Chow's office calls lower estimate for provincial FIFA cash for Toronto a ‘clawback'
The Toronto sign outside city hall is shown in this file photo. (Chris Fox/CP24.com)
Mayor Olivia Chow's office says a new, lower estimate for the amount of money Toronto will receive from the province to offset its costs for hosting six FIFA World Cup games next year amounts to a 'clawback.'
Toronto could now be on the hook for more money than expected to host the six games, according to a new report set to go before Toronto City Council this week.
Earlier this month, Chow's Executive Committee asked Sharon Bollenbach, the executive director of the FIFA World Cup 2026 Toronto Secretariat, to report directly to City Council on the status of intergovernmental funding related to hosting six of the games.
The estimated cost of holding six FIFA matches in the city is $380 million.
Of that, the federal government has agreed to kick in $104.3 million, while the province is providing $97 million. The city is picking up $178.7 million of the cost.
While the city was hoping that much of the provincial contribution would be in the form of cash to offset tournament expenses, the $97 million also includes services being provided by the province, such as policing, transportation and health care.
In a statement, a spokesperson for Ontario's Minister of Sport Neil Lumsden said that the Ford government's 'investment of $97M to support hosting the 2026 FIFA world Cup in Toronto remains unchanged.'
'We are in constant contact with the city to ensure the successful delivery of this once-in-a-lifetime event,' he said.
Costs 'substantially higher than budgeted,' says executive director of FIFA World Cup 2026 Toronto Secretariat
The cost of some of those provincially-provided services, however, are 'substantially higher than budgeted,' a report from Bollenbach says.
In some cases, the provincial services are 'completely unbudgeted' so far, the report states.
The latest estimate for provincial services which are still being negotiated pegs those costs at around $39 million, leaving less cash than expected to offset city expenses.
'We understood the province would account for some of their costs in the $97 million they committed, but $40 million is a much larger clawback than expected, and for a broader range of services than expected, such as healthcare,' Chow's office said in a statement to CP24.
'Mayor Chow wishes to continue to negotiation with the province to free up those funds or will alternatively start looking to cut $40 million from the FIFA budget as a result of the provincial funding change.'
The estimated provincial costs include $15 million from the Ministry of Health for paramedics and surge capacity; $2.5 million from the Ministry of Sport for project management and staffing; $6.6 million from the Ministry of Transportation for additional transit, free transit for volunteers, and additional security for highways; and $14 million for Ontario Provincial Police costs.
The estimate does not include the full cost of provincial services that would be needed in the case of any emergency incidents arising out of the games.
'While negotiations continue to be productive, provincial service costs are still substantially higher than budgeted, and in some cases completely unbudgeted,' Bollenbach wrote.
FIFA's World Cup 2026 office in Toronto
The entrance to FIFA's World Cup 2026 office in Toronto with a display of match balls from FIFA World Cups dating back to the 1970 men's tournament is shown on Monday Dec. 9, 2024. THE CANADIAN PRESS/Neil Davidson
Her report did not say exactly how much cash the city could be short due to the higher cost estimates for provincial services.
A separate report on procurement for the games found an $18 million funding gap, as of April 25, that the city is hoping to make up through donations, merchandise sales, music royalties, hospitality sales at the stadium, and opportunities around the FIFA Fan Festival.
Bollenbach noted that an economic impact assessment conducted by Deloitte Canada estimated the games would contribute billions of dollars to Canada's economy, as well as 'substantial tax revenues' for the federal and provincial governments.
'FWC26 Toronto Secretariat will stay diligent in continuing negotiations with the province to reduce uncertainties around scope and lowering ministry service costs back to the City,' Bollenbach wrote.
'It is staff's intention to maintain as much of the $97 million 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 is set to go before council later this week.
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