The beautiful game has a nasty habit of leaving a sour taste in the wallet. British consumer groups are up in arms, demanding refund protections for travelling fans as Fifa faces an investigation over World Cup ticket pricing. This is not a penalty shootout; this is a financial own goal.
Let us be blunt: Fifa has been treating fans like derivative traders caught on the wrong side of a margin call. Ticket prices for the 2026 World Cup have soared, with some packages costing more than a small car. The average punter, who once could afford to take the family to a match, now faces a pricing structure that would make a private equity baron blush.
Consumer groups, led by Which? and the Football Supporters Association, have submitted formal complaints to the Competition and Markets Authority. They argue that fans booking travel and accommodation months in advance are left exposed if the tournament is cancelled, postponed, or if their team fails to qualify. It is a classic case of counterparty risk, and the fans are the unsecured creditors.
The heart of the matter is refund protection. When you buy a ticket for a music festival or a Premier League match, you expect a refund if the event does not happen. But Fifa, in its infinite wisdom, operates a no-refund policy except in extreme circumstances. This is akin to selling a bond with an acceleration clause only favourable to the issuer. The volatility of tournament football, from geopolitical tensions to pandemic disruptions, means the probability of a default is not zero.
Let us look at the numbers. Inflation is running hot, gilt yields are rising, and the cost of capital is eating into disposable income. The last thing families need is a non-performing asset in their portfolio called a World Cup ticket. The travel industry, already battered by Brexit and Covid, is piling on leverage by offering package deals. If Fifa fails to deliver, the knock-on effect could be a credit event for small travel firms.
Fifa, of course, will argue that ticket prices are set by market demand. But this is market failure, not market efficiency. The secondary ticket market is a chaotic hellscape of bots and scalpers, driving prices to absurd levels. The primary market is no better: the ballot system is opaque, and the allocation process favours sponsors and hospitality providers over genuine fans. It is a rigged auction, and the public is the bidder of last resort.
Central bank policy might seem distant from this debate, but it is not. The Bank of England's tightening cycle is squeezing consumer spending. Higher interest rates mean more expensive credit for travel. Combine that with inflated ticket prices, and you have a recipe for a economic red card.
So what is to be done? The investigation by the CMA is a start, but it needs teeth. Consumer groups are demanding that Fifa be forced to offer refund guarantees, similar to those required by Event Contract Law in the UK. If the tournament is moved, cancelled, or if fans are unable to attend due to government restrictions, they should get their money back. This is not socialism; it is basic contract law.
Capital flight is another concern. The UK is a net exporter of football fans, spending billions abroad for tournaments. If Fifa continues to treat fans as liquidity providers with no downside protection, they will simply stay home. The economic impact on host nations could be severe, but that is their problem. Our priority must be the British consumer.
In the end, this is about fiscal responsibility. Not just for governments, but for corporate entities like Fifa. They are sitting on a mountain of cash reserves, yet they refuse to extend a simple put option to ticket buyers. It is time for the regulators to step in and mark this market to reality. The beautiful game must be affordable, and it must be fair. Otherwise, the only winners will be the lawyers and the bankers.
Alastair Thorne
Chief Financial Editor
