The beautiful game has an ugly secret, and the City is now watching closely. Fifa, football's global governing body, is under investigation led by British authorities over allegations of a ticket price scandal at the upcoming World Cup. This is not simply a matter of football fans being priced out of the stands.
It is a question of market manipulation and potential abuse of monopoly power. The Treasury and the Competition and Markets Authority are probing whether Fifa artificially inflated ticket prices, creating a secondary market that lines the pockets of insiders at the expense of the public. For those of us who track the bottom line, this reeks of a classic rent-seeking behaviour.
Fifa, like a central bank with no accountability, prints tickets and sets prices without regard for market efficiency. The result is a distorted market where premiums are captured by middlemen not the organisation itself. The investigation could lead to fines, restitution, or even forced price caps.
But the real damage is to Fifa's reputation, and that 'brand premium' is now under threat. Investors in football-related stocks should brace for volatility. This scandal is a reminder that even monopolies face scrutiny when they forget who pays the bills.
The fans, the taxpayers, the citizens. The match is just beginning, and the referees are now in the room.
