UEFA Launches Legal Action Against FIFA and Gianni Infantino
UEFA has taken legal action in New York against FIFA's $20 billion commercial partnership project, while postponing its boycott decision following the total withdrawal of the project.
UEFA has launched legal proceedings in New York against FIFA, President Gianni Infantino, and Thrive Capital over FIFA's controversial $20 billion investment plan. Meanwhile, UEFA temporarily suspended its threat to boycott FIFA tournaments after receiving written assurances that the project in question has been permanently canceled.
Legal Action in New York
UEFA has initiated a discovery process in New York regarding FIFA, Gianni Infantino, and Thrive Capital, the parties behind the failed $20 billion World Cup investment plan. The information obtained through this process is intended to be used as evidence in a criminal complaint to be submitted to Swiss authorities, aiming to bring charges against Infantino and other FIFA officials.
Infantino is accused of improperly offering shares in a new entity called FIFA Forward Enterprise without FIFA's approval. Under the plan, Thrive Capital and its founder Joshua Kushner were expected to pay FIFA $4.2 billion for a 20% stake in this new company, which would manage commercial events such as the men's and women's World Cups.
Valuation Disputes and Project Cancellation
In its complaint, UEFA argued that this $4.2 billion offer was set without an open tender or independent valuation, pointing to a low company valuation of $20 billion. The project was described as a vehicle for Infantino and his inner circle to profit unfairly from FIFA's core assets.
Following the backlash, the project was completely canceled. UEFA announced that FIFA confirmed in writing that the "FIFA Forward Enterprise" project has been irrevocably and permanently withdrawn.
Suspension of Boycott Decision and Electoral Support
Having received assurances that the project will not be revived, the 55 member nations of UEFA gathered in Monaco and temporarily suspended their threat to boycott FIFA tournaments. This decision also covers the Women's U-20 World Cup, set to begin in Poland on September 5.
On the other hand, national federations such as the Italian Football Federation (FIGC) and the Romanian Football Federation (FRF) announced that they have withdrawn their support for Infantino ahead of the upcoming FIFA presidential election.