World Cup Qatar beer ban could cost FIFA £40 million

Major sponsor Budweiser is expected to take action over the breach of contract.

The 2022 FIFA World Cup in Qatar is mired in controversy, but bad press is the last thing that the football governing body needs to worry about right now. They are not expected to come away unscathed after the host country's decision to ban beer sales at eight stadiums at the last minute. Official sponsor Budweiser is expected to demand compensation for the organiser's breach of contract.

According to the latest reports, Budweiser is expected to sue FIFA for £40 million to compensate for the damages due to the ban. The contract to become the official beer sponsor of the tournament included exclusive rights to sell beer at all eight of the stadiums that are being used for the month-long competition.

However, on Friday, just two days before the World Cup opening ceremony, Qatar decided to cancel these privileges, allowing beer to be sold solely at the designated Fan Zone in Doha city centre. Apart from that, some hotel bars also serve alcohol. However, the stadiums will remain dry except for a non-alcoholic beer. Ironically, those who have access to VIP hospitality suites within the stadiums will have access to beer and other types of alcoholic beverages.

Despite being a FIFA sponsor since 1986, Budweiser was told about the alcohol ban at the #WorldCup 48 hours before the opening match.

Budweiser’s sponsorship amounts to $100M for their beer to exclusively be sold at the World Cup. pic.twitter.com/3x7S86YwYt
— Pop Tingz (@ThePopTingz) November 19, 2022

In any case, removing beer selling outlets from eight stadiums where about a million people are expected to come through will be a big dent to Budweiser's expected revenue from the event. According to The Sun, they are expected to play "hard ball" with FIFA on the matter, especially since they still have a £95m deal for the 2026 World Cup which will be hosted jointly by the USA, Canada and Mexico.

The current sponsorship for Qatar is only at £65 million, but the 2026 deal is worth more due to more venues, matches and the length of the competition. However, because of the current breach, the £95m deal may potentially be knocked back to only £55m.

Meanwhile, fans who travelled to enjoy the sporting spectacle will only be able to purchase alcoholic drinks at selected hotels and at the official World Cup Fan Festival. A 500ml glass of Bud will set fans back by £12 at the fan site, while prices are expected to be higher at hotels.