FIFA has abandoned its plan to create a commercial subsidiary to manage the World Cup and other major events, president Gianni Infantino announced Friday.
The governing body said in a statement that the project had created divisions of such a nature that, regardless of the level of support, it no longer served its initial objective, and the proposal would not go forward.
FIFA had announced Wednesday its intention to sell a 20 percent stake in FIFA Forward Enterprise, a new subsidiary that would have handled the organization’s commercial operations and events, including the World Cup. The subsidiary was valued at around $20 billion, according to J.P. Morgan.
According to the British newspaper The Times, FIFA had also given its 211 member federations roughly 50 days to decide whether to accept $53 million each in exchange for backing the proposal.
The project faced a significant setback Thursday when UEFA rejected it, warning that its national federations would not participate in FIFA competitions if the plan remained in place. UEFA’s member associations have won 13 of the World Cups held since 1930. CONCACAF also joined UEFA’s opposition.
CONMEBOL said Friday it was beginning a consultation process among its members and that football comes first.
Infantino closed the statement by saying he intended to bring all stakeholders together in the coming days and weeks, with a spirit of shared interest in the sport and a goal of promoting football everywhere, especially in countries that need the most support.
