Claims that Toronto will spend $10.7 million to scalp tickets for FIFA World Cup matches in the city are wide of the mark, according to the event’s organizers.

Toronto’s FIFA World Cup subcommittee has been heavily criticized by local councillors, with one, Coun. Jon Burnside, claiming it was acting like “StubHub” and “scalping tickets” with taxpayers’ money.

In an emailed statement, Sharon Bollenbach, executive director of the subcommittee, said an agreement with FIFA allows all host cities to sell hospitality packages to corporate clients. The city will not be selling individual match tickets in addition to the packages, she added.

Bollenbach said selling hospitality packages would potentially allow the city to recoup some of its hosting costs.

“Securing hospitality assets in advance is a key element of the city’s strategy to maximize revenue opportunities through strategic partnerships and hospitality package offerings,” Bollenbach said.

Claims that the city is scalping tickets appear to come from a misunderstanding over what exactly it is proposing. The city is currently negotiating with FIFA to purchase the hospitality packages to then sell to corporate sponsors, potentially for a profit. They could, technically, be purchased by individuals—but aren’t usually because of the high price point, Bollenbach told the CBC. 

The packages could be purchased from the city by a major bank or technology company, for example, giving corporate clients access to a private box or other corporate hospitality facilities at BMO Field, the venue that will host all six World Cup matches in Toronto. Other host cities, including Vancouver and Kansas City, are also exploring selling hospitality and VIP experiences to corporate partners.

The city has had over 200 inquiries for hospitality tickets, but is “getting out of its core competency” in selling tickets itself, Burnside claimed. He’s concerned the city won’t break even on its $10.7-million investment and argues it should consider grouping together sponsorships with the hospitality packages to simplify the process.

Another councillor, Anthony Perruzza, didn’t see any issue with the city purchasing hospitality packages and selling them for a profit. In fact, he thought they could be putting more than $10.7 million into it. Each game, he said, was expected to bring in tens of millions of dollars in revenue, he said. “I don’t see it as a form of scalping tickets,” he said. “We should take advantage of it.”

Bollenbach said that Toronto’s interest in buying hospitality packages is precisely to prevent other “sales agents” from doing so. If the city doesn’t buy the tickets, they’ll be picked up by other sellers, which means losing out on revenue opportunities, she added.

The proposal to buy World Cup hospitality packages was outlined to Toronto’s city council on March 19 and will be put forward for approval next week. Burnside said it was basically “a done deal” already.

Toronto is hosting five games, plus a playoff match, at the 2026 World Cup that is distributed across North America. The other games will be in Vancouver and across 16 cities in Mexico and the U.S.