European football’s governing body UEFA is considering whether to pursue a criminal case against FIFA president Gianni Infantino over alleged financial mismanagement linked to a proposed multi-billion-dollar investment deal involving FIFA’s commercial operations.
The dispute centres on a plan to sell a 20 per cent stake in FIFA Forward Enterprise (FFE), the entity responsible for managing parts of FIFA’s commercial activities, for $4.2 billion. People familiar with the matter have confirmed the development to ESPN.
UEFA alleges that the process behind the proposed sale did not follow appropriate procedures and that the relevant FIFA authorities were not adequately consulted before the plan was advanced. The organisation has also raised questions over how the $4.2 billion valuation was determined, arguing that Infantino’s personal interests may have been involved.
The allegations remain under consideration and have not been established in court. Infantino has not been convicted of any wrongdoing in connection with the proposed transaction.
As part of its efforts to obtain evidence, UEFA on Thursday filed an application before a court in Manhattan, New York, seeking documents and other potentially relevant material from investment firm Thrive Capital Management. The company, founded by Joshua Kushner, was among the investors associated with the proposed investment in FFE.
A 60-page submission filed by UEFA outlines the types of records it wants to obtain concerning the proposed sale. The organisation is seeking documents and communications related to the negotiations and the development of the transaction. Requests have also been directed towards FIFA’s North American headquarters, Thrive Capital, JPMorgan and Greg Maffei, chief executive of Baan Ventures.
UEFA’s lawyers said in the court filing that the organisation and its legal advisers were considering bringing a criminal complaint in Switzerland under Article 158 of Swiss criminal law, relating to alleged criminal mismanagement. The filing refers to possible proceedings against Infantino and potentially other FIFA officials.
The proposed transaction had been designed around a major portion of FIFA’s commercial assets. The planned sale of a 20 per cent stake in FFE for $4.2 billion was expected to involve a group of investors led by Joshua Kushner, with Thrive Capital among the parties interested in participating.
The proposal quickly became a source of disagreement within international football. UEFA, the Asian Football Confederation and Concacaf were among the major football bodies that opposed the plan. Their concerns centred on the way the transaction was being developed and the potential implications of transferring part of FIFA’s commercial interests to outside investors.
UEFA’s opposition also escalated into a wider dispute over FIFA competitions. At one stage, the European governing body threatened to consider withdrawing European teams from FIFA-organised tournaments if its concerns were not addressed.
Under pressure from football authorities, Infantino cancelled the proposed sale on 1 August. The decision temporarily eased the immediate dispute, although questions surrounding the process have continued.
UEFA subsequently agreed to suspend, for the time being, its threat to withdraw European teams from FIFA competitions after receiving assurances that FIFA would not pursue similar sales of stakes in its commercial assets in the future.
The competitions potentially affected include the Women’s Under-20 World Cup, the Under-17 World Cup and the Women’s Under-17 World Cup. UEFA said its position would be reviewed regularly and could be reconsidered if circumstances changed.
The latest legal move therefore adds another dimension to an already significant dispute between two of football’s most influential governing bodies. For UEFA, obtaining documents and communications connected to the proposed investment is likely to be central to assessing whether the transaction was handled appropriately and whether there is a basis for further legal action.
For now, however, the prospect of criminal proceedings remains under consideration rather than a confirmed prosecution. Any case in Switzerland would depend on the evidence obtained and the subsequent legal assessment of the conduct surrounding the proposed $4.2 billion transaction.
