‘Why did we even start doing this?’: Santa Clara officials say 2026 FIFA World Cup is ‘highly likely’ to be a money loser

Santa Clara officials are projecting a “highly likely” chance that the 2026 FIFA World Cup matches at Levi’s Stadium will be a money loser, prompting them to negotiate passing the risk onto the Bay Area Host Committee and the San Francisco 49ers.

The prestigious men’s soccer tournament is returning to the Bay Area for the first time in more than three decades, with Levi’s Stadium — the home of the Niners — having been selected in 2022 to be one of 16 host venues in North America. Six matches will be held at the stadium between June 13 and July 1, 2026, and planning is well underway. The old Stanford Stadium hosted six games during the 1994 World Cup.

Santa Clara previously struggled to get access to critical documents relating to the event because many of the agreements were between the Bay Area Host Committee — a nonprofit entity comprised of Bay Area sports leaders that’s focused on bringing major sporting events to the region — FIFA and the 49ers, who manage the city-owned stadium. Last year, Santa Clara even considered legal action to pry the documents loose.

The city has since obtained the information, and released largely unredacted versions of the 2018 stadium agreement, which dictates each party’s responsibilities, and a 2022 addendum last week.

Santa Clara City Attorney Glen Googins said at a council meeting on Tuesday night that the stadium agreement “heavily favors FIFA, with reserved rights for FIFA to amend the agreement and actually impose additional requirements.” Other host venues signed similar agreements, according to Googins.

Event costs, public safety costs and improvements that need to be made to the stadium for the 2026 World Cup are currently expected to cost between $45 million and $50 million. But Measure J, a 2010 ballot initiative that approved the construction of Levi’s Stadium, prohibits city funds being expended on the venue’s maintenance or operating costs.

Levi’s Stadium is also set to host the Super Bowl in early 2026, months before the start of the global soccer tournament.

City officials are in the process of negotiating a separate agreement that will protect its financial interests and ensure Santa Clara is reimbursed for all costs. The council will officially vote on the agreement in late January 2025.

“What we’ve largely been grappling with is what does that mean for the Stadium Authority, what does that mean for the city, how do we mitigate costs, recognizing that it is a very popular international event that will bring significant commerce not just to the city of Santa Clara, but the region,” City Manager Jovan Grogan said. “We want to support that, but we don’t want to do that at the detriment of any public agency.”

The proposed agreement places all the responsibility on the Bay Area Host Committee to fulfill FIFA’s demands at no cost to the Stadium Authority — a public agency made up of Santa Clara officials that oversees the venue. The city will also act as the lead agency overseeing security for the World Cup matches.

The 2026 World Cup will be the first hosted by three countries — the U.S., Mexico and Canada — and will include 48 national teams, also a first. Most matches will be played in the U.S.

One of the biggest concerns has been around public safety costs, as the price tag for cops at 49ers game has skyrocketed over the last decade from $2.45 million during the team’s inaugural season in Santa Clara to $5.7 million for the 2022-23 season.

City officials are currently estimating a $12.16 million public safety bill for the World Cup, though that number could change.

The Bay Area Host Committee will be required to reimburse the city for event costs, with 50% of the anticipated costs due by May 1, 2026. Final payments will be due by Sept. 18, 2026, and any amount not paid at that time will accrue interest at a rate of 1.25% a month. If the Bay Area Host Committee isn’t able to cover the costs, the 49ers have agreed to cover the remaining costs.

The proposed agreement also lays out that the Bay Area Host Committee will receive roughly $13.5 million in rental fees from FIFA.

The Stadium Authority is also expected to receive a $6 per ticket surcharge that is projected to bring in between $1.8 million to $2.16 million. Half will be deposited into the Stadium Authority’s general revenues account, while the other half will go into the discretionary fund.

While the council took no formal action Tuesday night, questions still swirled over the impact the World Cup will have on the city.

“Why did we even start doing this?” Councilmember Suds Jain said. “What was the motivation for even asking to have FIFA come here if we knew it was going to be a loss event?”

Mayor Lisa Gillmor voiced concerns over the proposed terms that outline how the city will recoup its money — citing that the Bay Area Host Committee is a nonprofit that doesn’t have any assets, though the group is fundraising to cover costs.

“How are we assured that we are going to be paid back?” Gillmor said. “We don’t want to put all of this effort out and city and public resources without knowing that we have some security instrument that we can rely on that we can get paid back.”