Some financial experts label the $1.2 billion amount as “optimistic”
By Evan Symon, July 11, 2024 2:30 am
A new estimate by FIFA and the Micronomics Economic Research and Consulting found this week that California is to get a projected $1.2 billion through hosting a handful of matches during the 2026 FIFA World Cup. (FIFA: The Fédération Internationale de Football Association)
A total of 16 cities in the Canada, United States, and Mexico are to host matches during the 2026 World Cup. Of these, 2 are located within California: SoFi Stadium in Inglewood outside of Los Angeles and Levi’s Stadium in Santa Clara outside of San Francisco. Both sites will host 5 matches during the regular tournament, with Inglewood then hosting 2 playoff matches and Santa Clara hosting 1, for a total of 13 games to be played in California during the tournament. This week, reports came out showing what the economic impact will be at both cities. According to projections, L.A. County “can expect $594 million in economic impact generated by the historic 39-day-long tournament” while the Bay Area can expect $630 million.
According to Micronomics, both regions will get a boost of at least 180,000 tourists during the World Cup. The firm also noted that “World Cup fans typically spend more than the average tourist with an average of $2,350 per person during their stay.” In addition teams, international media, and other tourists visiting for the tournament not going to the games will lead to greater hotel needs, restaurant needs, and other economic drivers. For L.A. County alone, this also means $35 million in additional tax revenue, with the state getting an additional $22.3 million in additional taxes coming through L.A. tourism.
“In 2026, Los Angeles County and the Bay Area – powered by millions of Californians with roots from all over the world – will showcase our diversity and strength to the global community, providing an unparalleled home to the World Cup, including USA’s opening match,” said Governor Gavin Newsom this week. “The World Cup will generate an estimated $1.2 billion for communities across the state while creating jobs all across California and boosting tourism.
“The World Cup will generate an estimated $594 million for Los Angeles communities while creating jobs all across the region and boosting tourism, building on the state’s record-breaking tourism milestones from last year and preparing the region to host the Olympics in 2028.”
However, many athletics accountants have projected lower amounts, as most fans don’t tend to stay for the entire tournament and usually come up for only a game or two.
“Micronomics forecast is really optimistic,” explained Keith Gerard, an auditor of several sporting events, to the Globe on Wednesday. “But let’s look at this critically. 12 of the last 14 World Cups lost money overall. The U.S. in ’94 never did because they already had all the infrastructure up, and the huge stadiums built for American football could get a lot of people.
“But there is so much more to economic impacts outside of tourism spending. Security costs are going to be massive. I mean, think of all the overtime coming for cops alone. Inglewood, Los Angeles, and surrounding cities will have to pitch in. Also, think of all the additional traffic. That’s lost working hours for a lot of Angelinos. That’s many Angelinos losing money. Same for up in Santa Clara, which is even farther away from needed hotels and sites tourists usually go to.
“The report is just focusing on the monetary positives. Factor in all the negatives and that number shrinks real fast. They’re lucky they don’t have to do a lot of renovation and that infrastructure is already being improved because of the Olympics in L.A. and more rapid funding in the Bay Area. Without that, well, it would be bad. We need honest total figures, not just showing what the good is. We need the bad and the ugly too.”
Will the money benefit Californians or a select group of promoters, lobbyist types, and the cabal of hangers-on?
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