FIFA Decision Leaves Ghana, 29 Others Facing Huge Financial Setback
- Ghana and 29 other nations that qualified for the 2026 FIFA World Cup could face a significant financial setback
- The concern stems from the reported failure to secure a blanket tax exemption deal with the US government
- Teams playing their World Cup matches in Canada and Mexico may still benefit from lower tax obligations
Ghana is among a group of countries facing an unexpected financial setback ahead of the 2026 FIFA World Cup after a recent decision by FIFA on tax arrangements in the United States.
The ruling means national associations like the Ghana Football Association (GFA) could lose a portion of their tournament earnings to taxes, adding fresh pressure at a time when preparations are already stretching budgets.
Source: Getty Images
FIFA decision hits Ghana, 29 others
According to a report by The Guardian, more than half of the 48 qualified teams will be affected due to the absence of a blanket tax exemption agreement with the United States government.
Unlike previous tournaments, FIFA has not secured a universal tax-free arrangement for all participating nations.
While the organisation has enjoyed tax exemptions in the US since the 1994 World Cup, that privilege does not extend to every qualified country this time.
Only 18 nations have double taxation agreements (DTAs) with the United States, shielding them from federal taxes.
Most of these countries are in Europe and outside that group, only a few nations such as Australia, Egypt, Morocco and South Africa benefit from similar protections.
As a result, countries like Ghana could face significant deductions.
The US federal corporate tax rate stands at 21%, while individuals such as players and coaches may be taxed as high as 37%, according to SportBIBLE.
This creates a clear imbalance, with nations like England and France likely to retain more of their earnings compared to others without such agreements.
Source: Getty Images
Black Stars face World Cup budget pressure
For Ghana, the timing of this development raises concern, as the Black Stars are already navigating a transitional phase following recent changes to the technical team.
The country is expected to receive at least $10.5 million from FIFA for participating in the tournament, although a sizable tax bill could significantly reduce that figure.
Two months ago, the Sports Ministry outlined a proposed $13 million budget for the World Cup, backed by a fundraising effort that has already attracted over $12 million in pledges.
Any additional financial burden will force careful spending decisions, and the situation could also influence major decisions, including the appointment of a new head coach.
Hiring a high-profile manager such as former Germany boss Joachim Low would come with added tax implications, further stretching resources.
In contrast, World Cup co-hosts Canada and Mexico are expected to offer tax exemptions, which could reduce costs for teams playing matches there.
The tournament begins on June 11, with Ghana scheduled to play two of their group matches in the United States.
That detail makes the financial impact even more relevant as the countdown to the 2026 World Cup gathers pace.
2026 WC: Full list of qualified teams
Earlier, YEN.com.gh reported that the full lineup for the 2026 FIFA World Cup has been confirmed.
Despite the expansion to 48 teams this year, former champions Italy will once again miss the tournament.
Proofreading by Bruce Douglas, copy editor at YEN.com.gh.
Source: YEN.com.gh
