It was one big step forward and one apparent step back this week for the local committee acting as host of the seven World Cup games in Boston.
After months of waiting, the federal government announced Wednesday that it is releasing $46 million to Massachusetts for security for the event. Yet the sudden exit of a top fund-raising executive with Boston’s organizing committee raised fresh questions about the region’s readiness to host the massive spectacle in less than three months.
The nearly simultaneous twin announcements came on the heels of a months-long standoff between Boston Soccer 26, the host committee stacked with members close to Patriots owner Robert Kraft, and the town of Foxborough over security funding at Gillette Stadium. That dispute was resolved this week, but not before drawing unwanted national attention to the Boston host committee’s financial struggles and logistical missteps.
For weeks, doubts have swirled in Greater Boston business circles about whether the committee would be able to pull off its grand vision for its role in one of the world’s largest sporting events, or whether plans would have to be scaled back due to a lack of money from corporate sponsors and public sources.
On Wednesday, one key hurdle was cleared when the Federal Emergency Management Agency announced it was awarding $625 million to the 11 cities hosting Cup matches this summer. The state will receive more than $46 million of that, a long-awaited windfall that will ease some of the money woes plaguing the effort.
A portion of that federal money will go to Foxborough’s security needs, officials said.
“The federal investment ensures we can provide a safe and secure experience for our communities and the millions of visitors traveling to Boston,” Mike Loynd, chief executive officer of Boston 26 Soccer, said in a statement.
Still, organizers appear to be well short of their goals. They have previously said they need $170 million to host the event, which is expected to draw about 2 million visitors to Greater Boston. But two weeks ago, the host committee disclosed it had just $2 million in the bank, though organizers said they expected another $30 million soon.
The latest sign of financial strain was the abrupt resignation this week of Jon Persch, who was chief commercial officer of Boston Soccer 26 and led fund-raising efforts. Persch did not disclose the reasons for his departure and a spokesperson for the committee declined to comment.
“We have reached an important inflection point; like a great Red Sox starting pitcher, who’s gone as far as his arm will take him. I’m proud of the innings I’ve delivered and know this is the right moment to turn it over for what comes next,” Persch said in a resignation letter shared with the Globe on Thursday. “This final chapter presents great opportunities — for the organization to close out and for me to pursue a next set of challenges with renewed energy and enthusiasm.”
To date, the host committee has announced just three local sponsors for the event: State Street Corp., a financial services company; Meet Boston, which promotes tourism; and Sanofi, a French drugmaker.
State Representative Aaron Michlewitz said Thursday that he did not know whether the funds released by FEMA were enough to cover the state’s and municipalities’ needs. But “having the partnership from the federal government, from a financial standpoint, I think was very critical.”
“This [funding] was an issue not just in hosting in Massachusetts, but also across the country,” the North End Democrat told reporters. “I think everyone was waiting on these federal dollars, and I think it is going to be very important for us to be able to put on the event.”
As Michlewitz noted, Boston is far from the only host city struggling to raise money for the World Cup. A major obstacle is FIFA’s strict exclusivity policy, which prevents host committees from signing sponsors in the same business sectors as FIFA’s partners. FIFA, the sport’s global governing body, has already locked in sponsorships with major banks, fast-food chains, and other global brands, significantly limiting opportunities available to local organizers, according to international sports marketing experts and event planners.
“FIFA is just a big vacuum cleaner,” said David D’Alessandro, former chief executive of John Hancock Financial Services and a former partner in the Red Sox. “They vacuum up all the green paper as fast as they can and as much as they can . . . and essentially don’t care if the local host cities make money or not. They already made theirs.”
Rob Prazmark, a longtime sports sponsorship executive, has experienced these challenges firsthand.
Prazmark said his sports marketing group, Charlotte, N.C.-based 21 Sports & Entertainment Marketing Group, has been actively helping a half-dozen host cities find local sponsors. Time and again, he has had to eliminate major local companies because their sector has already been sewn up by FIFA, he said. To make up for the dearth of corporate sponsorships, host committees are having to get creative, and bundle television and hospitality packages for the games, he said.
And in some cases, organizing committees have to lower their grand expectations and settle for sponsorships with “local carpet and paint companies” rather than more universally known brands, he said.
“It’s very slim pickings,” said Prazmark, whose firm has not been involved in Boston’s efforts. “Even when you come up with a company with great [sponsorship] potential, FIFA’s first reaction is `No, no, no.’ Their reaction should be, `Go for it!’ But they don’t have that mentality. FIFA’s all about creating fences.”
Last week, the host committee ended a lengthy standoff with Foxborough over who would pay $7.8 million in security costs for the seven games at Gillette Stadium, which start June 13. After weeks of bitter feuding and finger-pointing, the parties announced that the town got the assurances it needed that the organizing committee and the Kraft Group, not local taxpayers, would bear the costs.
During its clash with Foxborough, the Boston 26 committee disclosed in a letter the shaky state of its finances.
Persch nonetheless struck an upbeat tone in his resignation letter.
“As Boston Soccer 2026 moves into its final phase, I’m confident in the team and believe leadership will continue to demonstrate the clarity, alignment, and execution that has brought the Boston Host Committee this far — and ultimately delivers the once-in-a-lifetime moment I have always believed possible for Boston and the Commonwealth,” he wrote.
The first official World Cup match between the national teams of Haiti and Scotland is scheduled for June 13 at Gillette Stadium, though an exhibition game (known as an “international friendly”) between Brazil and France is slated for the stadium on March 26.
Chris Serres can be reached at chris.serres@globe.com. Follow him @ChrisSerres. Michael Silverman can be reached at michael.silverman@globe.com. Jason Laughlin can be reached at jason.laughlin@globe.com. Follow him @jasmlaughlin.