Sports fans across the United States are about to experience an unprecedented lineup of world-class events. The FIFA World Cup will electrify stadiums across North America in 2026, followed by the Summer Olympics in Los Angeles in 2028, and the Winter Olympics in Salt Lake City in 2034. It's also time to make sure that plans for stadiums, training facilities, and other real estate are in place and will be ready for each event.
We developed a list of key real estate and related legal priorities to support planning by sports organizations within both the Olympic sports community and the national federations for the World Cup. This analysis is also useful for sponsors hosting events in connection with the games. Planning by the organizing committee for each event is well under way, and the most successful organizations will be those that take the time now to determine the specific needs and how to best support their teams on and off the field. Here is a starting point:
Development
From upgrading iconic stadiums to building new, state-of-the-art venues, the real estate of sports has to match the scale of the games. This includes meeting stringent international standards, enhancing the fan experience, and integrating cutting-edge technology for teams and broadcasters. Most of this planning has already begun and is being led by the organizing committees. New development for the upcoming events is limited, given the United States' strong collection of sports infrastructure, but organizers are likely to make targeted improvements to enhance the fan experience. This will lead to review of construction contracts and design consultant agreements, along with other legal considerations.
Leasing
Teams need dedicated, high-quality spaces to train, rest, and strategize, and each space requires a lease or other agreement giving the teams the right to use the facilities. These agreements need to cover specific times for practices (particularly if multiple teams or organizations are co-locating), maintenance and repair responsibilities, and associated costs. They may also require flexibility on term lengths and other details as plans for each team evolve. Olympic Committees, National Governing Bodies, and Federations need to make sure the needs of the athletes they serve are addressed. Property owners such as universities that lease space to teams must ensure that the shared use doesn't impact their own programs or campus operations.
Zoning, Land Use, and Permitting—Housing and Hotel Rooms
How could current zoning foresee all of the potential uses and needs that sporting events like this will require? Organizing committees will need to collaborate closely with host jurisdictions on issues like athlete and staff housing, team use, hotel rooms for families and fans, and parking requirements. Will organizing committees or federations "buy out" hotels? What happens when there are room shortages or long commute times (especially in Los Angeles)? Is there enough time to construct new hotels or upgrade existing properties? Short-term housing ordinances may prevent renting large blocks of hotel rooms or apartment units, requiring close navigation. Additionally, many events use temporary structures and pop-ups to create unique fan experiences, which must be code-compliant. One takeaway: Start this process early! Zoning is a particular lead time item, since changes are likely to require public notice, hearings, and outreach.
Construction
The dates of the games are set, even though we are still years away from opening ceremonies, and projects must be completed on a specific timeline with no wiggle room. Giving contractors incentives for early delivery, combined with liquidated damages for delays, will provide the right alignment. Organizing committees will also need to monitor progress and timelines closely to be aware of the need for any Plan B scenario.
Environmental Compliance and Sustainability Initiatives
The global attention to environmental sustainability and commitments made by organizing committees puts an additional spotlight on the environmental impact of real estate used in connection with sporting events. Leases may need to include a team's environmental sustainability requirements, and facilities that are already certified under the USBGC's LEED program will be more attractive. Additionally, California's CEQA process will continue to be a key review factor and critical path item for approvals. As a result, any new or improved facilities will need to meet sustainability goals.
Intellectual Property and Sponsorship Rights
Closely related to the real estate considerations are branding and operating requirements from sponsors. Can a team sponsored by Coca-Cola practice in a venue named the "Pepsi Center"? Will the right logos be shown in connection with the teams? Are there additional naming rights that can be marketed to advertisers in connection with this real estate? Branding issues, along with ambush marketing campaigns, have been more prevalent in recent years and will continue for these events.
Safety, Security, and Privacy
The heightened security demands of these events involve collaboration with local, state, and federal law enforcement agencies to ensure the safety of athletes and fans. Each facility will need to meet these security standards, and if they don't, additional improvements will be required before the games. It is essential to understand these considerations before signing a lease for space, and legal teams will work closely with security personnel to address the details. Organizers also need to focus on the security of public places where fans will gather, especially given public incidents in cities where major sporting events have been taking place in recent weeks. Climate change and weather-related events pose increasing risks, particularly in Los Angeles, as shown by the recent wildfires. Security infrastructure in computer and other digital systems must be top of mind for event and facility coordinators and must be prioritized well in advance of any event.
Insurance and Risk Management
Large-scale events bring unique risks, from property damage to liability concerns, and real estate professionals and lawyers will need to work closely with the insurance brokers from each team to ensure that coverage is sufficient and liability is properly allocated. Who is responsible for fans? How is liability allocated among the various entities involved when hosting these games? What happens if a vendor and not an employee causes a casualty? What if there are incidents between athletes and staff? These policies are critical in protecting investments and ensuring financial security for teams, sponsors, and host cities.
Post-Event Redevelopment and Adaptive Reuse
After the games are over, attention shifts to the next tournament—but not for the host city. While these events will use many existing facilities across North America, any new venues must be adapted for long-term uses, especially as organizers are increasingly wary of "white elephant" facilities that were showcased during the games and then became obsolete afterward. Thoughtful planning is critical, with the same focus on redevelopment, zoning, and construction that was central to the preparation for the games.
Winning gold on the field starts with good planning in advance
Our Venable team specializes in supporting sports organizations with innovative real estate and legal strategies to ensure every team has the facilities and support needed to excel. By planning with intention and precision, we bring the same excellence as required of our athletes to an organization's approach to real estate and legal planning.