By the time the first FIFA World Cup game kicks off this summer, the host country – this year, for the first time, countries – will have been in preparation mode for upwards of five years. Government and private sector officials have likely worked together to build the necessary infrastructure, raise a location’s profile, secure sponsorships and complete the endless different tasks needed to be done ahead of the biggest event in international football.
Arguably, the event has grown beyond what one place can comfortably host, which would help explain this year’s three-country, 16-city model, distributed between the US, Canada and Mexico. While this model presents some logistical challenges, the best-case scenario is that it enables more places to enjoy the benefits, without overwhelming them with the pressures of hosting such a big event. FIFA expects tournament attendance of 6.5 million people, with the potential to drive $40.9bn in gross domestic product.
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Amid the 11 US cities hosting events, two of the smallest looking to capitalise on the momentum from the event are Kansas City and Atlanta. Investment Monitor spoke to officials on the sidelines of the SelectUSA Investment Summit about how they are leveraging the spotlight to attract foreign investment.
Atlanta: a stadium built with a future World Cup in mind
The eight matches Atlanta is set to host will take place at the Mercedez-Benz Stadium (in keeping with FIFA policy; the logo will be covered up and rebranded as the Atlanta Stadium). The venue officially opened in 2017, and its construction was backed by Arthur Blank, the owner of American football team the Atlanta Falcons and co-founder of home goods retailer Home Depot.
“Atlanta does big well. We have a history of hosting large sporting events, so we already have some of the knowledge and know-how of how to do it,” Metro Atlanta Chamber president and CEO Katie Kirkpatrick says. “Arthur Blank had a vision when it was time to build a new stadium that he wanted it designed to host World Cup and global soccer matches. So when they designed the stadium, it was with the thought process that at some point in time the US would be hosting the World Cup.”
Thirty years ago, Atlanta hosted the Summer Olympics. Kirkpatrick says that decades of sustained growth followed, with most of it coming from foreign direct investment. According to the Mayor’s Office of International and Immigrant Affairs, there are 2,700 foreign companies operating in the city’s metro area. The city has particularly strong ties to South Korea. SK Group, South Korea’s second-largest conglomerate, has invested in a battery plant, expanded a chip substrates facility, and announced an electric vehicle battery facility in 2022 alongside Hyundai.
However, the demographic of foreign companies in the area is international. The Metro Atlanta Chamber recently sent a delegation to Spain, whose national team is playing one of its first games in the city.
“One of the reasons we went to Spain recently was because we know there will be delegations coming to support their team, but we also want them to be looking at Metro Atlanta as a place to invest and grow jobs,” Kirkpatrick says.
“The real purpose around [sporting events] is to elevate the city and the state for investment, for economic growth, for job creation and for the fun,” she adds.
Kansas City: small but mighty
Kansas City sits between Missouri and Kansas. It has a population of half a million people (although the Kansas City Metropolitan Area has a population of 2.25 million) and is the smallest of the 11 US World Cup hosts. It will host six matches and be the home base for Argentina, England and the Netherlands.
For years, the city has been working towards positioning itself as the “Soccer Capital of America” through major investments in training and stadium infrastructure, and is also bidding to host the Women’s World Cup in a few years. According to Visit KC, the event is expected to attract 650,000 visitors over the course of the tournament, more than doubling the population. Some have expressed uncertainty over this projection, particularly as bureaucracy around visas for foreign visitors has grown more complicated.
Like Atlanta, it has used the momentum from the World Cup to raise the city’s profile. After Kansas City won the bid for the World Cup in 2022, local delegations travelled internationally to promote the city’s role in this year’s tournament.
“There are meetings already being planned with delegations coming from England, whether it is the government or private sector,” Chris Gutierrez, Kansas City SmartPort president, tells Investment Monitor. “We are trying to get way ahead of planning those meetings while the World Cup is happening at the same time.”
Officials have also leveraged international delegations based in the US to increase their exposure to European businesses.
“The [Netherlands consulate] said, okay, we are going to recruit companies and come. We think these sectors work best. We have advised them that maybe you could contribute to this sector,” he says.
After the city won the World Cup bid in 2022, it built a new airport and renovated the Chiefs’ National Football League stadium to accommodate soccer pitches.
“We don’t want to just build things for the World Cup that will be done after. For example, for some of the transportation plans that have been put together, there are a lot of conversations about whether any of these routes could stay in our market. A direct route from the airport to some of the city areas, things like that,” Elli Bowen Houston, vice-president at KC SmartPort, says.
A complicated and politicised tournament
The months leading up to the World Cup have been fraught with tensions. In October last year, US President Donald Trump threatened to cancel World Cup games in cities with which he had political disagreements, such as Boston and Los Angeles. The president has also given mixed messaging surrounding Iran’s participation, saying he did not believe it was “appropriate” for Iranian players to be in the US, for “their own life and safety”.
Earlier in the year, a violent crackdown from US Immigration and Customs Enforcement raised fears among civil organisations that people would be targeted during World Cup matches. Multiple government shutdowns have also made security operations and transportation logistics more complicated.
Given this context, the ability of host cities to form and maintain relationships with international companies that turn into investments should be seen as a highlight of international cooperation.
