Sponsorships will be key to covering Toronto’s 2026 World Cup costs, says local councillor

When former Toronto mayor John Tory first pitched the City of Toronto as a potential World Cup of soccer host back in 2018, the event had an estimated price tag of $30 million to $45 million for the city.

Fast forward to 2024 and this cost has inflated to about $380 million with expectations that this will continue to rise until the tournament is played in 2026.

On Friday, May 3, the federal government revealed plans to contribute $104 million to the cost, adding to the $97 million pledge previously made by the Province of Ontario which was contingent on federal announcement.

“We’re thrilled to receive this funding from the Government of Canada,” said Mayor Olivia Chow. “This support will help Toronto host a winning FIFA World Cup in 2026 and showcase our city to the world.”

Beaches-East York Councillor Brad Bradford says that although “not surprising”, the federal government’s collaboration is a positive for Toronto’s World Cup ambitions.

However, even with the upper levels of government now officially onboard, Toronto is still left with a hefty bill of about $180 million, so far.

“It’s not quite the (contribution) we were looking for but I think it’s important to acknowledge that they have said they will be paying the cost of security measures that will be required and that will be a significant part of the bill,” said Bradford.

“So I think their contribution will be a lot more than the $104 million. Covering the security costs will be very expensive and we welcome the contribution.”

Bradford said that Mayor Chow and the World Cup Secretariat must now be “laser-focused” in their cost-control measures in order to ensure the Toronto executes its World Cup duties without neglecting the city’s other pressing needs.

Advocates of Toronto’s World Cup participation highlight that it is an investment that will reap “unquantifiable” benefits for the city’s long-term economy.

“It’s a tremendous opportunity for the city,” said Bradford. “I will wager that we’ve never experienced a moment in this city that there will be more eyeballs on Toronto than there will be in the summer of 2026.”

But with the World Cup’s main revenue sources – ticket sales, broadcasting, and marketing – all going to organizers FIFA (Federation Internationale de Football Association), some Torontonians are left wondering how hosting six games will be economically beneficial for the city.

Furthermore, there is much uncertainty as to where funds for the 2026 World Cup matches in Toronto will come from, although Mayor Chow has floated the idea of increasing the hotel tax.

“We already have a hotel tax and the mayor just increased it already and if she wants to continue to do that, that’s her prerogative,” said Bradford. “But there will be an opportunity for sponsorship revenue.”

Bradford admitted that he is unsure how this profit from sponsorship will be split between the city, which owns BMO Field where the matches will be played, and Maple Leafs Sports & Entertainment (MLSE), which manages the facility and events.

“Much of this is in the mayor’s office,” he said. “Local councillors are not briefed on the agreement. We don’t see that.”

However, he emphasized the potential gains from sponsorships, highlighting that the City of Seattle – another 2026 World Cup host – has already raised about $90 million so far.

“I haven’t seen the mayor do any of that yet, but I would suspect and hope that that will be a focus of hers as well to make sure that she is raising the money on the sponsorship side to help cover the bill,” said Bradford.

With more than 300,000 tourists expected to visit Toronto for the World Cup games, the city also stands to gain $393 million in gross domestic product (GDP) with the province expecting benefits of more than $456 million in GDP, according to a city press release.

Much of this will come by way of the hospitality industry which is expected to experience a temporary boom during the World Cup dates.

Harry Tsoukalas, owner of neighbourhood gastropub Local 1794 on Danforth Avenue, told Beach Metro Community News that he believes sports bars will be the biggest beneficiaries from the games “considering what restaurants and bars have gone through since COVID”.

“Any big event such as the World Cup will definitely help out the city,” said Tsoukalas. “I’m actually looking forward to seeing (the effects). I know a lot of bar owners are anticipating some relief or boost.”

Tsoukalas said he doesn’t expect his own establishment, a restaurant, to benefit as much as sports bars, but still looks forward to the increased foot traffic.

“Inspiring people to get out and have a good time is always beneficial for the city,” he said.

“We’ve been locked down for such a long time. Anything and everything helps. Now, will the (tournament) help every single establishment? I don’t think so. But it will definitely create foot traffic and people getting out of the house to watch the games. I personally feel that it’s something well needed.”

Others, however, are not as supportive of hosting the events at this time.

“Who needs food when you have soccer,” wrote one X (formerly Twitter) user.

“​​We are in a huge deficit, inflation causing people to fall under the poverty line. Increase homelessness, drug use, crimes. This really puts the icing on the cake,” said another.

With complaints of traffic congestion, rising housing costs, and food insecurities amongst Toronto’s issues, city officials remain hopeful there will be a benefit from hosting in the six World Cup matches.

“All of these concerns are going to continue to persist so we have to be very focussed on taking care of the basics of local government in addition to managing the cost and spending of this project so that when it arrives in 2026, we can put our best foot forward,” said Bradford.

Toronto is set to host six matches in the 2026 World Cup with BMO Field entering the history books as the first host of a World Cup game on Canadian soil on June 12. The Canadian team has qualified for the 2026 World Cup and will be playing its opening match on June 12 in Toronto against an as yet unknown opponent.

The 2026 World Cup kicks off in Mexico on June 11. Hosting duties are being shared among Mexico, the United States and Canada. Toronto and Vancouver are the only Canadian cities hosting matches.

— Amarachi Amadike is a Local Journalism Initiative Reporter for Beach Metro Community News. His reporting is funded by the Government of Canada through its Local Journalism Initiative.

Amarachi Amadike, Local Journalism Initiative Reporter, Beach Metro Community News