Each FIFA World Cup costs billions of dollars to host, but who funds it? Despite FIFA’s official classification as a nonprofit by Switzerland, it routinely sits on reserves of billions of dollars, which are mainly the result of revenue streams from global championships. However, instead of covering the security or infrastructure costs required for tournaments, FIFA makes local taxpayers in those cities pay the bill. Moreover, despite temporary tourism booms, increases in sales tax revenue are not enough to offset the hundreds of millions of dollars in costs to host cities each year. To make budgetary matters worse, FIFA requires host countries to exempt tickets from sales taxes. These shortfalls force governments around the world to divert funds from healthcare, welfare, and education, causing social unrest in less-developed host countries, such as Brazil and Morocco. If FIFA wants to ensure a level playing field in soccer, it should reward, not punish, the communities that make the tournaments possible.
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Edward Kim
I have been interested in politics ever since the 2016 election, and have always dreamed of becoming a writer and debator!
