Economic Significance of the FIFA World Cup and the Use of Its Revenues – In Light of the 2026 FIFA World Cup
The 2026 FIFA World Cup: Expectations and Controversies
The 2026 FIFA World Cup attracted unprecedented attention from the international sporting community. The heightened interest was due not only to the fact that it is the first 48-team World Cup in FIFA history, but also because the hosting rights were jointly awarded to the United States, Canada, and Mexico. The role of the United States in particular generated significant expectations, as many believed that, as the world’s leading entertainment industry, it would elevate the world’s most-watched sporting event through its expertise in sports marketing, event management, and technological innovation.
Even before kickoff, however, the tournament faced considerable criticism. Several professional organizations and national football associations raised concerns regarding entry regulations, particularly for citizens of countries where obtaining a U.S. visa could be difficult. Questions were also raised about the quality of the natural grass surfaces installed in NFL stadiums within a short timeframe, the use of hydration breaks, and the unprecedented prices of match tickets and hospitality packages. Although many of the initial concerns ultimately proved unfounded, the tournament was not free of controversy. Several refereeing and VAR decisions sparked intense professional debate, while the so-called Trump–Infantino–Balogun affair also received extensive media coverage. Although speculation about political influence appeared in public discourse and the press, no credible evidence has yet been made public to support such claims. Nevertheless, the incident once again highlighted the continued public interest in the transparency and independence of FIFA’s decision-making processes.
FIFA’s Financial Background and the Role of the World Cup
Criticism of FIFA is not new. Over the past two decades, the organization has been affected by numerous corruption and governance scandals that ultimately led to the resignation of Sepp Blatter. Following the election of Gianni Infantino in 2016, many hoped for a more transparent and credible FIFA. Although debates regarding the organization’s governance continue to arise from time to time, there is no doubt that under Infantino’s presidency FIFA’s financial strength has reached unprecedented levels. The primary source of this financial power remains the men’s FIFA World Cup, held every four years, which generates the overwhelming majority of FIFA’s total revenue.
According to FIFA estimates, the 2026 World Cup could become the most economically successful tournament in history. Revenue is expected to exceed USD 9 billion, representing substantial growth compared with approximately USD 7 billion generated by the 2022 FIFA World Cup in Qatar and around USD 5 billion from the 2018 tournament in Russia. Several structural factors explain this growth. The number of participating national teams has increased from 32 to 48, resulting in an expansion from 64 to 104 matches. This provides significantly more broadcasting, advertising, and sponsorship inventory while also increasing ticketing and hospitality revenues. Additional advantages include the exceptional purchasing power of the North American market, the availability of large-capacity stadiums, and the continuous growth in the value of broadcasting and marketing rights.
How Does FIFA Use World Cup Revenues?
The substantial revenues generated by the FIFA World Cup are not intended to maximize FIFA’s profits. As a non-profit organization, FIFA reinvests the vast majority of its income into the global development of football. Its primary areas of investment include supporting national football associations, developing sports infrastructure, youth development, promoting women’s football, financing coach education, and operating grassroots football programs. These investments help build and renovate football pitches, training centers, and technical facilities worldwide while also supporting the operation of domestic leagues and national team programs.
The FIFA Forward Programme is the organization’s primary development funding mechanism. Through this program, FIFA does not finance clubs directly but instead provides funding to its 211 member associations. In Hungary, this means the Hungarian Football Federation (MLSZ). The system operates under strict regulations: member associations receive predetermined funding allocations, while access to project-based funding requires the submission of detailed development plans that must be approved by FIFA. The use of these funds is monitored through financial and professional reports as well as independent audits to ensure that the resources are used exclusively for football development.
The national associations subsequently distribute these funds to clubs and sports organizations in accordance with their own development strategies. This may take the form of infrastructure grants, youth development programs, coaching education, or other professional support schemes. Clubs therefore generally do not receive funding directly from FIFA but benefit from development resources through their national associations. These associations are also responsible for the proper use of the funds and for financial reporting to FIFA.
The Relationship Between Hungary’s Sports Financing System and FIFA
In Hungary, the FIFA Forward Programme does not operate as a standalone financing mechanism but rather it complements the domestic sports financing system. The two key pillars of this system are the corporate income tax benefit regime for spectator team sports, as well as the corporate income tax designation mechanism (‘allocation of tax’). The tax benefit regime allows companies to provide direct financial support to eligible sports organizations and youth development clubs in exchange for corporate tax benefits. These funds may be used for infrastructure development, youth training, the acquisition of equipment, and other approved sports development purposes.
The tax designation mechanism operates somewhat differently. Under this system, companies do not transfer funds directly to the beneficiary organization but instead designate a specified portion of their corporate income tax for transfer. The Hungarian tax authority then transfers the designated amount to the eligible sports organization or sports federation. The advantage of this arrangement is that taxpayers can contribute to sports financing while simultaneously fulfilling their tax obligations and becoming eligible for tax credits. As with the tax benefit system, the funds may only be used within approved sports development programs.
The economic significance of the FIFA World Cup therefore extends far beyond the sporting event itself. The revenues generated by the tournament not only finance FIFA’s operations but also contribute to the development of football worldwide through various development programs. In Hungary, these international resources complement the domestic sports financing system, meaning that the two funding pillars operate independently while serving the same long-term development objectives.
Disclaimer: this article is a translation of our original article written in Hungarian, which you can find here.
