The World Cup's Implications for Host Cities

Dear Clients & Friends,

This week, we have a guest writer! Eli Aumiller is a rising junior at Muhlenberg College. We were lucky enough to have Eli with us as an intern this month. He's not only a great guy to have around, but he's also a business major and a huge soccer fan, so of course we asked him to share some insight into the economic implications of the 2026 World Cup tournament.

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After a long four year wait, The World Cup is finally here in the United States! As we all know, a major sporting event can have major economic implications for its host countries, but often in ways that reach far beyond what is most visible.

The last World Cup host, Qatar, had estimated costs of $220 billion. Most of which was spent on infrastructure- developing new transportation systems, hotels, and 7 brand-new stadiums, as they lacked the world-class stadiums FIFA requires. However, for the United States, which is hosting 78 of the total 104 matches, it will only cost an estimated $625 million. This is because, unlike Qatar which built highways and stadiums to accommodate the games from scratch, the United States already has the necessary infrastructure to host the event. Most of the costs were allocated towards heightened security and installing grass fields. The USA’s relatively low cost for infrastructure resulted in a lower financial risk compared to other host countries which often require enormous projects to prepare for the tournament.

The primary risk associated with hosting the World Cup is that the majority of the costs are absorbed by host countries, whereas the bulk of the direct profits (ticket sales and merchandise) are taken by FIFA. So why do countries want to host? It’s all about the overall economic activity in the host cities, not the direct profit of the soccer games.

The event is projected to generate $17.2 billion for the USA’s GDP. While this only makes up a very small amount of the quarterly GDP, about .2%, the more meaningful part is where the money is being spent. The impact is not evenly spread across the economy, but instead, concentrated in specific sectors and cities in the form of tourism, hospitality, and transportation services. Therefore, the economic benefits are more local and regional rather than national. The beneficiaries are plentiful- servers at bars and restaurants earning significant tips, the cops pulling overtime, Uber drivers with more tourists, bus drivers with more frequent routes, food cart operators, etc. etc. This is the kind of event that puts real money in working people’s wallets- a LOT of extra money.

World Cup Banners hang on Philadelphia's City Hall

World Cup Banners hang on Philadelphia's City Hall

Right here, the city of Philadelphia is hosting six games, which began on June 14th in a group stage game between Ivory Coast and Ecuador and ending on July 4th with a quarterfinal match. According to Philadelphia Soccer 2026, the operational host committee for the City of Philadelphia, there will be an estimated $770 million in economic impact for the city.

The competition is also creating 6,615 jobs in Philadelphia and $314 million in extra employee compensation. As well, the city will be hosting a fan festival in East Fairmount Park. There will be eight cities in the US hosting these festivals; however, Philadelphia is the only one that will be held throughout the entire tournament, from June 11th to July 19th. While the World Cup won’t have a major impact on the United States economy, it will provide meaningful impact on small businesses and hardworking people, especially host cities like Philadelphia.

Events such as the World Cup greatly benefit the local community by bringing in visitors who purchase goods and services directly from hardworking locals. However, instances like these are not just limited to big time sporting events such as the World Cup or the Super Bowl. Music festivals, concerts, business conventions, holiday celebrations, or even simple farmers markets, are all great examples of events that can generate significant economic activity for a community. As a result of these events, jobs are created, people earn more from tips and overtime, and local businesses receive higher revenue. Ultimately, large-scale events like the World Cup benefit much more than the corporations that arrange the events. They also benefit hardworking individuals who profit significantly from the stimulated economy. And I think we can all agree that right now, with gas prices through the roof and healthcare that is barely affordable for most Americans, any extra help can go a long long way!

Enjoy the rest of the tournament and the summer,

Eli

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P.S. After Eli authored this article, a funny thing happened as his family prepared to attend the first match to be held at the Linc - Eli stepped in to save the day... Eli For the Win! GOAAALLLL

A NJ Family's World Cup Tickets Vanished... Then Reappeared