Starting in June 2026, the 23rd FIFA World Cup will be jointly hosted by the United States, Mexico, and Canada. This will be Mexico’s third time hosting, the United States’ second, and Canada’s first time.1
Ticket sales opened in April, and ticket prices were immediately in the news when it was revealed that FIFA was asking for up to $10,990 per ticket.2 On the official ticket resale platform, a seller was asking $82,780 for one ticket.
However, ticket sales are just the beginning; fans will also shell out for travel and lodging, food and beverage, and team merch. Plus, there’s marketing and sponsorship revenue to be earned, to say nothing of the jobs that are created by hosting such a huge event. According to a FIFA socioeconomic impact analysis,3 the 2026 World Cup will bring 6.5 million fans to the games for an overall $30.5 billion economic impact (in the U.S. alone), at a cost of “just” $11.1 billion.
Net income
This is where things get Messi. The IRS recently released a reminder that foreign athletes are generally subject to tax on their U.S.-source earnings connected with activities performed in the United States at a withholding rate of 30%.4
There is an exemption if the athlete is present in the U.S. for no more than 90 days in the taxable year, compensation does not exceed $3,000 (yeah, right), and services are performed for a foreign employer not engaged in a U.S. trade or business.5 A tax treaty may also reduce or eliminate U.S. withholding.
The IRS also has a Central Withholding Agreement (CWA) program that can help reduce withholding for foreign athletes who plan to work in the U.S.6 A CWA provides for the correct amount of withholding based upon net income and can result in tax savings.
Should we tax the athletes who travel here for a world event that brings nations together to enjoy a common pastime? Don’t we ask the same thing about Olympians and their medals? I’m not in charge, so it’s not up to me. My one true hope is that Ricky Martin writes another megahit World Cup song. ¡Alé, alé, alé!
