Toronto may have to scale back on FIFA World Cup budget after provincial 'clawback': Chow
Mayor says provincial service costs substantially higher but Ontario says it will not provide more funds
Toronto Mayor Olivia Chow says the city is facing a nearly $40 million shortfall in money needed to host six FIFA World Cup matches next year, after a new report revealed that a substantial amount of funding pledged by the province will be used up for various services.
Chow said the city did not anticipate service costs — including "beautification" of transit stations and security — to absorb nearly one-third of the $97 million contribution pledged by the Ontario government.
"The city cannot afford to pay more than what it can pay now. We can't go and find any more cash, we just don't have it," Chow told reporters at a news conference ahead of the city council meeting Wednesday.
Toronto is set to host the 2026 FIFA World Cup matches in just over a year but budget allocations have not yet been finalized.
Chow said she will not be increasing the city's spending as a result of the shortfall, but will look for ways to scale back if needed.
"$178 million is all we can afford, not a penny more. So we will have to either find $40 million somewhere … or we will have to cut the budget. There is no other way."
According to the report released Tuesday, the provincial contribution would come as a combination of direct funding and services including policing, transportation and healthcare. Chow was critical of some of those allocations, saying they shouldn't come at the expense of the core budget.
"Maybe the province can look at the list that they gave us to say, well, is the beautification of the GO station really part of what FIFA is about?" Chow said. "If I want to beautify TTC subway stations, there are many of them that need it too. Should I add that in as a FIFA cost? I don't think so."
City council are set to discuss the funding shortfall in Wednesday's meeting.
'Much larger clawback,' mayor's office says
An earlier statement from Chow's office said $40 million is a "much larger clawback than expected, and for a broader range of services than expected."
In June 2022, FIFA awarded Toronto the right to host five first round games plus one playoff round match during the 2026 World Cup. The remaining games will be hosted by Vancouver, Mexico and the United States.
At that time, the cost to Toronto was estimated at about $300 million. It has since climbed to $380 million, about $200 million of which is being provided by the federal and provincial governments.
Former mayor John Tory led the push to bid for the soccer tournament, calling it a "once-in-a-generation opportunity." But Chow later said she wouldn't have agreed to bid for the FIFA World Cup if she had known how much it would cost.
City staff have said preparing suitable venues, inflation, security, and safety costs are the reason for most of the expenses.
"It is staff's intention to maintain as much of the $97 million [provincial] contribution in cash to offset the city's hosting responsibilities while maintaining the approved budget envelop of $380 million approved by City Council," the report said.
Councillors concerned over budget
Coun. Paula Fletcher, who represents Ward 14 Toronto-Danforth, said she hopes the province reconsiders its approach and allocates more cash.
"If I was a small business and I was relying on FIFA for a lot of extra money in the restaurants, I'd be worried," Fletcher told reporters ahead of the Wednesday meeting.
"I would want the province to pay its fair share in cash, not just services. It looks like we may go into debt if they don't step up."
Coun. Jon Burnside, who represents Ward 16 Don Valley East, said he would have voted against hosting the FIFA matches if he had been on council at the time, adding that if there was an opportunity to back out, he would be in favour.
"These things are never what they appear or are promised to be — they're always more expensive, they're overpriced and they under-deliver in my opinion. So I would not have supported it then. I don't support it now," Burnside said.
Despite concerns over reigning in growing costs, Chow added that the tourism benefits are especially important at a time when the city along with the rest of the country faces U.S. tariffs.
"We do need a lot of tourists, especially when we are having a trade war with [U.S.] President [Donald] Trump — this is the time that we invest locally," she said.
"This is a World Cup. It is significant that the world is coming to the city. Imagine the billions of dollars of economic benefits it could generate to both the provincial and the federal government through the HST and GST."
Ontario not providing more funding
The provincial government, meanwhile, said its total investment of $97 million remains unchanged.
At an unrelated news conference Wednesday, Finance Minister Peter Bethlenfalvy said it will not be providing any more than the pledged amount.
"Ontario will be there to support and stand by its commitment," he told reporters at the news conference in Trent Hills, Ont., adding that the province has been "crystal clear" about only contributing the initial amount without any additional funding.
Wesley Austin, press secretary for the Minister of Sports, said while the amount of funding remains unchanged, it will continue negotiating with the city to finalize how it is allocated.
"Our government has been clear from the beginning that Ontario's contribution would include provincial services," Austin said.
"We are in constant contact with the city to ensure the successful delivery of this once-in-a-lifetime event."
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With files from Clara Pasieka