The 2026 FIFA World Cup has kicked off across North America. FIFA, the governing body that organizes it, is widely seen as a prosperous organization. After all, it governs the world's most popular sport and its most prestigious event. It's regarded as a machine generating billions of dollars.
But that perception is not the case because of one key factor: FIFA's financial model operates on four-year cycles centred on the World Cup. Under this model, the years without a World Cup almost always result in a deficit.
As a full professor of accounting and taxation at Carleton University's Sprott School of Business, I examine FIFA's model and financial statements .
Net profit per year or per cycle?
FIFA's recent financial statements show losses of several million dollars in 2023 (US$390 million), 2024 (US$616 million) and 2025 (US$248 million), for a cumulative loss of US$1.25 billion over these three years.
The years leading up to the World Cup are characterized by limited revenue. Major contracts are primarily finalized in the year of the World Cup, along with massive investments in soccer activities and development, as well as recurring administrative expenses.
Extrapolating from the 2022 results, when the World Cup was held in Qatar, the 2026 World Cup is expected to be profitable. Estimates suggest over US$1 billion in net profits over the four-year cycle leading up to 2026.
The highly profitable World Cup
FIFA derives most of its revenue from the World Cup. For example, in 2025, television broadcasting rights generated US$1 billion in revenue, compared to nearly US$3 billion in 2022, the year of the tournament in Qatar.
The same trend was true for marketing rights (US$1 billion compared to nearly US$1.5 billion in 2022), licensing rights (US$97 million compared to over US$270 million in 2022) and revenue from hospitality and ticketing rights (US$410 million versus nearly US$1 billion in 2022).
The same scenario is expected for 2026, only better. Revenue is expected to exceed US$10.9 billion, a historic high . This compares favourably with the US$7 billion in revenue from the 2022 World Cup in Qatar and the US$5.3 billion from the 2018 tournament in Russia.
This 2026 World Cup, which will be the largest in history, marks a major turning point. Co-hosted by Canada, Mexico and the United States, it is backed by an extremely lucrative North American market.
The expanded tournament will feature 48 teams (up from 32 in previous tournaments) and 104 matches (up from 64 in 2022), and will garner unprecedented global visibility.
FIFA's assets: A solid safety net
Even during periods of deficit, FIFA is far from being in financial trouble.
It has a strong cash position designed to absorb cyclical fluctuations. It holds significant financial assets, strategic reserves and diversified investments in global soccer development.
As of Dec. 31, 2025, cash and cash equivalents totalled more than US$1 billion, with US$974 million in cash and bank accounts and more than US$206 million in time deposits with maturities of less than three months.
Financial assets total more than US$5 billion, including US$3.3 billion in current assets and US$2.4 billion in non-current assets. These assets include debt securities, deposits, mutual funds, money market funds, equity investments and loans.
Strategic reserves total nearly US$2.7 billion and include the association's capital of over US$4 million and special reserves dedicated to FIFA's statutory objectives and club soccer, amounting to over US$2.5 billion.
These assets and reserves are specifically intended to absorb years of deficit and ensure the organization's financial stability. They play an essential role in maintaining day-to-day operations, meeting long-term commitments and preserving investment capacity, even when revenues fluctuate.
By building a solid financial cushion, the organization protects itself against unforeseen events and ensures the continuity of its services without compromising its mission. One might even wonder if the cushion is too comfortable.
Long-term strategy
The losses recorded by FIFA from 2023 to 2025 should not be viewed as a sign of weakness, but rather as a logical and expected consequence of its financial model.
The organization operates on a four-year cycle. In the years leading up to the World Cup, it is traditionally in the red due to the massive investments required to prepare the tournament, develop infrastructure, support member associations and fund global programs.
According to projections, FIFA is expected to record more than US$1 billion in net profit over the 2023-26 four-year cycle, confirming the strength of its business model.
Thanks to solid assets, substantial financial reserves and sustained investment capacity, FIFA is one of the most powerful sports organizations in the world today. Its model, based on cycles of investment and return, allows it not only to ensure its financial stability but also to continue supporting the development of soccer on a global scale.
In this sense, temporary deficits are no cause for alarm, but are evidence of a well-managed, long-term strategy that continues to strengthen soccer's dominant position on the international sports and economic stage.
Francois Brouard ne travaille pas, ne conseille pas, ne possède pas de parts, ne reçoit pas de fonds d'une organisation qui pourrait tirer profit de cet article, et n'a déclaré aucune autre affiliation que son organisme de recherche.
