Fifa to rake in billions

2010-06-18 14:49

Fifa expected its provisional income for the 2010 Fifa World Cup

to be about R24 billion.

The provisional figure was given in reply to a question at a media

briefing at Soccer City in Johannesburg.

Fifa spokesperson Nicolas Maingot said the World Cup was the main

source of income for the association and its revenue from this event in South

Africa would tide it over for the next four years. He added that 75% of its

revenue would be invested into football development.

The estimate comes after it was reported that South Africa, which

spent about R63 billion on hosting the event, has granted Fifa a number of tax


It has been reported that the world soccer body would cause the

country to lose “tens or possibly hundreds of millions of rands in potential


It reported that the South African Revenue Service had been forced

to agree to a “tax bubble” around Fifa sites, which would exempt the soccer

federation from paying value added tax, income tax and customs duties.

South Africa reportedly gave Fifa guarantees including a supportive

financial environment by waiving customs duties, taxes and levies on the import

and export of goods belonging to the Fifa delegation, its commercial affiliates,

broadcast rights holders, media and spectators and the unrestricted import and

export of all foreign currencies into and from South Africa.

The guarantees also included ownership of all media, marketing and

intellectual property and that Fifa cannot be sued for claims arising from the

staging of the tournament.

Fifa has taken a tough stance against ambush marketing, taking

Dutch brewery, Bavaria, to task after it allegedly orchestrated a campaign at

the World Cup match between the Netherlands and Denmark on Monday. Two women

have already appeared in court on charges related to the South African

Merchandise Marks Act.

Local Organising Committee (LOC) spokesperson Rich Mkhondo would

not be drawn on what the extra cost of deploying police officers at various

stadiums would be. This was after security guards at the various stadiums downed

tools over wages.

Mkhondo refused to be drawn on the security debacle. “There is a

dispute between parties. Once we get involved in a public debate, the issues get


“We are trying to resolve all these issues... we are not going to

do that publicly.”

Five World Cup stadiums were hit by industrial action since the

commencement of the tournament last Friday. Initially the strike involved only

one service provider, Stallion security, however, guards from the Fidelity

Security Company also entered the fray yesterday.

“In our agenda there are no security issues,” Mkhondo said.

This is after the Mail&Guardian today reported that police were

investigating claims that sabotage by rival security companies were at the root

of the industrial action.

The Mail&Guardian said it established that the South African

government would have to foot a bill exceeding R100 million to pay the police

officers. This expense was “supposedly” covered by Fifa and the LOC, the report



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