Why European nations are concerned they could lose money from playing at World Cup | OneFootball

European national football teams are privately expressing significant concerns that their participation in this summer’s World Cup could result in financial losses, the Press Association understands.

This comes despite the tournament being the flagship event for football’s world governing body, Fifa, with its revenues typically funding global sport development initiatives.

Fifa announced a record prize fund of $727million (£539m) for the North American finals in December, including $50m for the winning team.

However, a joint investigation by the Press Association and The Guardian has revealed widespread apprehension among European FAs regarding substantially higher costs compared to the Qatar tournament four years ago.

There is also considerable discontent that tax guarantees – a key bidding requirement for the 2026 host nations – have yet to be honoured by the United States.

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National teams are worried about higher costs when compared to the 2022 World Cup in Qatar (AP)

One national FA has calculated that it stands to lose a considerable sum if its team exits in the group stage or early knockout rounds.

Other associations anticipate earning significantly less than they did from their involvement in the 2022 tournament in Qatar.

Any funds generated by these FAs from World Cup participation, after player bonuses and operational costs are covered, are typically reinvested into local football programmes. Consequently, a loss or reduced profit could have serious negative repercussions.

Teams receive $9m (£6.7m) for qualifying, alongside an additional $1.5m towards preparation costs, figures which sources indicate are consistent with those offered in Qatar.

However, the Press Association has been informed that Fifa has reduced the daily allowance for each national team delegation member from $850 in Qatar to $600 for this summer’s tournament.

One national FA estimated this reduction could amount to $500,000 less if their team remains in the tournament for a month.

Travel costs are also projected to be considerably higher due to the vast distances involved across North America compared to the compact nature of Qatar.

Furthermore, shifts in exchange rates over the past four years mean that prize money awarded in US dollars now translates to a lower value in European currencies.

Associations also fear a ‘postcode lottery’ regarding tax charges, depending on where the draw places their teams.

While co-hosts Canada and Mexico have already agreed to tax exemptions for competing teams, this remains unresolved in the US, where state taxes vary significantly.

California, for example, imposes a top income tax rate of 13.3 per cent. Associations report being left to seek their own tax advice, rather than receiving guidance from Fifa.

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Ticket prices for fans has also become a major concern (Danny Lawson/PA Wire)

The high cost of World Cup tickets, an issue already widely publicised for fans, is also affecting associations that provide tickets to players’ families and friends.

Around nine or ten European associations are understood to have discussed these concerns over World Cup costs and taxes, both remotely and in person at the recent Uefa Congress in Brussels.

They have also raised the matter informally with senior Fifa officials. An anonymous European FA executive stated that the Fifa officials they spoke to appeared "embarrassed" by the situation.

Fifa has been approached for comment. None of the national associations contacted by the Press Association wished to comment on the matter.