ACT Chief Minister Andrew Barr fears small jurisdictions will be priced out of major events in Australia if organisers continue increasing costs, saying the government made a judgment call to withdraw from the FIFA World Cup bid.
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Australia and New Zealand have submitted a joint bid to host the 2023 tournament, with almost every major city named in the document submitted to FIFA on Friday.
FIFA will make a decision in May, with Japan, Brazil and Colombia also competing for rights to the tournament.
But Canberra will miss out on having the best women's players in the world in the city after the government said the cost was too high for six games in the capital.
Barr said the FFA could not guarantee the Matildas would play in Canberra and was concerned the price tag would prevent smaller economies from making a financial commitment.
"The numbers just didn't stack up on that," Barr said.
"We say yes [to events], but there are also times when we say no. There are assessments done on these things, they're not just done on a whim.
"You have to look at the displacement impacts [at the stadium]. Of course we will support major football events in the future, just like we have in the past.
"But the note of caution I'd sound to event organisers, particularly of these major international tournaments, is that if they push their asking price up as high as they have been, then it is very hard for small jurisdictions to justify that level of investment.
"Particularly when the sorts of guarantees you'd want, like hosting your own national team at your venue, can't be guaranteed ... and there's no sense of the additional costs, it's hard."
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The government also snubbed the men's Twenty20 World Cup because of costs, instead deciding to invest in women's T20 matches at Manuka Oval.
The FFA and the federal government is still keen for Canberra to be a part of the bid despite not being included in the official submission.
One option that may develop is an opportunity to be a host training city given the tournament will be played during the rugby league season, putting a cloud over the availability of several venues.
The ACT government has committed to spending $20 million to build a new "home of football" hub at Throsby, with complete expected by 2021.
The training centre and Capital Football offices could be the perfect spot for a World Cup team to use as a base in between matches.
One of the complications to Canberra hosting World Cup games would be a schedule clash at the city's only rectangular stadium, which would be needed for Canberra Raiders NRL games.
The World Cup requires a "clean stadium" for the duration of the matches. Canberra hosted men's Asian Cup games in 2015, but the January window meant the venue was not required for other sports.
The Matildas will play in Canberra next year after the government negotiated to host the team as part of its investment in the new soccer facility.
"The thing that is always the most difficult to grapple with is the investment in large international tournaments, and the costs associated with that," Barr said.
"And the opportunity cost that goes with it. You've got to make a judgement call on whether it would be a great week or tournament, but how far it would go if it was invested into local franchises. They're the trade-offs."