Thomas Law is a freelance writer and works for the Public History Lab at the Munk School of Global Affairs and Public Policy.<\/p>\n
This essay is part of the Prosperity\u2019s Path<\/a> series. In a time of geopolitical instability and a shifting world order, the challenges facing Canada’s economy have only gotten more visible, numerous and intense. This series brings solutions.<\/p>\n For the most part, the overcommercialization of the beautiful game has priced out working-class fans, distorted any semblance of competitive balance and broken the link between community and team. This year\u2019s World Cup epitomizes that phenomenon, not least with FIFA\u2019s latest \u201chydration breaks\u201d (driven by the chance to sell advertisements mid-match) that ruined the flow of the game. <\/p>\n More importantly, FIFA\u2019s lopsided contracts grant it all revenue from broadcasting rights, ticket sales and merchandise and dump costs onto host cities. This World Cup, Canada has shelled out more than a combined $1-billion between various levels of government and, beyond bragging rights and general \u201cvibes,\u201d for what? Some more drinks bought at the local bar? Data from a payment provider reveal only incremental raises in spending in Toronto, for example.<\/p>\n Now Canada has exited the tournament<\/a>, the last match in this country has been played<\/a> and the post-party hangover begins. It\u2019s time to consider what we can actually get from being FIFA\u2019s money bag. How can Canada ride the wave of a home World Cup and actually turn soccer into a lucrative venture?<\/p>\n Open this photo in gallery:<\/a><\/p>\n Canada’s Head Coach Jesse Marsch and players applaud fans after the team’s elimination from the World Cup following a loss to Morocco in the Round of 16.Molly Darlington\/Getty Images<\/p>\n The reality is that Canada as a footballing nation very much falls into the cash-strapped category. The Canadian Soccer Association (CSA), the governing body of the sport in this country, cannot afford to pay the wages of the men\u2019s national team manager, Jesse Marsch \u2013 up until this World Cup, he has instead been funded by the benevolence of the owners of the three Canadian teams in Major League Soccer (MLS). It was only a few years ago that players from both national teams took strike action over a pay dispute. Meanwhile, the Canadian Premier League (CPL), now into its eighth season, has lost teams in Edmonton and Winnipeg owing to financial difficulties.<\/p>\n Mr. Marsch himself has castigated the CSA\u2019s finances, and for too long, mismanagement and a lack of business acumen has prevented Canada from systematically developing the sport. But as the excitement around this World Cup shows, the interest is there, and if harnessed correctly, the economic boom could be immense. <\/p>\n Opinion: When it comes to soccer, this is as good as it gets for Canada<\/a><\/p>\n Exact figures are hard to come by, but in 2015, a Scotiabank-commissioned report put the direct and indirect economic activity of hockey \u2013 from community rinks to the NHL \u2013 on Canadian communities at more than $11-billion. Of course, the study is from a decade ago, and hockey is Canada\u2019s home game. But as actor Kiefer Sutherland elegantly narrated in a TSN promotional video, \u201ctoday that home has a new addition, and a backyard with different nets.\u201d Soccer has surpassed hockey to become the most-played youth sport, and has nearly one million registered players \u2013 all buying kits, playing for clubs in need of equipment and staff, and competing in tournaments that take them around the country.<\/p>\n Canada\u2019s three MLS clubs, Toronto FC, CF Montreal, and Vancouver Whitecaps, are valued at US$730-million, US$430-million, and US$450 million, respectively, less than any NHL team but far in excess of any CFL franchise.<\/p>\n<\/p>\n The impact of a successful run by Jesse Marsch\u2019s men in the World Cup should also not be underestimated: Canada has never made it as far as it did this time, and the team has clearly captured the heart of the nation. MLS, off the back of the 1994 World Cup in the United States when the host team were also eliminated in the round of 16, went from 10 teams and $250-million losses in its first five years to 30 teams, drawing higher average attendances than the NBA and NHL, featuring 18 of the world\u2019s 50 most valuable soccer teams (including Toronto).<\/p>\n Newish CSA chief executive officer Kevin Blue has made good progress, notably securing a $10-million grant from the federal government to fund an elite, high-performance training centre for national teams. He renegotiated a highly controversial and poorly rewarding commercial deal with what is now called Canadian Soccer & Media Entertainment (CSME), which, while far from perfect, results in higher guaranteed revenues for the governing body. (It expects a surplus for 2026, for the first time in years, of $6.5-million).<\/p>\n