European Teams Worried About Financial Losses at World Cup
European national football teams are expressing significant concerns about potential financial losses related to their participation in the upcoming World Cup. The tournament, managed by FIFA, is expected to generate substantial revenue to support football development worldwide. However, a joint investigation indicates that many European Football Associations (FAs) are worried about increased costs compared to the previous World Cup held in Qatar.
Financial Implications of the World Cup
FIFA announced a record prize pool of $727 million (£539 million) for this summer’s finals, which will be hosted across North America. The winning team will receive $50 million. Despite these generous offerings, European teams fear that participation costs will outweigh the financial benefits.
Concerns Over Increased Costs
- One FA projects a significant loss if their team exits the tournament early.
- Operational costs and player bonuses can heavily impact overall profits.
- Team bonuses remain at $9 million (£6.7 million) for qualification, with an additional $1.5 million for preparation, unchanged since Qatar.
FIFA has reduced the daily allowance provided to delegation members from $850 in Qatar to $600 for this year’s tournament. This change could result in a loss of approximately $500,000 for extended stays.
Travel and Tax Challenges
Travel expenses are expected to be higher due to longer distances in North America. Furthermore, fluctuating currency exchange rates complicate the situation, as FIFA’s prize money in US dollars is now less favorable for European teams.
Tax regulations vary significantly across the host countries. Canada and Mexico have granted tax exemptions for participating teams, while the United States has not yet established similar measures. This inconsistency may result in a “postcode lottery” regarding tax liabilities, which adds to teams’ anxieties.
European Associations’ Reaction
Approximately nine to ten European associations have convened to address these financial concerns, both remotely and during the recent UEFA Congress in Brussels. They have brought the issue to the attention of senior FIFA officials. One unnamed FA executive noted that FIFA representatives appeared “embarrassed” by the situation.
As associations navigate these challenges, they have been left seeking independent tax advice, a departure from past expectations of FIFA’s support. The rising cost of World Cup tickets has also become a concern, impacting how associations provide tickets to players’ families and friends.
In summary, European teams are deeply worried about the financial repercussions of competing in the World Cup. As they prepare for the tournament, these concerns could have lasting effects on local football development initiatives. Filmogaz.com will continue to cover these developments as they unfold.
