Why has Infantino scrapped FIFA’s World Cup investment plan? What to know

Sure, there were some boos inside MetLife Stadium near New York when the two men walked across the turf to present the trophy and medals to Spain and Argentina players on July 19.

Still, that 104th and final game capped the biggest-ever tournament seen as a vindication for the FIFA president – a consensus success on the field and a financial bonanza for global football. Infantino could look ahead to his likely re-election coronation next March.

The sunny scene must now feel an age ago since Infantino caused a seismic rift in global football.

The intensifying fallout has threatened the 56-year-old Infantino’s job after he seemed untouchable until this week.

Infantino’s misstep was inviting private investors, led by Joshua Kushner, to buy a stake in future profits from World Cups and all FIFA events. The ensuing backlash – which included pledges by European nations to boycott FIFA events and claims from senior staff that Infantino deceived everyone – led Infantino to announce Friday that he was abandoning the plan.

“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,” he said in a statement.

Infantino left New York City last week with letters pledging election support from about 200 of FIFA’s 211 national member federations who vote for their leader every four years.

Now, even after scrapping his divisive investment project, his support remains unclear at best.

Infantino’s proposal would have created a subsidiary – known as FIFA Forward Enterprise (FFE) – for the money-making parts of the not-for-profit football body’s work: running tournaments like the World Cup, selling broadcasting and sponsorship, tickets and hospitality.

Private equity and petrostate sovereign wealth money has been normalised in European club football, yet it still seems unthinkable to many observers in the context of the World Cup. Football’s ultimate prize is seen as being about glory, not money, and fans have long believed it belongs to them.

FIFA proposed raising $4.2bn from investors buying a stake of about 20 percent in FFE, based on an equity valuation of $20bn. The “anchor investor” would have been Thrive Eternal, launched by Joshua Kushner, whose brother Jared Kushner is a son-in-law of Trump.

FIFA’s 211 member federations – already effectively the owners of the governing body as a nonprofit association under Swiss law – were offered $20m each. The deadline to accept was September 19.

The members already are due $10m each from FIFA over the next four years, funded largely by its record $15bn revenue over 2023-26 tied to the World Cup that just ended.

FIFA says under FFE, that would have doubled to $20m each, then rise to $22m each through 2034, and $24m to 2038.

That’s a huge sum for tiny football federations in places like Andorra, Montserrat and Papua New Guinea. Deep-pocketed football powers like England, Spain or France have other priorities.

Some FIFA vice presidents, some of its top executives, all the European football federations, the football bodies of Asia and North America, Britain’s prime minister, the global group of national leagues, a lot of fans worldwide.

Infantino was looking increasingly friendless on Friday. His senior adviser, former Goldman Sachs banker Carlos Cordeiro, resigned and called it a bad deal. FIFA chief operating officer, Kevin Lamour, gave a stinging statement to The Associated Press news agency in defence of colleagues that all but invited his boss to fire him.

A key move Thursday was European football body UEFA pledging to boycott all FIFA competitions until Infantino dropped the plan.

Europe’s teams routinely dominate and win FIFA trophies like the men’s World Cup and Club World Cup, which are its biggest revenue earners.

They collectively feared that private investors would seek – and demand – value from more games and bigger competitions that threaten the balance of global football.

That could jeopardise attention and revenues for club football, including the UEFA Champions League.

Fixture calendars are already congested, elite players are at their limits, broadcast and sponsor money is not unlimited.

All are angry that Infantino seems not to have consulted anyone while planning the project over the last year, when he was so focused on spending time in Trump’s orbit. Even Trump said Friday he had not spoken with the FIFA chief on his plan to sell stakes in the tournament.

Infantino’s traditional support base in Africa, which has 54 of the 211 voting members, had been neutral about the offers of game-changing money for many of them.

The 10-nation South American group CONMEBOL said on Friday it had received the proposal and would evaluate the issue “with the rigour it demands”. CONMEBOL is led by FIFA’s vice president, Alejandro Dominguez of Paraguay, who is relying on Infantino expanding the 2030 World Cup to 64 teams.

That would give more games to minority cohosts Argentina, Paraguay and inaugural 1930 World Cup host Uruguay, who currently are set to get just one game each of the 104. The rest are in Spain, Portugal and Morocco.

The UEFA-led resistance succeeded in stopping the sell-off plan. Will that satisfy Infantino’s opponents to allow him to remain in office?

Does Infantino have the credibility to stay in office after interventions Friday by Lamour and Cordeiro that surely would make most presidencies untenable?

November 18 is the deadline for candidates to enter the next presidential contest, exactly four months ahead of the March 19 vote in Rabat, Morocco, where FIFA has its African headquarters.

Infantino was re-elected unopposed in 2019 in Paris and 2023 in Kigali, Rwanda. FIFA statutes allow him one more four-year term in office.

The FFE spinoff seemed a way to create a commissioner-like role for Infantino beyond 2031, likely paying much more than his current annual salary and bonus deal of more than $6m.

It would take 106 votes to ensure a majority in a contested election. Continents surely do not vote uniformly en bloc, but most of Europe’s 55, plus CONCACAF’s 35 and Asia’s 46 would be a solid base.

Speculation on a likely direct challenger typically lands on Paris Saint-Germain’s Qatari president Nasser Al-Khelaifi and the Canadian FIFA vice president, Victor Montagliani.

Sheikh Salman bin Ebrahim Al Khalifa, the AFC’s longtime president from Bahrain, narrowly lost the FIFA presidential election to Infantino in 2016, so may decide to run again.

All such talk seemed fanciful until this week, despite long-term unease with Infantino’s style and previous attempts to force through unpopular projects.

The talk has never seemed more likely to become action.