U.S. host cities are expected to pay millions in a shortfall caused by a bad business deal with FIFA for the upcoming World Cup games, according to reports on Tuesday.
The collective budget shortfall was estimated at $250 million for host cities that say they are not “getting any help from anyone,” The Independent reported.
“Donald Trump is aware he has become the figurehead," a source told the outlet, describing the upcoming event as “the worst deal in FIFA World Cup history.”
The federal government, along with local and state governments, will have to pick up the remaining tab. Host cities include: Atlanta, Boston, Dallas, Houston, Kansas, Los Angeles, Miami, New York/New Jersey, Philadelphia, San Francisco, Seattle, along with two cities in Canada and three in Mexico.
Some cities have cited desperation over the financial burden, saying they have turned to local businesses, including dry cleaners and mechanics, in a move to recover some of the costs.
"FIFA's own commercial contracts mean cities can’t even do deals with local convenience store chains, as their sale of food is considered to cut across primary partners, such as McDonald’s, all as the global governing body is set to retain virtually all of the $11-14bn revenue the 2026 World Cup is expected to generate," the outlet reported.
Insiders told The Independent the event is "poorly designed," and the high price tag could ultimately force the event to cut back on different tournament elements, including its signature FanFests.
"The aim was that every city would make around $25-30m from this, through a total of 10 Host City deals per city, but most cities are currently nowhere close to either target due to how restrictive Fifa’s own sponsorships are," according to the outlet.
President Donald Trump was awarded an inaugural peace prize by the organization's boss, Gianni Infantino. The prize now faces a possible ethics probe. The Trump administration has passed on the government's preparations for the World Cup to Andrew Giuliani, the son of former New York City mayor and Trump ally Rudy Giuliani.
