FIFA abandoned a plan to create a commercial venture and then sell stakes to minority investors, just days after unveiling it. The plan drew sharp condemnation — and a boycott from European nations.

FIFA has a complex plan to sell chunks of its commercial rights to the World Cup to minority investors, including a firm run by Joshua Kushner, the brother of Jared Kushner.

The proposal to spin off the commercial rights to the World Cup and other competitions into a semi-private company has triggered a fierce backlash, with critics warning it could…