The World Cup's $7.8 Million Lesson in Boilerplate Risk

Short summary

One-way indemnification, unilateral changes, and foreign arbitration shifted $7.8M in unfunded costs to Foxborough for the 2026 World Cup. The same structure governs 2028 LA Olympics with unlimited liability. Founders and operators can apply three tactics: scrutinize appendices for hidden costs, negotiate cost triggers that obligate the other party to fund unexpected expenses, and exclude force majeure from indemnification.

• •Three contract provisions—one-way indemnification, unilateral spec changes, foreign arbitration—created $7.8M in unfunded liabilities for Foxborough
• •Same structure governs 2028 LA Olympics with unlimited exposure beyond a $270M cap
• •Defensive tactics: read appendices carefully, negotiate cost triggers and bridge funding, exclude force majeure from indemnification

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