Fifa has agreed in principle to increase the prize money and participation fees for the 2026 World Cup, following concerns from national associations that the high costs of travel, operations, and taxes in the United States could result in financial losses. The enhanced funding is set to be approved at a meeting of the Fifa Council in Vancouver this week.
Background and Initial Concerns
World football’s governing body responded to worries raised by several national associations, first reported by the Guardian in February, that the expenses of competing in the US this summer would leave them out of pocket, even with a successful tournament run. In December, Fifa announced a record World Cup prize fund of $727 million (roughly £539 million), with each of the 48 competing teams receiving a minimum of $10.5 million and the winners taking home $50 million. However, after recent discussions with multiple football associations, Fifa has decided to increase these figures further.
Development Funding Boost
In addition to the prize money hike, the development funding distributed to all 211 Fifa members will also be increased. Originally, each national association was due to receive a guaranteed payment of $5 million, with the six confederations each receiving $60 million to support regional football development. These payments are now set to rise. A Fifa spokesperson confirmed: “Ahead of a Fifa Council meeting in Vancouver, Canada, on 28 April 2026, Fifa can confirm it is in discussions with associations around the world to increase available revenues. This includes a proposed increase of financial contributions to all qualified teams for the Fifa World Cup 2026 and of development funding available to all 211 member associations.”
Financial Position and Revenue Projections
Fifa is projecting revenues of $13 billion in the four-year cycle concluding with this summer’s World Cup, with the tournament alone generating $9 billion. According to sources, Fifa’s strong financial position has enabled the increase in prize money and participation payments. The organisation’s 2025 annual report stated that $11.67 billion of its revenues would be redistributed “to boost global football development,” a 20% rise on the previous cycle, and that figure will now increase further.
European Associations’ Petition
Many of the larger European associations, including the English FA, are understood to have petitioned Fifa to increase its prize fund amid concerns they would lose money at this World Cup. Under Fifa’s initial distribution plan, merit payments increased incrementally for progressing through the rounds: an additional $2 million for reaching the last 32, $4 million more for the last 16, and $8 million for qualifying for the quarter-finals, with the biggest leap reserved for semi-finalists and finalists. As a result, many European federations claimed they would lose money unless they reached the last four. They asked Uefa to intervene on their behalf, and sources involved in those discussions praised Fifa for listening to their concerns.
Tax and Cost Challenges
In addition to the high costs of doing business in the US, financial concerns have been heightened by the uneven tax burden facing national associations. While Fifa has tax-free status, it was unable to negotiate exemptions for the 48 qualifiers, as it has done in previous tournaments. National associations must pay a range of federal, state, and city taxes on their earnings, which vary significantly. For instance, there is no state tax in Florida, where seven games will take place in Miami, whereas it is 10.75% in New Jersey, whose MetLife Stadium will stage the final, and 13.3% in California, where Los Angeles and San Francisco will host games.
Fifa’s commitment to increasing financial contributions underscores its dedication to supporting the global football community amid the unprecedented scale of the 2026 World Cup.
