US, Mexico, Canada: joint-venture to host the richest World Cup in 2026

7 years ago - Published in Finance, Fundamental Analysis

The football associations of the United States, Canada and Mexico have announced their intention to submit a joint bid to host the 2026 World Cup. The CONCACAF countries confirmed their plan to bring the tournament to North America at a press conference at One World Trade Centre in New York.

"Especially with what's going on in the world today, we believe this is a hugely positive signal and symbol of what we can do together in unifying people," U.S. Soccer Federation President Sunil Gulati said at Monday's bid launch, "especially in our three countries."
Gulati didn't directly mention President Donald Trump in that particular remark, but the impact of the policies of the fledging administration on a World Cup bid involving feuding neighbors was a constant theme during the press conference.
The White House did not immediately respond to a request for comment, and Gulati later clarified that he had not directly spoken to Trump.

The proposal will see the US host 60 games, with 10 each in Canada and Mexico. The World Cup was last held in the region at USA 94, while Mexico hosted in 1970 and 1986. Canada hosted the 2015 women's World Cup.

The 2018 World Cup in Russia is expected to bring in $5.5 billion for international soccer’s governing body, including money from ticket sales, sponsorship and media rights. Projections, over 2026 edition, see an extra income for FIFA from ticket sales, sponsorships and television revenue of $1 billion or more. Many of the world’s federations receive a majority of their financing from the World Cup payouts they receive every four years, even if they do not take part in the event itself.

The U.S. participated in the 2018 and 2022 bidding contest but lost in a hotly disputed vote that sparked corruption investigations. The fallout from the two FIFA executive committee votes included the forced departure of long-standing president Sepp Blatter and the criminal indictments in the U.S. of more than 40 people.

The joint bid is the first to formally declare their candidacy to host the 2026 World Cup. No other country has even shown that they are close to launching a bid, with general interest from Uruguay the furthest along that any other nation has come to joining the race. 

The 2026 tournament will be the first of the new 48-team, 80-game format. The final decision to name the hosts will be made in May 2020, right in the thick of the next U.S. presidential primary season.