Thursday, December 17, 2009

World Cup to Bring Debt to South Africa

South Africa's World Cup is likely to put the country deep in debt, according to economist Stefan Szymanski.

Szymanski, a professor at Cass Business School in London and co-author of the book Soccernomics, predicts that South Africa will find itself in the red after the World Cup.

He says countries that host big events such as the World Cup often have to borrow money or cut back on other social spending to meet the deficit.

Such events require a government guarantee, he says, and this demonstrates that they are not "ordinary profitable commercial activities".

World Cup will put SA in debt, says expert
Pretoria News
December 16, 2009