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FIFA abandons plans to sell World Cup profits to private equity following massive pushback

Click to play video: 'FIFA proposal to sell World Cup stake sparks global backlash'
FIFA proposal to sell World Cup stake sparks global backlash
FIFA's proposal to sell up to a 20 per cent stake in a new subsidiary managing the World Cup and other tournaments is drawing widespread criticism from soccer officials and supporters. Senior adviser Carlos Cordeiro resigned, calling it "a bad deal for football," while Norwegian Football Association President Lise Klaveness said UEFA members agreed the proposal is "not a democratic process" and that football "should be owned by its members and be run democratically." Critics say the plan would give private investors a stake in footballs most valuable asset.

FIFA President Gianni Infantino is abandoning his divisive plan to sell World Cup profits to private equity after receiving pushback from all corners of the soccer world.

Infantino’s decision came after his senior adviser who sat on a White House panel resigned and Asia’s soccer body joined Europe and North America in opposing it.

“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,” Infantino said in a statement on Friday. “Our purpose has always been — and will always be — to unite and improve. As a result, this proposal will not proceed.”

Infantino had proposed creating a $20 billion company to run the World Cup with private investors including the Kushner family, but drew backlash that grew every day since Tuesday’s announcement.

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Click to play video: 'UEFA threatens to boycott FIFA tournaments over Infantino’s World Cup sell-off plan'
UEFA threatens to boycott FIFA tournaments over Infantino’s World Cup sell-off plan

UEFA’s 55-member nations agreed to boycott the World Cup and all other FIFA competitions over Infantino’s plan on Thursday. North America’s CONCACAF and the Asian Football Confederation also said they opposed the plan.

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“Some things are simply too important to sell,” UEFA said in a statement. “The FIFA World Cup belongs to football. It always will. And so long as Europe has a voice, it will never be for sale.”

Infantino’s senior adviser, Carlos Cordeiro, a former Goldman Sachs banker who represented the soccer body on the White House Task Force for the World Cup, resigned on Friday and urged other senior FIFA staff to speak out.

“I cannot stand by while FIFA considers selling a stake in the World Cup,” Cordeiro said in a statement, just hours after FIFA insisted: “Nobody is selling football.”

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Hours later, FIFA chief operating officer Kevin Lamour issued a statement to The Associated Press, saying FIFA staff were deceived by Infantino’s lack of openness in planning the sale over recent months and that the project must not continue.

“It is the project of one person,” Lamour, a long-time colleague of Infantino at both FIFA and European soccer body UEFA, wrote. “Not only must this project not go ahead … but the time has now come for football political leaders to ask themselves the right questions and make the right decisions.”

Infantino has proposed spinning off FIFA’s commercial businesses — including World Cups and Club World Cups for men and women — into a $20 billion subsidiary with 20% owned by private investors.

The “anchor investor,” described by FIFA, is a New York-based investment firm created by Joshua Kushner, the younger brother of U.S. President Donald Trump’s son-in-law, Jared Kushner.

The next FIFA competition is the Women’s Under-20 World Cup starting Sept. 5 in Poland — which UEFA members said they would boycott.

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