Institute of Taxation and Economic Policy criticizes agreements signed by Florida, Missouri and Georgia with FIFA regarding ticket sales, according to an American website
With the aim of hosting , the North American states of Florida, Missouri and Georgia signed agreements with FIFA that result in an estimated waiver of US$58 million in taxes on ticket sales. The calculation is from Itep (Institute of Taxation and Economic Policy, its acronym in English), which criticized the measure for reducing public revenue. The information is from the website The Athletic.
According to the institute, Georgia will no longer collect up to US$25 million in state and local taxes on ticket sales in Atlanta. In Missouri, the estimated loss exceeds US$11 million from games played in Kansas City. Florida will give up around US$7.4 million in revenue related to games held in Miami.
Tax exemptions are part of the commitments made by local governments to guarantee the right to host football matches. According to the publication, the situation highlights differences in the financing model adopted by the host countries.
While Mexico and Canada made direct contributions to the event, cities in the United States depend more on sponsorships, local fundraising and reimbursement programs.
PRESSURE ON PUBLIC ACCOUNTS
The tax waiver adds to the expenses faced by local governments with security and logistics for the tournament.
Furthermore, fans deal with high transportation and accommodation costs to attend the games.
For Itep, the exemption benefits one of the richest sporting entities in the world to the detriment of revenues that could be destined for public services.
ECONOMIC IMPACT
It maintains that the host cities will benefit from the increase in tourism and the international visibility provided by the tournament.
Experts interviewed by The Athletic, however, say that these gains are more difficult to measure than the revenue that governments fail to receive before the competition even begins.
In the assessment of critics of the measure, the 2026 World Cup could be among the sporting events with the highest fiscal cost for some of the regions involved.
