FIFA has backed down from its proposed FIFA Forward Enterprise, a commercial arm valued at $20 billion, which will manage revenue-generating activities linked to the World Cup and other major competitions.

Under the proposal, FIFA intends to sell up to a 20% minority stake in the new entity to private investors, targeting $4.2 billion in funding. The investor group is expected to be led by Thrive Capital, founded by Joshua Kushner.

The proposal attracted several backlash from stakeholders including UEFA who criticized FIFA for having crossed the line with the proposal citing accountability loops and attempts by FIFA to sell football.

Responding in a formal statement, FIFA explained that its goal as a global football governing body has always been to unite all parties concerned with the sport however the proposal of the commercial arm has created disparities which it didn’t intend following deliberations with stakeholders whose approval would have been the only basis for the establishment of the FFE.

“And more so, as we said from the outset, to do this only if a majority of the FIFA Member Associations were in support and always subject to a consultation process with them, the FIFA Council, the Confederations and wider stakeholders”, parts of the statement said.

Consequently, “…this proposal will not proceed”.

It continued that “Having listened carefully to all the views, it has become clear that the project has created divisions of a nature that, regardless of the level of support, are no longer in the interest of the objective set out in the first place.Our purpose has always been - and will always be - to unite and improve”.

Mr Infantino said he would engage interested parties in the coming days and weeks to rebuild consensus and continue efforts to grow football worldwide, especially in countries that require greater support.

“My intent is to bring all interested parties back together in the spirit of shared interest in our game, and with the objective to continue growing football everywhere, particularly in those countries that mostly need our support,” he said.