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By Marni Rose McFall
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Countries and cities compete fiercely for the right to host the FIFA World Cup, as the quadrennial tournament promises economic booms, windfalls of tourism and global prestige. But recent polling and a new report from insurance company Atradius indicate that the reality for host cities may not be that simple.
FIFA and World Trade Organization data suggests that World Cup tournaments contribute significantly to the global economy, with the 2026 edition projected to contribute up to $40.9 billion in gross domestic product globally and create over 800,000 jobs.
But despite the prestige that comes with hosting the world's biggest sporting event, research shows that most World Cups end up costing host cities more than they bring in. Local governments are responsible for many of the event's largest expenses—including security operations, policing, transportation upgrades, crowd management, fan festivals and logistical support. So while FIFA collects most of the revenue, host cities absorb much of the risk.
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A spokesperson for FIFA told Newsweek, "FIFA is proud of the strong partnerships established at every level of this tournament, from national governments to local municipalities and host committees across Canada, Mexico and the United States. Each host city has its own operational realities and priorities, and FIFA has worked collaboratively throughout the process to consider local needs and, in many cases, accommodate requests to help deliver the most sustainable model possible for all parties involved."
"More broadly, the FIFA World Cup generates significant economic activity, global visibility and long-term legacy opportunities for host cities and regions, and FIFA remains committed to working closely with all stakeholders to maximize those benefits," the spokesperson added.
Newsweek has contacted media officials in the host cities for comment.
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How Host Cities Previously Fared
The 2026 World Cup is officially underway, with the tournament featuring 48 teams playing 104 matches in 16 cities across the U.S., Canada and Mexico.
According to the Atradius report, there are concerns this year's host cities will suffer losses, amid reports of hotel rooms slashing prices, high airfares and a mix of high-priced and unsold tickets.
But host cities losing out on projected revenue is no surprise. Research from the University of Toronto found that 12 of the last 14 World Cups resulted in net economic losses for host cities. Despite optimistic forecasts before each tournament, the costs of staging the event frequently outweigh the benefits generated by tourism and local spending.
One example is the 1994 World Cup, also hosted in the U.S. Per the Atradius report, although the tournament is often remembered as a commercial success for FIFA and a turning point for soccer in the United States, researchers later estimated that host cities suffered cumulative economic losses of up to $9.3 billion.
A spokesperson for FIFA told Newsweek: "Host Cities are responsible for a defined scope of items including transportation, FIFA Fan Festivals, and public safety and security costs. In all three countries, the Host Cities also received government assistance."
The spokesperson highlighted FIFA's financial investment in the tournament, which includes paying for the rentals of stadiums and venues, stadium overlay and temporary infrastructure, power requirements, all broadcast operations, and private security and venue operations.
They added that FIFA has worked collaboratively with the different host cities to "lower costs and provide flexibility," through the waiving of hosting obligations, adjusting certain requirements and supporting local planning efforts.
Why Do Projections Miss the Mark?
In recent financial reporting, FIFA said it expected to generate some $9 billion in the year of the tournament and $13 billion over the four-year cycle leading up to the games. By contrast, the Paris Olympics generated some $5.2 billion in 2024.
Victor Matheson, a professor of sports economics at College of the Holy Cross, previously told Newsweek that revenue estimates leading up to a World Cup are "highly exaggerated and should generally be considered a promotional press release rather than a serious piece of economic analysis."
Matheson attributed this in part to the "crowding out" effect, which happens when other regular tourists or travelers are "dissuaded from visiting World Cup host cities due to the crowds and congestion associated with the event."
Host cities may also find that the jobs the World Cup can bring are short-term, quickly fading when the tournament is over.
A recent study from Oxford Economics found that host cities in the U.S. would see growth over the leisure and hospitality sectors, but that ultimately any gains in the job sector would be temporary. The report described the World Cup's impact on host cities' GDP and job growth as "marginal" and "short lived."
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Saxo, an online trading platform, also noted that infrastructure expenditure could also account for missed projections. "When infrastructure delays occur, organizers are often forced to accelerate construction at any cost to meet the opening deadline. In practice, public finances usually absorb these overruns," it wrote in an analysis.
Building infrastructure specifically needed to host the tournament can also negatively affect host cities, though this is less applicable to American cities, given the significant sports infrastructure already present.
A FIFA spokesperson told Newsweek, "Unlike many previous World Cups, the United States requires minimal new infrastructure investment." They added that "existing stadiums are being used largely in their current configuration," and that "modifications are limited primarily to field-of-play requirements."
In a 2018 paper on World Cup economics, Matheson described costly stadiums built for the tournament as "white elephants" that had little use once the games ended, pointing to outcomes in South Korea, South Africa and Brazil.
Host Cities Hold Out Hope
Despite the research, host cities by and large remain optimistic. A spokesperson for Toronto told Newsweek in an emailed statement, "The City of Toronto is focused on delivering a safe and successful FIFA World Cup 2026 in Toronto, while meeting its Host City obligations and supporting benefits for residents, businesses and visitors.
"The City's Council-approved FIFA World Cup 2026 budget is $380 million, with support from the Government of Canada and the Government of Ontario. City staff continue to review revenue estimates and expenditures, and a final accounting will be provided following the tournament."
Kansas City Manager Mario Vasquez said in a statement to Newsweek: "Kansas City is the smallest market hosting the World Cup this year, yet we are the base camps to teams with some of the largest global followings. You can't put a price tag on this level of exposure. It is an opportunity to make a strong impression, and we will.
"We have a deep understanding of how sports have the power to create new connections and possibilities, and we're proud to invite the world to come and experience our community. The infrastructure is in place to host the games and showcase our community. We have invested in partnerships and collaborations. Those investments will pay off in the long term."
Poll Warns of Low Interest in the World Cup
Despite the scale of the tournament and the celebration, FIFA has faced criticism over ticket prices and concerns have persisted about how ticket sales and hotel bookings have fared, and what this says about overall interest in the tournament.
A new poll from Emerson College that surveyed 1,200 respondents found 45 percent said they were not interested in this year's World Cup. The survey was conducted on June 7 and 8, days before the opening game.
The poll follows reports of a potential slump in ticket sales. But FIFA has maintained that interest in tickets has been strong, and that there is a range in pricing when it comes to the tickets.
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A spokesperson for the organization previously told Newsweek: "Fans are at the heart of the FIFA World Cup, and never before in the tournament's history have more tickets been sold directly to fans. FIFA is focused on ensuring fair access to our game for existing but also prospective fans, and offered group stage tickets starting at USD 60, a very competitive price point for a major global sporting event in the U.S."
According to reports, there were still thousands of tickets available for World Cup matches the day before the opening game. Additionally, 80 percent of hotels surveyed by the American Hotel and Lodging Association in a recent report said bookings were lagging behind initial forecasts.
While there have been concerns about partially filled stadiums, this is not unique to the 2026 tournament. Previous World Cups, including Qatar 2022, also faced questions about attendance and visible empty seats despite officially sold-out matches.
Update 6/18/26, 10:20 a.m. ET: This article has been updated with comment from Kansas City Manager Mario Vasquez.
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