Thrive Capital founder Josh Kushner has defended the rationale behind a failed proposal to bring $4.2 billion in private investment into FIFA while acknowledging that his firm underestimated the politics surrounding the deal. The comments come as UEFA seeks documents and testimony from Thrive for a potential criminal case in Switzerland against FIFA president Gianni Infantino.
The proposed FIFA Forward Enterprise, or FFE, would have created a new company holding commercial and operational rights tied to FIFA competitions, including World Cup broadcasting and ticket revenue. FIFA’s 211 member associations would have collectively owned the company and could choose to sell part of their individual stakes to outside investors.
Thrive Was Set to Lead a $4.2 Billion Investment
FIFA hired JPMorgan to find potential investors, and Thrive agreed to lead, but not solely fund, a proposed purchase of 20% of FFE for $4.2 billion. The transaction valued the company at about $20 billion.
The proposal would first have required approval from FIFA’s member associations. European governing body UEFA opposed it, as did Concacaf, which represents associations across North America, Central America, and the Caribbean, while concerns centered on private investors gaining influence over FIFA’s commercial operations.
FIFA ultimately abandoned the proposal before member associations voted on it. FIFA has 211 member associations, including 55 within UEFA and 41 within Concacaf.
UEFA Seeks Thrive Documents for Potential Case
UEFA is now preparing a criminal complaint in Switzerland against Infantino over the failed proposal, alleging possible criminal mismanagement, according to the Associated Press. Neither Kushner nor Thrive has been accused of wrongdoing.
As part of that effort, UEFA has asked a U.S. federal court to compel Thrive to provide documents about how the $20 billion valuation was determined, communications and term sheets related to the transaction, and information identifying other prospective investors. UEFA has argued that the proposed valuation was too low.
Kushner addressed the dispute publicly this week in a statement first published by Axios. He said the proposal was intended to distribute more capital and equity among all 211 member associations, particularly those with fewer financial resources.
Kushner said every association would have had a vote and participation would not have been mandatory. He added that Thrive “failed to appreciate the political dynamics of global football” and said the firm would not have participated had it known how the dispute would develop.
Thrive has hired Quinn Emanuel partner Alex Spiro to represent it in the legal proceedings. Spiro has previously represented clients including Elon Musk, Jay-Z, Alec Baldwin, and former New York City Mayor Eric Adams.
Featured image credits: Wikimedia Commons
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