A number of European football federations fear they will lose money sending their national teams to the World Cup this summer, with an unusual hike in costs and inconsistencies around tax exemptions among the problems Fifa is being urged to rectify.
Although Fifa approved record prize money of £539m for the tournament last December it may not be enough to prevent losses, or reduced profits, for competitors who would usually expect a World Cup to generate vital funds. An investigation by the Guardian and PA Media found particular concerns among football associations about the consequences of missing out on money that would largely be reinvested in local initiatives.
Around 10 FAs are understood to have shared misgivings between themselves, most recently at Uefa’s annual congress in Brussels a fortnight ago. It has also been informally raised with senior Fifa officials, some of whom appear “embarrassed” about the situation according to an executive from one FA.
Teams that qualify receive $9m (£6.7m) each from Fifa and are handed $1.5m (£1.1m) in preparation costs. Those numbers are believed to have been the same for Qatar 2022, but the previous daily allowance of $850 (£627) per delegation member has been reduced to $600 (£442). One FA estimated that this would mean receiving around $500,000 (£369,000) less if their team remained at the World Cup, which has been expanded in length and number, for a month.
Some FAs have calculated that they will make considerably less money in the US, Canada and Mexico than they did in Qatar; one, a fixture at international tournaments, told the Guardian it will in fact lose a sizeable sum in the event of elimination in the group stage or early in the knockout rounds.
One particularly aggravating element is a perceived unfairness around tax arrangements. Countries bidding for a World Cup are obliged to provide tax exemptions for FAs that qualify; those have been agreed with Canada and Mexico but no such arrangement has been reached with the US, meaning that nations potentially face vastly differing financial outlooks depending on where they were drawn to play.
State taxes within the US vary wildly. In California, where Los Angeles and San Francisco will host games, the top rate is 13.3%. In New Jersey, whose MetLife Stadium will stage the final, it stands at 10.75%. Teams largely based in states with lower rates, or outside the US, will find themselves financially advantaged unless an agreement is reached in the next three and a half months. Given that context, there is also frustration that FAs have been left to seek their own tax advice rather than being given specific assistance by Fifa.
Other factors hiking costs include the tournament’s considerable travel demands, unfavourable exchange rates against the dollar, the well-publicised increase in ticket prices and the event’s duration. In Qatar there were four weeks between the opening game and final; this time around the 28-day mark will arrive as the quarter-finals commence.
While some figures acknowledge that FAs are responsible for their own bonus structures, which inevitably make for a notable outlay, they point out it would be unworkable to offer a reduced package to that which was promised to their squads in Qatar. Another mitigation offered for this summer’s issues is the potential longer-term benefit of lengthy exposure to the vast North American market.
Fifa was contacted for comment.
