Summary
Highlights
While FIFA allows host cities to keep revenues from fan festivals, the costs of securing and organizing these events often exceed their earnings, leading some cities to scale them down. Moreover, FIFA demands tax exemptions on all its revenues, preventing cities from levying taxes on billions of dollars in economic activity. This exacerbates the financial strain on host cities, which are projected to spend between $100 million and $200 million each on infrastructure, security, and logistics.
Chicago, the third-largest American city, withdrew its bid to host the 2026 World Cup, stating it wasn't willing to bear the financial burden. The city calculated that hosting would result in losses rather than profits, a reality many participating cities are now facing. Despite Chicago's withdrawal, the joint bid by the US, Canada, and Mexico proceeded and won, but concerns about financial viability are growing among the current host cities.
The governor of New Jersey, Mike Sherrill, vehemently criticized FIFA for not covering transportation costs for the World Cup, forcing the state's transit company to bear a $48 million expense. She announced a significant increase in transportation ticket prices to offset these costs, emphasizing that FIFA, projected to earn $11 billion, should contribute to the operational expenses rather than shifting the burden to local taxpayers.
FIFA expects to generate $11 billion in revenue from the 2026 World Cup, primarily from broadcasting rights, ticket sales, hospitality, and sponsorship deals. Host cities, however, receive virtually none of this direct revenue. FIFA has monopolized sponsorship rights across three tiers, leaving host cities with limited, restrictive local sponsorship opportunities that often clash with FIFA's global sponsors. This setup prevents cities from securing significant income to cover their hosting costs.
Contrary to FIFA's promises of an economic boom, many host cities are reporting lower-than-expected hotel bookings and economic activity. A key factor is the limited international demand, primarily due to visa issues and exorbitant ticket prices. Furthermore, a यूगॉव survey indicated that only 13% of Americans are intensely interested in the World Cup, suggesting that local tourism might not fully compensate for the lack of international visitors, potentially resulting in a net financial loss for cities.
FIFA, in collaboration with the World Trade Organization, published a study claiming the 2026 World Cup would generate $30.5 billion for the American economy. However, experts dismiss these figures as exaggerated propaganda. Attempts by journalists to verify this study with FIFA and the WTO were unsuccessful, raising concerns that the host cities, and ultimately American taxpayers, are being misled into bearing significant financial burdens for FIFA's substantial profits. This has led to frustration among U.S. officials, who feel deceived by FIFA's promises.