(MENAFN- The Conversation) Whether it's the World Series, the FIFA World Cup or the Olympic Games, the hope for hosting mega sporting events is that the economy will emerge as the true winner.

A quick search shows how expensive World Series tickets are, or how much it costs for accommodations, food and transportation. Similar spending patterns can be predicted for the 2026 FIFA World Cup, which Canada is hosting with Mexico and the United States.

Visitor spending provides direct economic benefits, generating revenue for businesses and providing jobs. There are also indirect benefits through suppliers and staffing, and induced benefits as staff spend their wages locally.

Mega-events can also generate significant reputations benefits for host cities and countries, including heightened global media exposure, enhanced national branding and greater confidence among international investors who see the city as capable of managing large-scale events.

These intangible outcomes can translate into sustained tourism growth, increased economic vitality and a lasting “feel-good” effect that boosts civic pride among residents and visitors.

While hosting large sporting events appears to be great for communities, research suggests the actual financial outcomes are often more modest than anticipated. Nonetheless, many politicians remain eager to host them.

Toronto Blue Jays pitcher Max Scherzer stretches out his arm during practice on Oct. 30, 2025, ahead of Game 6 of the World Series against the Los Angeles Dodgers in Toronto. THE CANADIAN PRESS/Nathan Denette The math doesn't always add up

Tourism and event scholars suggest being cautious about the so-called multiplier effect. This is the idea that mega-events ripple throughout the economy, providing benefits for others.

Meta-analyses of such events show highly variable economic outcomes and frequent overestimation of long-term benefits. A lot of spending is lost due to export leakage, where additional gain goes to non-local businesses, event organizers and ticketing agencies instead of local businesses.

Often, mega sporting events cause tourism displacement, as regular tourists avoid the destination due to crowds and high prices, sometimes even after the event finishes.

Politicians, tourism offices and event organizers are quick to claim large economic benefits when bidding for and hosting events.

Yet some academics warn that“most economic impact studies are commissioned to legitimize a political position rather than to search for economic truth.” In other words, government-commissioned studies are often biased toward positive results.

A World Series boost - but for how long?

The Toronto Blue Jays post-season run and the World Series has produced a concentrated burst of spending: sold-out home games, fuller hotels at higher prices, restaurants and bars crowded for watch parties and heavy merchandise sales.

Local media and business surveys commonly report measurable upticks in hospitality and retail during playoff runs, and small business owners cite increased footfall and merchandise revenue.

Toronto Blue Jays fans pose with a sign outside Rogers Centre ahead of Game 2 in the World Series in Toronto on Oct. 25, 2025. THE CANADIAN PRESS/Nathan Denette

Sports economists, however, urge caution in extrapolating short-term spikes into lasting gains. They describe playoff-driven forecasts as“overstated,” pointing to limited duration, substantial leakage and limited job creation beyond temporary hospitality shifts. While people may spend more on a game night, they often spend less elsewhere, meaning net spending is usually smaller than headline numbers suggest.

A World Series may be excellent for civic morale and a short retail bump, but it rarely transforms a city's economic trajectory on its own.

Canada's FIFA World Cup moment

The FIFA World Cup is a multi-week, globally televised event with millions of spectators and huge international attention. For Canada's co-host role in 2026, official and municipal assessments project substantial economic benefits.

A City of Toronto impact assessment projects roughly $940 million in positive economic output for the Greater Toronto Area, including hundreds of millions in GDP and several thousand jobs from June 2023 to August 2026.

British Columbia also estimates significant provincial output and thousands of roles tied to hosting in Vancouver. These are significant short-term impacts that reflect visitor spending and operational expenditures.

But will hosting the World Cup add much to cities that are already well-known? Some are doubtful, but the visibility can help achieve tourism marketing objectives and support bids for future international events often central to destination strategies.

Counting the real costs

Mega-events often come with significant financial and environmental costs. While they can create jobs, these are typically short-term, low-wage positions concentrated in hospitality and service sectors.

Public funds directed at event staging or stadium upgrades could finance affordable housing, transit or health services with potentially higher social returns for local residents. There have also been repeated cases where promised mega-event legacies failed to materialize.

Field work continues at BMO Field as the City of Toronto and MLSE complete the first phase of upgrades in making Toronto Stadium World Cup-ready in Toronto on September 2025. THE CANADIAN PRESS/Sammy Kogan

Environmentally, mega-events produce significant carbon footprints from global fan travel, temporary construction, energy use and waste, with many events having more negative than positive environmental outcomes. This is particularly relevant for transnational tournaments that attract long-distance travellers and temporary stadium retrofits.

Cities seeking to maximize gains should prioritize local community benefits and measure net economic impact, not gross receipts, by accounting for displacement and export leakage.

For the World Series, that means leveraging short-run enthusiasm into repeat visitation and accrued local spending habits. For FIFA 2026, the focus should be on converting global attention into long-term tourism and business flows while ensuring community benefits and limiting environmental costs.

Only then will the reputational windfall translate into durable economic value.

Measuring the real impact of mega-events

Sports events can deliver meaningful short-term revenue, reputational exposure and long-term benefits, but those outcomes are neither automatic nor evenly distributed.

Thoughtful policy design, transparent evaluation and binding community and environmental safeguards determine whether a World Series run or a World Cup week becomes a fleeting headline or a lasting city asset.

The main benefactor of the World Cup will be FIFA, not host cities. As The Economist noted in its review of economist Andrew Zimbalist's Circus Maximus, there is“little doubt that under current conditions, prudent city governments should avoid the contests at all costs.”

Canada is now in it as the World Series returns to Toronto. How it plays out remains to be seen, but at a minimum, we will certainly host a good party.

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