The economics are hard to understand.
When Texas dedicated $22 million to host the 2017 Super Bowl between the New England Patriots and the Atlanta Falcons, state officials expected a return on their investment.
But a state analysis after the Patriots’ thrilling comeback win said it was “impossible” to tell if Texas taxpayers broke even on their investments.
If anything, Texas came up $14 million short, according to a breakdown of tax revenues in the same analysis.
Texas taxpayers likely will be on the hook again when Houston and Dallas welcome the FIFA World Cup this June and July. The cities are among 11 in the U.S. that have agreed to shoulder hundreds of millions of dollars in costs for the soccer tournament, subsidizing a World Cup expected to generate $11 billion in profits for FIFA.
Host cities and their local organizing committees will pay for security at the matches, cover the cost of retrofitting their stadiums to better accommodate soccer and operate fan festivals in addition to the main matches. Originally, they were supposed to pay to transport FIFA officials to all matches, as well, though that requirement has been waived, according to Houston organizers.
The cities get little tangible benefit in return. They do not see a slice of game-day revenues from ticket sales, concessions and merchandise, or parking. Even selling tickets or suites in exchange for corporate sponsorships — usually a key revenue generator for local organizers — was restricted by FIFA this year.
Cities had to agree to FIFA’s demands before the U.S., Mexico and Canada even submitted their bid in 2017 to host the World Cup, and many of those host city contracts remain secret. Now, as the event nears, some cities are questioning whether those agreements will leave them paying for more than they get in return.
“Everybody signed an agreement that was very, very one-sided,” said Alan Rothenberg, who is on the Los Angeles host committee for the 2026 World Cup and was the president of U.S. Soccer the last time the country hosted the tournament in 1994.
Then, some host cities would get a slice of game-day revenues, such as a share of the money made from selling food and drinks at the matches. U.S. Soccer also covered the bill for security at the games and other organizing expenses, Rothenberg said. That helped cities take in more money than they spent, making hosting a more attractive endeavor.
This time around, the agreement was so lopsided that at least one city, Chicago, withdrew during the bidding. And in some cities that moved forward, concerns have grown as the matches near. Officials in Foxborough, Massachusetts, threatened in February to withhold permits for the matches unless FIFA or the owner of the Patriots committed to paying $7.8 million in security costs ahead of time. Foxborough ultimately approved the permits after local World Cup organizers agreed to pay the bill in advance.
“At this point, I think a lot of people are looking at Chicago and thinking they were the smart ones,” Rothenberg said. “They looked at the terms of the agreement and said, ‘No, thanks.’ I don’t think anybody in the 11 host cities thought it would be as tough as it seems to be.”
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In Houston, at least, most of the organizing costs are not expected to be borne by local governments.
“The host committee holds the contract with FIFA. We are 100% responsible for finding the funding to cover all of those expenses, and none of that comes from the city or the county,” [Chris Canetti, who runs Houston’s host committee] said about the agreements.
The contracts do not make clear who is on the hook if the host committee cannot cover the costs. Canetti said he is confident Houston’s committee will have more money than it needs for the expenses, and any surplus funds would be donated to charitable efforts. The host committee that Canetti runs uses a mix of revenue generated from corporate sponsorships, the money FIFA pays to rent NRG Stadium and subsidies from state and federal governments.
That includes $65 million from the federal government to help Houston pay for security, part of a broader $625 million investment by American taxpayers in the World Cup.
The committee also expects to draw tens of millions of dollars from Texas’ Major Events Reimbursement Program, an offshoot of the state’s Event Trust Funds established in 1999 when Texas was vying to host the Olympics. Canetti did not reveal the precise amount Houston believes it will receive, and the Chronicle is still waiting for the governor’s office to respond to records requests for its communications with the committee.
The reimbursement fund was key to ensuring Houston did not lose money when it hosted the Super Bowl. It is expected to be a difference-maker again in covering World Cup costs, helping ensure Houston and Dallas are in a better position than other host cities that don’t receive state money. (The Houston matches will be at NRG Stadium. Others will be at AT&T Stadium in Arlington, outside Dallas. Arlington has signed its own agreement with the organizing committee that seeks reimbursement for costs it will incur.) But it means Texas taxpayers bear a significant share of the costs.
Kelly Dowe, the city’s finance director when it hosted the Super Bowl in 2017, assumed the city would be left with the costs. He was surprised when the host committee for that event effectively paid the full bill, in large part with $22 million in state funds. But these big events, while a boon to specific industries like hotels, bars and restaurants, are hardly a driver in a city’s budget.
“It doesn’t make money for the city, per se,” Dowe said. “You’re glad to break even.”
There’s more, so read the rest. The story was done in conjunction with ProPublica and the Houston Chronicle, so you’ll see it there as well. That $65 million grant for security from the federal government was among the money that Greg Abbott took hostage in the HPD/ICE ordinance fight, in case you needed a reminder of how much Abbott hates Houston. The Major Events Reimbursement Program is also shrouded in mystery and goofy accounting, but honestly it’s kind of a rounding error in the state’s budget and most of us think the events that are attached to its efforts, such as the Super Bowl, are cool enough to not worry too much about the fine print. Anyway, read on for more.

















