NJ Transit lost nearly $4 million on the World Cup. Riders won’t pay for it
⚽NJ Transit lost nearly $4 million after World Cup ridership fell short of expectations
⚽Ticket sales brought in $16.66 million, about half the amount the agency expected
⚽ The agency says advertising and real estate revenue will cover the deficit, not riders
NJ Transit will keep its promise not to pass on its World Cup deficit to riders after ridership fell short of expectations.
During the eight soccer matches at MetLife Stadium, NJ Transit ran round-trip trains from New York to Secaucus Junction and then onto the Meadowlands. The agency had estimated it would cost an additional $48 million to transport 40,000 fans to each match.
Gov. Mikie Sherrill, who inherited the state's World Cup deal from Gov. Phil Murphy, vowed not to pass the cost on to commuters, meaning tickets for rides that normally cost $13 were priced at just under $100.
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NJ Transit expected nearly twice as much ticket revenue
A financial reconciliation shows NJ Transit lost nearly $3.98 million. The agency estimated the revenue generated by all the runs would be $62.464 million, while the actual revenue was $51.677 million and the actual cost was $55.657 million.
According to a breakdown of NJ Transit's estimate and actual expenses obtained by NorthJersey.com ticket sales fell far short of expectations. Sales were expected to be $31.337 million, including several anticipated sellouts, but came in at just $16.66 million.
CEO Kris Kolluri told NorthJersey.com that a contributing factor was that FIFA made more parking than expected available at American Dream and MetLife Stadium than originally planned. This changed the calculation for how fans would get to games.
The additional costs came from added safety and security measures, including the purchase of drones. Ambassadors were also positioned to help riders navigate the system.
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World Cup service still beat NJ Transit's usual MetLife losses
The agency said the deficit will be made up with increased advertising revenue and the sale of real estate during the current fiscal year, which ends in 2027. NJ Transit does not plan any service cuts or to borrow money from the state.
A positive to come from the World Cup was an improvement in how much NJ Transit loses on special events at MetLife Stadium.
It typically loses 85 cents of each dollar. During the World Cup, it recovered 93% of its costs, resulting in a 7-cent loss per dollar spent to provide the service.
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