Monday, November 29, 2010

No Return Possible on Brazil's Stadium Investments

Economists are saying it will be impossible to generate a return on Brazil's $2.8 billion investment in stadia for the 2014 World Cup.

Brazilian states are awarding contracts that may be worth as much as $18 million a year to groups that run Amsterdam Arena and Lisbon’s Estadio da Luz to oversee facilities planned for the 2014 tournament. New York-based IMG Worldwide Inc. is looking at sites, chief executive officer Ted Forstmann said in an interview.

Arenas are being constructed in the financial hub of Sao Paulo through to poorer areas such as the Amazon state capital, Manaus. A financial return on the new buildings is “impossible” because most soccer stadiums are used too infrequently, according to Paul Fletcher, a former commercial director of London’s Wembley Stadium.

Brazil Seeks `Impossible' Return on $2.8 Billion World Cup Site Spending
November 22, 2010