FINANCIAL DISASTER AT WORLD CUP 2026
FIFA’s decision puts a number of teams participating in World Cup 2026 at a financial disadvantage due to their failure to reach tax exemption agreements with the US government.
Many Teams Face Difficulties Due To Taxes Ahead Of World Cup 2026
Specifically, only 18 out of 48 participating teams signed Double Taxation Agreements (DTAs) with the US, thus being exempt from federal taxes. Canada, Mexico, and several European countries are in this group. Conversely, the remaining nearly 30 teams, mostly smaller football nations, will have to bear significant tax costs.
By law, all income generated within US territory, including prize money, sponsorships, and image rights of players at the 2026 World Cup, will be subject to taxation. Only the 18 countries that signed DTAs with the US are exempt, while most teams face the risk of being taxed both in the US and at home.
This creates a clear financial disparity between the teams. Large teams like England, Germany, and France are largely unaffected, while smaller teams like Curacao and Haiti face enormous tax bills.
Aside From Taxes, What Other Costs Are A Problem With The World Cup?
Not only taxes, but operating costs are also a problem. FIFA’s budget for each delegation member is only about $600, a decrease of $250 compared to the 2022 World Cup, despite the significantly higher cost of living in the US. Four years ago, Qatar even offered tax exemptions for all 32 participating teams.
Brazil’s coach, Carlo Ancelotti, is a prime example. He may have to pay taxes in both Brazil and the US, with US federal taxes potentially reaching 37% for high-income earners. The Brazilian Football Confederation will likely have to bear a portion of this cost.
Experts believe that the lack of uniformity in tax policies creates a large financial gap between World Cup 2026 teams. For many smaller football nations, funds that should have been used for long-term development are being eroded by taxes, making participation in the tournament a daunting economic challenge.
Conclusion
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