UEFA is preparing to file a criminal complaint in Switzerland against FIFA President Gianni Infantino over alleged financial mismanagement related to the failed plan to sell a portion of the World Cup’s future profits to private investors.
The governing body of European soccer reported that it filed documents with a Manhattan court to request potential evidence from the New York-based investment fund Thrive Capital Management, founded by Joshua Kushner.
In addition, UEFA filed a motion with a court in the Southern District of Florida to obtain authorization to conduct discovery “in a foreign proceeding” against FIFA itself, which has offices in Coral Gables, near Miami.
What ignited the issues between UEFA and Infantino?
Thrive Capital Management and Kushner were slated to be anchor investors in a project under which they would pay $4.2 billion to FIFA for a 20 percent stake in a subsidiary responsible for managing the organization’s commercial events, including the World Cup.
According to a 56-page document filed by UEFA’s attorneys and reviewed by The Associated Press, the European body stated that it is considering initiating criminal proceedings in Switzerland against Infantino and possibly other FIFA officials for alleged “criminal breach of trust,” as defined in Article 158 of the Swiss Penal Code. The document also argues that the $4.2 billion could represent a “fraudulently inflated price” promoted by Infantino for his own benefit.
Infantino abandoned the project on August 1, following a strong backlash from world soccer leaders, including representatives from UEFA.
UEFA plans to take action
The European body had already warned on August 3 that it might take legal action and asked FIFA not to destroy or conceal any relevant material related to the project.
In their filing with the courts, UEFA’s attorneys challenged the argument that the project would unlock FIFA’s commercial potential. According to UEFA, the deal would have allowed Infantino and a small group to acquire a permanent stake in some of FIFA’s most valuable assets and profit from them, to the detriment of the organization itself, its members, and other parts of the soccer community.
UEFA also questioned the implicit valuation of the transaction. According to its lawyers, investors could acquire a permanent financial interest in FIFA’s commercial arm for $4.2 billion, which implied a corporate valuation of approximately $20 billion. The document argues that this figure was not determined through an open and competitive auction nor subject to evaluation by an independent appraiser.
