FIFA loses New York court ruling against UEFA in World Cup investor case

A federal judge in Manhattan on Thursday rejected efforts by two FIFA subsidiaries to block UEFA from gathering evidence about the failed private investor plan tied to the World Cup, a project that was championed by FIFA president Gianni Infantino before collapsing under worldwide criticism.

European soccer's governing body filed court documents in August as part of a broader campaign to push Infantino out of the FIFA presidency. That strategy also includes a potential criminal complaint against him personally in Switzerland over alleged financial mismanagement.

Lawyers for UEFA are seeking discovery from Thrive, the New York investment firm founded by Joshua Kushner, and from FIFA advisors JP Morgan. The material relates to a World Cup sell-off proposal that surfaced in July and caused an uproar across global soccer politics.

In the district court for the Southern District of New York, the judge ruled that motions to intervene filed by two FIFA subsidiaries failed because they "do not have a direct, substantial and legally protectable interest" in the proceedings.

"Nothing in this record indicates that the US FIFA parties, or even FIFA itself, will be parties in the contemplated criminal proceedings," Judge Jeannette Vargas wrote in the eight-page ruling. She added: "Certainly the US FIFA parties have not alleged facts suggesting they would be defendants in such a proceeding."

The fallout from the investor plan, which was abandoned within days of a global backlash, has produced the most serious crisis of Infantino's nearly 11 years leading FIFA. He intends to stand for reelection in March.

Thrive and Kushner, the younger brother of Jared Kushner, son-in-law of U.S. President Donald Trump, were lined up to serve as the anchor investor in the secretive project, which was known as FIFA Forward Enterprise.

Under the proposal, investors would have paid FIFA $4.2 billion for a permanent stake of more than 20% in the FFE subsidiary, an entity that would have operated the governing body's tournaments, including the World Cup.

FIFA's 211 member federations, which already effectively own the Zurich-based not-for-profit organization, were each offered payments of $20 million to approve the project.

FIFA's cash reserves climbed above $5 billion following the men's World Cup co-hosted by the United States, Canada and Mexico, which concluded in July.