The World Cup in Toronto, where and how the 380 million will be spent
Our City will host six games (the first July 12). The cost : 90 million for security, 50 for management, 37 to expand BMO stadium with removable seats, 32 for the training fields at Centennial Park. The pitch expanded to Fifa dimensions (117 meters by 75). All major revenues will go to FIFA.
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di Nicola Sparano ———————————-
David Soknacki is a former city councillor and finance expert who was appointed special FIFA envoy by Mayor Olivia Chow to help deliver its commitment to making the games and their legacy "open, transparent and accountable to the people of Toront”. Here's how he answered our questions .
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- What is your assignment?
“ My assignment is generally to make sure that the public interest is protected with respect to Toronto hosting its FIFA World Cup 2026 games. Both Mayor Chow and I agree that this is a broad definition, although I do have an emphasis on the financial aspects of the games. So far I have done early reviews of financial estimates, worked on drafting of various committees’ Terms of Reference, and held discussions with external stakeholders on establishing a fundraising team”.
- What did the mayor specifically ask you?
“ This is covered in the response above”.
- As far as you know, is there any other World Cup venue that will spend more than Toronto?
“ We do not know how much the other host cities will spend. FIFA negotiated with each host city independently. I expect each host city expenditure will vary considerably, especially since each city will decide whether to re-fit or build a stadium, how much renovations are required, and local costs”.
- What’s Vancouver’s budget per their 7 games?
“ As far I know, Vancouver has not released any cost estimates”.
- In Toronto is most of the 380 million cost for the stadium?
“ The $380m figure is a ‘headline’ figure, which is total expenditure. It covers both capital investment, like the stadium, and operating expenses, like security. And it’s important to say that there are a number of sources of revenue to offset this expenditure: other levels of government, user fees plus directed taxes and fundraising. To answer the question: of the $380m, about $135m will be spent on capital items such as the stadium ($80m) and training site ($32m). With respect to about $245m in operating expenses, the top items are security ($90m) and operating the stadium ($50m)”.
- What is the estimated cost for the 15,000 additional seats to reach the 45,000 requested by FIFA?
“ A report came to a City Committee in late March, and is scheduled to go to Council’s April 2024 meeting about the expansion of seating for the stadium at BMO Field, where the FIFA matches will be held. Currently the stadium has a maximum capacity of 28,560 spectators. The proposal will add 18,398 temporary seats, bringing the total number of spectators to 46,958. The proposal for Council’s approval requests about $37.4m. It includes everything from final design, installation and operation, to dismantling and removal”.
- When will the work on the stadium begin, how long will it last, how much will it cost.
” Work will start immediately immediately after Council’s approval, although final design work and purchase of raw materials will not be readily apparent to the public. There are strict rules that all work must be completed well before the games start. The question about cost is already answered.
- Is the expansion of the playing field also planned?
“ The expansion of the playing pitch is minor, but required: from 105 x 68 to 117 x 75, both figures are in metres”.
- The stadium belongs to the city but is managed by MLSE, what does this mean?
“ The property and stadium itself are owned by Exhibition Place, which in turn is owned by the City of Toronto. The main users of the stadium are Toronto FC, Soccer Canada and the Toronto Argos. Both the Toronto FC and Toronto Argos are professional sports teams owned by Maple Leaf Sports and Entertainment (MLSE). So it is in the interest of MLSE to keep investing in the stadium so that it remains an attractive venue for spectators for their professional teams”.
- Does MLSE pay anything to the city?
“MLSE pays property taxes on the stadium site and surrounding lands. In addition MLSE pays amounts calculated to compensate for lost parking lot revenues, plus loan repayments (principal and interest) to assist with a previous stadium expansion”.
- Will the City gain anything from the ticket sales and ads?
“Who gets which revenues during FIFA World Cup 2026 are minutely specified in a series of contracts between the host cities and FIFA. The main contracts were signed when Toronto was selected as host city. However, FIFA has proven a little amenable to some peripheral sponsorships. With respect to ticket sales, FIFA receives the ticket face value. Governments are allowed to levy a maximum 10% tax on tickets. Revenues from advertisements from major tournament sponsors at the stadium (such as drinks), will go to FIFA. However, there are sponsorship opportunities around other events like the FanFest and legacies that can accrue to the City”.
- Will the City also have to pay the salaries of stadium workers? The security service, the protection of the teams?
” I have grouped two questions together, since the answer is ‘yes’ to both. As noted security is a significant cost, at about $90m”.
- Are there any other hidden items that would increase the cost from 380 million?.
“ Part of the responsibility of staff, and oversight groups including myself, are to make sure that surprises are addressed responsibly and quickly. The $380m estimate is based on what we know today. One is always at risk from unforeseen events. For example, even if the City’s suppliers purchase raw materials for stadium seating after April’s Council meeting, prices for steel may have risen for any number of reasons. Provisions for both inflation and contingency have been included, but of course no one knows what the future holds”.
- Is it true that the province will contribute $100 million.
“ The provincial Government announced that it will contribute $97m”.
- How much from the federal government?
“ The federal Government has not made an announcement. However City staff who are in regular contact with the federal Government, expect a contribution of about 35% of the total expenditure, capped at the amount that the City itself spends. I understand that the federal Government wants to apply the same formula to both Toronto and Vancouver”.
- In your opinion, will the World Cup in Toronto be a good deal for the city.
“ My goal is to preserve the public interest while hosting a great set of games”.
-How much is FIFA itself budgeting in prize money to the teams?
“ The estimate in 2018 was that FIFA would pay USD 400m in prize money, plus another USD 209m to participating teams”.
