FIFA Loses New York Court Ruling Against UEFA in World Cup Investor Case

Judge Jeannette Vargas denied FIFA subsidiaries' motions to intervene in UEFA's attempt to obtain evidence from JP Morgan and Thrive Capital.

Judge Jeannette Vargas of the U.S. District Court for the Southern District of New York denied motions by two FIFA subsidiaries to block UEFA from obtaining evidence regarding a failed World Cup investment plan. The ruling, issued in an eight-page document on Thursday, allows UEFA to seek discovery from Joshua Kushner’s investment firm Thrive and advisors JP Morgan. The judge determined the FIFA subsidiaries lacked a "direct, substantial and legally protectable interest" in the proceedings.

UEFA filed the court documents in August as part of a strategy to remove Gianni Infantino as FIFA president. The European soccer body is considering a criminal complaint in Switzerland against Infantino for alleged financial mismanagement. The judge noted that nothing in the record suggests the U.S. FIFA parties or FIFA itself would be defendants in the contemplated Swiss criminal proceedings.

The discovery concerns the "FIFA Forward Enterprise" (FFE) project, a secretive plan to sell a permanent stake of over 20% in a new subsidiary to private investors for $4.2 billion. Thrive was intended to be the anchor investor for the deal, which would have granted the entity control over tournaments including the World Cup. To secure approval, FIFA offered its 211 member federations payments of $20 million each.

Infantino, who intends to stand for reelection in March, dropped the private equity plan within days of a global backlash in July. The source reports Infantino previously received an undisclosed $1.7 million World Cup payment. Following the conclusion of the men's World Cup co-hosted by the U.S., Canada, and Mexico, FIFA’s cash reserves rose to more than $5 billion.