{"id":1681,"date":"2026-06-10T21:12:39","date_gmt":"2026-06-10T21:12:39","guid":{"rendered":"https:\/\/homebuyerrelocation.com\/?p=1681"},"modified":"2026-06-10T21:12:39","modified_gmt":"2026-06-10T21:12:39","slug":"a-wash-world-cup-host-cities-in-u-s-unlikely-to-recoup-nine-figure-investments","status":"publish","type":"post","link":"https:\/\/homebuyerrelocation.com\/?p=1681","title":{"rendered":"\u2018A wash:\u2019 World Cup host cities in U.S. unlikely to recoup nine-figure investments"},"content":{"rendered":"
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World Cup host cities across North America have shelled out hundreds of millions of dollars for security, watch parties and stadium renovations ahead of this year\u2019s tournament, which begins Thursday. But, according to experts, they\u2019re unlikely to recoup those investments.<\/p>\n

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Hotel bookings have failed to meet expectations and thousands of tickets are still available, with several U.S. sites now hosting giveaways to fill seats. The outcome, complicated by the ongoing military conflict in Iran and controversy surrounding the Trump administration\u2019s approach to international visitors, hasn\u2019t shocked sports economists.<\/p>\n

They have long warned that mega-events, such as the World Cup and Olympics, often fall short of economic projections.<\/p>\n

\u201cWhen you go back and look at prior countries and prior experiences, the local hosts have not made money. And in many cases, they\u2019ve spent billions and billions of dollars,\u201d said Richard Sheehan, a professor at Notre Dame who studies sports economics.<\/p>\n

This year\u2019s World Cup \u2014 awarded to U.S., Canada and Mexico by soccer\u2019s global governing body, FIFA \u2014 dodged the most extreme costs by using pre-existing stadiums. The hosts\u2019 economic outlook still looks dire with minimal buzz surrounding one of the biggest events on the global sports calendar.<\/p>\n

Normally, economists have to wait until after an event to begin their autopsy. But the warning signs appeared before the World Cup kicked off.<\/p>\n

\u201cFrom basically January, FIFA has said that they received 750 million applications for 7 million tickets, but we still see them making new tickets available for sale,\u201d said Victor Matheson, a sports economist and professor at the College of the Holy Cross. \u201cAn organization that makes more tickets available is not one that has sold out every ticket.\u201d<\/p>\n

The causes for concern have extended beyond the stadiums. In May, the American Hotel and Lodging Association surveyed hoteliers across the 11 U.S. host cities. The results were damning.<\/p>\n

More than 75% of respondents said bookings were tracking below the initial, optimistic forecasts. Less than a quarter of the U.S. World Cup cities were seeing any meaningful increase over a typical summer.<\/p>\n

\u201cHotels across host markets have spent years preparing for the World Cup, and while there is real excitement, the data points to a more nuanced outlook,\u201d Rosanna Maietta, president and CEO of the American Hotel and Lodging Association, said in a statement. \u201cA range of factors have tempered early optimism, though forward indicators show there is still meaningful opportunity ahead.\u201d<\/p>\n

Ms. Maietta indicated that early estimates pointed to a heavy balance of domestic fans, who typically contribute less to the economic impact than those traveling from overseas. She urged FIFA and U.S. officials to minimize the headaches for international travelers.<\/p>\n

Her pleas went unheard, as U.S. officials denied the visa of a Somalian referee scheduled to work the tournament and FIFA revoked the tickets allocated to Iran for its group stage matches.<\/p>\n

Breaking even<\/strong><\/p>\n

Host cities across the U.S. leapt at the chance to host World Cup matches. Their early studies estimated more than $600 million of economic impact for cities such as Seattle and Kansas City.<\/p>\n

Those reports were always optimistic, economists said.<\/p>\n

\u201cThose numbers are wildly unlikely. That presumes that every single person who walks through the stadium gate is contributing $1,000 to the economy that would not have otherwise done that,\u201d said Mr. Matheson, a professor at the College of the Holy Cross. \u201cThere\u2019s some gigantic problems with this.\u201d<\/p>\n

Chief among them is the fact that FIFA will keep the overwhelming bulk of ticket revenue. Soccer\u2019s international governing body rolled out dynamic pricing this year, with top-tier tickets fetching more than $10,000 for semifinal and final matches.<\/p>\n

Mr. Sheehan estimates that FIFA will pocket about $7 billion from ticket sales. Meanwhile, Mr. Matheson projected FIFA\u2019s total revenue at upwards of $10 billion for the tournament.<\/p>\n

\u201cFIFA is very stingy about sharing any of their revenues. You\u2019ve seen the stories about the cheapest tickets going for $400, but FIFA is sharing very little of that money with local hosts,\u201d Mr. Matheson said. \u201cThey\u2019re pocketing all of that. They\u2019ve also been very restrictive about the ways that local host committees can get sponsors.\u201d<\/p>\n

Broadcast rights, like ticket sales and sponsorship deals, also fail to impact localities\u2019 bottom lines.<\/p>\n

Instead, the hosts are forced to rely primarily on hotel and restaurant revenue. That\u2019s where the nine-figure projection from committees in San Francisco and Kansas City came from.<\/p>\n

Visit KC expected 80% of World Cup attendees to fly in for the matches, necessitating hotel rooms at $300 per night and millions of meals at local restaurants from the 650,000 unique visitors.<\/p>\n

\u201cThere\u2019s gigantic problems with this. A huge number of tickets sold are going to locals. There\u2019s not that many people traveling from across the world to see Algeria vs. Austria,\u201d Mr. Matheson said. \u201cThat\u2019s just not the sort of draw.\u201d<\/p>\n

The early hotel reports matched his skepticism. But locals don\u2019t need hotels, and any meals they eat in the city would\u2019ve benefited the local economy even without the World Cup.<\/p>\n

The high ticket costs, combined with airfare and lodging, have changed the calculus for international fans.<\/p>\n

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\u201cIt knocks a lot of people out. That\u2019s most likely the biggest reason that you have fewer foreign travelers than most people would have predicted six months ago,\u201d Mr. Sheehan said.<\/p>\n

Combine that with the Trump administration\u2019s strict approach to issuing visas, and it\u2019s easy for fans to opt out of this year\u2019s event.<\/p>\n

\u201cThe visa system is the invisible gatekeeper of the World Cup,\u201d Celine Atallah, an immigration lawyer in Boston, told the BBC. \u201cFIFA can sell a ticket, but the U.S. government decides who gets a visa, and CBP decides who actually enters.\u201d<\/p>\n

Even European fans who would receive less scrutiny at the border could be intimidated by the approach.<\/p>\n

\u201cYou can easily imagine them saying, \u2019Look, I love the World Cup and I\u2019m glad my team is in it, but I don\u2019t really support what\u2019s going on in the United States. I\u2019m going to save my money,\u2019\u201d Mr. Matheson said. \u201cThe data clearly shows that Trump\u2019s policies have reduced foreign tourism.\u201d<\/p>\n

Without a significant influx of foreign travelers, the host cities are forced to rely on domestic visitors to make their World Cup investment worthwhile. But summer is already the busy season for the major markets hosting the tournament, including Los Angeles, Kansas City, Houston and Dallas.<\/p>\n

New York City reported average summer demand to the American Hotel and Lodging Association, while Los Angeles and Kansas City\u2019s hoteliers noted fewer bookings than an average summer. That\u2019s a problem for the hosts\u2019 economic projections.<\/p>\n

\u201cTheir hotels are full in the summer anyway. So you worry about displacing regular tourism business: travelers who can\u2019t get in because of a lack of good space for several days around these games, we\u2019re not having many conferences, trade shows or conventions,\u201d Mr. Matheson said. \u201cYou have the World Cup displacing a bunch of regular tourists, which you\u2019re concerned about.\u201d<\/p>\n

The U.S. host cities saved money compared to previous events in Qatar and Russia by retrofitting current NFL stadiums for their World Cup matches. But the local jurisdictions each spent between $50 and $100 million to match the strict security and venue requirements set by FIFA. A lack of tourism revenues has jeopardized their investment.<\/p>\n

\u201cYou\u2019re looking at a Kansas City or Seattle or even L.A. or New York and saying, are they really going to generate enough revenue here to be able to offset the expenses as they occur?\u201d Mr. Sheehan said.<\/p>\n

\u201cFor most cities, it\u2019s going to be roughly a wash,\u201d Mr. Matheson predicted. \u201cIt\u2019s certainly not going to be an economic enhancer.\u201d<\/p>\n

Leaving a legacy<\/strong><\/p>\n

The dollars and cents weren\u2019t the only factors for prospective hosts who lined up, eager to join the ranks of host cities. Billions of potential travelers around the globe will tune in for the World Cup.<\/p>\n

Organizing a match is essentially an unmatched advertisement, according to some host committees.<\/p>\n

\u201cFew events generate the kind of global excitement and interest that we see with the World Cup and that\u2019s something we as a destination marketing organization will leverage to solidify our position in target markets like Mexico while reaching new ones,\u201d a spokesperson for the Houston First Corporation said.<\/p>\n

The theory isn\u2019t totally unfounded. Salt Lake City became a popular spot for skiers following a showcase during the 2002 Winter Olympics. Barcelona evolved from Spain\u2019s second-choice city to a bona fide vacation destination thanks to the 1992 Olympics.<\/p>\n

\u201cWhile we expect the World Cup will help deliver a better-than-normal June and July for our hospitality sector. \u2026 We believe the exposure the event generates will also help grow awareness of Houston as a global destination long after the tournament wraps up,\u201d the Houston First Corporation\u2019s representative said.<\/p>\n

But Salt Lake City and Barcelona were hidden gems compared to most host cities. The same title can\u2019t apply to already-famed sites such as New York and Los Angeles. And a World Cup on its own won\u2019t move the needle.<\/p>\n

\u201cIf people don\u2019t know where we are now, the World Cup isn\u2019t likely to make a hell of a lot of difference,\u201d said Mr. Sheehan, who clarified that Canada and Mexico may see a greater impact.<\/p>\n

Beyond the outlier \u201chidden gem\u201d examples, sports mega-events such as the World Cup and Olympics rarely lead to long-term tourism gains. Visitors who have a standout time at this summer\u2019s World Cup aren\u2019t typically incentivized to return to cities such as Philadelphia, Boston or Seattle. They leave wanting to plan a trip for the next World Cup \u2014 which will be hosted by Portugal and Spain in 2030.<\/p>\n

\u201cIt doesn\u2019t generate legacy for the city itself,\u201d Mr. Matheson said. \u201cThe Olympics, for example, aren\u2019t going to put Paris or London on the map. Because if Paris and London aren\u2019t already on your map, then you need a new map.\u201d<\/p>\n

This year\u2019s World Cup will feature 104 matches across 16 cities \u2014 11 in the U.S., three in Mexico and two in Canada. The tournament begins on Thursday afternoon with a match between Mexico and South Africa in Mexico City.<\/p>\n

Read more Trump vows to strike Iran again, bemoans pace of peace negotiations<\/a><\/p>\n<\/div>\n<\/div>\n

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