Fifa scraps proposal to sell off stakes in World Cup after widespread backlash
📰 source: theguardian_business · 💼 business
fifa president gianni infantino's plan to sell off stakes in the world cup to private investors has collapsed after a week of backlash. he admitted the project 'has created divisions of a nature that are no longer in the interest of the objective' and said the proposal will not proceed.
the scheme, called fifa forward enterprise, would have raised hundreds of millions by selling commercial rights to the men's and women's world cups and the club world cup. it promised distribution of over $10bn across 211 member associations, with a $20m sign-up bonus and a deadline of 19 september. but uefa threatened a boycott, other confederations balked, and senior advisor carlos cordeiro resigned. coo kevin lamour accused infantino of 'serious lack of respect'.
thrive capital, the lead investor, reportedly had doubts. infantino's presidency is now under pressure ahead of next year's election, with uefa and others searching for a challenger. some wonder if fifa's $4bn reserves could be used to win over federations, but his credibility has taken a serious hit.
why it matters: collapse of world cup stake sale leaves fifa's governance in crisis and infantino's future in doubt before next year's election.
source: theguardian_business
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