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
Bloomberg
November 22, 2010

Brazil Eyes $20 Billion Investment in 2014 World Cup

Brazilian Sports Minister Orlando Silva has said the country will need to invest moe than $20 billion in stadia, transportation and infrastructure as it prepares to host the 2014 World Cup.

Silva said Wednesday that 53 transportation projects were in the planning stage and some had already been contracted.

Brazil: We must spend $20 billion on World Cup
Associated Press
May 20, 2010

Australia Announces Big Infrastructure Investments for Prospective World Cup Bids

With three new stadia and nine renovations planned, Australia is planning to spend nearly $2.5 billion on infrastructure projects if it is chosen to host the 2018 or 2022 World Cup.

Three new stadiums would be built in Perth, Canberra and Blacktown in Sydney's western suburbs, while nine venues in other cities would be upgraded, the FFA said in a statement.

"The infrastructure investment will leave a legacy to all sporting codes in the nation before and after the FIFA World Cup for generations to come," FFA Chairman Frank Lowy said.

Australia World Cup infrastructure to cost $2.48 billion
Reuters via Sports Illustrated
May 16, 2010

U.S. Pins 2018/2022 World Cup Bid Hopes on Physical Capacity

The United States confidently submitted its bid to host either the 2018 or 2022 World Cup, boasting its physical capacity to host the games and the crowds.

[Sunil Gulati, chairman of the U.S. Soccer Federation] cited several factors that would help make the U.S. case, including having 5 million tickets available, 18 cities with access to international airports and stadiums ready to host the event tomorrow, plus a wealthy populace.

Alas, numbers alone don't win the bidding, and the U.S. also has to convince the 25 members of FIFA's executive committee it has become a full-bore soccer nation. "They don't understand how big it is in this country," Mr. Gulati said.

Confident U.S. Presents World Cup Bid
The Wall Street Journal
May 14, 2010