Josh Kushner speaks out on failed FIFA deal
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Joshua Kushner. Photo: Jemal Countess/Getty Images for Fortune Media
Venture capitalist Josh Kushner is speaking publicly for the first time on his failed efforts to help form a new commercial subsidiary for World Cup organizer FIFA, which would have included up to $4.2 billion in private investment.
Why it matters: This comes just days after European soccer authority UEFA asked a federal judge in Manhattan to approve subpoenas for related testimony and documents from Kushner and his firm Thrive.
Catch up quick: UEFA, which helped scuttle the FIFA deal, isn't alleging any wrongdoing against Kushner or his firm, writing that "neither Thrive nor Kushner is an anticipated defendant."
- Instead, it wants to build a criminal case in Switzerland against FIFA president Gianni Infantino, and thinks some smoking guns might be found via discovery.
- Among the documents UEFA wants from Thrive are communications with FIFA officials, valuation models, financial projections, term sheets, side letters, and the identification of any prospective limited partners or co-investors.
What they're saying: Kushner, today sent Axios the following statement, after keeping mum for weeks:
"Money in football has historically been concentrated amongst a small group of countries. The idea behind FFE was to direct more capital and equity equally amongst all 211 member countries, providing significantly more investment to underdeveloped nations to nurture local talent, support grassroots football, enhance the fan experience, and ultimately grow the global game everywhere.
It was an idea that every Member Association would vote on, not an obligation or determination. While we stand behind the motivations of FFE, we failed to appreciate the political dynamics of global football, and the lengths some would go to. Thrive has a long track record of being a partner to all constituents. Had we known what this would devolve into, we would not have gotten involved."
State of play: On Monday there will be a procedural hearing in which Thrive is expected to acknowledge the subpoena requests. It won't yet reveal a legal strategy for accepting or fighting them.
