights internally, citing its financial success from the recent World Cup held in the United States, Canada, and Mexico.
Internal Divisions and Resignations
The controversy also exposed significant internal divisions within FIFA. FIFA Chief Operating Officer Kevin Lamour expressed feeling "deceived" by Infantino's lack of transparency regarding the deal, stating that the project was "the project of one person." Lamour criticized the situation for demonstrating "a lack of trust, a lack of transparency, a lack of discernment, a lack of good governance. And a serious lack of respect."
Carlos Cordeiro, a senior advisor to Infantino and former Goldman Sachs partner, resigned over the proposal. "I cannot stand by while FIFA considers selling a stake in the World Cup," Cordeiro said in a statement.
The opposition extends to upcoming FIFA presidential elections, with UEFA reportedly seeking a challenger. Many member nations reportedly view this situation as a vote of confidence, with at least 20 nations considering withdrawing support for Infantino's re-election bid. Lamour suggested that football leaders should "ask themselves the right questions and make the right decisions."
The collapse of the deal sends a strong signal to private equity firms interested in global sports, highlighting the enduring political structures within soccer.