8 minute read
Houston’s Bid for the 2026 FIFA World Cup
from THL_MayJune23
by QuantumSUR
Our beloved Houston is a multicultural city with a thriving, diverse community.
The Harris County-Houston Sports Authority (HCHSA) curates the city’s robust sports culture by bringing world-renowned sporting events to Houston, including the highly anticipated 2026 FIFA World Cup.
This World Cup will be the biggest in the tournament’s history after the 67th Fédération Internationale de Football Association (FIFA) Congress unanimously voted to expand the tournament to 48 teams.1 And, 2026 will be the first time in the history of the World Cup that three countries—the U.S., Canada, and Mexico—will host the tournament. Once FIFA selected the United 2026 bid submitted by the three countries,2 further host city evaluations were necessary to select 17 host cities and stadiums from the 41 options across North America.
On June 16, 2022, FIFA announced that Houston won its bid to host the 2026 FIFA World Cup. Houston expects to host five or six games over three to four weeks and daily ancillary events for visitors and the local community throughout the tournament. Projections estimate that the tournament will have a regional economic impact worth upward of $1 billion and an economic impact of $14.3 billion across the three host countries.3
HCHSA was instrumental in navigating the matrix of legal, procurement, and organizational mechanics responsible for bringing the FIFA World Cup to Houston. The legal and policy landscape that HCHSA navigated during the bid process was incredibly complex, touching on issues related to facility contracts, marketing and sponsorship agreements, copyright and trademark law, immigration law, labor and employment law, federal aviation regulations, criminal law, and nonprofit tax law. This article describes the HCHSA’s role in that bid process.
the History of the HCHSA
Every major Texas city has a sports authority to develop and manage the local sports stadiums and arenas within the locale. The Harris County Commissioners Court and Houston’s City Council created the “sports and community venue district” in 1997 when the Astros built their new ballpark in downtown Houston. The voters then approved of the HCHSA’s creation. Its history is primarily rooted in building and managing sports venues funded by bonds.
About 15 years ago, the HCHSA decided to expand its mission to include bringing one-of-a-kind sporting events to Houston. Janis Burke, the organization’s first female CEO, has been integral to ushering in a new era of robust sporting events in Houston since she joined the HCHSA around the same time. Ms. Burke has spearheaded efforts to create Houston’s first major league rugby team, the Houston SaberCats, and establish partnerships with the Houston Texans to coordinate major sporting events, such as Super Bowl LI, the Gold Cup (regional soccer championship between the U.S., the Caribbean, and Central America), and matches between the Premier League and major Latin American teams in NRG and PNC Stadiums.
A dream of the World Cup
Hosting the World Cup, however, was not a new dream for Houston. The 1994 FIFA World Cup was hosted exclusively in the U.S., with host cities including Orlando, Washington, D.C., Chicago, and Dallas. This historic opportunity transformed the North American soccer landscape, notably resulting in the birth of Major League Soccer, which has grown into one of the most exciting and well-established soccer leagues in the world, including our own Houston Dynamo. After the 1994 World Cup, the City and future committee members felt the generational impact that the tournament had on the youth and the host communities. Not having an established sports authority at the time, unfortunately, Houston was never an option. However, FIFA officials did (prophetically) consider us as a viable host for a future tournament.
the Houston 2026 Bid Committee
Houston’s journey to the successful 2026 FIFA World Cup bid began when the HCHSA established the Houston 2026 Bid Committee, led by Chris Canetti and John Arnold.4 The Committee’s primary goals were to fundraise and identify numerous community considerations for hosting such a large-scale event, including selecting stadiums to be used as practice facilities for players, coordinating law enforcement and security, and addressing transportation and hotel needs. The United 2026 Committee and FIFA looked at each candidate city’s (a) experience hosting major sporting and cultural events, (b) potential venues, (c) transportation infrastructure, (d) available accommodations, (e) environmental protection initiatives, (f) costs and revenue forecasts, and (g) commitment to human and labor rights.5
Houston’s Experience Hosting Major Sporting and Cultural Events
Houston has hosted Super Bowl LI, the 2004 MLB All-Star Game, the 2013 NBA All-Star Game, multiple NCAA Final Four tournaments, CONCACAF Gold Cup matches, the 2021 World Table Tennis Championship, and the 2016 Copa Centenario.6 With this resume, Houston has hosted more major sporting events than any other city since 2004.
Houston’s Potential Venue for FIFA World Cup NRG Stadium was the tournament site included in Houston’s bid proposal. The suggested practice facilities were PNC Stadium, Houston Sports Park, AVEVA stadium (home to the Houston SaberCats), and facilities at the University of Houston and Rice University. The HCHSA and Houston 2026 World Cup Bid Committee—once the facilities were selected—collaborated with the owners and major tenants of these facilities, their subtenants, and contracted service providers to work through potential contract disputes that may arise as it relates to the use of the facilities during the tournament, as well as any tenant or sponsorship that conflicts with FIFA and any FIFA sponsor.
Houston’s transportation Infrastructure
Houston scored a 4.3 for its transportation infrastructure, which is well above the United 2026 bid average score of 3.6.7 While the bid and the evaluation noted the lack of rail-based transportation at IAH, the Metropolitan Transit Authority of Harris County (METRO) proposed a METRORapid line that begins at IAH.8 If this METRO line goes live before the 2026 FIFA World Cup, it will provide a much-needed, efficient mass transportation option between IAH and downtown.
Available Accommodations
Houston scored a perfect 5.0 for General Accommodations proposed in the bid.9 Houston offers 800 qualified hotels and more than 75,000 rooms throughout the city.10 The Committee noted that it already has contracts in place. FIFA said that there is so much available space, however, that the City may not be able to secure an area properly. This is another issue that the Committee must consider when selecting accommodations for the teams. One of FIFA’s main priorities is player safety. HCHSA acts as a bridge between the private commercial space and local government when they bring private hoteliers with the Mayor’s office, the
Houston Police Department, METRO, and other providers to help ensure players’ safety.
Environmental Protection Initiatives
FIFA also considered Houston’s commitment to reducing transportation-related emissions. The high occupancy vehicle and high occupancy tolling lane programs increase the transportation system’s efficiency, reducing the average emissions rate per trip. The City and METRO also invest in cleaner vehicles: the fully electric LRT system, the downtown circulator bus, which gets its power from compressed natural gas (CNG), and METRO will replace its entire bus fleet with clean vehicles with either CNG-powered engines or diesel-powered engines fitted to save fuel and reduce emissions.11 HCHSA is also working with METRO to provide free public transportation to every ticket holder.
Commitment to Human and l abor rights
FIFA’s new human and labor rights requirements include safeguarding children from sexual or other abuses and protecting freedom of expression, supply chain transparency, and media freedom. In response to these requirements, the City formed a Human Rights Subcommittee with 11 members, including representatives from the Mayor’s Office of Human Trafficking and Domestic Violence, the Mayor’s Office of New Americans and Immigrant Communities, Houston Dynamo F.C., and local businesses. Together, committee members and stakeholders came up with 50 planned measures that the City can take to advance FIFA’s commitment to human and labor rights. Examples of these measures are:12 a. hosting law enforcement community listening circles to foster collaboration, highlight existing positive efforts, and create collaborative service learning between police and minority groups; b. expanding the current prevailing wage regulations or enforcing a $15 minimum wage on public projects; c. using citations instead of arrests for minor crimes to prevent migrants from being taken into ICE custody; d. bolstering the supply of accessible rideshare options, including equipping drivers with technology for communicating with the hard of hearing and the blind, in compliance with the Americans with Disabilities Act; and e. establishing a legal clinic for workers to express grievances, help documented visitors at the airport, and handle human rights violations.
Houston 2026 also commits to a $15 an hour minimum wage on all contracts for game delivery. The workers’ rights group suggests working closely with employers providing services related to the World Cup and with labor and community organizations concerned about employment issues pertaining to proper wages and workers’ rights to establish mechanisms to be proactive in mitigating issues, such as implementing prescreening and ensuring that any issues are promptly handled. Additional measures include implementing and enforcing financial penalties for businesses that violate the wage requirements and entering into a labor peace agreement to ensure that workers receive the minimum wage and provide conditions to express grievances. In an effort to help local workers get hired on these proj- ects, the Committee recommends targeted hiring provisions in contracts.
After the Bid Process: Preparing for the 2026 FIFA World Cup
The Committee responsible for retaining the bid transitioned to the Houston 2026 Hosting Committee effective January 1, 2023 and, under this name, is moving forward with the immense preparations to be completed. The 2026 FIFA World Cup is an exciting opportunity to host the largest sporting event in the world, and it will continue to elevate Houston’s international profile within the sporting world. The World Cup bid process is complex, and involves collaboration with several companies, groups, and philanthropists. Lucky for us, we have the HCHSA and Houston 2026. This is a well-deserved win for Houston.
Jaclyn I. Barbosa is a Labor & Employment associate at Hunton Andrews Kurth. Her experience includes involvement in federal and state court actions for harassment, discrimination, breach of contract, fraud, tortious interference, negligence, and deceptive trade practices. She also advises employers on tort claims, wage and hour issues, employment policies and handbooks, fair credit reporting, restrictive covenants, and transactional aspects of labor and employment law. Jaclyn is a member of The Houston Lawyer editorial board.
Endnotes
1. FIFA, Bid Evaluation Report 2026 FIFA World Cup (2017), https://digitalhub.fifa.com/m/55d 1d154bdd6324/original/ir3g14juxglqbbteevvfpdf.pdf, at 3, 11. Of the 41 North American cities that submitted bids, 11 U.S. cities, two Canadian cities, and three Mexican cities were chosen as hosts.
2. United 2026 is the name of the joint bid for the 2026 FIFA World Cup entered by the United States, Canada, and Mexico, collectively.
3. Mario Diaz, FIFA World Cup economic impact will be felt from now to 2026, according to officials, CLICK2HOUSTON (Jun. 22, 2022, 10:39 PM), https://www.click2houston.com/news/local/2022/06/23/world-cup-economic-impact-inhouston-area-will-be-felt-from-now-to-2026-ac- cording-to-soccer-community/.
4. Mr. Canetti, a 19-year Major League Soccer executive, served as president of the Houston Dynamo before joining Houston 2026. Mr. Arnold, an experienced oil and gas trader and one of the City’s most prominent philanthropists, has a deep passion for soccer.
5. For a graphic representation of the evaluation process, see Bid Evaluation Report at 8
6. Interview with Chris Canetti, President, Houston 2026 Bid Committee (Aug. 10, 2022) (notes on file, Jaclyn Bar-bosa).
7. See Bid Evaluation Report at 201.
8. “The METRORapid Bus Rapid Transit (BRT) network is designed to provide station-to-station service similar to METRORail but has the flexibility to accommodate multiple routes. A METRORapid line will provide a direct con-nection between Downtown and George Bush Intercontinental Airport.” See METRO, METRONext Moving Forward Plan Summary, https://www.ridemetro.org/ MetroPDFs/METRONEXT/METRONext-Moving-Forward-Plan-Summary.pdf.
9. See Bid Evaluation Report at 200.
10. United 2026 Bid Book at 268, available at https:// digitalhub.fifa.com/m/3c077448dcd5c0ab/original/w3yjeu7dadt5erw26wmu-pdf.pdf.
11. Id. at 348.
12. For the list of 50 Areas of Opportunities, see FIFA, FIFA World Cup 2026 candidate host city human rights stakeholder engagement report, at 86–96, available at chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.houstonsports. org/wp-content/uploads/2021/12/HOUSTONFIFA-WC-Human-Rights-Submission-w-template-FINAL-FOR-6-30-2021-SUBMISSIONCLEAN.pdf.
RISK-TAKING CAN BE
…BUT NOT WHEN IT’S A MALPRACTICE CLAIM.
Personal Injury Claim*
• Lawyer sued for allowing a default judgment taken against client
• Damages of up to $4,000,000 sought ($200,000 policy limit)
• TLIE settled case for $300,000
INSURED BY TLIE
Deductible = $1,000
Amount over policy limit = $109,000
Total out-of-pocket = $110,000
IF NOT INSURED
Defense costs $10,000
Settlement + $300,000
Total out-of-pocket = $310,000
* Based on actual claim handled by TLIE.
FIND OUT MORE: TLIE.ORG or (512) 480-9074
By Dasha k hoDge