FIND OUT WHAT AMOUNT SOUTH AFRICA INVESTED AND THEIR GAINS WHEN THEY HOSTED THE FIFA WORLD CUP IN THE YEAR 2010


The 2010 FIFA World Cup was the 19th FIFA World Cup, the world championship for men’s national association football teams. It took place in South Africa from 11 June to 11 July 2010. The bidding process for hosting the tournament finals was open only to African nations; in 2004, the international football federation, FIFA, selected South Africa over Egypt and Morocco to become the first African nation to host the finals. It will take South 1.28 billion dollars to build the stadiums and other infrastructures.
The matches were played in ten stadiums in nine host cities around the country, with the final played at the Soccer City stadium in South Africa’s largest city, Johannesburg. Thirty-two teams were selected for participation via a worldwide qualification tournament that began in August 2007. In the first round of the tournament finals, the teams competed in round-robin groups of four teams for points, with the top two teams in each group proceeding. These sixteen teams advanced to the knockout stage, where three rounds of play decided which teams would participate in the final.
In the final, Spain, the European champions, defeated third-time finalists the Netherlands 1–0 after extra time, with Andrés Iniesta’s goal in the 116th minute giving Spain their first world title, becoming the eighth nation to win the tournament, and the first European nation to win the tournament outside its home continent. Host nation South Africa, 2006 world champions Italy and 2006 runners-up France were all eliminated in the first round of the tournament. It was the first time that the hosts were eliminated in the first round.
Preparations

The Lukasrand Tower in Pretoria sporting a football in anticipation of the World Cup
Five new stadiums were built for the tournament, and five of the existing venues were upgraded. Construction costs were expected to be R8.4 billion (just over US$1 billion or €950 million).
South Africa also improved its public transport infrastructure within the host cities, including Johannesburg’s Gautrain and other metro systems, and major road networks were improved. In March 2009, Danny Jordaan, the president of the 2010 World Cup organising committee, reported that all stadiums for the tournament were on schedule to be completed within six months.
The country implemented special measures to ensure the safety and security of spectators in accordance with standard FIFA requirements, including a temporary restriction of flight operation in the airspace surrounding the stadiums.
At a ceremony to mark 100 days before the event, FIFA president Sepp Blatter praised the readiness of the country for the event.
Prize money
The total prize money on offer for the tournament was confirmed by FIFA as US$420 million (including payments of US$40 million to domestic clubs), a 60 percent increase on the 2006 tournament. Before the tournament, each of the 32 entrants received US$1 million for preparation costs. Once at the tournament, the prize money was distributed as follows:
• US$8 million – To each team exiting after the group stage (16 teams) ($8.53 million in 2012 US dollars)
• US$9 million – To each team exiting after the round of 16 (8 teams) ($9.59 million in 2012 US dollars)
• US$14 million – To each team exiting after the quarter-finals (4 teams) ($14.92 million in 2012 US dollars)
• US$18 million – Fourth placed team ($19.18 million in 2012 US dollars)
• US$20 million – Third placed team ($21.32 million in 2012 US dollars)
• US$24 million – Runner up ($25.58 million in 2012 US dollars)
• US$30 million – Winner ($31.97 million in 2012 US dollars)
In a first for the World Cup, FIFA made payments to the domestic clubs of the players representing their national teams at the tournament. This saw a total of US$40 million paid to domestic clubs. This was the result of an agreement reached in 2008 between FIFA and European clubs to disband the G-14 group and drop their claims for compensation dating back to 2005 over the financial cost of injuries sustained to their players while on international duty, such as that from Belgian club Charleroi S.C. for injury to Morocco’s Abdelmajid Oulmers in a friendly game in 2004, and from English club Newcastle United for an injury to England’s Michael Owen in the 2006 World Cup.
Economy
Some groups experienced complications in regards to scheduled sporting events, advertising, or broadcasting, as FIFA attempted to maximise control of media rights during the Cup. Affected parties included an international rugby union Test match, a South African airline, and some TV networks, all of whom were involved in various legal struggles with World Cup organisers.
During the tournament, group ticket-holders who did not utilise all their allotted tickets led to some early-round matches having as many as 11,000 unoccupied seats.
While the event did help to boost the image of South Africa, financially it turned out to be a major disappointment. Construction costs for venues and infrastructure amounted to £3 billion (€3.6 billion), and the government expected that increased tourism would help to offset these costs to the amount of £570 million (€680 million). However, only £323 million (€385 million) were actually taken in as 309,000 foreign fans came to South Africa, well below the expected number of 450,000.
Local vendors were prohibited from selling food and merchandise within a 1.5 kilometre radius of any stadium hosting a World Cup match. For a vendor to operate within the radius, a registration fee of R60,000 (approximately to US$7,888 or €6,200), had to be paid to FIFA. This fee was out of most local vendors’ reach, as they are simple one-man-operated vendors. This prevented international visitors from experiencing local South African food. Some local vendors felt cheated out of an opportunity for financial gain and spreading South African culture, in favour of multinational corporations.
FIFA president Sepp Blatter declared the event “a huge financial success for everybody, for Africa, for South Africa and for FIFA,” with revenue to FIFA of £2.24 billion (€2 billion).
The projected total direct economic value for GDP is approximately $21.3 billion. Also, 159,000 new jobs are predicted, including full- and part- time jobs, both permanent and temporary. The government also plans to spend millions on upgrading stadiums and building a new international airport. The tournament will host 32 teams with an average of 50 people per team, 14,500 VIPs and dignitaries, 500 officials and 10,500 media. A projected number of half a million foreign visitors (located outside of Africa) are expected and staying an average of 15 days.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s