European countries still expect to lose money at World Cup despite prize fund increase

"Despite Fifa increasing the prize and participation fund by $112m, a number of leading European countries still expect to lose money at the World Cup. The main host federation, US Soccer, is forecasting an operational loss on the tournament, although that will be more than offset by a projected $100m windfall from a revenue-sharing agreement from ticket sales with Fifa."

"Uefa had led the lobbying for increased funding, with the Fifa Council responding by confirming it would increase the budget by 15% to $871m. All 48 participating countries are guaranteed a minimum of $12.5m, up from $10.5m, but the round-by-round prize money has not increased."

"Fifa opted to split the increased payouts equally rather than pegging them to performance, whereas the leading European nations had wanted a change in the distribution system to make it more merit-based. An additional $2m is paid for reaching the last 32, then $4m more for getting to the last 16."

Many leading European nations anticipate financial losses during the World Cup, even with Fifa's $112m increase in the prize fund. US Soccer expects an operational loss but will benefit from a $100m revenue-sharing agreement. Other national associations face costs exceeding Fifa's payments. Uefa advocated for increased funding, resulting in a 15% budget increase to $871m. Each participating country is guaranteed $12.5m, but the prize money structure remains unchanged, leading to dissatisfaction among larger FAs regarding the distribution system.

Read at www.theguardian.com