European Football Associations Voice Concerns Over Financial Viability of 2026 World Cup Participation
As the 2026 World Cup approaches, set to be the first tournament featuring 48 teams, a significant number of European football federations are raising alarms about the potential for financial losses. Despite FIFA approving a record prize pool of £539 million last December, many associations fear that increased costs and inconsistencies in tax exemptions could undermine their usual expectations of generating vital funds from the event.
Growing Discontent Among European FAs
Approximately 10 football associations have shared their misgivings, most notably during UEFA's annual congress in Brussels two weeks ago. These concerns have also been informally raised with senior FIFA officials, with some executives reportedly feeling "embarrassed" by the situation. The issues stem from a combination of factors, including reduced daily allowances and the tournament's extended duration, which is longer than previous editions.
Qualifying teams receive $9 million each from FIFA, along with $1.5 million in preparation costs, figures that mirror those from the 2022 Qatar World Cup. However, the daily allowance per delegation member has been cut from $850 to $600. One FA estimates this reduction could result in a loss of around $500,000 if their team stays in the tournament for a month, highlighting the financial strain.
Tax Exemption Disparities Add to Financial Woes
A particularly contentious issue is the lack of uniform tax arrangements across the host nations. While Canada and Mexico have agreed to provide tax exemptions for qualifying FAs, as required by World Cup bidding rules, no such agreement has been reached with the United States. This discrepancy means that teams' financial outcomes could vary drastically based on where they are scheduled to play.
State taxes in the U.S. fluctuate significantly, with California imposing a top rate of 13.3% and New Jersey at 10.75%. Teams based in states with lower tax rates or outside the U.S. may gain a financial advantage unless a resolution is found within the next three and a half months. Additionally, FAs have expressed frustration over being left to seek their own tax advice rather than receiving specific guidance from FIFA.
Additional Cost Drivers and Mitigating Factors
Other factors contributing to higher expenses include the tournament's extensive travel demands, unfavorable exchange rates against the dollar, and a well-publicized increase in ticket prices. The 2026 World Cup will also be longer, with the quarter-finals beginning at the 28-day mark, compared to the four-week span in Qatar.
While some acknowledge that FAs are responsible for their own bonus structures, which represent a significant outlay, they argue it would be impractical to reduce these packages from what was offered in Qatar. On a positive note, there is potential for longer-term benefits from increased exposure to the vast North American market, which could offset some of the immediate financial challenges.
FIFA has been contacted for comment on these matters, as European federations continue to push for solutions to ensure the World Cup remains financially viable for all participants.
