Thrive’s Kushner Stands Up for His Role in FIFA Controversy, Teams Up with Attorney Favored by Elon Musk

Thrive Capital, a notable yet low-profile venture firm located in New York, is currently embroiled in a significant controversy that could result in criminal charges against Gianni Infantino, the polarizing president of FIFA, the global governing body for soccer.

Josh Kushner, the well-known founder of Thrive, has released a statement regarding the deal, affirming his belief that the original concept was solid and advantageous for worldwide soccer. However, he acknowledged, “had we anticipated how this would deteriorate, we would not have participated.” (See the full statement below.)

The dispute revolves around Infantino’s failed attempt to create a new corporate entity called FIFA Forward Enterprise (FFE), which intended to oversee the commercial operations of FIFA competitions, including revenue from television contracts and ticket sales for major events like the World Cup.

This entity was designed to be wholly owned by FIFA’s member associations (MAs) but permitted them the option to sell shares to private investors. The MAs would have had to approve the formation of the organization and then agree to any sale of their shares.

To identify potential investors for this initiative, FIFA engaged JPMorgan, bringing Thrive into the conversation.

Thrive consented to serve as the lead investor in a proposed sale of $4.2 billion worth of secondary shares from the teams, representing 20% of FFE at a valuation of $20 billion.

However, European teams, which benefit disproportionately under the existing structure compared to regions such as Africa, voiced strong objections. A group of North American teams also expressed concerns, particularly regarding the involvement of outside investors, particularly private equity firms.

This backlash prompted FIFA to abandon the initiative before the MAs could vote on it. The situation has escalated, with FIFA’s COO, Kevin Lamour, reportedly being dismissed after criticizing Infantino and the proposed plan.

It’s crucial to recognize that FIFA consists of 211 MAs globally, with only 55 affiliated with UEFA (Union of European Football Associations), while another 41 belong to Concacaf, which represents soccer associations from North America, Central America, and the Caribbean. Had the proposal for equal ownership of these revenues been voted on, the outcome is uncertain, but there is a strong chance it could have received approval.

Meanwhile, UEFA has initiated legal actions against Infantino and is considering options for a potential criminal case, as reported by the BBC. European fans are also calling for Infantino’s resignation.

This is where Thrive becomes further involved.

One of UEFA’s allegations in its lawsuit, reported by the BBC, claims that the valuation of the proposed company was too low. Consequently, UEFA has requested a U.S. federal court to mandate the disclosure of information from the parties involved. They are seeking documents from Thrive about how the valuation was determined, communications related to the deal such as term sheets, and information about potential investors.

After months of turmoil, Kushner finally addressed the situation this week in a statement initially published by Axios.

Traditionally, financial gains in football have been concentrated within a limited number of countries. The objective behind FFE was to allocate capital and equity more equitably across all 211 member nations, providing significantly greater investment to underdeveloped nations to nurture local talent, promote grassroots football, enhance the fan experience, and ultimately grow the global game everywhere.

This was a proposal meant for voting by each Member Association, not a mandate or imposition. While we supported the intentions behind FFE, we misjudged the political complexities of global football and the extent some would go to oppose it. Thrive has consistently shown its commitment to collaborating with all stakeholders. Had we foreseen what this would escalate into, we would not have participated.”

In a rather ironic twist, Thrive has also enlisted a prominent figure: attorney Alex Spiro, a partner at Quinn Emanuel, for representation, as noted in a court document reviewed by TechCrunch.

This discreet investment firm has chosen a lawyer with a strong personality, someone capable of maneuvering through the intense emotions that often surround international soccer. Spiro is recognized for representing notable clients such as Elon Musk, Jay-Z, Alec Baldwin, NYC Mayor Eric Adams, and in Rippling’s lawsuit against Deel regarding corporate espionage.

He has become Musk’s preferred attorney in numerous high-stakes lawsuits, including the infamous “pedo guy” defamation case in 2019 and the controversial Tesla “funding secured” lawsuit, along with litigation related to Musk’s acquisition of Twitter.