The 2026 World Cup is both a soccer tournament and a major investment for Canada.
But here is the big question: Is this money well spent?
The starting point is economics.
Supply and demand are the two forces that determine who pays and who profits. The supply of this word-class event is low. Only one entity can offer this tournament and that is FIFA.
The demand from countries around the world hoping to host the event is high. That economic imbalance means the power to negotiate favours FIFA.
The Parliamentary Budget Office estimates the federal cost toward hosting the event, with only 13 of the 104 games played in Canada, is $1 billion. Just under half will be paid by the federal government, and significant funds will be paid by other levels of government.
The argument for hosting what appears to be a money-losing proposition includes additional tourism, increased spending that generates revenue for workers and businesses, and taxes paid to the government.
Plus, the long-term benefits of promoting the Canadian brand and our two host cities, Toronto and Vancouver.
Ultimately, the decision about whether the tournament was good for Canada will be made by Canadians who continue to vote for those who made the decisions during future elections.
Overspending generally rewards the spender.
We will have a better chance to evaluate the financial pros and cons of the tournament in the coming years. In the meantime, enjoy the games and all the excitement they bring.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com.
