Hosting the World Cup could cost taxpayers $1 billion

Añadido: 2026-05-26

[00:00:00]Well, we are just weeks away from the 2026 FIFA World Cup coming to Canada and a new report from the parliamentary budget officer suggests the public cost could top a billion dollars. This is raising questions about cost overruns, economic impact, and value for taxpayers. More, let's bring in Dwayne Rockerbie from the Department of Economics at the University of Lethbridge. Dwayne, thanks for being here.

[00:00:22]Well, thanks for having me. A billion dollars, it's quite the mark to think and you know, this history this country certainly has a history of of cost overruns for big sporting events. I think back to the Montreal Olympics I think in particular, but give me your sense after seeing this report about what it could mean for taxpayers right across Canada.

[00:00:39]I think it's a very good report actually. There's a lot of good figures in it and the cost seem to be in line with what we've seen in past World Cups.

[00:00:48]You know, so I think however, the big fly in the ointment is what's going on in the Middle East and energy prices and inflation and and you know, for sure these costs are going to come in higher when it's all said and done.

[00:01:03]Yeah, no one could predict what was going to happen. I I think great with that conflict between the US and Iran and that we're still feeling the effects of that and it's clearly going to drive them up, but you know, you go back Dwayne and look at some of the initial estimates, right? Remember that you know, in Toronto it was 25 30 million dollars for taxpayers that were they were going to host five matches understandably an expanded tournament, but you know, give me your sense, you know, is it just the conflict in the Middle East that is that has caused this or where else are we looking at it because the price tag for Toronto alone now over 300 million.

[00:01:33]Right. No, no, those initial cost estimates were wildly too low and these things always come in. The Olympics, the World Cup, mega events, when you combine them with local infrastructure, transportation costs that are needed and security costs and other costs, you know, you know, FIFA and Deloitte always sort of underestimate these things and greatly overestimate the benefits from hosting the World Cup. Having said that though, there's an old saying that says if you want to be invited to parties, you have to host parties. And if Canada's objective is to become some sort of world soccer power, this would definitely be a step in that direction. Yeah, it certainly is hopefully going to be I think for soccer fans, hopefully that is that is going to be the case clearly at come this summer.

[00:02:23]Security costs I think you know we have seen the government step in to offer some support when it comes to security costs, but certainly feels that it's playing a big role here in what we're seeing in some of these inflated numbers.

[00:02:34]Absolutely. The security costs particularly with what's happened in the last year in the world, you know, three three attempted assassinations on the US president and and hooliganism at soccer games and these sorts of things which doesn't really exist in other sports.

[00:02:50]You know, there's a great concern by FIFA that this could turn they don't want it to turn into something ugly on worldwide television. And so you have to provide the security costs and you're just going to have to pay these costs that that's kind of the way it is.

[00:03:06]For you to do when you and and looking at this right now and I'm curious your thoughts about the economic benefits from this because some of the recent reports that we've seen when you look at you know, not it's not necessarily every host city, but there are a number of them across North America whether it's Canada, the United States or Mexico, but where hotels are saying we're not seeing the bump that we were going to see.

[00:03:24]Airbnb you know, hosts saying that you know, we're not booked up necessarily at this point. Ticket prices, you know, fans have been priced out of the market in in in some including you know, in Toronto where it is very expensive you know, to go see a match let alone go and try and see the Canada match. Do you believe that we are going to see I'm not saying we're not going to see clearly you know, a lot in millions of dollars poured into the economy, but give me your sense of where things stand just because of how expensive life is for everyone right now.

[00:03:52]Well, you know, in 13 of the last 16 World Cups, they've been economic losers in terms of economic benefits. And you could say the same for the Olympics.

[00:04:02]And the problem is is that the benefits are not lasting. We call this the honeymoon effect in economics. That generally, >> [snorts] >> you know, Deloitte said there's going to be 24,000 jobs created from this and mega infrastructure improvements.

[00:04:16]But generally after a year or two, those benefits dissipate very quickly and and this thing is all forgotten. So, you know, based on economic studies that are available for many, many of these mega events, they're money losers both for government and for the net benefits to the country.

[00:04:35]But again, however, having said that, uh if again, we have the Canadian Premier League now. We were trying to develop soccer in Canada. Uh and you know, if we want to participate in any further FIFA events, uh you just have to put these things on and and and pay for them. But as far as the net benefits go, I'm not optimistic on this. Yeah, it certainly doesn't feel that way. Now, taxpayers are going to be on the hook for a lot of this. I think clearly at multiple different levels.

[00:05:05]You know, do we expect you know, do you expect to see any uproar? Not that there's much that taxpayers can do necessarily at this point, but especially when it comes to future events, it feels like.

[00:05:14]Well, this will be the barometer, I think, for future events. Things like the Olympics, you know, a a a future World Cup is not likely to come for a long time. But certainly, even the Winter Olympics in 2010 in Vancouver, we don't even know what the net economic benefits were.

[00:05:30]It wasn't really followed up on very well and it's very, very difficult to calculate. There's many items to include, as well as many costs that are ignored. Uh for instance, you know, I I always say a billion is the new million.

[00:05:43]Uh but however, uh there is an opportunity cost to that money. Could you use it for healthcare? Could use it for education? And I think the general population who are not soccer fanatics, uh, would probably say that it could be better used elsewhere.

[00:06:00]Yeah, always going to be it feels like the argument from those who are against some of the big events like this at least at at some different points including this summer. Dwayne Rockerbie from the Department of Economics at the University of Lethbridge. Appreciate your time today, Dwayne. Thanks so much.