In a recent post, we discussed how FIFA structures World Cup hosting arrangements so that downside risk is borne locally while control remains centralized. Municipal tax allocation provided a clear illustration; even where taxes are legally imposed on FIFA or its subsidiaries, host cities agree by contract to absorb the resulting cost.

When a city is selected to host the FIFA World Cup, the announcement is framed as a civic triumph. Officials point to global visibility, tourism, and long-term economic benefits. Renderings of upgraded stadiums and revitalized neighbourhoods are flashed to the media. The message is clear: hosting is an investment; the payoff will follow.