Arsenal owners' potential World Cup deal abandonment amidst FIFA dispute

Arsenal's owners, Kroenke Sports & Entertainment (KSE), are in a stand-off with FIFA over the agreement for SoFi Stadium to host games at the World Cup in 2026. KSE is unhappy with the revenue sharing arrangement and may withdraw from hosting duties if a new deal cannot be reached.

In a clash between Arsenal's owners and FIFA, tensions have arisen regarding the agreement for SoFi Stadium to host games at the 2026 World Cup. Kroenke Sports & Entertainment (KSE), who have owned Arsenal since 2018, also include the $5.5 billion (£4.4 billion) stadium as part of their business empire. The state-of-the-art venue in Los Angeles, which opened in 2020 and is home to the LA Rams, has been selected as one of sixteen locations across the US, Canada, and Mexico to host matches in the prestigious FIFA tournament. However, The Athletic has reported that Arsenal's owners are dissatisfied with the deal as part of the arrangement for hosting games in three years' time.

The main point of contention revolves around the distribution of revenue between FIFA, the cities, and the stadiums, with KSE particularly concerned about this aspect. The report suggests that the stadium's owners had hoped to recoup upfront payments through various commercial assets, such as sponsorships, ticket sales, hospitality, and matchday revenue. However, it appears that these assets have not materialized as expected for KSE, potentially leading to significant actions. If a new negotiation deal cannot be reached with FIFA, the Kroenkes may even decide to withdraw the SoFi Stadium from hosting duties at the World Cup entirely.

The report further speculates on KSE's intentions, suggesting that it remains uncertain whether this situation represents a power play on the part of the Kroenkes. Whether they would genuinely follow through with withdrawing the stadium from hosting duties is yet to be seen.

Previously, FIFA had projected that the cycle leading up to the next World Cup could generate substantial revenue, with an estimated figure of $11 billion (£8.8 billion) mentioned in December. This projection includes a forecasted $3.1 billion, encompassing ticket sales and hospitality.

In response to the speculation surrounding tensions between FIFA and KSE, the Los Angeles FIFA World Cup Host Committee has issued a statement. They express pride in being the Los Angeles Host Committee for the 2026 FIFA World Cup and emphasize their close collaboration with FIFA on various aspects of the event. The committee asserts that the information shared does not accurately reflect the content of their ongoing conversations, highlighting KSE as an invaluable partner for Los Angeles. They also assure that with KSE's support, Los Angeles will deliver to the highest standard on the world stage.

FIFA has also weighed in, confirming a strong working relationship with the Los Angeles host committee and all sixteen host committees involved in the 2026 World Cup. They emphasize their joint efforts in delivering an unforgettable and unprecedented tournament across Canada, Mexico, and the United States.