The beautiful game has an ugly price tag. Fifa, football's governing body, is now under investigation over the cost of World Cup tickets, as UK supporters demand fair access. It is a classic case of market failure. When demand exceeds supply, prices should rise; that is Econ 101. But when the supplier is a monopoly with a public mandate, the rules change.
Here is the bottom line. The average ticket for the 2022 World Cup in Qatar cost £160. For 2026, which will be hosted across North America, prices have jumped to over £200 for group stage matches. For the final, you are looking at a cool £1,800. That is not a ticket; that is a capital outflow.
Government officials are now poking their noses into Fifa's pricing strategy. They argue that the tournament, which is partly funded by taxpayer money via stadium subsidies and security costs, should be accessible to ordinary fans. The Competition and Markets Authority has been asked to review whether Fifa is abusing its dominant position.
Let me translate that into financial jargon. This is a governance risk. Fifa is a non-profit, but its revenue model resembles a tech monopoly. It sells broadcasting rights for billions and sponsorships for hundreds of millions. Tickets are a small slice of its income, but they are the most visible. If the CMA finds that Fifa has engaged in excessive pricing, it could set a precedent for other sports bodies.
If I were a bond trader, I would be watching this closely. The yield on Fifa's reputation is dropping. The organisation has been through corruption scandals, and now this. Any regulatory action could force a repricing of its assets. The cost of capital for future tournaments might rise if governments impose conditions on subsidies.
Let us not forget the inflation angle. The real price of a World Cup ticket has risen faster than UK wage growth over the past decade. That is a tax on passion. Fans are effectively paying a premium for an experience that the market has not properly priced.
The irony is that Fifa claims to want to grow the game. But when tickets become luxury goods, you exclude the very people who make football what it is. The terraces are empty of the working class who once stood on them.
So, the investigation is welcome. It is about time someone applied fiscal responsibility to sports governance. Whether it will lead to lower prices is another matter. Central bankers have been trying to control inflation for years with limited success. But perhaps a dose of regulatory scrutiny can cool the fever pitch of ticket prices.
For now, the market is in a state of suspended animation. Fans are holding their breath, and speculators are sitting on inventory. The outcome of this investigation will determine whether we see a correction or a continued uptrend in the cost of fandom.
