FIFA advisor Carlos Cordeiro resigns over private equity proposal
What's the story
Carlos Cordeiro, a senior advisor to FIFA and former president of the US Soccer Federation, has resigned from his position. The decision comes in light of FIFA's proposal to introduce private equity into its key competitions. Cordeiro publicly opposed this plan and clarified that he had "no involvement" in it whatsoever. "I cannot stand by while FIFA considers selling a stake in the World Cup," he said as quoted by Sky Sports.
Proposal details
FIFA's plan to create commercial entity
FIFA's plan is to create a commercial entity called FIFA Forward Enterprise, which would manage the governing body's commercial rights. This includes those related to men's and women's World Cups as well as the Club World Cup.
The organization said this initiative would generate more funding for football development while allowing FIFA to maintain full control over governance and sporting matters.
However, Cordeiro questioned its necessity given FIFA's existing financial position.
Financial scrutiny
Proposal should be rejected, says Cordeiro
Cordeiro, who has over 35 years of banking experience, was concerned about the proposal.
He said, "That is why this proposal should be rejected."
He further emphasized that "FIFA already has access to extraordinary financial resources," with billions of dollars in reserves and no debt.
Cordeiro argued that selling a permanent stake in football's most valuable asset for $4.2 billion didn't make sense and was "mortgaging football's future without any compelling justification."
Widespread dissent
UEFA threatens to boycott FIFA competitions
Cordeiro's resignation comes as opposition to FIFA's commercial restructuring proposal mounts.
UEFA has already announced its 55 member associations will boycott FIFA competitions while the proposal remains active.
The Asian Football Confederation (AFC) and CONCACAF have also expressed concerns over the governance and consultation process surrounding this plan.
Plan
FIFA issues statement
As per Sky Sports News, confederations representing 143 of FIFA's 211 member associations have now opposed the plan.
FIFA has issued a statement saying: "We have heard the feedback provided by the respective confederations in relation to the proposed establishment of FIFA Forward Enterprise (FFE) and would like to address the issues that have surfaced since the initial media reporting on Tuesday."
"We respect the feedback and concern aired in public and reaffirm our commitment to an open and democratic consultation," the statement added.
FIFA
FIFA offers $40m incentive for members
On Wednesday, FIFA President Gianni Infantino proposed a controversial plan that could change the face of global football.
The proposal, which involves selling stakes in major competitions, drew criticism from UEFA and other stakeholders.
Now, Infantino is offering a $40 million incentive to national football federations if they back this plan by September 19.
The money would be paid out as an immediate $20 million payment, with an additional $20 million promised separately, as per BBC Sport.