Gold Coast Fined For Salary Cap Breach Marketing Symposium: Global Sports Events Pacquiao Makes Pro Basketball Debut Executive Transactions West Indies Women Focused On Cricket Real Zaragoza Granted Meeting Swimming Australia Guarantees Bonuses SA Denies Interest In Hosting AFCON London Olympic Stadium Costs Soar IOC Seeking Bid Cities For 2024 Games
SBD Global/April 1, 2014/FinancePrint All
Moody’s Investors Service reported that Brazil will get a “short-lived” benefit from hosting the World Cup this year, according to Tariq Panja of BLOOMBERG. South America’s largest country "is racing to finish several delayed infrastructure projects" for the June 12 start of the monthlong event where 600,000 foreign tourists and 3 million domestic travelers are expected to take in 64 games in 12 cities. Moody's said, “The tournament will capture the world’s attention, but an estimated 25.2 billion reais ($11.1B) economic boost pales before Brazil’s $2.2 trillion economy, normal levels of investment spending and annual revenues of companies that will provide food, drink, transport, lodging and services to football fans.” Moody's added that the tournament will offer a “short-lived” boost to the food and beverage, lodging, TV broadcasting and car rental sectors. Hosting the World Cup carries risks from potential social unrest. Moody's: “We see little impact on Brazil considering the limited duration of the World Cup and the size of the country’s economy. While the event offers a potential reputational benefit, it could be marred by a reprise of the social unrest seen last June or if needed infrastructure was not ready” (BLOOMBERG, 3/31).
Spanish third division side Racing Santander's administrative council "has established an objective" of raising €1M ($1.4M) by June 30 to "face its most immediate payment obligations, and from there, to create a strategic plan to guarantee the medium-term future of the club," according to the EFE. The administrative council members, led by club President Tuto Sañudo, "recognized that the club's economic situation is 'very bad' but 'not desperate.'" Racing Santander has "started a campaign to encourage businesses in the region to lend a hand to the team." Racing "made a call to 'all of the society' of Cantabria to help the club." The club "also made it clear that the money it is hoping to raise is not to make investments, but to make the payments owed to players and coaches, all while club execs are already renegotiating obligations with other creditors" (EFE, 3/31).
The Rugby League World Cup 2013 revealed on Monday that it "generated profits that could rise in excess" of £4M, according to SKY SPORTS. Tournament Dir Nigel Wood confirmed profits of at least £3.7M, "which could still rise and double those" made during the '08 competition. Tournament GM Sally Bolton "also spoke about the financial impact on the towns and cities which hosted matches." She said that Cardiff "benefited to the tune" of £8.4M from hosting the opening ceremony and double header and that London enjoyed a £12.3M bonus from the semifinals (SKY SPORTS, 3/31). The AAP's Ian Laybourn reported it is expected that the final figure will "enable the Rugby Football League to double the profit" of $A3.6M generated by the 2008 World Cup. The '13 tournament drew an aggregate crowd of 458,463, including an int'l record attendance of 74,468 for the final between Australia and New Zealand at Old Trafford, won 30-2 by Australia. Organizers reported "eight sell-outs and eight stadium record crowds for rugby league matches" (AAP, 4/1).