FIFA abandons the plan to sell its stake in the business
According to Sports.
Context
Gianni Infantino, president of FIFA, saw his leadership tested by this situation. His ambition to expand FIFA's business through external investment has suffered a serious blow, forcing him to reconsider future strategies for investor engagement and commercial rights management.
Why it matters
The abandonment of the plan to sell the $20 billion commercial stake represents a blow to FIFA and its president Gianni Infantino. This project, which aimed to separate the commercial rights into a new entity, could have generated significant revenue, but faced strong opposition within the global football community. The decision not to proceed reflects existing tensions in the world of football, which could influence FIFA's future commercial strategies.
Key points
- FIFA abandons plan to sell stake in the business.
- FIFA has abandoned plans to sell a stake in its commercial business after investors and strong opposition withdrew, a blow to president Gianni Infantino.
- FIFA abandon $20B World Cup sell-off plan as investors pull out, CONCACAF president set to challenge Infantino for taken.
FIFA has officially abandoned its plans to sell a minority stake in its commercial business, a plan that had sparked strong opposition within the football community
The plan called for the sale of 20% of a new commercial entity that would value FIFA's business at around $20 billion, with the aim of raising around $4.2 billion. The idea was to separate television rights, sponsorship deals, licensing operations and ticket sales into a separate company. However, the project was abandoned after Thrive Capital, the investment firm led by Joshua Kushner, withdrew its support. JPMorgan, which was advising on the transaction, also exited its stake as support for the proposal faded.
Infantino confirmed the decision, highlighting how the plan had created divisions within the world of football that outweighed the potential benefits. As a result, FIFA will continue to manage and sell its commercial rights through the existing structure. The abandonment of this project follows strong resistance from several influential football confederations. UEFA warned that member nations could boycott FIFA competitions if private investors gained ownership rights to commercial football assets.
Opposition quickly spread beyond Europe, including CONCACAF and the Asian Football Confederation, which rejected the proposal. Without the support of the major global football markets, the project has become unsustainable. This failed initiative also exposed deep cracks within FIFA itself. Chief Operating Officer Kevin Lamour publicly criticized the process, saying senior executives had been kept in the dark and describing the proposal as the initiative of a single individual rather than FIFA as a whole. Senior advisor Carlos Cordeiro also resigned over the controversy.
With FIFA's commercial gamble abandoned and pressure mounting ahead of next year's presidential election, Infantino's authority appears weaker than ever. CONCACAF president Victor Montagliani is preparing to challenge Infantino for the presidency, while UEFA-backed Paris Saint-Germain president Nasser al-Khelaifi has no plans to follow in his footsteps.
What happens now
With the plan abandoned, FIFA will continue to manage its commercial rights through its current structure. This could mean a greater focus on internal management and seeking new monetization opportunities, especially ahead of the 2026 World Cup. FIFA will face the challenges of maintaining unity within the football community as it seeks to expand its business operations without further division.
Frequently Asked Questions
What happened with FIFA's sales plan?
FIFA has officially abandoned its plans to sell a minority stake in its commercial business.
Who confirmed FIFA's decision?
The decision was confirmed by FIFA president, Gianni Infantino.
Why did FIFA decide to abandon the sales plan?
The decision came after the withdrawal of key investors and due to the divisions created within the world of football.
What changes will there be in FIFA's management of commercial rights?
FIFA will continue to manage and sell its commercial rights through the existing structure.
What did the plan abandoned by FIFA involve?
The plan called for the sale of 20% of a new business entity valued at around $20 billion.
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