FIFA private equity plan dropped after soccer bodies push back
Gianni Infantino said FIFA is abandoning a $20 billion commercial subsidiary plan after opposition from major soccer bodies.
By Georgia Hale · Staff Writer
3 min read
The FIFA private equity plan that had triggered alarm across world soccer is being shelved, FIFA President Gianni Infantino said Friday, after major regional bodies pushed back against the proposal.
Infantino said in a statement that FIFA would no longer pursue a plan to fold its commercial and event operations into a new commercial subsidiary. NBC News reported that the proposed entity had been valued at $20 billion and had drawn criticism over the possibility of selling stakes tied to soccer’s biggest tournament to private equity investors.
The climbdown came after Asia’s soccer body joined organizations in Europe and North America in opposing the idea. Europe’s soccer body warned this week that it “will not participate in FIFA competitions” because of the plan, according to NBC News.
FIFA first defended the proposal by saying in a statement that “nobody is selling football.” Later Friday, Infantino said the project was meant to strengthen soccer organizations rather than split the sport.
“Having listened carefully to all the views, it has become clear that the project has created divisions of a nature that, regardless of the level of support, are no longer in the interest of the objective set out in the first place,” Infantino said. “Our purpose has always been — and will always be — to unite and improve.”
What was the FIFA private equity plan?
The proposal, called FIFA Forward Enterprise, would have created a new commercial subsidiary combining FIFA’s commercial and event operations, according to NBC News. The plan was tied to a valuation of $20 billion and would have opened the door to private equity investment in the structure around FIFA’s biggest competitions.
Under the proposal, each FIFA member federation would have received a one-time payment of $20 million, NBC News reported. North America’s CONCACAF, the Confederation of North, Central America and Caribbean Association Football, rejected the move.
The backlash reached inside FIFA’s own circle. Carlos Cordeiro, a former Goldman Sachs banker and officially a senior adviser to Infantino, resigned over the plan, according to the Associated Press report cited by NBC News.
“I cannot stand by while FIFA considers selling a stake in the World Cup,” Cordeiro said in a statement.
What happens next for FIFA?
Infantino said he now wants to bring the sport’s power brokers back to the table. In his Friday statement, he said his “intent is to bring all interested parties back together in the coming days and weeks in the spirit of shared interest in our game.”
He said the goal remains to keep expanding the sport, “particularly in those countries that mostly need our support.”
The retreat leaves FIFA looking for a new path after a proposal pitched as a commercial boost became a flashpoint over who should control the money and machinery behind global soccer. For now, Infantino’s message is clear: the private equity plan is off the table.
This story draws on original reporting from NBC News.