UEFA is gearing up to file a criminal complaint against FIFA president Gianni Infantino in Swiss courts for potential financial mismanagement involving his abandoned proposal to sell future World Cup profits to private investors. The European soccer governing body disclosed on Thursday that it has submitted legal documents in a Manhattan court seeking to gather possible evidence from Thrive Capital Management, a New York investment fund founded by Joshua Kushner.
In addition, UEFA has lodged a request in a southern Florida district for approval of an inquiry “in a foreign proceeding” against FIFA itself, which maintains offices in Coral Gables, a Miami suburb. Thrive and Kushner were anticipated to be the key investors willing to pay FIFA $4.2 billion for a 20% share in a subsidiary responsible for managing the soccer organization’s commercial events, including the World Cup.
UEFA’s legal representatives, in a 56-page document obtained by The Associated Press, stated that they are considering initiating a Swiss criminal case against Infantino and potentially other FIFA officials for criminal mismanagement based on Article 158 of the Swiss Criminal Code. The document hinted that the $4.2 billion valuation might have been an “artificially inflated price endorsed by Infantino for his own gain.”
Infantino abandoned the sell-off scheme on August 1 following strong opposition from global soccer leaders, including UEFA. UEFA had initially threatened legal action on August 3 when it cautioned FIFA against disposing of or concealing any relevant materials related to the proposal. According to UEFA lawyers, Infantino touted the plan as a means to “unlock the commercial potential and opportunities that FIFA possesses,” but in reality, it was a strategy for Infantino and a select few to secure a lasting financial stake in FIFA’s most valuable assets to the detriment of the organization, its members, and other entities within the football community.
The proposed terms by Infantino implied that investors would obtain a lasting financial stake in FIFA’s commercial division for $4.2 billion, suggesting an unreasonably low enterprise value of around $20 billion, a valuation that was neither the result of an open bidding process nor assessed by an independent appraiser. FIFA and Thrive representatives have been contacted for comments.
Earlier on Thursday, Infantino received public support from Saudi Arabia, the host of the 2034 World Cup. The Saudi Arabian Football Federation (SAFF) released a statement on social media stating its current backing for Infantino’s efforts to foster global harmony in soccer. Infantino has cultivated close relationships with Saudi Arabia and Crown Prince Mohammed bin Salman during his tenure and played a role in steering the 2034 World Cup towards the kingdom. Both attended a Saudi-sponsored video gaming event in Paris over the weekend.