Tax exemptions, free advertising space, policing the skies to protect FIFA’s brand and covering up unsightly construction.
Those are among the commitments the City of ɫɫÀ² made when it signed up to host the 2026 World Cup.Ìý
For six years, the agreements the city reached with FIFA, soccer’s global governing body, have been a closely guarded secret. Even Mayor Olivia Chow said she had trouble getting access to them after she was elected last June.Ìý
But the Star obtained copies through a freedom of information request, and despiteÌýsome sections being redacted, which may change the terms of the published contract, theyÌýprovide the fullest picture yet of the city’s plans to host six World Cup games.
Over their 242 pages, the contracts — host city and stadium agreements signed in 2018, as well as a 2022 addendum — set out in fine-grained detail ɫɫÀ²’s legal obligations for being one of 16 tournament venues. They indicate that when the tournament comes to town for more than five weeksÌýin the summer of 2026, ɫɫÀ² will be required to make changes to everything from its transportation network to its public spaces, from itsÌýtax policyÌýto who it does business with.Ìý
David Roberts, an associate professor of urban studies at the University of ɫɫÀ², said the agreements are typical of FIFA contracts, under which host cities grant the organization concessions in the hope of reaping economic rewards.
“FIFA demands a lot of cities for the right to host the World Cup,” he said.
Whether the contracts represent a fair deal for ɫɫÀ²nians is tough to answer, according to Roberts. He said that the tournament’s true economic impacts are difficult to quantify, and investments are typically focused on sports facilities and the tourist sector.Ìý
He argued that whether ɫɫÀ² gets a decent return will depend on whether it treats the World Cup like a one-off event, or leverages it to deliver lasting benefits to local workers and residents, and help build “a city that’s more livable.”Ìý
In a statement, FIFA said the contractsÌýprovide provisions “for the safe, exciting and successful delivery” of the competition, “which will in turn provide for the greatest potential benefit for host cities.”
Some broad strokes of the arrangement with FIFA were already known: ɫɫÀ² will foot the bill for upgrading BMO Field, staging a fan festival, and providing local security and other supports, while the Swiss-based organization will pay other hosting costs and retain the main sources of revenue like ticket sales and media rights.
The city’s official line is that it will all be worth it. The tournament is expected to create more than 3,600 jobs and $393 million in local GDP.Ìý
But with council set to debate its hosting duties at its meeting starting Wednesday, some members are pushing to rein in projected costs that have grown from $45 million to $380 million, and to improve transparency around the event, which is being co-hosted by Canada, the U.S. and Mexico.
Chow said in an interview she is comfortable with most of the provisions, but plans to introduce measures at Wednesday’s meeting that will show as mayor she’s “exercising control” and “bringing (the tournament) back on track” after concerns about cost rises and lack of oversight.
Talks between ɫɫÀ² and FIFA have continued since the deals were signed, meaning how the tournament is staged could differ from what’s on paper.
Here are the highlights of the unredacted portions:ÌýÌý
Cancellation
The contracts appear to back up Chow’s statements that ɫɫÀ² has little choice but to carry out its hosting duties despite concerns about rising costs. While specific financial penalties aren’t spelled out, the documents state the city has no right for “ordinary termination.” It could pull out if extraordinary circumstances meant it could “no longer be reasonably expected” to live up to hosting obligations.ÌýÌý
Tax exemption
ɫɫÀ² was required to indemnify FIFA from any municipal taxes they may incur as a result of the World Cup. The contract provision is separate from guarantees FIFA sought from other levels of government, which also included tax breaks.
The city doesn’t impose many taxes that would directly apply to FIFA’s tournament activities, like a sales tax. A city spokesperson said the only municipal tax that could be affected by the exemption is the accommodation charge on hotels and short-term rentals.
The city has not yet determined how much revenue ɫɫÀ² could forgo by not applying it to FIFA, which plans to use hotels to house teams and other people connected with the games. ɫɫÀ² has estimated regular visitors in town for the tournament will generate at least $3 million through the accommodation tax.
Marketing rights
The contracts set out strict rules to protect FIFA’s commercial rights for the World Cup, the sale of which is a major source of revenue for the organization.
They include the host city’s co-operation in a “brand protection program” under which it’s obligated to report any unauthorized use of FIFA’s trademarks and logos, enforce violations, and prevent commercial entities that aren’t a FIFA affiliate from trying to associate themselves with the event.Ìý
Not only will city-owned when it hosts games, but the contracts state that the stadium must be “free and clear of all commercial signage” not approved by FIFA. That specifically includes a ban on any unauthorized “commercial identification of any kind” on “stands, scoreboards, seats, seatbacks, time clocks, staff uniforms, accreditation passes, fences or elsewhere” in or near the stadium.Ìý
There’s even a clause requiring the city to co-operate with civil aviation authorities to ensure airspace above the stadium and the Fan Fest are free from nonapproved signage. The city also agreed to appoint a staff member to “regularly inspect” advertising on key routes to the stadium and other tournament sites, and report to FIFA.
The contracts state that ɫɫÀ² must provide FIFA with use of all city-owned billboards and ad space within two kilometres of the stadium and 100 metres of the Fan Fest, as well as those along key transportation routes, free of charge.
Transportation
The agreements require the city to develop a transportation plan that includes a traffic management strategy and extended hours for public transit. ɫɫÀ² also committed to allowing World Cup ticket holders, officials and accredited mediaÌýto ride public transit for free.Ìý
The city may also have agreed to more disruptive transportation provisions, like police escorts, as well as shutting down “any roads within the host city” if FIFA issues a “reasonable request.”
Those clauses are in a version of Seattle’s host city agreement that the U.S. city released, butÌýthe corresponding sections in the ɫɫÀ² contracts are blacked out.
Fan Fest
While ɫɫÀ² is set to host only six of the World Cup’s 104 games, it agreed to hold an outdoor viewing party called a Fan Fest throughout the competition, likely in Nathan Phillips Square. The city must pay the costs of staging the event, and is entitled to collect revenue from it.Ìý
The contracts stipulate that the events must be free to spectators, carry a live broadcast of all matches and take place within a fenced off area. Exclusive rights for merchandising and food and beverage concessions would be granted to FIFA’s commercial affiliates.
FIFA planned to provide more detailed Fan Fest requirements closer to the tournament, with which the city would be required to “fully comply” at its own expense.Ìý
Public relations
The contract requires ɫɫÀ² to “co-ordinate” any statements and public or private press briefings about the World Cup with FIFA “at all times.” That means agreeing with the organization on the “timing, form and content” of public communications.
Prettier construction sites
The contracts state that the city should use its “best efforts” to ensure public spaces are “as attractive as possible,” and carry out “beautification measures” at its own expense. That includes “temporarily covering and decorating construction sites” at important locations like the stadium, Fan Fest and team hotels.
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