Toronto's World Cup hosting not as rosy as portrayed

Toronto and Vancouver were sold a bill of goods when the two Canadian cities decided to bid for hosting of some of the FIFA World Cup 2026 games.

It's happened time and time again that countries and cities get all gung ho about major sporting events like the Olympics and the World Cup. It's such an alluring idea, to invite the world to your city, to help celebrate one of the biggest international sporting events. Can you feel a "but" coming?

BUT ... however much cities and countries try to convince themselves that hosting World Cup events is a good idea, a no-brainer even, history tells us that it's really not. 12 of the last 14 World Cups have proved to be financial busts for the host countries, in some cases spectacularly so, like Brazil 2014, which precipitated a national economic emergency. (The Olympics is very much the same: the last Olympics to actually pay its way was Los Angeles in 1984.) 

While Toronto and Vancouver opted in to this risky venture, It's notable that Montreal and Chicago both considered participation and decided against it.

Part of the problem is cost overruns, which are now standard in World Cup bids. When Toronto initally bid on the World Cup, back in 2018, it estimated a cost to the city's taxpayers of $30-$45 million. Just 8 years later, that cost has ballooned to well over $300 million. If a city got it that wrong for any other development project, it would be considered a national scandal and heads would roll. But, because it's the World Cup, and therefore by definition a Good Thing, such overruns are swept under a very large carpet. 

According to the Parliamentary Budget Office, the country as a whole is sinking over $1 billion into just thirteen World Cup games (six omin Totonto, and seven in Vancouver). The federal government is to cover $473 million of that, with the rest coming from other levels if government. Different estimates show Toronto on the hook for $380 million, and Vancouver an eye-watering $578 million.

Another element of the problem is the way that FIFA operates. Cities are expected to pay for the privilege of hosting the event, while FIFA reaps all its money up front. FIFA also makes many very specific, and very expensive, demands on host cities, as I have kvetched about before.

And finally, there is the revenue side. The usual justification for putting on these big events is that they are "investments" in the tourism and hospitality industries. Some proponents have been claiming, with little or no justification, that Canada's participation in the World Cup will generate up to $4 billion in potential revenue and economic benefits. FIFA itself puts that figure at $940 million, but even that seems a stretch. 

Yes, the World Cup provides a showcase for host cities (although that can also have negative repercussions if not everything goes perfectly). Typically, these events may generate a short-term boost to tourism, but very little long-term benefit. Remember as well hat this year's World Cup is spread over 16 different cities thoughout the USA, Mexico and Canada, thus dissipating any tourism boist. 

And one other consideration: some visitors that might have come to Toronto for other sports events, music concerts, or just to explore the city and its culture, may actually put that visit on hold while all the World Cup craziness is underway, a corollary that usually gets conveniently forgotten.

Now, I'm not saying that Toronto and other cities were just plain wrong to bid for World Cup games (although personally I would have preferred not be involved). I'm just saying that falling onto a billion dollar hole without eyes wide open is foolhardy in the extreme. Part of having eyss wide open is acknowledging that we'll probably be paying for this boondoggle for many years to come.