economy
The Unhappy Hosts of the World Cup
Cities and states are covering a lot of the costs of this summer’s matches, and have few options for bringing in much revenue.
TL;DR
- Host nations initially promised free public transportation for World Cup ticket holders, but FIFA later allowed transit to be priced to cover costs.
- New Jersey planned to charge $150 for a round-trip train ticket to MetLife Stadium, later reduced to $105 with corporate donations, as the state faced $48 million in transit costs.
- FIFA is projected to earn $13 billion from the World Cup, while host cities and states are responsible for expenses without a clear way to recoup them.
- FIFA's controlling contracts and restrictions on local sponsors limit host committees' ability to raise funds, with sponsorship categories often being low-tier.
- Host cities face considerable costs for stadium preparations, security, and transportation, with some spending tens of millions of their own money.
- FIFA's requirements, such as extra security perimeters and no general parking at MetLife Stadium, impact stadium operations and increase reliance on public transit.
- Parking fees at World Cup matches are high and benefit FIFA, with prices reaching $175 in Boston.
- Host committees are struggling to fund fan zones, with some cities reducing their scope or adding admission fees.
- Cities that opted out of hosting, like Chicago and Montreal, have not expressed regret.
- Local officials are burdened by the costs and potential negative publicity if the event is poorly managed, despite receiving little political benefit.