American taxes reduce Al Ain Financial Revenue at the Club World Cup

Al Ain Club will have to give up about four million and 485 thousand dollars for the Tax Authority in the United States of America, after its current participation in the Football Club World Cup, in a precedent that may re -draw the features of the financial balance of clubs participating in the upcoming versions of the tournament, if they are hosted by countries that impose taxes on foreign entities.

According to the official figures issued by the International Football Association (FIFA), the total share of the Ain of the rewards is 11.5 million dollars, distributed between 9.5 million dollars for participation, and two million dollars after its victory over the Moroccan Wydad.

Safi will enter Al Ain Club’s budget to about seven million and 15 thousand dollars only, given that the reward value will be subject to strict taxes imposed by the American authorities, including a federal tax of up to 30%, and another in favor of Washington, DC, by 9%, as the latter imposes taxes on temporary foreign entities. Thus, about 39% of the total revenue will be deducted, which is worth four million and 485 thousand dollars.

The move came as a result of the absence of a tax agreement between “FIFA” and the American government, to provide temporary exemptions, which raised questions about the preparations of the International Federation to protect the interests of the participating clubs, especially since the World Cup 2026 World Cup will enjoy special exemptions, thanks to the tripartite agreement between the United States, Canada and Mexico, contrary to what happened in the club’s version.

According to press reports published by the “Guardian” and “Financial Times”, major European clubs, such as Manchester City, Real Madrid and Chelsea, warned of the impact of taxes in the financial feasibility of participation, especially in light of the high operational costs, huge contracts related to care and players.

Clubs participating in the Club World Cup face additional challenges, related to the complexities of the American tax system, most notably the varying tax rates between the states that host the championship matches. For example, Florida (which embraces two of the championship stadiums) does not impose any income tax at the state level, which gives participating clubs there is a clear financial advantage.

On the other hand, most of the other states apply income taxes that vary in their lineage, reaching 3% in Pennsylvania, while it reaches 7% in California.

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Financial expert: Taxes are subject to American laws … and “FIFA” outside the equation

The associate professor in financing and banks at Al Ain University, the financial expert, Dr. Musab Tabash, confirmed that taking taxes from non -American clubs participating in the Club World Cup, due to the difference in tax laws from one country to another.

Tabash told «Emirates Today» that the imposition of taxes in such tournaments is subject to the local laws of the host country, and not within the jurisdiction of the International Football Association (FIFA), explaining that the International Football Association does not interfere in this aspect, nor does it receive any percentage of these taxes.

The financial expert added that the imposition of taxes belongs to the country that regulates the championship, as it is an internal law and “FIFA” has no role in that, and that the latter does not obtain any percentage of it, because its mission is limited to organizing the championship.

He continued: «Taxes are imposed on all teams participating in the Club World Cup, and not only on Al Ain Club, this is the first time that such procedures have been applied in the history of the tournament. The UAE has previously hosted previous copies of the competition without imposing any taxes on the participating clubs.

Tabash revealed that the amount of $ 11.5 million in which Al Ain Club won will be subject to the state -federal tax deduction, which will reduce the net return to seven million and 15 thousand dollars only.