FIFA has dropped plans to sell a stake in its commercial operations to outside investors after a rebellion among football officials worldwide and a serious split within its senior leadership, according to The New York Post.
The governing body had planned to raise up to $4.2 billion by selling roughly a 20 percent share in a new unit valued at $20 billion, to be called FIFA Forward Enterprise. The new structure would have absorbed FIFA’s revenue-generating assets, including television rights, sponsorship deals, licensing, and ticket sales.
Thrive Capital, a firm led by New York venture capitalist Joshua Kushner, was set to be the lead participant in the deal, with JPMorgan serving as adviser. According to three sources, Thrive has already begun pulling out. Insiders said JPMorgan does not expect the deal to proceed, with one person directly familiar with the situation saying they did not believe Kushner would hold on and that the deal was being killed.
A source familiar with the collapsed deal said Kushner would find another way into the space but that the episode had become a nightmare for the brand.
The failure capped a difficult week for FIFA president Gianni Infantino, who had championed the plan. He gave FIFA’s 211 member countries a deadline of September 19 to back the deal, with promised payments of up to $40 million each. But FIFA and its bankers badly misjudged sentiment in Europe, where the wealthiest clubs and leagues generate the majority of football’s revenues.
UEFA’s threat was direct: none of its clubs would participate in any FIFA event until the plan was fully cancelled and FIFA committed never to open the game to private ownership again.
One source suggested FIFA may instead look to commercialise its assets through its existing non-profit structure.
