Club World Cup

FIFA have abandoned plans to sell a minority stake in its commercial business after serious opposition from the global football community and the withdrawal of key investors (New York Post).

It is a major blow to FIFA president Gianni Infantino’s leadership.

The governing body had been exploring the sale of a one-fifth stake in a newly created commercial entity.

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The deal would have valued the business at around $20 billion and raised approximately $4.2bn.

The proposal involved spinning off FIFA’s lucrative television rights, sponsorship agreements, licensing and ticketing operations into a separate company.

However, the project has now been abandoned after Thrive Capital, the investment firm led by Joshua Kushner, reportedly pulled back from the negotiations.

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JP Morgan had been advising on the transaction. They have also closed their involvement as support for the proposal evaporated.

Infantino later confirmed the decision, admitting the plan had created divisions within world football that outweighed any potential benefits.

FIFA will continue managing and selling its commercial rights through its existing structure.

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The collapse follows fierce resistance from several of football’s most influential confederations.

UEFA reportedly warned that its member nations would boycott FIFA competitions if private investors were allowed to take ownership of the sport’s commercial assets

Opposition quickly spread beyond Europe, with CONCACAF and the Asian Football Confederation also rejecting the proposal.

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Without the backing of the world’s biggest football markets, the project became impossible to salvage.

The failed initiative has also exposed deep cracks within FIFA itself.

Chief operating officer Kevin Lamour publicly criticised the process, claiming senior executives had been kept in the dark and describing the proposal as the project of one person rather than FIFA’s.

Senior adviser Carlos Cordeiro also resigned over the controversy.

With FIFA’s commercial gamble abandoned and pressure growing ahead of next year’s presidential election, Infantino’s authority appears weaker than ever.

What was intended to modernise FIFA’s finances has instead become one of the biggest political setbacks of his presidency, leaving serious questions over whether he should remain in charge.

CONCACAF president Victor Montagliani is set to challenge Infantino, but UEFA-touted Paris Saint-Germain president Nasser al-Khelaifi has no intention to follow suit.

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Source: Footballtoday.com