The dust is settling after Spain’s victory over Argentina in the World Cup final, bringing a close to the five-week tournament jointly hosted by Canada, the U.S., and Mexico and watched around the world.
With the trophy having been awarded, our minds are shifting from the pitch to the balance sheet, raising the question: did the tournament make money and, perhaps more importantly, was it a good deal for the host countries?
These sorts of events tend to rake in loads of money, but they also come with exorbitant costs, and, historically, costs have exceeded revenues. In fact, almost every World Cup since the mid-1960s has failed to cover its costs. Sports economics research comparing direct revenues (ticket sales, broadcasting, and sponsorship) and costs (venue costs and tournament organization) finds that the World Cup has persistently run a deficit, despite substantial government support.
The same is true of major sporting events and tournaments more broadly. Since the mid-1960s, only three Summer Olympics (1984 Los Angeles, 1996 Atlanta, 2000 Sydney), two Winter Olympics (1984 Sarajevo, 2010 Vancouver), and two World Cups (2006 Germany, 2018 Russia) brought in more money than they cost.
But there’s reason to think the 2026 World Cup may have bucked that trend, with the tournament on track to be one of the most profitable World Cups, and perhaps the most profitable, major sports tournament on record. According to BCA’s estimates, profits could total as much as $3 billion, based on official revenue projections and estimated costs.
A major reason for this is that all 16 stadiums used for the tournament already existed. While some upgrades were needed, such as Toronto’s with a price tag of $158 million, none were newly constructed, dramatically reducing one of the largest costs of hosting. By contrast, some of the most expensive World Cups involved major stadium construction efforts: 2002 Japan and South Korea required 16 new stadiums while 2022 Qatar required seven.
While the 2026 World Cup may be in the black – the organizer, FIFA, almost certainly made money – not every party involved will necessarily come out ahead. In fact, the profits generated directly by the tournament are largely enjoyed by FIFA, not the hosts.
Meanwhile, the three host countries, which foot a large portion of the bill, may still see a net loss. For instance, even with existing infrastructure, Canada spent over $1 billion across various levels of government, amounting to about $82 million per game for the 13 games held in Canada.
Of course, there is an upside: local industries benefit from increased spending on hotels, restaurants, and bars, but not as much as you might expect. Research suggests these gains largely reflect a shift in consumer spending from other activities and tend to be short-lived, limiting the net boost to the economy or government revenues.
Yet, for decades, countries have enthusiastically competed for the right to host. This suggests the value proposition may go beyond the balance sheet to benefits that are either intangible or harder to quantify. Hosting a major tournament might put a country on the map for tourists, showcase it to investors, or build national pride. And, to a lesser extent, there could be some longer-term returns on investment. For example, while Calgary’s 1988 Winter Olympics didn’t cover its direct costs, it led to infrastructure developments used in the decades since, such as the University’s Olympic Oval, the LRT extension, and upgrades to Canada Olympic Park.
The economics may never cleanly settle the debate on whether hosting “the beautiful game” is financially beneficial. But if the 2026 World Cup is as profitable as projections indicate, it suggests locations with existing infrastructure have a major advantage — something to keep in mind the next time Canada or a Canadian city considers bidding to host. The next World Cup jointly hosted by Spain, Portugal, and Morocco, three countries with varying levels of existing infrastructure, will further put this to the test.
No matter what the cost, there’s no doubt the world will be watching.
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