European Football Associations Face Financial Concerns Ahead of 2026 World Cup
Several European football federations are expressing fears that sending their national teams to the upcoming World Cup this summer could result in financial losses. This apprehension stems from a combination of rising costs, inconsistencies in tax exemptions, and reduced daily allowances, prompting calls for FIFA to address these issues urgently.
Record Prize Money May Not Offset Increased Expenses
Although FIFA approved a record prize pool of £539 million for the tournament in December, this may not be sufficient to prevent losses or diminished profits for many competing nations. Typically, World Cup participation generates crucial funds for reinvestment in local football initiatives, but an investigation by the Guardian and PA Media reveals that around 10 football associations have shared concerns, particularly regarding the financial impact of missing out on expected revenue.
These misgivings were recently discussed at UEFA's annual congress in Brussels and have been informally raised with senior FIFA officials. Some executives report that FIFA representatives appear "embarrassed" by the situation, highlighting the gravity of the financial challenges faced by participating teams.
Reduced Allowances and Extended Tournament Duration
Qualifying teams receive $9 million each from FIFA, along with $1.5 million in preparation costs, figures believed to be consistent with the previous tournament in Qatar. However, the daily allowance per delegation member has been cut from $850 to $600. One association estimates this reduction could result in receiving approximately $500,000 less if their team remains in the tournament for a month, a period extended due to the World Cup's expansion to 48 teams.
Some federations have calculated that they will earn significantly less money in the United States, Canada, and Mexico compared to Qatar. One established tournament participant indicated it could incur substantial losses if eliminated early in the group stage or knockout rounds.
Tax Exemption Disparities Add to Financial Uncertainty
A particularly contentious issue is the perceived unfairness in tax arrangements. While host countries are required to provide tax exemptions for qualifying football associations, agreements have been secured with Canada and Mexico, but not with the United States. This lack of a uniform tax exemption means nations face vastly different financial prospects depending on their match locations.
State taxes within the US vary widely, 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 US could gain a financial advantage unless an agreement is reached within the next three and a half months. Additionally, there is frustration that football associations have been left to seek their own tax advice rather than receiving specific assistance from FIFA.
Additional Cost Factors and Mitigating Considerations
- Travel Demands: The tournament's extensive travel requirements across North America contribute to higher expenses.
- Exchange Rates: Unfavourable currency exchange rates against the dollar further inflate costs.
- Ticket Prices: Well-publicised increases in ticket prices add to the financial burden.
- Event Duration: The extended schedule, with the quarter-finals beginning at the 28-day mark compared to Qatar's four-week total, prolongs operational costs.
While some acknowledge that football associations are responsible for their own bonus structures, which represent a significant outlay, they argue it would be impractical to reduce packages promised to squads after Qatar. A potential mitigating factor is the longer-term benefit of increased exposure to the vast North American market, which could yield future financial gains.
FIFA has been contacted for comment on these concerns, as European federations seek clarity and support ahead of the historic 48-team World Cup.
