European FAs fear financial losses at 2026 World Cup in North America

European national teams privately fear participation in the 2026 World Cup could result in financial losses due to rising costs and tax uncertainty in the United States.

Despite Fifa announcing a record prize fund of $727m (£539m) for the tournament, associations are concerned about the expense of the expanded North American event.

An investigation indicates that operational costs will be substantially higher than the 2022 edition held in Qatar.

One national governing body estimates it could lose a considerable sum if its team exits in the group stages or early knockout rounds.

Allowances cut and travel costs rise

While teams will receive $9m (£6.7m) for qualifying – a figure consistent with the previous tournament – Fifa has reportedly reduced daily delegation allowances.

The per-person daily rate has dropped from $850 to $600 for this summer’s competition.

One federation calculates this reduction alone could cost them an additional $500,000 if they remain in the tournament for a month.

Logistical expenses are also projected to soar due to the vast travel distances required across the US, Canada, and Mexico compared to the compact nature of the finals in the Middle East.

Furthermore, unfavourable exchange rate shifts over the last four years mean prize money paid in US dollars now holds lower value for European organisations.

Tax concerns in the US

There is significant frustration that tax guarantees, usually a key requirement for host nations, have not been fully honoured by the United States.

While co-hosts Canada and Mexico have agreed to exemptions for competing teams, the situation in the US remains unresolved.

Associations fear facing a ‘postcode lottery’ depending on where they are drawn to play.

State tax laws vary significantly, with California imposing an income tax rate of up to 13.3%.

European bodies report they have been left to seek independent tax advice rather than receiving clear guidance from the world governing body.

Any reduction in net profit is likely to have negative repercussions for domestic football, as World Cup revenues are typically reinvested directly into local grassroots programmes.