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World Cup creates costs but also chance to cash in

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The World Cup trophy for the 2026 FIFA World Cup soccer tournament at FIFA headquarters. (Til Buergy/Keystone via AP, File)

Once considered an impossible dream, Canada’s hosting role in the FIFA World Cup is now under a year away. The first of six games in Toronto will be played on June 12, 2026 at BMO Field, which will be called Toronto Stadium for the duration of the event. Seven games will be played at BC Place in Vancouver.

But as hopes for a successful Canadian portion of the World Cup permeate, the reality of the costs of staging what FIFA President Gianni Infantino calls “104 Super Bowls in one month” have surfaced. (The 104 games will be spread across 16 cities in Canada, Mexico and the United States).

Estimated expenditures have increased dramatically in both host cities in the country.

According to Statista, the last World Cup, hosted by Qatar in 2022 cost over USD $220 billion, obviously a record cost for the event. This included the infrastructure of building all-new stadiums, transit, airports, hotels and telecommunications. It was an enormous undertaking that included some frightening results.

Prior to Qatar, recent World Cups in Russia and Brazil yielded costs above USD $10 billion, with Brazil hitting $15B in 2014.

Sharing a newly-expanded 48-team World Cup with two other countries means the burden is split. But estimates are increasing, politicians are posturing and someone is going to be left holding the bag.

CP24.com reports that “[Toronto] Mayor Olivia Chow’s office says a new, lower estimate for the amount of money Toronto will receive from the province to offset its costs for hosting six FIFA World Cup games next year amounts to a “clawback.” Ontario had pledged CDN $97 million from the get-go, but with costs now expected to exceed $380 million, that amount feels like chump change. Additionally, the province’s sum is earmarked for specific initiatives including train station cleanups, not necessarily for costs related directly to putting on the games.

The federal government has promised $104.3 million according to CP24, leaving the city on the hook for nearly $179 million, which was previously budgeted for. Service costs indicate that a further $40 million will be required, leaving the city without money to cover the overruns.

This has led some municipal councillors to question the benefit of hosting a World Cup at all. FIFA itself points to “positive economic output.” According to the Canadian Press, a FIFA economic impact assessment suggests a $3.8 billion contribution to Canada. The city of Toronto itself expects a $400 million boost to GDP, according to CBC.com. FIFA argues that number is closer to $520 million.

The Canadian Press states that “economic impacts were measured and reported in terms of economic output, GDP, labour income, employment and government revenue” in the FIFA report.

With seven games to be played in Vancouver, CDN $1.3B is predicted by FIFA as an overall economic output for the metro area, and $1.7B for all of British Columbia. CP reports that FIFA claims the positive economic output in the province “includes boosts to GDP ($980 million), labour income ($610 million), and government revenue ($120 million).” This includes the creation of 13,700 jobs that will last beyond the event.

Costs, though, aren’t exclusive to Canadian hosts. Houston, Texas will host seven games with expenses projected between USD $70-80 million, according to Moneywise.com, a modest amount compared to Toronto and Vancouver. But Houston has hosted two Super Bowls in the past 21 years, perhaps suggesting that some advanced infrastructure is already in place.

Houston is “addressing issues like non-functional freeway lighting, deteriorating buildings and outdated public amenities to ensure a welcoming environment for fans,” according to Moneywise.

The costs are crystal clear to all the host cities across North America. It’s laughable to think that the original estimate provided to Toronto City Council in 2018 was $45 million. Just seven years later the $380 million does seem a bit high, but all levels of government have stepped up, and the money is accounted for. The problem will come with overruns, which seem inevitable now, though no level of government is presently willing to take those on. Ontario has steadfastly held to its original contribution number.

While there is time to sort out who’s paying for what, two Canadian cities will be part of unprecedented global attention in less than a year. When the final cost analysis is written after the 13 soccer games are played within our borders, the hope is that the event will resonate for years after. Not only for the tourists who visited and spent money, the businesses that were able to profit from the action, and the cities that upgraded infrastructure, but culturally for a nation of people that will literally be the centre of the universe. Soccer has that kind of impact, economically and otherwise.

Follow: @dgontheroad