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FIFA president Gianni Infantino said on Friday that world soccer’s governing body has scrapped plans to sell stakes in the World Cup to private investors after widespread backlash.
FIFA’s plan was to raise up to $4.2 billion by selling about a 20 per cent stake in a new unit that would run FIFA events, including the World Cup, valuing it at $20 billion.
The proposal, first announced on Tuesday, was strongly opposed by European soccer’s governing body, UEFA, which threatened a boycott and accused FIFA of putting the sport’s “soul” up for sale.
“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. As a result, this proposal will not proceed.”
FIFA President Gianni Infantino is dropping plans to sell stakes in the World Cup tournament to private equity investors. This follows threats by European soccer body UEFA to boycott FIFA competitions unless the deal with private investors was dropped.
FIFA had argued that selling the minority stake in its commercial operations would raise billions of dollars to fund global sports development and accused the media of mischaracterising the proposal.
Infantino had written to member associations to tell them that they would receive $40 million each if they agreed to FIFA’s proposal by Sept. 19.
“Moving forward, my intent is to bring all interested parties back together in the coming days and weeks in the spirit of shared interest in our game, and with the objective to continue growing football everywhere, particularly in those countries that mostly need our support,” Infantino said in Friday’s statement.
Adviser resigns
Opposition to the plan snowballed over the week.
On Thursday, UEFA’s 55 member nations voted unanimously to boycott all FIFA tournaments until the proposal was withdrawn, saying that the World Cup “cannot be treated as an investment product.”
CONCACAF, the 41-member federation for North America, Central America and the Caribbean, rejected the proposal during a meeting on Thursday.
On Friday, the Asian Football Confederation, which has 47 members, issued a statement saying it “stands in solidarity” with UEFA and CONCACAF.
FIFA president Gianni Infantino’s key adviser has resigned, amid ongoing controversy following FIFA’s plans to sell a stake in the World Cup.
Infantino announced a plan to sell off part of FIFA’s commercial interests to private investors, a move that caused significant backlash in the soccer world, including the prospect of European nations boycotting future editions of the World Cup.
On Friday, Infantino’s key adviser Carlos Cordeiro resigned, calling the plan ‘”a bad deal for football.’
UEFA, CONCACAF and the AFC combined have 143 national associations, well over half of FIFA’s 211 members. A majority of the members would have needed to vote in support of the plan for it to proceed.
Disagreement was also internal. Earlier on Friday, Infantino’s senior adviser, Carlos Cordeiro, resigned with immediate effect, calling the plan “a bad deal for football.”
FIFA’s chief operating officer, Kevin Lamour, said staff were “deceived” by Infantino, describing the proposal as a “project of one person.”
Infantino, 56, is up for re-election next year. North American football chief Victor Montagliani is reportedly looking to challenge him.
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