The process to bid on worlds is available on the iwwf website (iwwf.sport). Basically, you declare your intent to bid by contacting the iwwf pres and secretary general and chairman of the sport discipline council. They return to you a "list of obligations" and let you know the sanction fee (which I understand changes based on a number of variables). Then you send in an application with a portion of the sanction fee up front and they vote. Having been involved in a world championships in another iwwf discipline, I have first hand info on the process and costs involved. Although the sanction fee is huge, the biggest cost may be the fact that IWWF expects accommodations, full board, transportation for a number of dignitaries (and their spouses) way beyond those required to judge/score/drive. There are meetings, receptions, and banquets, which require space, food, etc. The costs for one of these events is WAY BEYOND what anyone realizes. That is why you don't see the IWWF 3 event worlds in the US. No one is crazy enough to do it. The requirements are so far beyond what it takes to have a RC tournament site and a decent hotel, no one wants to fool with it. It takes HUGE local support (city, convention / visitors bureau, etc.) , a HUGE crew of the local club, etc. to pull one of these off. I participated in organizing the one I did in an effort to build up to hosting an elite 3 event Worlds. But after what we went through, it would be pretty difficult to get me to want to organize another. A guess on my part, would be that the LOC of this years worlds would have had to spend north of $350k to do what they did.
I don't have first hand knowledge, but I have heard the Putrajaya LOC made significant improvements to the site including breakwater and bank enhancement to improve conditions over previous world cup events held there. While I don't agree with the organizer's efforts to belittle the athletes who didn't like the conditions, I sympathize with his frustrations. Working his arse off for years to organize this and have the athletes who won run their mouth about poor conditions would piss me off to no end. 75 or more % of the time, effort, and money associated with this event was spent on things not directly associated with putting bouys and a jump in the water. I am sure the hospitality for the athletes, families, officials, world council, and dignitaries, was world class even if the water conditions may not have been. Anyone who has been to a world championships would have to admit, water conditions are only one part of the overall World's experience. For some it is a bigger part than others. It was an honor to get to that level, an honor to represent your country. Was it necessary to disparage those who put on the event to make a point to IWWF?
One last thing, I am so incredibly stoked for Dane Mechler. Having watched that man grow up at local tournaments, I was so happy to see him in the mix. He is living proof that hard work and sacrifice pays off.