Hosting Major Sporting Events: Are We Reaching a Breaking Point?
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Rising Costs and Economic Impacts
For instance, the 2026 FIFA World Cup, set to be hosted in 16 destinations across North America, has seen its budget swell to nearly $380 million for Toronto alone. This figure starkly contrasts with the initial estimates and reflects the broader trend of ballooning expenses associated with major event hosting duties. Certainly, other host destinations are feeling their costs escalate from initial projections as well.
Much has been written about the impacts (particularly economic) of hosting such events in academic literature (Fact: several textbooks on the subject are stacked beneath my computer monitors as I type). Yet, debate ensues in the public (and private) sectors, as evident by a quick Google search on the topic.
Long-Term Utility of Infrastructure
Contrast that to the outstanding leverage of those assets in places like Salt Lake City, Utah, where the successful transition of venue utilization for professional sporting events, sport development, and legacy programming has created a strong lever for the pursuit of hosting the Winter Olympic Games in 2034.
Another example is the Richmond Oval in Richmond, British Columbia (host venue during the Vancouver Winter Games), which bustles as a centerpiece to the community and serves as a model example of building community through major sporting events.
Often, it is quite literally the “Tale of Two (or more) Cities”.
Economic Risks and Declining Interest in Hosting
Understandably, the Council on Foreign Relations highlights that the economic benefits of hosting such events are far from clear, leading to fewer cities willing to bear the financial risks.
We are seeing this dynamic play out in front of our eyes right now regarding the 2026 Commonwealth Games, a major sporting event featuring participation from members of the Commonwealth of Nations, the 56 sovereign states spanning across Africa, Asia, Europe, the Pacific, and the Americas, still under the Commonwealth headed by King Charles III.
The Commonwealth Games Federation is still looking for a host destination among those 56 member nations for the 2026 edition, after the Australian state of Victoria withdrew in July 2023 as the slated host after estimated costs soared from $1.8B to $4.8B. Just two years out from over 4,500 athletes participating in 25 sports, the 2026 edition of the Games remains without a host at the time of this article’s publication. For reference, more than twice as many athletes (estimated to be 10,500) will compete in this summer’s Olympic Games in Paris, France, competing in 50 sports from 206 National Organizing Committees (NOCs).
Sporting event organizers know executing multi-faceted events featuring so many athletes participating in 50+ sports and a diverse spread of venues to accommodate it all is an enormous task, and the clock is ticking. Alberta, Canada, and Malaysia recently pulled their proposals to host the Commonwealth Games in 2026, even after the CGF reportedly offered Malaysia upwards of £100M to offset costs. The CGF is reviewing additional proposal options for 2026, with a formal host announcement slated to come this month.
And while Salt Lake City has the venues, the resume, the gumption – and most importantly, the funding – to yet again be an exceptional Olympic host; north of the border, British Columbia pulled Vancouver’s bid out of consideration for 2030 citing cost, benefits, and risk. Declining major event hosting opportunities are becoming more and more common.
The 19th Hole with Stoll
Sustainability and Future of Major Sporting Events
All this information boils down to the sustainability of major sporting events as we know them. As a kid who grew up during the height of Reebok’s marketing genius of the Olympic Games featuring “Dan and Dave”, and now a sport and tourism researcher, it gives me considerable pause.
Has the hyper-commercialization of sport (not solely just international sport) begun to degrade the very foundation of positive outcomes that we sport practitioners have proclaimed for so long? How and why are there still examples of such monumental failure in international major event hosting when we have such incredible examples of their success (aka Salt Lake City)?
The mission statement of the International Olympic Committee (IOC) is “to promote Olympism throughout the world and lead the Olympic Movement” (emphasis mine).
By my humble estimation, the issue of the sustainability of major sporting events is just one chink in every facet of sport’s “the way it’s always been done” armor. A point of inflection – perhaps even a breaking point – is coming. It cannot and should not look like it has in the past, in one year, let alone five or ten. In fact, working to help our industry find and implement purposeful solutions is exactly why our firm exists.
But with every challenge comes a plethora of opportunities if we are only wise enough to humble ourselves, recall what these major events were initially intended for (see the 18 bullet points highlighting the definition of the IOC’s Role for itself, for starters), then, lift our eyes to the horizon, and take bold steps to reimagine how we deliver on that mission.
It’s true for the highest levels of international sport, and it’s true for every level of sport across the world. Change is coming. Are your eyes up?
Evoke a thought.
