Investigation · Texas Sports Subsidies
1994–2026

Three Decades and $500 Million in Texas Sports & Entertainment Handouts.

Three decades of sports subsidies. Officials promised billions in economic returns. The state’s own auditor says it cannot determine whether any of it worked.

$500M+
Documented public costs in event subsidies
$5B+
Economic returns promised by officials & host committees
?
Verified public revenue returned to Texas taxpayers
The 30-Year Pattern

A deal Texas politicians keep making.
A receipt Texas taxpayers never get.

Since 1994, Texas has hosted five Super Bowls, the FIFA World Cup, Formula One races for nearly a decade, and dozens of college championships and all-star games. Public money flows out before every event. Independent verification of what came back almost never follows.

In 2015, the Texas State Auditor reviewed seven major events funded through the state’s Major Events Trust Fund. It had disbursed $206.6 million. The finding about what taxpayers received in return was stark.

“Post-event studies cannot accurately determine whether estimated incremental tax receipts were actually collected.”
Texas State Auditor’s Office • SAO Report 16-001 • February 2015

The program was renamed the Major Events Reimbursement Program and continued. The disbursements grew larger. The verification problem was never fixed. The chart below shows documented public costs for Texas events where primary-source records exist.

Documented Public Costs by Event • Primary Sources Only

The Receipt

37 events. Three decades. What Texas can and cannot account for.

Each row is a public deal. Four questions every deal should answer: How much did taxpayers spend? What return did officials project? What return was actually reported? Was the tax revenue independently verified?

How to read figures
$
Green — verified by independent government source
$
Amber — reported by host committee or official
Gray — not found in public record
Loss Claimed gain Not determinable Pending
Cost source
State Fund City / Grant State + City
Year Event Location Public Cost Return Projected Actual Reported Tax Revenue Verified Verdict

Sources: Texas State Auditor’s Office (SAO 16-001, 2015), city council records, official federal grant announcements, post-event economic impact studies, investigative reporting (KRGV, Houston Chronicle, Texas Tribune, CBS Texas, ABC13). “Verified” = independent government audit or primary document. “Reported” = official or host-commissioned claim. Highlighted rows are the three case studies below. Green rows are upcoming 2026 events.

Case Studies

Three times the gap between promise and proof became undeniable.

These are the events where public records are strong enough to compare what officials projected against what was actually reported — and what happened when someone tried to reconcile the two.

Super Bowl XLV • 2011 • Arlington

“$611 million.” The snow fell. The sales-tax receipts disappointed.

Officials Projected
$611.7M
Direct Spending Reported
~$200M

The North Texas Super Bowl Organizing Committee projected $611.7 million in economic impact. The state fully disbursed $31.15 million — including $22.55 million directly to the organizing committee.

“Super Bowl tax revenues not what city leaders anticipated.”CBS Texas, February 2011

Dallas, Fort Worth, Irving, and Arlington all reported disappointing sales-tax results in the months after the game. No host city produced an audited public return-on-investment figure.

Super Bowl LI • 2017 • Houston

$450 million promised. Texas may have come up $14 million short — and still can’t say for certain.

Net Tax Return Projected
$44.8M
Estimated Taxpayer Shortfall
~$14M

Houston’s host committee ran on a $63.6 million budget — 42 percent public money. A pre-event consulting study projected $450 million in gross spending and $44.8 million in net state and local tax receipts. Post-event, the committee announced $347 million in “incremental new spending.”

“The state could not determine whether taxpayers broke even and may have come up about $14 million short.”KRGV / Houston Chronicle / Texas Tribune

No audited tax-return figure was ever produced. The spending claim was never independently reconciled against total public costs.

Formula One U.S. Grand Prix • 2012–2019 • Austin

The largest recurring sports subsidy in Texas history. Annual verified returns: never published.

Avg. Annual Subsidy
~$28M
Annual Verified Return
Not published

The State Auditor documented $29.33M (2012), $29.03M (2013), and $28.56M approved for 2014 in METF disbursements. A promoter-commissioned study claimed $507 million in regional impact for 2013 alone.

“Hotel revenue projections were about 43 percent below what had been anticipated.”Autoweek, reporting on the 2012 race

In 2018, COTA missed a compliance deadline and received $0. In all other years, disbursements were paid and impact was claimed. Year-by-year verified returns were never published.

The Design Flaw

The program cannot verify its own returns. That’s not a bug.

Texas’s Major Events Reimbursement Program pays out based on pre-event estimates of how much tax revenue an event will generate. After the event, law requires an economic-impact study. The State Auditor found these studies structurally cannot answer the question the program is built around.

“Tax data is remitted on rolling cycles and cannot isolate out-of-state attendance, spending, or length of stay at the event level.”
Texas State Auditor’s Office • SAO Report 16-001 • February 2015

The same audit found that indirect and “induced” multiplier effects made up about 40 percent of the state share for the seven events reviewed — and that the statute did not clearly settle whether those multiplied effects should be counted toward the reimbursement ceiling. They were counted anyway.

01
Estimate first
The state approves a reimbursement ceiling based on a pre-event economic projection. The bigger the projection, the higher the ceiling — and the more the state can pay out.
02
Pay before verifying
Disbursements are made during and after the event, before any independent audit of actual tax receipts is conducted or even possible.
03
Study what can’t be studied
The required post-event study cannot isolate whether tax revenue came from the event or would have occurred anyway. The auditor said so explicitly. The program continued regardless.
The Active Case • FIFA World Cup 2026

$200 million committed before a game is played. The projections are the largest in state history.

Houston and Arlington will host FIFA World Cup matches in summer 2026. Combined documented public costs are already above $200 million — in security grants, transit funding, stadium upgrades, and expected MERP reimbursements. The projections exceed anything Texas has announced before.

Houston • NRG Stadium
$129.7M+
Documented public costs to date
  • Federal security grant $64.7M
  • Transit grant ~$10M
  • NRG capital upgrades $55M
  • MERP reimbursement TBD
North Texas • AT&T Stadium + IBC
$76.5M+
Documented public costs to date
  • FEMA security grant $51.5M
  • Transit funding ~$10M
  • Dallas IBC upgrade $15M
  • MERP reimbursement TBD
“Houston host committee has cited about $1.5 billion” in projected economic impact from World Cup matches.
Houston 2026 FIFA World Cup Host Committee projection, as reported

There is a structural reason to be skeptical that Texas will see those returns. FIFA’s contract terms give the organization control over ticket sales, concessions, merchandise, and parking — the revenue streams host cities typically count on to offset costs. Texas provides the infrastructure, the security, and the venue upgrades. FIFA keeps the gate.

“FIFA could make billions from the World Cup. Texas host cities will get little in return.”
KRGV / Houston Chronicle / Texas Tribune • 2024

After the games, Texas will conduct economic-impact studies. The State Auditor’s 2015 warning about those studies will still be in effect. The mechanism for verification will be the same one that couldn’t tell you whether Super Bowl LI broke even.

What You Can Do

The receipts exist somewhere. File for them.

Texas public records law gives every resident the right to request MERP applications, event-support contracts, attendance certifications, post-event economic impact studies, and itemized disbursement records. These are the documents that can close the gap between what officials claim and what taxpayers can actually verify.

Governor’s Office
MERP applications and approval letters for all events, 2015–2026
Host Cities
Event support contracts, full public cost itemizations, and post-event reports
Local Organizing Committees
Budget records, sponsor revenue, accounting of all public-money use
Harris & Dallas Counties
FIFA 2026 contract terms, NRG upgrade agreements, security cost allocation