FIFA cancels plan to sell World Cup stakes to private equity investors

FIFA President Gianni Infantino announced Friday that he is cancelling a plan to consolidate the organization's commercial and event operations into a new commercial subsidiary valued at $20 billion and sell stakes to private equity investors. The plan, called FIFA Forward Enterprise, has been shelved after opposition from continental soccer federations threatened to derail global soccer competition.

The reversal came days after Asia's, Europe's, and North America's soccer governing bodies all opposed the plan. Europe's soccer body said it "will not participate in FIFA competitions" as a result of the plan. CONCACAF (Confederation of North, Central America and Caribbean Association Football), which oversees soccer in North America, also rejected the proposal. The threat of withdrawal from FIFA competitions, which includes World Cup qualifying matches, created pressure FIFA could not sustain.

Infantino's initial response to the opposition had been defensive. FIFA initially responded by saying "nobody is selling football." However, the unified stance by regional federations forced a recalculation. In his announcement Friday, Infantino stated: "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. Our purpose has always been and will always be to unite and improve."

The plan would have provided a one-time payment of $20 million to each FIFA member federation, a financial incentive designed to offset federation concerns about privatization. The financial package failed to overcome the core objection that private equity ownership stakes in soccer's flagship event would commercialize the sport in ways member federations opposed.

Resignations preceded the cancellation. Carlos Cordeiro, a former Goldman Sachs banker serving as Infantino's senior adviser, resigned over the plan. Cordeiro stated: "I cannot stand by while FIFA considers selling a stake in the World Cup." His departure signaled that opposition to the plan extended into Infantino's own advisory circle.

Infantino has signaled intent to pursue alternative approaches. 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, and with the objective to continue growing football everywhere, particularly in those countries that mostly need our support." The statement suggests FIFA will pursue different revenue growth strategies, though no alternative plan has been announced.