Key investor Joshua Kushner blames football power struggle for collapse of World Cup plan
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FIFA’s plan to sell stakes in the World Cup sparked global outrage.
PHOTO: REUTERS
- Joshua Kushner blamed internal football power struggles for the collapse of FIFA's plan to sell stakes in the World Cup, admitting his firm would not have joined if they expected the backlash.
- The FIFA Forward Enterprise plan aimed to raise US$4.2 billion to support poorer football nations by selling stakes in a US$20 billion commercial subsidiary, but faced criticism as a secretive profit scheme.
- UEFA is pursuing a criminal case against FIFA president Gianni Infantino for mismanagement, seeking documents and depositions from Kushner, though he and his firm face no accusations of wrongdoing.
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NEW YORK – Investor Joshua Kushner on Aug 31 blamed power struggles within global football for the outrage over FIFA’s plan to sell stakes in the World Cup, admitting that his firm “would not have got involved” if it had anticipated the backlash.
The first comments by the venture capitalist – the brother of US President Donald Trump’s son-in-law Jared – since the plan collapsed come as European governing body UEFA prepares a criminal case against FIFA president Gianni Infantino.
“While we stand behind the motivations of FFE, we failed to appreciate the political dynamics of global football, and the lengths some would go to,” said Kushner, 41, in a statement e-mailed to AFP, referring to the FIFA Forward Enterprise.
FFE was a plan to bring private investment into FIFA events, including the World Cup, by selling stakes in a new US$20 billion (S$25.4 billion) commercial subsidiary.
Kushner's firm Thrive Capital had worked on the deal in private for months, and he would have spearheaded the investment process.
FIFA said the proposal would have raised US$4.2 billion to benefit poorer football-playing nations, and that member associations could have voted to reject it.
Critics said the plan had been hatched in secret to profit its investors, with UEFA president Aleksander Ceferin dubbing the proposal a “shady, opaque backroom deal”.
UEFA has called for Infantino’s removal, and accused the FIFA president of “criminal mismanagement”.
According to legal documents seen by AFP, UEFA is gathering evidence for a potential criminal complaint in Switzerland, where both UEFA and FIFA are based.
US media has reported Kushner is being targeted for subpoenas, with UEFA asking a New York judge for permission to demand Kushner and his firm hand over documents and sit for depositions related to the saga.
Kushner and Thrive are not expected to be defendants in the UEFA case and have not been accused of wrongdoing.
“Money in football has historically been concentrated among a small group of countries,” said the American businessman’s statement.
“The idea behind FFE was to direct more capital and equity equally among all 211 member countries, providing significantly more investment to underdeveloped nations to nurture local talent, support grassroots football, enhance the fan experience, and ultimately grow the global game everywhere.
“It was an idea that every member association would vote on, not an obligation or determination.”
He added: “Thrive has a long track record of being a partner to all constituents.”
Kushner is also a key investor in the ongoing, record US$12.5 billion purchase of the Los Angeles Lakers, one of the most successful teams in National Basketball Association history. AFP
