FIFA Infantino sets September 19 deadline for $20M offers to members

• FIFA President Gianni Infantino has set a September 19 deadline for member federations to accept $20 million offers.
• The plan aims to create a $20 billion subsidiary that would run FIFA's competitions and events, with 20% ownership by private investors.
• International soccer organizations have expressed significant opposition to the scheme, citing concerns about due process and governance.

The World Cup is not FIFA's to sell.

FIFA President Gianni Infantino has set a September 19 deadline for member federations to accept one-off $20 million offers as part of a project to sell stakes in the World Cup to private investors. The plan, backed by Joshua Kushner's investment firm Thrive Capital, aims to create a $20 billion subsidiary that would run FIFA's competitions and events. However, international soccer organizations have expressed significant opposition to the scheme, with UEFA calling it 'a game-changing opportunity' but also stating that 'the World Cup is not FIFA's to sell.' The European soccer body has announced plans to hold an emergency online meeting to discuss the proposal.

The creation of a $20 billion subsidiary, with 20% ownership by private investors, raises concerns about due process and governance. Continental bodies such as UEFA, CONCACAF, and the Asian Football Confederation have expressed disappointment that the plan was revealed without prior consultation or discussion. The proposal also has implications for existing competitions, including the Champions League and Copa America, which could be threatened by FIFA's plans to increase revenue through more frequent World Cups and Club World Cups. Sports governance experts have highlighted the lack of transparency and warning in the announcement of this proposal.

The proposed $20 billion subsidiary has sparked controversy within the soccer world, with many questioning the motivations behind Infantino's latest effort to align with those in the orbit of former U.S. President Donald Trump. The creation of a private equity plan and the involvement of Joshua Kushner's investment firm have raised concerns about the potential risks and implications for member federations and their clients' involvement in or investment in FIFA's proposed subsidiary. Lawyers and compliance officers should be aware of these potential risks, particularly with regards to due process and governance concerns.

Lawyers and compliance officers should be aware of the potential risks and implications for their clients' involvement in or investment in FIFA's proposed $20 billion subsidiary, particularly with regards to due process and governance concerns.

Source: Original reporting via AP