Gianni Infantino has announced that FIFA will scrap plans to sell a stake in the World Cup to private investors.
FIFA wanted to set up a new company to oversee commercial operations for future World Cup tournaments but the decision to raise $4.2 billion (£3.1m) through private investors sparked huge backlash.
Following an emergency meeting this week, UEFA threatened a World Cup boycott and accused FIFA of selling the sport’s ‘soul’.
‘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.
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‘Our purpose has always been – and will always be – to unite and improve. As a result, this proposal will not proceed.
‘Moving forward, my intent is to bring all interested parties back together in the coming days and weeks in the spirit of shared interest in our game, and with the objective to continue growing football everywhere, particularly in those countries that mostly need our support.’
On Friday, FIFA accused the media of ‘disrupting’ the consultation process and insisted that ‘nobody is selling football’.
Infantino had told all 211 of FIFA’s member associations that they would each receive up to $40 million (£29.6m) if they agreed to FIFA’s proposal by September 19.
CONCACAF, the 41-member federation for North America, Central America and the Caribbean, also rejected the proposal during a meeting this week.
The Asian Football Confederation, which has 47 members, also issued a statement saying it ‘stands in solidarity’ with UEFA and CONCACAF.
Why is FIFA’s World Cup sell-off plan being opposed?
FIFA’s aim is to increase revenue from future World Cup and Club World Cup tournaments.
The plan is for FIFA to set up a new company called FIFA Forward Enterprise (FFE) to deal with the commercial operations.
FIFA would retain the majority share in FFE, which means it would still oversee football governance, fixture calendars and decisions on the pitch.
However, the problem starts with FIFA trying to raise a further $4.2 billion (£3.6m) through private investment.
Although private investors would only have a minority stake in FFE, they would still expect to have a say in decisions related to the World Cup, which could then have an impact on players and supporters.
Private investors could also pressure FIFA into expanding the World Cup, or even hosting the tournament more frequently than every four years.
UEFA, CONCACAF and the AFC combined make up 143 of FIFA’s 211 member associations. A majority would have needed to vote in support of the plan for it to proceed.
On Friday, Carlos Cordeiro, one of the senior advisors to Infantino, quit in protest over the World Cup sell-off plans.
‘Let me be clear: I had no involvement in this proposal, and I oppose it unequivocally,’ Cordeiro said in a statement.
‘It is a bad deal for FIFA’s Member Associations, a bad deal for football, and a bad deal for the long-term future of the game.
‘Football has been central to my life, and after more than 35 years in banking, I understand both the value of this asset and the consequences of giving part of it away. That is why this proposal should be rejected.’
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