In a move that will surprise no one who has tried to buy a ticket to the World Cup recently, FIFA is now under investigation for alleged price gouging. The governing body of world football faces scrutiny as British fans, hit by soaring costs and empty promises, demand refunds. The investigation, launched by consumer watchdogs, focuses on whether FIFA artificially inflated ticket prices, creating a false scarcity in the secondary market. This is not merely a football story; it is a story about market failure and regulatory capture.
Let us examine the balance sheet. FIFA, a non-profit organisation that behaves like a monopoly, has been accused of hoarding tickets and funnelling them into premium packages, forcing genuine fans to pay well above face value. The result? A black market that would make an Enron trader blush. Fans who paid hundreds for face-value tickets found themselves priced out, while corporate hospitality suites overflowed with champagne and cronyism. The market, in classic fashion, cleared at a higher price but excluded the very people who built the game.
What is the cost of this debacle? In pound sterling, the damage runs into the millions. But the reputational hit could be far greater. A 2018 investigation by the BBC found that FIFA had overpriced tickets by as much as 400 per cent in some categories. Now, with the 2026 World Cup looming, regulators are finally asking: where is the consumer protection? The answer, as usual, is that it is absent. FIFA operates in a regulatory vacuum, a tax haven of sport where the bottom line is the only line that matters.
British fans, ever resourceful, have mobilised. They have launched a class-action petition, demanding refunds for what they call 'exploitative pricing'. Their anger is justified. A ticket to see England play in the group stages should not require a second mortgage. Yet the secondary market, fuelled by FIFA's opaque allocation system, ensures that only the wealthy can afford to watch the beautiful game. This is a classic case of rent-seeking, where FIFA extracts economic rents from a captive audience.
From a financial perspective, this is a disaster for the brand. If regulators force FIFA to issue refunds, expect a hit to the balance sheet. But more importantly, this investigation could trigger a wave of governance reforms. The market abhors a vacuum, and if FIFA will not regulate itself, the authorities will do it for them. Gilt yields may not be affected, but the cost of capital for FIFA's sponsors certainly will be. Companies like Visa and Coca-Cola will now have to weigh the reputational risk of associating with a cartel.
Central banks may not care about football, but they should care about market efficiency. FIFA's pricing mechanism is anything but efficient. It is a textbook example of what happens when a monopoly controls supply and distorts demand. Economists call it deadweight loss; fans call it daylight robbery. The lesson is simple: if you want a fair market, do not let the seller set both the price and the rules.
Where does this leave the British fan? In the cold. They will demand refunds, but they may have to wait longer than the 90 minutes of a match. The investigation is in its early stages, but the writing is on the wall. FIFA must clean up its act or face the ultimate penalty: a loss of faith from the very people who fill the stands. And without fans, the beautiful game is just a balance sheet of broken promises.
