R7K - Approve $1.5m Fifa World Cup Sponsorship

Resolutions - R7 R7K

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends accepting the recommendation of the Finance and Economic Resiliency Committee at its December 20, 2024 meeting to create incentives to establish Miami Beach as a local hub for the FIFA World Cup 2026 and negotiate a special event sponsorship agreement with the FIFA World Cup Host Committee for the 2026 FIFA World Cup-related events to include waivers of special event fees, City services, square footage fees and up to $500,000 of in-kind services, a zone of exclusivity, and a cash sponsorship in the amount of $1.25 million.

BACKGROUND/HISTORY

On May 21, 2024, the Miami-Dade County Board of County Commissioners passed Resolution No. 24-0871 providing funding support during Fiscal Years 2024-25 and 2025-26 to the Host Committee for expenditures related to the FIFA 2026 World Cup matches to be held in Miami- Dade County in 2026 in an amount not to exceed $21million in financial support (representing $3 million for each of the seven 2026 World Cup matches taking place in Miami-Dade County), an amount not to exceed $25 million for legally available in-kind services from certain County departments and for public safety services from the Miami-Dade County Sheriff’s Office subject to negotiations with the Office of the Sheriff in January 2025.

Subsequently, the County’s original item was amended to reflect that the cash support to be provided by the County for the FIFA 2026 World Cup matches be amended to $10.5 million during Fiscal Year (FY) 2024-25, and that it be granted to the Greater Miami Convention and Visitors Bureau (GMCVB) for Fan Fest activations, the volunteers program, transportation services, and other public safety activations associated with the FIFA 2026 World Cup matches in the County.

As a condition of the $10.5 million cash support grant, the Grant Agreement with the GMCVB shall require a focus on funding local programs with local businesses in the County and providing a report to the Board on fundraising and activities.

Currently, the Tourism and Culture Department has received a Special Event Permit application from the FIFA World Cup 2026 Miami Host Committee to hold a series of events both private and public on the Lummus Park beachfront during various weekends of World Cup 2026.

On July 24, 2024, at the request of Commissioner Joseph Magazine, the Mayor and City Commission approved a dual referral (C4 M) to the Finance and Economic Resiliency Committee (FERC) and the Public Safety and Neighborhood Quality of Life Committee (PSNQLC) to discuss the creation of incentives to establish Miami Beach as the local hub for World Cup 2026.

This item was discussed at the September 18, 2024, PSNQLC meeting. At that time, the committee members asked that the item be brought back at the November 2024 PSNQLC meeting to discuss possible updates from the event organizers. During the November 13, 2024, PSNQLC meeting, this item was deferred to the December meeting. Ultimately, the sponsor withdrew the item from the PSNQLC December agenda.

This item was also discussed at the November 8, 2024, FERC meeting. At that time, staff presented the special event sponsorship request in the amount of up to $1.5 million to the FERC members. The members requested that staff negotiate terms for an agreement with the event organizers and return to FERC when appropriate.

On November 15, 2024, City staff met with representatives of the FIFA 2026 World Cup Host Committee to begin negotiation discussions on the sponsorship request for the 2026 event.

Staff returned to the December 20, 2024, FERC meeting and presented potential agreement terms for discussion. Terms included the creation of incentives to establish Miami Beach as the local hub for the FIFA World Cup 2026, which include waivers of special event fees, City services, square footage fees, and up to $500,000 of in-kind services as well as a cash sponsorship in an amount not to exceed $1.5 million. The Committee voted to move the item to Commission with a favorable recommendation to direct the Administration to negotiate an agreement with FIFA World Cup 2026 Miami Host Committee with the terms as presented.

Additional Miami Dade County Funding Update On the May 6, 2025, Miami Dade County Commission Meeting, the County Mayor and Commissioners approved the “FY2024-2025 Mid-Year Budget Supplement,” a budget adjustment and amendment to various County departments, which included to amend the provisions of Resolution No. R-454-24 which established Board policy to provide funding support during FY

2024-25 and 2025-26 to support local activities related to the 2026 World Cup matches in an amount not to exceed $10.5 million in cash support to allocate an additional $10.5 million for World Cup hosting activities via an amendment to the General Fund (G1001) for a total of $21 million in cash support for FY 2024-25 all to be provided to the Greater Miami Sports Commission, Inc. instead of the Greater Miami Convention and Visitor Bureau, Inc.

At the July 11, 2025, Finance and Economic Resiliency Committee Budget Workshop meeting, the Mayor and City Commission discussed the Host Committee’s special event sponsorship request in the amount to not exceed $1.5 million and recommended reducing the requested amount and further directing staff to negotiate lowering the funding request.

Staff continued to negotiate with the Host Committee and the sponsorship request has been updated to reflect $1.25 million.

ANALYSIS

The Fédération Internationale de Football Association (FIFA) oversees international soccer and is responsible for organizing the FIFA World Cup, which takes place every four (4) years. As the premier global men’s soccer tournament featuring 48 national teams, the FIFA World Cup is the largest sporting event in the world, surpassing the Summer Olympics, UEFA Champions League, Tour de France, Formula 1, Super Bowl, and Rugby World Cup combined in terms of audience.

For the first time in history, the organization of the biggest football tournament will be divided among three (3) North American countries, the United States, Mexico and Canada. In total, 16 cities will host matches. Most of them (11) are in the USA: Seattle, San Francisco, Los Angeles, Dallas, Houston, Kansas City, Philadelphia, Atlanta, Miami, Boston and New York. The Mexican headquarters will be in Monterrey, Guadalajara and Mexico City. Finally, the Canadian venues are Vancouver and Toronto. The final match is scheduled to take place on July 19, 2026.

For the 2026 FIFA World Cup, Miami-Dade County is set to host seven (7) matches at Hard Rock Stadium in Miami Gardens. These will include group stage games, a quarterfinal, and the third- place match, all scheduled between June 15, 2026, and July 18, 2026.

Miami Matches • 7 matches • 4 group stage (6/15/26 - 6/27/26) • 1 round of 32 (7/03/26) • 1 quarter final (7/11/26) • 1 Bronze final (7/18/26)

Estimated Economic Impact to Miami Dade County • 33 days of matches in Miami Dade County • 39 days of total matches • Many visitors will use Miami Dade County as their base to travel around the country • Deloitte and Touche: o 700,000+ visitors in June and July (low tourism season) o $1.3 billion economic impact o 10,000 jobs

Beyond the matches in Miami Gardens, other venues in Miami-Dade County—such as Bayfront Park in Miami, and Barry University in Miami Shores—are expected to hold official World Cup events and activities.

This monumental event is projected to draw over 700,000 visitors to Miami-Dade County and generate a direct economic impact exceeding $1.3 billion. The influx of tourists and global media

coverage will not only boost the local tourism industry but also provide Miami-Dade County with significant international exposure.

The Greater Miami Sports Commission, Inc. (the “Host Committee”), a Florida not-for-profit corporation, with a board of directors consisting of community and business leaders from Miami- Dade County, was formed to submit the County’s bid to host the 2026 World Cup matches and is now tasked with meeting the bid obligations.

On December 17, 2024, members of the Tourism and Culture and Communications and Marketing departments met with the Host Committee representatives to discuss the marketing benefits for the City.

On December 20, 2024, at the Finance and Economic Resiliency Committee (FERC), the Administration and representatives of the 2026 FIFA World Cup Host Committee presented the sponsorship request and incentives.

Below are examples of the sponsorship and incentives presented to FERC:

City Sponsorship and Incentives Based on discussions with the Host Committee team and previous City Sponsorships of large- scale events such as NFL Super Bowl, South Beach Wine and Food (SOBEWFF) and Hyundai Air and Sea Show the following incentives and sponsorship benefits may be considered:

City Partnership Benefits Global Exposure: Inclusion in promotional videos and b-roll, shared with over 250 international media outlets, enhancing Miami Beach’s visibility as a premiere tourist destination worldwide. Branding: Brand alignment with FIFA World Cup to enhance the City’s brand prestige and connecting Miami Beach with the energy and excitement of one the world’s most-viewed sporting events.

Destination Marketing: Feature in FIFA’s official “Know Before You Go,” Cities Guide. Positioning Miami Beach as a must-visit destination within FIFA’s trusted guide, offering fans essential travel tips, highlights, and recommendations, ensuring Miami Beach is top of mind for global visitors planning their World Cup Experience. The “Cities Guide” will be available to South Florida residents and over 700,000 visitors.

Official sanctioning of FIFA and Host Committee requested corporate or special events: The Host Committee will provide sanctioning and the Host Committee World Cup logo limited usage for corporate partners to host events on Miami Beach. This effort will drive preferred events to Miami Beach.

Media Row: Designate official FIFA World Cup 2026 remote broadcast locations in Lummus Park for live broadcasts (like the media outlets positioned in Miami Beach during the 2020 NFL Super Bowl). The expected credential media attendance is estimated at 5,000 to 20,000 (with final numbers in early 2026).

The Host Committee is prepared to welcome an estimated 5,000–7,000 media personnel throughout the FIFA World Cup 2026. While not all of these will be broadcast outlets, a substantial portion—including Tier 1 international broadcasters, regional affiliates, digital-first publishers, and social media influencers—will require scenic, accessible, and iconic locations to conduct interviews, stand-ups, and live shots throughout the tournament period (June 11–July 19, 2026).

Estimated Media Value of Ocean Drive Broadcasts: Ocean Drive, with its global brand recognition and picturesque Art Deco backdrop, will serve as a premier destination for media coverage. By hosting live and taped segments along this stretch, Miami Beach stands to benefit from unprecedented, earned media value.

According to the Host Committee the estimated media value is as follows:

• •

Projected participating media personnel: 5,000–7,000

• •

Estimated live/taped broadcast segments: 500–750 stand-ups/live shots per week

• •

Average media value per TV segment (based on past events like Super Bowl LIV): $25,000–$75,000 per 60–90 second segment, depending on audience reach and time slot.

• •

Total projected media value over the course of the tournament: ➤ Conservatively: $25M – $40M in earned global coverage

➤ High-end estimate: $60M+, particularly if Tier 1 international broadcasters establish semi-permanent setups along Ocean Drive

Miami Beach Public Benefits FIFA World Cup Miami Launch Weekend Kickoff Concert The Host Committee shall use commercially reasonable efforts to produce an opening kickoff concert with top national/international talent as the inaugural weekend of the first World Cup game played in Miami-Dade County. The concert will be free and open to the public and take place on the Lummus Park beachfront. A designated amount of resident front row/area seating shall be provided.

Official Watch Party Location Designating the City of Miami Beach as an official FIFA World Cup Watch Party location. The Host Committee shall use commercially reasonable efforts to arrange for FIFA broadcasting partner to provide a clean feed for all FIFA World Cup 2026 matches presented in Miami Beach.

Legacy Project The Host Committee is investing in two key legacy pillars-, Access to Play & Sustainability, to benefit the local community long after the tournament. The Host Committee will work to leverage fundraising and sponsorship efforts to build a high-quality pitch soccer field within the City to provide accessible spaces to youth and promote community engagement in sports. The Host Committee’s financial support for the Legacy Project will be based on its fundraising activity and ability to secure a private-sector sponsor in accordance with the City’s rules and procedures. The Host Committee shall use commercially reasonable efforts to arrange for a FIFA “legend” to attend an event or other public activation hosted or otherwise organized by the City within the City of Miami Beach.

In coordination with the City’s Parks and Recreation Department and based on current needs, the following three (3) public parks are being considered for the Legacy Project, Flamingo Park (South Beach), Fairway Park (North Beach), and Normandy Park (North Beach).

Event Sanctioning Establish a Miami Beach FIFA “Clean Zone,” also known as a zone of exclusivity to provide the FIFA World Cup 2026 Miami Host Committee with approval rights for any proposed events in the established Clean Zone to insure against ambush marketing and clean zone adherence. Provided however, if by March 1, 2026, the Host Committee is unable to secure any of the proposed sponsorship benefits, then the Clean Zone will be rescinded.

The Clean Zone will be approximately from June 4, 2026 through July 20, 2026 and will have the borders indicated on Exhibit A attached.

Waiver of Special Event Fees Waiver of special event application fees, permit fees, vehicle beach access pass fees, square footage fees, Lummus Park user fees, Police Department off-duty administrative fees, Fire Department off-duty administrative fees, and the beach concession fees.

Sponsorship of City Services In-kind services of up to $500,000 to include Miami Beach Police, Fire, Sanitation, and other event related city services.

Cash Sponsorship An amount of up to $1. 25 million in sponsorship funding It is proposed that 60% ($750,000) be provided in Fiscal Year 2025 and the remaining 40% ($500,000) be budgeted and appropriated for Fiscal Year 2026.

Waiver of Pouring Rights Exclusivity Provide a waiver of the Pepsi Co pouring rights during the FIFA World Cup activations on Miami Beach.

Proposed Sponsorship Disbursement Schedule City shall provide Host Committee with a cash sponsorship in the amount up to $1,250,000 (the “Sponsorship Amount”), payable in accordance with the following schedule:

I.

Payment #1: Seven Hundred Fifty Thousand Dollars and No Cents ($750,000) to be paid to Host Committee within forty-five (45) days of full execution of this Agreement.

II.

Payment #2: Five Hundred Thousand Dollars and No Cents ($500,000) to be paid to Host Committee after October 1, 2025, but before November 1, 2025.

Should the Mayor and City Commission approve the attached sponsorship agreement for the FIFA World Cup 2026, in an amount not to exceed $1.25 million, funding in the amount of $750,000 would return as a FY 2025 budget amendment to the September Commission meeting, and $500,000 would be appropriated through the FY 2026 budget process.

FISCAL IMPACT STATEMENT

The proposed special event sponsorship includes $500,000 in in-kind services; waivers of special event fees; and a cash sponsorship in an amount not to exceed $1.25 million, funding in the amount of $750,000 would return as a FY 2025 budget amendment to the September Commission meeting, and $500,000 would be appropriated through the FY 2026 budget process.

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

The proposed special event sponsorship includes $500,000 in in-kind services; waivers of special event fees; and a cash sponsorship in the amount of $1.25 million over Fiscal Years 2025 and 2026. Funding for incentives has not been identified within the FY 2025 Budget. The Host Committee is also committed to engaging in fundraising activities to identify a private sponsor to offset the City’s costs related to a Legacy Project to improve a City park facility and promote soccer.

CONCLUSION

The Administration recommends accepting the favorable recommendation of the Finance and Economic Resiliency Committee at its December 20, 2024 meeting to create incentives to establish Miami Beach as a local hub for the FIFA World Cup 2026 and negotiate a special event sponsorship agreement with the FIFA World Cup Host Committee for the 2026 FIFA World Cup- related events to include waivers of special event fees, City services, square footage fees, a zone of exclusivity, and a cash sponsorship in the amount of $1.25 million.

Applicable Area

South Beach

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Tourism and Culture

Sponsor(s)

Commissioner Joseph Magazine

Co-sponsor(s)

Commissioner Laura Dominguez Commissioner Alex Fernandez Commissioner Tanya K. Bhatt

Condensed Title

Accept Rec/Negotiate Special Event Sponsorship Agreement for 2026 FIFA World Cup. (JM/LD/AF/TB) TC

Previous Action (For City Clerk Use Only)