City of Toronto, MLSE draft deal protecting company from 2026 World Cup losses

The City of Toronto and Maple Leaf Sports and Entertainment have drafted an agreement detailing their proposed partnership surrounding the 2026 FIFA World Cup, which aims to shield the company from suffering any losses related to matches in Toronto. 

Canada is co-hosting the tournament along with Mexico and the United States. In June, Toronto was named as one of the host cities. 

The city's Feb. 10 letter of intent addressed to MLSE states that the company will serve as the project manager for upgrades to the downtown BMO Field stadium and the MLSE training facilities in Toronto's north end, which will both be used for the tournament.

The letter sent by the city to The Canadian Press outlines "principles" that will govern future "Definitive Agreements" between Toronto and the company, which owns the Toronto Maple Leafs and Toronto Raptors. 

Those include "keeping MLSE 'whole' financially," but "without 'double dipping' in respect of amounts payable by the City to MLSE," related to upgrading the stadium, which is owned by the city, and other project management costs. 

The city's letter also says MLSE will be compensated for any losses incurred through the need to temporarily relocate the Toronto Argos or Toronto FC, which are also owned by the company. 

MLSE, alongside Destination Toronto, will also provide the city with marketing, branding and advertising services for the World Cup, the letter says, at a basis rate of $150 per hour. 

The letter states that net revenue earned during the World Cup will be split equally by MLSE and Toronto up to $10 million. If revenues exceed $10 million they will be split 60 per cent for the city and 40 per cent for MLSE. 

MLSE's vice president of communications says in a statement