FIFA President Gianni Infantino has abandoned a contentious proposal to create a private equity-backed company to manage World Cup profits following widespread opposition from key football governing bodies and internal FIFA officials. The plan, which involved spinning off FIFA’s commercial activities into a $20 billion subsidiary with 20% ownership sold to private investors, including a New York-based firm founded by Joshua Kushner, faced intense criticism after being revealed earlier this week.

Infantino announced on Friday that the project would not proceed, citing the deep divisions it had caused across the global football community. "Our purpose has always been — and will always be — to unite and improve," he said, emphasizing that the proposal was no longer in the sport’s best interest.

The backlash was swift and significant. UEFA, the European football federation representing 55 member nations, held an emergency virtual meeting where members voted unanimously to boycott future FIFA competitions, including World Cups, if the privatization plan moved forward. UEFA described the proposal as "an abdication of FIFA’s duty as the custodian of world football" and asserted that "the FIFA World Cup belongs to football and will never be for sale."

North America’s CONCACAF, representing 41 members, and the Asian Football Confederation (AFC), with 46 members, also opposed the plan. The AFC’s president, Sheikh Salman bin Ibrahim Al Khalifa, a former FIFA presidential contender and ally of Infantino, warned that unilateral action by FIFA risked undermining continental football. Concerns raised by these bodies included a lack of transparency, the abbreviated consultation period, and the absence of approval from FIFA’s established governance structures. They questioned the need for outside investment given FIFA’s record profits, especially following recent lucrative World Cups.

The proposal would have created a FIFA Football Enterprise (FFE) subsidiary aimed at applying commercial expertise to maximize revenue from broadcast rights, sponsorships, and expanding tournament portfolios. Infantino suggested the move could "turbocharge" funding for football development globally, offering FIFA members increased financial support if the plan passed. However, critics argued that FIFA should leverage its multibillion-dollar reserves rather than surrender stakes to private investors, warning that external ownership might shift priorities toward commercial returns at the expense of the sport’s integrity.

The internal reaction within FIFA was notable. Carlos Cordeiro, a senior adviser who served on a White House task force connected to the World Cup, resigned in protest, stating he could not condone selling a stake in the World Cup. FIFA’s chief operating officer, Kevin Lamour, also criticized the plan, calling it the project of a single individual and urged football leaders to reconsider the direction.

Infantino, who was reelected unopposed in 2019 and 2023 and is eligible for one more term, now faces mounting pressure ahead of the next presidential election scheduled for March 2027 in Rabat, Morocco. While he had appeared poised for another term, the controversy over the private equity proposal has injected uncertainty into his leadership and raised broader questions about FIFA’s governance and commercial strategy.