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FIFA adviser resigns over private equity plan for World Cup

Created at 31 Jul · 12:36 PM1 source↑ Market-relevant
IN SHORT

Carlos Cordeiro, a senior FIFA adviser and former Goldman Sachs banker, resigned from his role on the White House Task Force for the World Cup in protest of FIFA's plan to sell a stake in the tournament's commercial subsidiary. Cordeiro called the deal a "bad deal for football."

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Key Numbers

$20 billionvalue of FIFA's proposed commercial subsidiary
20%stake to be owned by private investors
$4.2 billionamount FIFA aims to raise from selling stake
35 yearsCordeiro's banking experience
10 yearsInfantino's tenure as FIFA president
November 18deadline for World Cup challenger candidates

Who's Involved

Carlos Cordeiro
Senior FIFA adviser, former Goldman Sachs banker, and former U.S. Soccer Federation president
Gianni Infantino
FIFA President
Joshua Kushner
Founder of the New York-based investment firm involved in the proposal
Donald Trump
U.S. President

↳ Why This Matters

The resignation of a high-profile adviser and the rejection of the plan by European nations highlight significant internal and external opposition to FIFA's strategy, potentially impacting the future commercialization of the World Cup and raising questions about governance within the organization.

Key facts

  • Carlos Cordeiro, a senior FIFA adviser, resigned from his position.
  • Cordeiro protested FIFA's plan to sell a stake in the World Cup's commercial subsidiary.
  • He described the proposed $20 billion subsidiary as a "bad deal for football."
  • Cordeiro previously served as president of the U.S. Soccer Federation.
  • The proposal involves selling 20% of the subsidiary to private investors.
  • European nations have agreed to boycott FIFA competitions in protest of the plan.

Carlos Cordeiro, a senior FIFA adviser and former Goldman Sachs banker, has resigned from his role on the White House Task Force for the World Cup. His resignation is a protest against FIFA President Gianni Infantino's plan to sell a stake in the tournament's commercial subsidiary.

Cordeiro stated he had no involvement in the proposal and unequivocally opposes it, calling the creation of a $20 billion subsidiary with 20% ownership by private investors a "bad deal for football." He argued that FIFA, with its substantial reserves and revenue, has no compelling justification to mortgage its future by selling a permanent stake.

He shared that he worked alongside Infantino for five years and hopes other dedicated FIFA staff will also speak out against decisions that prioritize profit over the interests of football. European nations have reportedly agreed to boycott FIFA competitions in protest of the plan, and North America's soccer body has also rejected the proposal.

Infantino has been FIFA president for over 10 years and is expected to seek reelection unopposed next March, with a deadline set for challengers to come forward.

Frequently asked questions

Carlos Cordeiro is a senior FIFA adviser, a former Goldman Sachs banker, and the former president of the U.S. Soccer Federation. He resigned to protest FIFA's private equity plan.

FIFA proposes spinning off its commercial businesses, including World Cups, into a $20 billion subsidiary, with 20% to be owned by private investors.

Cordeiro believes it is a "bad deal for football," arguing that FIFA has sufficient financial resources and does not need to sell a stake in its most valuable asset, thus mortgaging football's future.

European nations have agreed to boycott FIFA competitions in protest, and North America's soccer body has also rejected the proposal.

What Happens Next

01FIFA will proceed with its plan to spin off its commercial businesses.
02Challengers for the FIFA presidency must come forward by November 18.

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Cadence

How It Developed

Carlos Cordeiro resigned as a senior FIFA adviser.
Cordeiro protested FIFA's plan to sell a stake in the World Cup's commercial subsidiary.
He stated he had no involvement in the proposal and opposes it.
Cordeiro called the $20 billion subsidiary a "bad deal for football."
He noted FIFA's substantial reserves and revenue, questioning the need to sell a stake.
European nations and North America's soccer body rejected the proposal.

Sources

T1
FIFA adviser on White House's World Cup panel resigns to protest Infantino private equity planAP News

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