2010: the money's in the bank
2 June 2006
The international community has given South Africa's hosting of the 2010 Football World Cup a huge vote of confidence. With 75% of Fifa contracts for the tournament signed and sealed, South Africa 2010 has already outperformed every other World Cup in terms of revenue.
"The money is in the bank as we speak," Danny Jordaan, chief executive of the World Cup local organising committee said this week.
"This shows huge confidence in South Africa and dispels the fears that many critics had about the ability of an African country to raise funds."
Broadcasting rights
Jordaan was speaking at a conference on local government and the 2010 World Cup in Ekurhuleni, east of Johannesburg.
He said that the European broadcasting rights had already been signed, securing Fifa US$1.2-billion (about R7.8-billion).
This amount, said Jordaan, far exceeded the amount obtained during the Korea /Japan World Cup of 2002 and was also expected to exceed the 2006 World Cup in Germany.
"There will be additional revenues, in that people will be able to watch the full World Cup match from their mobile phones," Jordaan said.
World-class World Cup
"We want this World Cup to be world class, and it has already outperformed the other World Cups in terms of revenue."
The funding budget for South Africa's World Cup is about US$2-billion, the largest in Fifa's history.
Because of the World Cup in Germany, South Africa has had to keep quiet about its achievements. "It has been a question of 'no news is bad news'," Jordaan told The Star. "But after July 10 we will be at liberty to disclose information."
He added that the 2010 World Cup emblem would be launched in Berlin on 7 July, a full four years ahead of the event - the earliest ever launch of a World Cup emblem.
Ten stadiums
Nine cities will host World Cup
games in South Africa, with 10 stadiums having been identified and approved by Fifa.
Five of the stadiums were already constructed, said Jordaan. Durban, one of the cities which is to build a new stadium, has set aside R1.6-billion for the construction of what is to be called the King Senzangakhona Stadium.
Jordaan expressed confidence that the stadiums would be ready by 2009, as five of them would be needed when the country hosted the African Confederation Cup.
New markets
"We have no reason not to believe the infrastructure will not be ready," Jordaan said. "We have a budget of R3.4-billion to deliver this event. The money is already available."
Jordaan said the World Cup would open new tourism markets for South Africa, adding that the intention was to extend the impact of the tournament beyond the host cities. Non-host cities would be engaged as to how they could be brought in as bases for visiting teams.
Jordaan said teams from South Africa's host cities would be joining the local organising committee on a trip to Germany in the first week of July to get the feeling of organising a World Cup.
Legislation
On another front, three new pieces of legislation specifically intended for the 2010 World Cup have been passed.
The 2010 Fifa World Cup Special Measures Act deals with issues that local governments will have to deal with during the event. The Special Measures Financial Act covers issues around VAT, customs and work permits.
Sponsors investing in the World Cup are to be protected by the Ambush Marketing Act.
One challenge remains ...
Although South Africa's planning was well advanced in terms of budgets, infrastructure and legislation, one major challenge remained, Jordaan said.
"It is all very well to have state-of-the-art stadiums, but not a losing team. People come, after all, to see soccer.
"This is going to be a big challenge."
SouthAfrica.info reporter and BuaNews
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