FIFA President Gianni Infantino has abandoned his USD $20-billion proposal to sell stakes in the World Cup and other FIFA competitions to private investors, after fierce opposition from three of the six football confederations.
The plan, known as FIFA Forward Enterprise, would have created a commercial subsidiary worth close to AUD $28-billion, with private investors holding a 20 per cent stake. Thrive Eternal, founded by Joshua Kushner, the brother of US President Donald Trump's son-in-law Jared Kushner, was expected to be the main investor.
UEFA leads backlash
European football's governing body UEFA accused FIFA of putting the game's "soul" up for sale and threatened a boycott. UEFA Vice President Laura McAllister said the proposal was so damaging it could have dismantled the whole infrastructure of the game. “We’ve been pushed into this by a proposal that was so damaging it could have dismantled the whole infrastructure of the game,” McAllister said.
UEFA is reportedly threatening legal action against FIFA and Joshua Kushner over the plan. CONCACAF, which represents football in North America, Central America and the Caribbean, rejected the proposal and demanded a full review of how it had been developed. The Asian Football Confederation also opposed it, with AFC President Sheikh Salman bin Ebrahim Al-Khalifa welcoming FIFA's decision to abandon it.
Fallout within FIFA
Infantino's senior advisor Carlos Cordeiro resigned, calling the proposal a bad deal for football. FIFA Chief Operating Officer Kevin Lamour accused the president of operating without transparency, saying staff had been deceived, treated with contempt and subjected to intimidation. Lamour said the project was the work of one person.
Former FIFA President Sepp Blatter wrote on social media: "The close relationship between the FIFA President and the US President has reached a financial dimension that is deeply damaging football. No one has the right to sell our game." The controversy has also revived a 2016 Gary Lineker post joking that Infantino would pull off his mask to reveal Blatter.
Financial questions
Dr Dan Plumley, a senior lecturer in sport finance at Loughborough University, said FIFA's existing business model is already highly profitable, with the most recent World Cup generating about AUD $21 billion in revenue. He noted that the offer of an extra USD $20 million per member association explains why some smaller nations might have supported the proposal.
Moya Dodd, former Matildas vice-captain and former FIFA Council member, said FIFA was sitting on reserves of $4 billion and did not need private capital. "Why would FIFA need to do this in order to pay more money to its own members?" she asked. She warned that expanding competitions to generate more revenue would take more dates out of the calendar and threaten the professionalisation of women's football.
Can Infantino survive?
UK Prime Minister Andy Burnham said: "Football does not belong to investors. It belongs to the people who fill the stands, who stand on the touchlines week in, week out, rain or shine. The World Cup is not a product. It is the greatest competition in the world. And it was never anyone's to sell." Football Australia chairman Anter Isaac said major decisions need transparency, proper consultation and good governance.
SBS football commentator David Basheer said Infantino's position is "virtually untenable" and that he has no alternative but to resign. "It's the tip of the iceberg," he added. "You'll see a move to oust Infantino at the next elections."
FIFA gave its 211 member associations until September 19 to accept the proposal, with each eligible for a stake worth about AUD $28 million. Norwegian FA president Lise Klavaness described the offer as blackmail. Infantino is expected to seek a fourth term in March, but the episode has left his future in doubt.
