Josh Kushner on Scrapped $20B FIFA Deal: 'Failed to Appreciate Political Dynamics'

Thrive Capital CEO Josh Kushner has broken his silence regarding FIFA's abandoned $20 billion plan to sell a stake in the World Cup to outside investors, attributing the deal's failure to an underestimation of "the political dynamics of global football." The proposed transaction, known as FIFA Forward Enterprise (FFE), aimed to raise up to $4.2 billion from Thrive and other investors.

The negotiations encountered immediate and strong backlash, including a unanimous vote by UEFA members to boycott the World Cup in protest. Kushner stated that had Thrive Capital foreseen the eventual outcome, the firm would not have become involved. "While we stand behind the motivations of FFE, we failed to appreciate the political dynamics of global football, and the lengths some would go to," Kushner said in a statement. "Thrive has a long track record of being a partner to all constituents."

Kushner's statement comes shortly after UEFA initiated legal proceedings in U.S. federal court, seeking permission to subpoena Thrive Capital for information about its dealings with FIFA president Gianni Infantino. UEFA is pursuing a criminal case against Infantino in Switzerland and is requesting documents from Thrive, along with deposition testimony from Kushner. A spokesperson for Thrive Capital confirmed the firm's awareness of the request. UEFA has indicated that neither Kushner nor Thrive Capital are expected to be named as defendants in the potential case against Infantino, and Kushner and Thrive are not accused of any wrongdoing.

Pushing back against the narrative that the deal would have constituted a takeover of FIFA, Kushner emphasized that it required a majority vote from FIFA's member associations. "It was an idea that every Member Association would vote on, not an obligation or determination," he said. The deal was ultimately scuttled before a vote could take place.

Kushner argued that the FFE initiative was designed to address historical disparities in football finances, where capital is often concentrated among a few countries. "Money in football has historically been concentrated amongst a small group of countries," Kushner explained. "The idea behind FFE was to direct more capital and equity equally amongst all 211 member countries, providing significantly more investment to underdeveloped nations to nurture local talent, support grassroots football, enhance the fan experience, and ultimately grow the global game everywhere."

Thrive Capital, known for its investments in technology firms such as OpenAI and a recent majority control acquisition of the NBA's Los Angeles Lakers, is led by Josh Kushner, the younger brother of former White House advisor Jared Kushner. Josh Kushner has identified as a Democrat.

The proposed deal would have involved FIFA transferring its revenue-generating assets, including TV rights, sponsorship deals, licensing, and ticketing, into a for-profit entity, with Thrive Capital as the primary investor. JPMorgan Chase was reportedly advising on the transaction.

In a court filing last week, UEFA alleged that Infantino engaged in "criminal mismanagement" of FIFA. According to UEFA, this mismanagement arose from the "secretive structuring, valuation, financing, and marketing of a transaction that inflicted direct and concrete injury on FIFA's reputation, governance authority, and commercial relationships to the detriment of FIFA as well as its 211 members, including UEFA's 55 member associations."

UEFA and other critics have been escalating efforts to challenge Infantino's leadership ahead of his re-election in March. On August 1, the European soccer body publicly stated it had no confidence in Infantino's leadership.