{"id":42610,"date":"2026-06-24T20:58:27","date_gmt":"2026-06-25T00:58:27","guid":{"rendered":"https:\/\/cnr.ncsu.edu\/news\/?p=42610"},"modified":"2026-06-25T14:25:15","modified_gmt":"2026-06-25T18:25:15","slug":"fifa-world-cup-economic-impact","status":"publish","type":"post","link":"https:\/\/cnr.ncsu.edu\/news\/2026\/06\/fifa-world-cup-economic-impact\/","title":{"rendered":"The Economics of the FIFA World Cup: Who Really Profits?"},"content":{"rendered":"\n\n\n\t<div class=\"wp-block-ncst-summary\">\n\t\t<p class=\"eyebrow\">Key Takeaways<\/p>\n    \n\n<ul class=\"wp-block-list\">\n<li><strong>Overstated economic claims: <\/strong>Economic impact studies of the FIFA World Cup often exaggerate benefits by counting total spending while overlooking public costs and spending that would have happened without the event.<\/li>\n\n\n\n<li><strong>FIFA captures the revenue: <\/strong>FIFA captures most financial gains through media rights, sponsorships and ticketing, while host cities absorb major costs with limited direct revenue.<\/li>\n\n\n\n<li><strong>Short-lived local gains: <\/strong>Local economic benefits are typically short-lived and uneven, concentrated in tourism and hospitality and fading once the tournament ends.<\/li>\n<\/ul>\n\n\t<\/div>\n\n\n\n\n<p class=\"is-style-lead wp-block-paragraph\">The FIFA World Cup is widely regarded as one of the world&#8217;s most commercially successful sporting events, with FIFA and host governments often projecting that the tournament will generate significant economic activity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One study estimated that the 2026 FIFA World Cup, held in 16 host cities across the United States, Canada and Mexico, could generate up to $40.9 billion in gross domestic product, including up to $620 million for U.S. host cities.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether the FIFA World Cup is as lucrative as claimed remains a matter of debate because economists have criticized economic impact studies for overstating benefits and understating costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMany economic impact studies are structured in ways that predictably produce large numbers,\u201d said Michael Edwards, a professor of parks, recreation and tourism management at North Carolina State University.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Edwards, whose research and teaching includes sport finance, said economic impact studies typically calculate total event-related spending and apply economic multipliers to estimate broader benefits. But they often fail to fully account for public hosting costs.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Simply put, the studies tend to focus on money flowing into the local economy while giving less attention to the taxpayer-funded costs required to stage the event. That includes the public costs of security, transportation, venue preparation and other services.&nbsp;<\/p>\n\n\n<blockquote class=\"has-custombg-one-text-color wp-block-ncst-pullquote\">\n  <div class=\"pullquote-container\">\n    <p class=\"pullquote-content\">\u201cFull hotels, busy restaurants and crowded fan festivals make compelling images, but they do not prove that the World Cup produced substantial net growth.&#8221;<\/p>\n  <\/div>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Economic impact studies also often fail to compare FIFA World Cup-related spending with what would have happened in the absence of the tournament. As a result, it is difficult to determine how much of the economic activity is truly new and directly attributable to the event.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, a host city may see $500 million in spending during the tournament. But some of that money might have been spent anyway through regular tourism, local entertainment or business travel.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That distinction is especially important in established tourist destinations such as New York, Los Angeles and Miami, where hotels, restaurants and attractions draw large numbers of visitors regardless of major events.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFull hotels, busy restaurants and crowded fan festivals make compelling images, but they do not prove that the World Cup produced substantial net growth,\u201d Edwards said.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What matters, Edwards added, is how much additional local income and employment the event generated after accounting for costs and comparing the outcome with what would have happened otherwise.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who actually profits from the FIFA World Cup?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Economic impact studies for mega sporting events like the FIFA World Cup and even the Super Bowl often project large economic returns for host cities, but in reality, Edwards said it\u2019s the event organizers that capture a significant share of the financial gains.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWhen it comes to the World Cup, FIFA is the clear economic winner because it controls the tournament\u2019s most valuable and scalable revenue streams,\u201d Edwards said.&nbsp;<\/p>\n\n\n<aside class=\"left-aside wp-block-ncst-aside-widget\">\n    \n<div class=\"has-custombg-one-text-color ncst-fact wp-block-ncst-aside-fact\">\n      <span class=\"ncst-icon\">\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\"><polygon points=\"274.94 334.06 235.77 334.06 123.21 234.85 104.95 0 405.76 0 387.51 233.49 274.94 334.06\" \/><rect x=\"235.77\" y=\"345.6\" width=\"39.17\" height=\"68.99\" \/><rect x=\"235.85\" y=\"360.76\" width=\"39.02\" height=\"166.75\" transform=\"translate(699.49 188.78) rotate(90)\" \/><polygon points=\"405.37 512 105.34 512 125.25 472.98 385.47 472.98 405.37 512\" \/><polygon points=\"109.8 236.18 49.63 236.18 .12 28.89 93.72 28.89 96.93 68.71 50.56 68.71 81.05 196.37 106.71 196.37 109.8 236.18\" \/><polygon points=\"399.37 236.18 459.53 236.18 509.04 28.89 415.45 28.89 412.23 68.71 458.6 68.71 428.11 196.37 402.45 196.37 399.37 236.18\" \/><\/svg>\n\n    <\/span>\n              <h2 class=\"fact__heading\">The Real Winner<\/h2>\n            <p class=\"fact__support\">\n              FIFA generates an average of approximately $4.3 billion from the World Cup.\n          <\/p>\n      <\/div>\n\n\n  <\/aside>\n\n\n\n<p class=\"wp-block-paragraph\">Those billion-dollar revenue streams include broadcasting rights sold to global media networks, corporate sponsorship deals with multinational brands, licensing for merchandise and media products and direct revenues from ticket sales and premium hospitality packages.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FIFA reported generating roughly $14 billion in revenue across the two World Cup cycles from 2015 to 2022, covering the 2018 tournament in Russia and the 2022 tournament in Qatar, driven largely by commercial deals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Building on this trajectory, FIFA\u2019s 2026 World Cup cycle is projected to generate over $13 billion, including $3.9 billion from broadcasting rights, $3 billion from ticketing and hospitality and $2.8 billion from sponsorships.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How do host cities benefit financially from the FIFA World Cup?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While major sporting events such as the FIFA World Cup can boost a host city&#8217;s global visibility, Edwards said the economic benefits are often less substantial than many expect.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cHistorical evidence gives us little reason to expect substantial, lasting economic gains for host cities,\u201d Edwards said. \u201cHost cities and other public entities generally receive little or none of the direct game-day revenue.\u201d&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some local businesses certainly benefit, particularly hotels, restaurants, transportation providers and businesses located near tournament activity, because large numbers of visitors spend money on lodging, food, transportation and entertainment during the event.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Those gains, however, are likely to be concentrated and temporary, according to Edwards. Once the event ends and visitors leave, demand often returns to normal levels, limiting the long-term economic impact on the broader local economy.<\/p>\n\n\n\n<figure class=\"wp-block-image alignwide size-large\"><a href=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/downtown-atlanta-mark-AdobeStock_633543438-1500x844-1.jpeg\" data-fullsize=\"1500x844\" data-zoom=\"true\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/downtown-atlanta-mark-AdobeStock_633543438-1500x844-1-1024x576.jpeg\" alt=\"A city skyline featuring a prominent tall brown skyscraper, surrounded by modern buildings and a busy highway below, under a partly cloudy sky.\" class=\"wp-image-42622\" srcset=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/downtown-atlanta-mark-AdobeStock_633543438-1500x844-1-1024x576.jpeg 1024w, https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/downtown-atlanta-mark-AdobeStock_633543438-1500x844-1-300x169.jpeg 300w, https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/downtown-atlanta-mark-AdobeStock_633543438-1500x844-1-768x432.jpeg 768w, https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/downtown-atlanta-mark-AdobeStock_633543438-1500x844-1.jpeg 1500w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Atlanta is one of the 16 host cities for the 2026 FIFA World Cup, with matches being played at the Mercedes-Benz Stadium. Photo by mark\/stock.adobe.com<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Even within the hospitality sector, Edwards said the benefits are unevenly distributed. Hotels, restaurants and other businesses can often charge premium rates and boost profits during major events, while workers&#8217; wages often remain largely unchanged.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other businesses may see little benefit, largely because congestion and higher prices from an influx of FIFA World Cup spectators may deter regular customers and tourists, leading them to avoid the area or postpone visits during the tournament.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Governments can generate additional tax revenue and benefit from infrastructure improvements tied to events like the FIFA World Cup, but these returns must be weighed against public costs and alternative uses for the funds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Edwards stressed again that FIFA and its commercial network \u2014&nbsp;including global sponsors and media rights holders \u2014&nbsp;benefit the most financially from the World Cup, not host cities and the public. \u201cGovernments and taxpayers assume much of the financial risk.\u201d&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are the public costs of hosting the FIFA World Cup?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Hosting the FIFA World Cup comes at a cost to taxpayers, according to Edwards. Major infrastructure expenses, including stadium construction and upgrades, transportation improvements and security preparations, are typically funded with public money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, Brazil\u2019s 2014 World Cup cost an estimated $11.6 billion, including billions spent on stadiums, transport upgrades and airport improvements, largely financed through federal, state and municipal funds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The 2026 FIFA World Cup reduces some of the most expensive infrastructure demands seen in past tournaments, particularly large-scale stadium construction, because most venues already exist, with FIFA using NFL and MLS stadiums in cities such as Dallas, Los Angeles and New York.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cUsing existing stadiums is a significant advantage because it avoids the largest and riskiest expense associated with many previous World Cups,\u201d Edwards said.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image alignwide size-large\"><a href=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-sofi-stadium-Walter-Cicchetti-AdobeStock_2053235768_Editorial_Use_Only-1500x844-1.jpeg\" data-fullsize=\"1500x844\" data-zoom=\"true\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-sofi-stadium-Walter-Cicchetti-AdobeStock_2053235768_Editorial_Use_Only-1500x844-1-1024x576.jpeg\" alt=\"Image of a partially constructed stadium for the FIFA World Cup 2026, with colorful pillar designs and a sign displaying the event name, framed by green foliage.\" class=\"wp-image-42627\" srcset=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-sofi-stadium-Walter-Cicchetti-AdobeStock_2053235768_Editorial_Use_Only-1500x844-1-1024x576.jpeg 1024w, https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-sofi-stadium-Walter-Cicchetti-AdobeStock_2053235768_Editorial_Use_Only-1500x844-1-300x169.jpeg 300w, https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-sofi-stadium-Walter-Cicchetti-AdobeStock_2053235768_Editorial_Use_Only-1500x844-1-768x432.jpeg 768w, https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-sofi-stadium-Walter-Cicchetti-AdobeStock_2053235768_Editorial_Use_Only-1500x844-1.jpeg 1500w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">SoFi Stadium in Inglewood, California is hosting eight matches for the FIFA World Cup. The $5.5 billion venue is the most expensive stadium on the planet, seating roughly 70,000 spectators. Photo by Walter Cicchetti\/stock.adobe.com<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Even without new stadium construction, hosting remains a substantial public commitment. U.S. host cities face estimated costs of $100\u2013$200 million or more per city to cover services like traffic management, emergency response and public fan events.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Governments may forgo revenue by granting tax exemptions and absorbing costs that would normally be paid by event organizers, which increases the overall financial burden on host cities.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a result, U.S. host cities, including Seattle and New York\/New Jersey, have scaled back fan festivals since the events can cost hundreds of thousands of dollars per day but generate little direct revenue for local governments or organizing committees.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cTaxpayers should therefore evaluate these expenses as public spending, not assume they will pay for themselves through economic growth,\u201d Edwards said, adding that this requires weighing actual tax gains against total public costs and considering alternative uses for the funds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Edwards also noted that existing World Cup stadiums should not be considered \u201cfree\u201d simply because they were built earlier, adding that many were publicly subsidized on the basis that they would later host events such as the World Cup or Super Bowl.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Do the benefits of hosting the FIFA World Cup outweigh the costs?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Despite its costs, the FIFA World Cup can generate short-term benefits for host cities, including what economists call &#8220;psychic income&#8221; \u2014 the pride, excitement and sense of community associated with hosting a major international event.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe are seeing full stadiums and public spaces filled with people sharing an experience that feels larger than an ordinary sporting event,\u201d Edwards said, referring to the 2026 FIFA World Cup. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Edwards also noted that international visitors are interacting with American communities and one another at a time of considerable political and social division in the United States and abroad, creating opportunities for cross-cultural exchange beyond the tournament.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThose encounters can temporarily complicate stereotypes and create a genuine sense of openness and connection,\u201d Edwards said.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image alignwide size-large\"><a href=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fans-soccer-Alfonsodetomas-AdobeStock_207491111-1500x844-1.jpeg\" data-fullsize=\"1500x844\" data-zoom=\"true\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fans-soccer-Alfonsodetomas-AdobeStock_207491111-1500x844-1-1024x576.jpeg\" alt=\"A vibrant soccer match scene with cheering fans in the foreground and players on the green field in the background.\" class=\"wp-image-42623\" srcset=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fans-soccer-Alfonsodetomas-AdobeStock_207491111-1500x844-1-1024x576.jpeg 1024w, https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fans-soccer-Alfonsodetomas-AdobeStock_207491111-1500x844-1-300x169.jpeg 300w, https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fans-soccer-Alfonsodetomas-AdobeStock_207491111-1500x844-1-768x432.jpeg 768w, https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fans-soccer-Alfonsodetomas-AdobeStock_207491111-1500x844-1.jpeg 1500w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">The average attendance for a FIFA World Cup historically ranges between 40,000 and 55,000 fans per match. Photo by Alfonsodetomas\/stock.adobe.com<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">But these benefits, while meaningful, are unlikely to endure. Previous FIFA World Cups show that feelings of unity and goodwill often fade once the tournament ends and do little to resolve deeper political and social divisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These limits raise questions about the FIFA World Cup\u2019s public value. Edwards said host cities should weigh the full public expense against both the tournament\u2019s limited financial returns and its less tangible benefits, while considering who benefited and who bore the costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Communities may decide to host the FIFA World Cup because of benefits such as global attention, local pride, civic excitement and a sense of prestige. But these outcomes are not evidence of a good economic investment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe honest conclusion may be that the World Cup was a valuable shared experience without being a successful economic-development strategy,\u201d Edwards said.<\/p>\n\n\n<aside class=\"with-image wp-block-ncst-highlight\">\n    <h2 class=\"highlight__label\">Related<\/h2>\n    <a \n      href=\"https:\/\/cnr.ncsu.edu\/news\/2026\/06\/fifa-world-cup-sustainability\/\"\n      class=\"highlight__link\"\n    >\n              <div class=\"highlight__image-container\">\n          <div class=\"highlight__image-background\">\n            <img width=\"1500\" height=\"844\" \n              decoding=\"async\"\n              class=\"highlight__image wp-image-42593\"\n              src=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-kovop58-2-AdobeStock_1753477436_Editorial_Use_Only-1500x844-1.png\"\n              alt=\"A colorful soccer ball with a FIFA emblem sits on green grass, partially lit against a dark background.\" srcset=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-kovop58-2-AdobeStock_1753477436_Editorial_Use_Only-1500x844-1.png 1500w, https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-kovop58-2-AdobeStock_1753477436_Editorial_Use_Only-1500x844-1-300x169.png 300w, https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-kovop58-2-AdobeStock_1753477436_Editorial_Use_Only-1500x844-1-1024x576.png 1024w, https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-kovop58-2-AdobeStock_1753477436_Editorial_Use_Only-1500x844-1-768x432.png 768w\" sizes=\"(max-width: 1500px) 100vw, 1500px\" \/>\n          <\/div>\n        <\/div>\n            <div class=\"highlight__text-container\">\n        <h3 class=\"highlight__heading\">FIFA World Cup Faces Growing Sustainability Challenges<\/h3>\n                  <p class=\"highlight__teaser\">As the FIFA World Cup expands, questions are growing about whether the tournament can meet its sustainability goals.<\/p>\n                          <p class=\"highlight__cta\">\n            <span class=\"text\">Read more<\/span>\n            <span class=\"arrow-indicator\">\n              <svg class=\"wolficon\" role=\"img\" aria-hidden=\"true\">\n                <use xlink:href=\"#wolficon-arrow-right-bold\"><\/use>\n              <\/svg>\n            <\/span>\n          <\/p>\n              <\/div>\n    <\/a>\n  <\/aside>\n","protected":false,"raw":"<!-- wp:ncst\/dynamic-header {\"block\":\"ncst\/default-immersive-post-header\",\"isSummaryActive\":true} -->\n<!-- wp:ncst\/default-immersive-post-header {\"backgroundColor\":\"custombg_seven\",\"caption\":\"Photo by kovop58\/stock.adobe.com\",\"displayCategoryID\":460,\"subtitle\":\"Professor Michael Edwards breaks down who benefits most and who pays the price when the FIFA World Cup comes to town.\"} \/-->\n\n<!-- wp:ncst\/summary {\"eyebrowLabel\":\"Key Takeaways\"} -->\n<!-- wp:list -->\n<ul class=\"wp-block-list\"><!-- wp:list-item -->\n<li><strong>Overstated economic claims: <\/strong>Economic impact studies of the FIFA World Cup often exaggerate benefits by counting total spending while overlooking public costs and spending that would have happened without the event.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li><strong>FIFA captures the revenue: <\/strong>FIFA captures most financial gains through media rights, sponsorships and ticketing, while host cities absorb major costs with limited direct revenue.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li><strong>Short-lived local gains: <\/strong>Local economic benefits are typically short-lived and uneven, concentrated in tourism and hospitality and fading once the tournament ends.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n<!-- \/wp:ncst\/summary -->\n<!-- \/wp:ncst\/dynamic-header -->\n\n<!-- wp:paragraph {\"className\":\"is-style-lead\"} -->\n<p class=\"is-style-lead\">The FIFA World Cup is widely regarded as one of the world's most commercially successful sporting events, with FIFA and host governments often projecting that the tournament will generate significant economic activity.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>One study estimated that the 2026 FIFA World Cup, held in 16 host cities across the United States, Canada and Mexico, could generate up to $40.9 billion in gross domestic product, including up to $620 million for U.S. host cities.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Whether the FIFA World Cup is as lucrative as claimed remains a matter of debate because economists have criticized economic impact studies for overstating benefits and understating costs.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cMany economic impact studies are structured in ways that predictably produce large numbers,\u201d said Michael Edwards, a professor of parks, recreation and tourism management at North Carolina State University.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Edwards, whose research and teaching includes sport finance, said economic impact studies typically calculate total event-related spending and apply economic multipliers to estimate broader benefits. But they often fail to fully account for public hosting costs.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Simply put, the studies tend to focus on money flowing into the local economy while giving less attention to the taxpayer-funded costs required to stage the event. That includes the public costs of security, transportation, venue preparation and other services.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:ncst\/pullquote {\"value\":\"\u201cFull hotels, busy restaurants and crowded fan festivals make compelling images, but they do not prove that the World Cup produced substantial net growth.\\u0022\"} \/-->\n\n<!-- wp:paragraph -->\n<p>Economic impact studies also often fail to compare FIFA World Cup-related spending with what would have happened in the absence of the tournament. As a result, it is difficult to determine how much of the economic activity is truly new and directly attributable to the event.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For example, a host city may see $500 million in spending during the tournament. But some of that money might have been spent anyway through regular tourism, local entertainment or business travel.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>That distinction is especially important in established tourist destinations such as New York, Los Angeles and Miami, where hotels, restaurants and attractions draw large numbers of visitors regardless of major events.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cFull hotels, busy restaurants and crowded fan festivals make compelling images, but they do not prove that the World Cup produced substantial net growth,\u201d Edwards said.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>What matters, Edwards added, is how much additional local income and employment the event generated after accounting for costs and comparing the outcome with what would have happened otherwise.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"levelOptions\":[2,3,4,5,6]} -->\n<h2><strong>Who actually profits from the FIFA World Cup?<\/strong><\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Economic impact studies for mega sporting events like the FIFA World Cup and even the Super Bowl often project large economic returns for host cities, but in reality, Edwards said it\u2019s the event organizers that capture a significant share of the financial gains.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cWhen it comes to the World Cup, FIFA is the clear economic winner because it controls the tournament\u2019s most valuable and scalable revenue streams,\u201d Edwards said.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:ncst\/aside-widget {\"alignment\":\"left\"} -->\n<!-- wp:ncst\/aside-fact {\"svgSlug\":\"trophy\",\"heading\":\"The Real Winner\",\"support\":\"FIFA generates an average of approximately $4.3 billion from the World Cup.\"} \/-->\n<!-- \/wp:ncst\/aside-widget -->\n\n<!-- wp:paragraph -->\n<p>Those billion-dollar revenue streams include broadcasting rights sold to global media networks, corporate sponsorship deals with multinational brands, licensing for merchandise and media products and direct revenues from ticket sales and premium hospitality packages.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>FIFA reported generating roughly $14 billion in revenue across the two World Cup cycles from 2015 to 2022, covering the 2018 tournament in Russia and the 2022 tournament in Qatar, driven largely by commercial deals.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Building on this trajectory, FIFA\u2019s 2026 World Cup cycle is projected to generate over $13 billion, including $3.9 billion from broadcasting rights, $3 billion from ticketing and hospitality and $2.8 billion from sponsorships.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"levelOptions\":[2,3,4,5,6]} -->\n<h2><strong>How do host cities benefit financially from the FIFA World Cup?<\/strong><\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>While major sporting events such as the FIFA World Cup can boost a host city's global visibility, Edwards said the economic benefits are often less substantial than many expect.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cHistorical evidence gives us little reason to expect substantial, lasting economic gains for host cities,\u201d Edwards said. \u201cHost cities and other public entities generally receive little or none of the direct game-day revenue.\u201d&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Some local businesses certainly benefit, particularly hotels, restaurants, transportation providers and businesses located near tournament activity, because large numbers of visitors spend money on lodging, food, transportation and entertainment during the event.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Those gains, however, are likely to be concentrated and temporary, according to Edwards. Once the event ends and visitors leave, demand often returns to normal levels, limiting the long-term economic impact on the broader local economy.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":42622,\"sizeSlug\":\"large\",\"linkDestination\":\"media\",\"align\":\"wide\"} -->\n<figure class=\"wp-block-image alignwide size-large\"><a href=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/downtown-atlanta-mark-AdobeStock_633543438-1500x844-1.jpeg\"><img src=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/downtown-atlanta-mark-AdobeStock_633543438-1500x844-1-1024x576.jpeg\" alt=\"A city skyline featuring a prominent tall brown skyscraper, surrounded by modern buildings and a busy highway below, under a partly cloudy sky.\" class=\"wp-image-42622\"\/><\/a><figcaption class=\"wp-element-caption\">Atlanta is one of the 16 host cities for the 2026 FIFA World Cup, with matches being played at the Mercedes-Benz Stadium. Photo by mark\/stock.adobe.com<\/figcaption><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>Even within the hospitality sector, Edwards said the benefits are unevenly distributed. Hotels, restaurants and other businesses can often charge premium rates and boost profits during major events, while workers' wages often remain largely unchanged.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Other businesses may see little benefit, largely because congestion and higher prices from an influx of FIFA World Cup spectators may deter regular customers and tourists, leading them to avoid the area or postpone visits during the tournament.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Governments can generate additional tax revenue and benefit from infrastructure improvements tied to events like the FIFA World Cup, but these returns must be weighed against public costs and alternative uses for the funds.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Edwards stressed again that FIFA and its commercial network \u2014&nbsp;including global sponsors and media rights holders \u2014&nbsp;benefit the most financially from the World Cup, not host cities and the public. \u201cGovernments and taxpayers assume much of the financial risk.\u201d&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"levelOptions\":[2,3,4,5,6]} -->\n<h2><strong>What are the public costs of hosting the FIFA World Cup?<\/strong><\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Hosting the FIFA World Cup comes at a cost to taxpayers, according to Edwards. Major infrastructure expenses, including stadium construction and upgrades, transportation improvements and security preparations, are typically funded with public money.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For example, Brazil\u2019s 2014 World Cup cost an estimated $11.6 billion, including billions spent on stadiums, transport upgrades and airport improvements, largely financed through federal, state and municipal funds.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The 2026 FIFA World Cup reduces some of the most expensive infrastructure demands seen in past tournaments, particularly large-scale stadium construction, because most venues already exist, with FIFA using NFL and MLS stadiums in cities such as Dallas, Los Angeles and New York.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cUsing existing stadiums is a significant advantage because it avoids the largest and riskiest expense associated with many previous World Cups,\u201d Edwards said.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":42627,\"sizeSlug\":\"large\",\"linkDestination\":\"media\",\"align\":\"wide\"} -->\n<figure class=\"wp-block-image alignwide size-large\"><a href=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-sofi-stadium-Walter-Cicchetti-AdobeStock_2053235768_Editorial_Use_Only-1500x844-1.jpeg\"><img src=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-sofi-stadium-Walter-Cicchetti-AdobeStock_2053235768_Editorial_Use_Only-1500x844-1-1024x576.jpeg\" alt=\"Image of a partially constructed stadium for the FIFA World Cup 2026, with colorful pillar designs and a sign displaying the event name, framed by green foliage.\" class=\"wp-image-42627\"\/><\/a><figcaption class=\"wp-element-caption\">SoFi Stadium in Inglewood, California is hosting eight matches for the FIFA World Cup. The $5.5 billion venue is the most expensive stadium on the planet, seating roughly 70,000 spectators. Photo by Walter Cicchetti\/stock.adobe.com<\/figcaption><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>Even without new stadium construction, hosting remains a substantial public commitment. U.S. host cities face estimated costs of $100\u2013$200 million or more per city to cover services like traffic management, emergency response and public fan events.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Governments may forgo revenue by granting tax exemptions and absorbing costs that would normally be paid by event organizers, which increases the overall financial burden on host cities.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As a result, U.S. host cities, including Seattle and New York\/New Jersey, have scaled back fan festivals since the events can cost hundreds of thousands of dollars per day but generate little direct revenue for local governments or organizing committees.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cTaxpayers should therefore evaluate these expenses as public spending, not assume they will pay for themselves through economic growth,\u201d Edwards said, adding that this requires weighing actual tax gains against total public costs and considering alternative uses for the funds.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Edwards also noted that existing World Cup stadiums should not be considered \u201cfree\u201d simply because they were built earlier, adding that many were publicly subsidized on the basis that they would later host events such as the World Cup or Super Bowl.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"levelOptions\":[2,3,4,5,6]} -->\n<h2><strong>Do the benefits of hosting the FIFA World Cup outweigh the costs?<\/strong><\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Despite its costs, the FIFA World Cup can generate short-term benefits for host cities, including what economists call \"psychic income\" \u2014 the pride, excitement and sense of community associated with hosting a major international event.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cWe are seeing full stadiums and public spaces filled with people sharing an experience that feels larger than an ordinary sporting event,\u201d Edwards said, referring to the 2026 FIFA World Cup. &nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Edwards also noted that international visitors are interacting with American communities and one another at a time of considerable political and social division in the United States and abroad, creating opportunities for cross-cultural exchange beyond the tournament.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cThose encounters can temporarily complicate stereotypes and create a genuine sense of openness and connection,\u201d Edwards said.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":42623,\"sizeSlug\":\"large\",\"linkDestination\":\"media\",\"align\":\"wide\"} -->\n<figure class=\"wp-block-image alignwide size-large\"><a href=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fans-soccer-Alfonsodetomas-AdobeStock_207491111-1500x844-1.jpeg\"><img src=\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fans-soccer-Alfonsodetomas-AdobeStock_207491111-1500x844-1-1024x576.jpeg\" alt=\"A vibrant soccer match scene with cheering fans in the foreground and players on the green field in the background.\" class=\"wp-image-42623\"\/><\/a><figcaption class=\"wp-element-caption\">The average attendance for a FIFA World Cup historically ranges between 40,000 and 55,000 fans per match. Photo by Alfonsodetomas\/stock.adobe.com<\/figcaption><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>But these benefits, while meaningful, are unlikely to endure. Previous FIFA World Cups show that feelings of unity and goodwill often fade once the tournament ends and do little to resolve deeper political and social divisions.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>These limits raise questions about the FIFA World Cup\u2019s public value. Edwards said host cities should weigh the full public expense against both the tournament\u2019s limited financial returns and its less tangible benefits, while considering who benefited and who bore the costs.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Communities may decide to host the FIFA World Cup because of benefits such as global attention, local pride, civic excitement and a sense of prestige. But these outcomes are not evidence of a good economic investment.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>\u201cThe honest conclusion may be that the World Cup was a valuable shared experience without being a successful economic-development strategy,\u201d Edwards said.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:ncst\/highlight {\"heading\":\"FIFA World Cup Faces Growing Sustainability Challenges\",\"teaser\":\"As the FIFA World Cup expands, questions are growing about whether the tournament can meet its sustainability goals.\",\"url\":\"https:\/\/cnr.ncsu.edu\/news\/2026\/06\/fifa-world-cup-sustainability\/\",\"callToAction\":\"Read more\",\"imageID\":42593,\"imageURL\":\"https:\/\/cnr.ncsu.edu\/news\/wp-content\/uploads\/sites\/10\/2026\/06\/fifa-world-cup-kovop58-2-AdobeStock_1753477436_Editorial_Use_Only-1500x844-1.png\",\"imageAlt\":\"A colorful soccer ball with a FIFA emblem sits on green grass, partially lit against a dark background.\"} \/-->"},"excerpt":{"rendered":"<p>The FIFA World Cup is often promoted as an economic windfall, but NC State professor Michael Edwards says the biggest financial rewards typically go to FIFA, not the cities that host the tournament.<\/p>\n","protected":false},"author":171,"featured_media":42626,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"views\/single-immersive.blade.php","format":"standard","meta":{"_acf_changed":false,"source":"","ncst_custom_author":"","ncst_show_custom_author":false,"ncst_dynamicHeaderBlockName":"ncst\/default-immersive-post-header","ncst_dynamicHeaderData":"{\"backgroundColor\":\"custombg_seven\",\"caption\":\"Photo by kovop58\/stock.adobe.com\",\"displayCategoryID\":460,\"showAuthor\":true,\"showDate\":true,\"showFeaturedVideo\":false,\"subtitle\":\"Professor Michael Edwards breaks down who benefits most and who pays the price when the FIFA World Cup comes to town.\"}","ncst_content_audit_freq":"","ncst_content_audit_date":"","ncst_content_audit_display":false,"ncst_backToTopFlag":"","footnotes":""},"categories":[1,102,121,3,460],"tags":[42,268,283],"_ncst_magazine_issue":[],"class_list":["post-42610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hidden-news","category-hidden-newswire","category-prtm-research","category-research-innovation","category-thought-leadership","tag-parks-recreation-and-tourism-management","tag-prtm-research","tag-sport-and-society"],"displayCategory":{"term_id":460,"name":"Thought Leadership","slug":"thought-leadership","term_group":0,"term_taxonomy_id":460,"taxonomy":"category","description":"Our more than 200 faculty members are experts in their fields, conducting cutting-edge research to solve urgent challenges at the intersection of the environment, economy and society. Here you will find content highlighting their expertise on a broad spectrum of interdisciplinary issues ranging from the significant rise in forest fires, deforestation and flooding to the need for accelerated innovation to sustainably engineer bio-based materials.","parent":0,"count":89,"filter":"raw"},"acf":{"ncst_posts_meta_modified_date":null},"_links":{"self":[{"href":"https:\/\/cnr.ncsu.edu\/news\/wp-json\/wp\/v2\/posts\/42610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cnr.ncsu.edu\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cnr.ncsu.edu\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cnr.ncsu.edu\/news\/wp-json\/wp\/v2\/users\/171"}],"replies":[{"embeddable":true,"href":"https:\/\/cnr.ncsu.edu\/news\/wp-json\/wp\/v2\/comments?post=42610"}],"version-history":[{"count":15,"href":"https:\/\/cnr.ncsu.edu\/news\/wp-json\/wp\/v2\/posts\/42610\/revisions"}],"predecessor-version":[{"id":42654,"href":"https:\/\/cnr.ncsu.edu\/news\/wp-json\/wp\/v2\/posts\/42610\/revisions\/42654"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cnr.ncsu.edu\/news\/wp-json\/wp\/v2\/media\/42626"}],"wp:attachment":[{"href":"https:\/\/cnr.ncsu.edu\/news\/wp-json\/wp\/v2\/media?parent=42610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cnr.ncsu.edu\/news\/wp-json\/wp\/v2\/categories?post=42610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cnr.ncsu.edu\/news\/wp-json\/wp\/v2\/tags?post=42610"},{"taxonomy":"_ncst_magazine_issue","embeddable":true,"href":"https:\/\/cnr.ncsu.edu\/news\/wp-json\/wp\/v2\/_ncst_magazine_issue?post=42610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}