2010 a record earner for Fifa
18 July 2006
South Africa's 2010 Football World Cup is set to earn Fifa its largest revenue ever, with US$3.1-billion in corporate sponsorship and broadcasting rights already secured for the next four years, and more likely to follow.
Speaking after a meeting between government representatives, business leaders and members of the 2010 Local Organising Committee (LOC) in Pretoria last week, LOC chief executive Danny Jordaan said Fifa had already secured the $3.1-billion for the period between next year and 2010, the biggest amount in the football world governing body's history.
In the period between 2003 and 2007, which included the recently concluded tournament in Germany, Fifa earned $1.8-billion.
Jordaan said the vastly increased revenue was a sign of large corporations' confidence in South Africa's ability to host a successful tournament.
"Africa has waited for many years to host the World Cup," he told Business Day. "The argument that has often been used is that a World Cup in Africa will not constitute a strong business case."
Jordaan said that as Asian, African and South American broadcasting rights for 2010 tournament were still outstanding, the $3.1-billion figure was likely to rise further as more sponsors came on board.
The top level of sponsors, known as Fifa partners, includes Coca-Cola, Emirates Airline, Hyundai, Sony, Adidas and Visa.
The second level includes MasterCard and McDonald's, which has extended its World Cup sponsorship from 2007 to 2014, a period covering the next two tournaments.
Sponsors on the third level, which for 2010 will be made up of six South African companies, are known as "national supporters". First National Bank was the first to sign up, announcing that it had committed $30-million to the event.
Business expresses support
Speaking after the meeting, which included President Thabo Mbeki and Deputy President Phumzile
Mlambo-Ngcuka, business leaders expressed confidence in South Africa's ability to host a successful World Cup.
Business Unity South Africa (Busa) president Patrice Motsepe said that although South Africa was not yet ready, it was moving in the right direction.
"We have admirably demonstrated our ability to host large-scale international events," Motsepe said. He added, however, that it was essential that the government tackle crime, widely seen as a major challenge to hosting a successful tournament.
"The resurgence of violent crimes poses serious risks to business, employees and members of the public and contributes to negative perceptions about South Africa," he said.
Motsepe said organised business would welcome more active engagement with the government and organisers involved with preparations for the event.
He said a consistent and vigorous communication strategy would become increasingly important now that the world's focus had turned from Germany to South Africa.
"Soccer leaders expressed a vote of confidence in South Africa as early as 2000 when we lost by one vote to Germany [to host the 2006 tournament]. Busa would like to assist the stakeholders in meeting the challenges involved in ensuring that we are ready by 2010."
SouthAfrica.info reporter
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