FIFA could make billions from the World Cup. Texas host cities will get little in return.
Posted by texastribune@reddit | Dallas | View on Reddit | 45 comments
texastribune@reddit (OP)
When Texas dedicated $22 million to host the 2017 Super Bowl between the New England Patriots and the Atlanta Falcons, state officials expected a return on their investment. But a state analysis after the Patriots’ thrilling comeback win said it was “impossible” to tell if Texas taxpayers broke even on their investments.
If anything, Texas came up $14 million short, according to a breakdown of tax revenues in the same analysis.
Texas taxpayers likely will be on the hook again when Houston and Dallas welcome the FIFA World Cup this June and July. The cities are among 11 in the U.S. that have agreed to shoulder hundreds of millions of dollars in costs for the soccer tournament, subsidizing a World Cup expected to generate $11 billion in profits for FIFA.
Host cities and their local organizing committees will pay for security at the matches, cover the cost of retrofitting their stadiums to better accommodate soccer and operate fan festivals in addition to the main matches. Originally, they were supposed to pay to transport FIFA officials to all matches, as well, though that requirement has been waived, according to Houston organizers.
The cities get little tangible benefit in return. They do not see a slice of game-day revenues from ticket sales, concessions and merchandise, or parking. Even selling tickets or suites in exchange for corporate sponsorships — usually a key revenue generator for local organizers — was restricted by FIFA this year.
The Houston Chronicle sought to better understand the agreements cities made with FIFA and their implications for taxpayers by reviewing records from all U.S. host cities. Most refused to hand over the contracts, including Houston, which argued that releasing the documents would undercut its ability to negotiate for future events; Dallas did not oppose the release but sent the request to the Texas attorney general to allow third parties to object if they wanted.
FIFA did not respond to questions about those criticisms. Instead, it provided a written response stating that it is working closely with its host sponsors and expects cities to benefit.
“The FIFA World Cup 2026 is projected to generate significant economic activity across Canada, Mexico and the United States, spanning tourism, hospitality, employment and long-term global visibility,” said Jhamie Chin, a FIFA spokesperson.
jmiller_dallas@reddit
That’s exactly why people get skeptical of these ‘economic boost’ claims. If taxpayers are covering the costs while FIFA keeps the ticket, merch, and parking money, who’s actually winning here?
Snobolski@reddit
I think we all know.
JRLDH@reddit
I’m just amazed that there are so many soccer fans with so much disposable income.
CrunchAddict@reddit
I mean it's the biggest sport in the world so it makes sense
JRLDH@reddit
Worldwide, yes. But not the USA.
And “The World” is not used to tickets that cost thousands of dollars plus thousands of airfare plus hotel etc. Sport fans in the USA are used to these prices but soccer is still a niche sport in the USA.
Snobolski@reddit
The Rich of "The World" are totally used to paying exorbitant ticket prices to travel for Rich People things.
IMO traveling to support your team in their league is regular fan behavior. Traveling to the World Cup is more like an American going to the Super Bowl or flying to London to watch their NFL team play. Not everyone can do that.
lastcallofthefall@reddit
I went to Philadelphia for the Club World Cup to watch Chelsea play Palmeiras from Brazil, and I met a lot of Brazilians who came to the US to spend a few weeks following their team around. Yes, the World Cup this summer will be a lot more expensive, but I don’t think you realize how many people from other countries would save their whole lives to go see their national team play at the World Cup.
TheWokenessInjector@reddit
There's a lot of people alive on this planet. Even a small fraction of 8.3 billion with the ability to wipe their asses with cash and able to travel is still a lot of people.
FunctionOk7124@reddit
A lot of those people aren't going because they are fans of soccer but just for clout.
Basement_Chicken@reddit
The city of Dallas is broke already.
ghostofculpeper@reddit
Yes because Texans love nothing more than to bend over to billionaires.
Altruistic-Carry-684@reddit
Whole new meaning to “come and take it.” Huh? Amirite?
BeholdThePalehorse13@reddit
Hole new meaning…
AvailableReporter484@reddit
Well, at least the conservatives ones. I dont know of many left leaning people who willingly open their asses up to be fucked savagely by billionaires, let alone one of the most corrupt organizations on the planet, the way the conservative ones do.
Catullus13@reddit
Unless they're from Seattle, SF, LA, NY, Philly or Boston
Ok-Aardvark-6742@reddit
Wouldn’t exactly call what Boston and NJ are doing with public transit prices “bending over.” They’ve been pretty open about not passing costs to their taxpayers for the costs associated with the World Cup. Public transit tickets for the Boston games will be $80, and I think NJ is $120, and they’ve been pretty clear it’s because FIFA and the stadium owners aren’t contributing anything to help offset security and extra service/infrastructure to support it.
Who is covering the trains TRE leased? Or the charter busses for the shuttle? People here don’t ask those questions and our elected officials love to take advantage of the apathy.
Catullus13@reddit
So they're charging more for their public transit tickets?
Ok-Aardvark-6742@reddit
So you think taxpayers should subsidize drastically increased costs specific to an event most of them probably aren’t going to?
Catullus13@reddit
I guess it's only price gouging when it's stuff people don't like
Ok-Aardvark-6742@reddit
It’s not price gouging when there are increased costs to cover. Nobody will be paying $80-120 for their regular commute, and these states are trying to make sure tax paying residents aren’t subsidizing something they won’t see any benefit from.
Hope that helps!
Catullus13@reddit
Oh. So they only price gouging the tourists. Got it.
Look, these governments willing bid for these events for the "prestige" to the political class. They don't give the rats fuck about the residents of these cities. Hope that helps
Ok-Aardvark-6742@reddit
No, it’s only price gouging if the transit companies do it to turn a profit. Which they aren’t doing.
Massachusetts and New Jersey seem to give a rat fuck about their residents not shouldering the burden of the increased costs, that’s why they’re doing what they’re doing. Texas doesn’t care, so the extra costs for TRE to lease trains and put in a shuttle is coming out of the taxes we pay.
I’d ask you how FIFA’s boot tastes, but I frankly don’t care.
medisamurai@reddit
At worst it’ helps restaurants and bars when they need it most
qolace@reddit
The owners yes. Crapshoot for the ones actually working in them. Sometimes tourists don't know how to tip 🫠
Askmeaboutmy_Beergut@reddit
Good!
What they get for dealing with the devil!
Altruistic-Carry-684@reddit
It’s been like that. No reason to even be a host
fwdbuddha@reddit
Huh? What an idiotic headline. Visitors will use hotels, restaurants, rental car companies, etc.
FunctionOk7124@reddit
Taxpayers subsidizing games so that mostly rich and famous, who have no clue about fútbol, can go to flex their status.
Loud_Inspector_9782@reddit
Ticket price and parking set by FIFA are outrageous. I hope they end up with tons of empty seats.
Historical_Term2454@reddit
Not sure how the direct fan-to-government revenue will work out but here's my hypothesis:
I'd assume each fan spends $1500 on hotel, food, Uber, soccer jerseys, etc. (excluding airfare and the tickets). State and local tax let's call it 10% so each fan gives Houston/Texas $150 * 500,000 = $75M.
(In Houston, 500,000 visiting fans have been estimated (they have 7 total games) by NPR).
CinderMoonSky@reddit
All of the people that are traveling to the host cities will spend a ton of money in those cities. Yes they will create a lot of traffic, however, to say the host cities are not going to make any money is a bad take.
Return-of-Trademark@reddit
Well it’s not about not making any. It’s about return on investment
creepingkg@reddit
I just wish the World Cup fails because of ICE deporting fans.
They’ll get their quota easily
The_Erlenmeyer_Flask@reddit
You think they will deport just fans? I fear for the players that go out, don't speak English, and people that support ICE calling them. I'm confident it won't take long for ICE to show up, detain them, and they're gone with the quotas ~~Lizard Man~~ Stephen Miller has put in place.
creepingkg@reddit
Damn I didn’t even think about the players.
lol now I just imagine USA winning by default because no one showed up
The_Erlenmeyer_Flask@reddit
I mean.. that's the assumption I have since I've heard about so many countries are not staying in Texas.
Additional-Sky-7436@reddit
So we have to keep these kinds of events in perspective. No city should expect to turn a profit on these kinds of big events, and that should be okay.
These events are more like having a big wedding party. Your don't get married to make a profit of our your guests. Weddings are parties where the hosts spend money on their guests, and that's fine. Just set a budget and keep the mother-in-law outside, and have fun throwing a huge party where you celebrate yourself. The only people making money on the wedding is the wedding planner, the venue, and the other people sending dad the bills.
Don't listen to the boosters that tell cities how much money the city will bring in, they are lying.
jmiller_dallas@reddit
That’s the part most people miss—cities spend huge money on hosting and infrastructure, but FIFA walks away with most of the profit. Feels like taxpayers take the risk while FIFA takes the reward.
NYerInTex@reddit
Come on guys… FIFA said it themselves . The matches will provide significant economic activity…
For FIFA.
Operator_Starlight@reddit
We’ll get a nice boost in traffic!
PureTank0@reddit
Yay
us1549@reddit
A better question to ask is why our elected officials negotiated such a bad deal for our city?
FIFA representatives are going to get the best deal for them, it's up to our representatives and City officials to do what's best for us. It's clear that they fail to do that. Your anger is focused at the wrong people
Substantial-Part-700@reddit
Privatized profits at the general public’s expense. Corpo-socialism - it’s the American way! Fuck any commies who wannna change that.
/hard fucking s
Tchaik748@reddit
Quelle surprise.
An organization giving a "peace prize" to Dear Leader is just running away with all the dough.
But FIFA is well known to be unbelievably corrupt.