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 FIFA: 2010 cup very profitable

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PosOnderwerp: FIFA: 2010 cup very profitable   Sun Jun 06, 2010 5:35 pm

Jun 03 2010 11:39 Print this article | Email article

Johannesburg - World football body FIFA has doubled its income since 2006 by hosting the World Cup in South Africa, FIFA secretary general Jerome Valcke said on Thursday.

"Commercially it has been a success," Valcke said at the launch of special courts dedicated to deal with cup-related crimes. "In fact, we have increased our income by 50% since 2006 in Germany to 2010 in South Africa."

Valcke said this money would be invested in football development. He said 80% of countries in Africa "would not have football" if it were not for FIFA's funding.

"If we don't have money, it means football will collapse," said Valcke. FIFA received a lot of criticism for "taking over South Africa" and that it was "just about money", but, said Valcke, "it is to protect football".

He said none of FIFA's commercial partners decided to drop their support because the tournament was being held in Africa for the first time.

Valcke was confident that foreigners visiting South Africa during the tournament would be safe. "I hope, definitely, that these courts will not have to work at all," he said.

A total of 56 special courts dedicated to deal with 2010 World Cup offences started operating on May 24.

These dedicated courts were officially launched at a ceremony at the Randburg Magistrate's Court in Johannesburg on Thursday.
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PosOnderwerp: Sars: World Cup not for profit   Sun Jun 06, 2010 5:37 pm

Jun 06 2010 15:29 Print this article | Email article

Johannesburg - The country's hosting of the World Cup is not a profit-making exercise, the SA Revenue Service (Sars) said on Sunday.

"It's a once-in-a-lifetime opportunity and there's a cost that comes with that," spokesperson Adrian Lackay told Sapa.

He was responding to a City Press report that FIFA would cause the country to lose "tens or possibly hundreds of millions of rands in potential revenue".

The Sunday paper reported that Sars had been forced to agree to a "tax bubble" around FIFA sites, which would exempt the soccer
federation from paying value added tax, income tax and customs duties.

Lackay said the South African government was well aware the spectacle would only contribute 0.5% to the country's gross domestic product.

According to City Press South Africa gave FIFA guarantees including:

- a supportive financial environment by waiving customs duties, taxes and levies on the import and export of goods belonging to the
FIFA delegation, its commercial affiliates, broadcast rights holders, media and spectators,

- "unconditional visas" to foreign visitors and anybody in any way associated with FIFA,

- the unrestricted import and export of all foreign currencies into and from South Africa,

- free work permits to delegates, media and merchandise partners,

- ownership of all media, marketing and intellectual property and

- that FIFA cannot be sued for claims arising from the staging of the tournament.
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