The World Cup has arrived, bringing team jerseys, watch parties, packed hotels, and scarce restaurant reservations. For weeks, host cities across Canada, the U.S., and Mexico will buzz with noise, color, and distraction. Soccer fever is real and brings real money. Yet, the question isn't whether there are benefits, but whether those benefits justify the risks assumed. The answer is usually no.
FIFA's One-Sided Terms
FIFA insulates itself from financial consequences when costs exceed expectations. Host communities carry the downside risk as a condition of participation. Fifteen years ago, I served on FIFA's independent governance committee, an external advisory body created to oversee structural reform amid accusations of institutional rot. I worked for 18 months, but multiple reform attempts were neutered or rejected. I resigned in 2013 after the committee failed, having heard Mafioso phrases like "we like to keep that in the football family" and admissions like "perhaps we should consider 'compliance light.'"
Two years later, U.S. Department of Justice indictments confirmed FIFA's resistance to accountability. The organization made cosmetic changes, but underlying governance challenges and impunity persist. When the Cup lands in your city, that baggage arrives with the trophy.
Hidden Costs in Hosting Agreements
Residents deserve to know what their governments signed. Hosting a World Cup is not a partnership; cities accept FIFA's largely one-sided terms or withdraw their bid. Hosting agreements run hundreds of pages, covering stadiums, transport, security, branding, and concessions. Buried in fine print are provisions requiring cities to absorb costs that would otherwise fall on FIFA, including municipal taxes assessed against FIFA's local entities.
Tax law determines legal liability, but contracts determine who pays. FIFA's deals separate the two: cities indemnify FIFA against costs, so even if a tax is assessed against a FIFA subsidiary, the city pays. This isn't a loophole; it's the point. Security obligations land with local governments, and when requirements escalate, exposure stays local. Infrastructure is built to FIFA's specifications on FIFA's timeline; cost overruns are absorbed by the city. Long-term venue maintenance becomes a local problem.
Short-Term Gain, Long-Term Pain
Host cities enjoy a temporary economic boost, but the long-term financial burden can outweigh the benefits. Governments must disclose full contractual commitments to ensure citizens understand the risks. FIFA's structure ensures it reaps rewards while communities shoulder the downside. As the World Cup unfolds, residents should celebrate but remain aware of the price they may pay for years to come.
