2026 World Cup tax row leaves African teams facing financial hit in United States

African countries preparing for the expanded 2026 FIFA World Cup may face an unexpected financial setback, as new details reveal that several teams from the continent could lose a portion of their tournament earnings to United States taxes.

With FIFA unable to secure a full tax exemption from the U.S. government for all 48 participating nations, football associations—particularly from Africa—are now confronting the possibility of reduced revenues from one of the sport’s most lucrative global events. For many of these countries, World Cup income plays a vital role in funding domestic football development, making the issue especially significant.

The tournament, which will be co-hosted by the United States, Canada, and Mexico, marks a historic expansion in the number of participating teams. However, the financial landscape surrounding the competition is proving uneven. Unlike the 2022 World Cup in Qatar, where participating nations benefited from sweeping tax exemptions, the United States has not agreed to similar terms.

Although FIFA itself retains tax-exempt status in the U.S., this does not extend to national football associations. As a result, teams may be required to pay federal, state, and local taxes on prize money and other earnings generated during the tournament.

The impact is expected to vary depending on whether countries have existing double taxation agreements with the United States. African nations such as Egypt, Morocco, and South Africa may receive partial relief under such treaties, potentially reducing their financial exposure. However, countries including Ghana, Senegal, and the Democratic Republic of Congo lack these agreements and could face heavier tax burdens.

This disparity has raised concerns about fairness, with analysts warning that the policy could disproportionately affect smaller or less wealthy football associations. For many African nations, World Cup participation is not only a sporting milestone but also a critical source of revenue used to support grassroots programs, infrastructure development, and administrative costs.

Players themselves will still be taxed on income earned within the United States, in accordance with U.S. law. In addition, taxes applied to coaches and support staff could further increase costs for national federations already operating under tight financial constraints.

Another complicating factor is the variation in tax rates across different U.S. states. Teams assigned to play matches in high-tax states could end up paying significantly more than those competing in states with lower or no income taxes, effectively making tournament logistics a financial variable.

In contrast, co-host nations Canada and Mexico have reportedly agreed to grant full tax exemptions to participating teams for matches played within their borders. This creates an uneven system in which teams may experience different financial outcomes depending on where their games are held.

Despite expectations of record prize money for the 2026 tournament, the combination of taxation, travel, and operational costs could diminish the overall financial benefits for many teams—particularly those from Africa.

FIFA President Gianni Infantino has acknowledged the issue, noting that discussions with U.S. authorities are ongoing. However, with no comprehensive agreement yet in place, uncertainty remains.

As anticipation builds for the largest World Cup in history, the unresolved tax situation threatens to place additional pressure on African teams, raising broader questions about equity and financial fairness in global football.