North Texas is betting big on the FIFA World Cup, but will tens of millions of dollars of investments pay off?

The FIFA World Cup is the biggest sporting event on the planet, and with nine scheduled matches, North Texas will be one of its biggest stages. 

But while FIFA is expected to make billions on the tournament, local cities are spending millions to host, and what taxpayers get back is far from guaranteed.

"Having the opportunity to be a part of a World Cup is kind of a once-in-a-generation type opportunity," said Frisco Mayor Jeff Cheney. "We're going to be a team player and we're going to make sure that we roll out the red carpet."

The City of Frisco has budgeted $8.58 million for World Cup expenses. Fort Worth and Arlington have each set aside $9 million. Dallas, the official host city, plans to spend $47 million.

Cities expect some of that cost to be reimbursed. North Texas cities are receiving $51 million from FEMA's World Cup Grant Program. The State of Texas is also expected to offer reimbursements through its Event Trust Funds Program.

But how much cities will be reimbursed is still undetermined, meaning taxpayers could be on the hook for millions of dollars.

"It's not a guarantee," said Dallas Council Member Chad West. "If it's not, then it's something we'll have to budget for later."

One-sided contract?

The CBS News Texas I-Team obtained a partially redacted copy of the host city agreement Dallas signed with FIFA. The contract shows cities are responsible for key costs – including operations, transportation and security – while FIFA collects revenue from ticket sales, sponsorships, broadcast rights and merchandise. FIFA is also exempt from certain local taxes. 

Concerns over the contract's terms have led some U.S. cities to walk away.

In 2018, then-Chicago Mayor Rahm Emanuel withdrew the city's bid, saying FIFA "could not provide a basic level of certainty on some major unknowns that put our city and taxpayers at risk."

Phoenix and Minneapolis cited similar reasons for withdrawing from the host city selection process.

In an emailed statement to the I-Team, a FIFA spokesperson said it has worked collaboratively to assist cities "and, in many cases, accommodate requests to help deliver the most sustainable model possible for all parties involved."

The spokesperson said their efforts have included finding new ways to generate revenue "such as the introduction of the first-ever Host City Commercial Programme, as well as ticketed FIFA Fan Festivals in selected locations." 

West acknowledged the agreement can appear unbalanced.

"The flip side is you've got to also look at the economic impact that's going to come is," he said.

Economic benefit in question 

A FIFA-backed study projected the World Cup would have a $30 billion economic benefit for the U.S., with $2 billion in benefits for North Texas alone.

"When you talk about the economic impact, that's not the city's cash registers that are ringing," said Arlington Mayor Jim Ross. "Those are small businesses. Those are hotels, restaurants, retail stores. Those are communities' cash registers ringing. That's a lot of money coming into our North Texas communities."

But other reports and economists are warning the actual size of the impact may fall short of expectations.

A report published last month by the American Hotel and Lodging Association shows most Dallas hotels are seeing a typical summer in terms of bookings. And a report from Oxford Economics projects the economic boost to be "moderate."

"I think it would be a mistake for every decision you make as a city to try to prove an ROI before you make that decision," Cheney said. 

While most North Texas cities expect most of their costs to be reimbursed, Frisco is one city that's not.

"Sometimes you get an opportunity to host something like a World Cup," Cheney said. "That's a worldwide event. You know, you plan for it, you budget for it. And the cities that say yes and lean into it are the ones that win from it." 

Economist Charles Blain with the think tank Urban Reform has also been critical about how cities talk about the benefits of hosting the World Cup.

"I've been accused of being anti-soccer and anti-fun. I'm not," Blain said. "I just want honesty about it all."

Blain said he understands the appeal for officials of putting their cities on the world stage, but that he believes taxpayers deserve more information on how economic projections are calculated.

"We often hear that there's these big dollar amounts that are going to be funded back into the city," he said. "But if you look at history, history never proves that to be true."

West said based on what he's heard from analysts, he's not concerned that being a host city will be a loss for Dallas.

"I've only heard benefits. The only question is will it be a small benefit or will it be a large benefit," he said.