Government support for WC is about business

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By Midfielder, 15 Dec 2009 The Crowd is a Roar Pro

Tagged:: football, sports, World Cup

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I’ve wondered for a while now why the Commonwealth and State governments have supported the World Cup bid. After all, there’s no State where football can claim to have a huge media support, so there’s no real big brownie points to be won.

My theory is that, if Australia wins the right to host the World Cup, Australia will for the twelve years leading up to it become the centre of Asian sporting influence.

Given in Asia many of the leading teams are owned by some of Asia largest companies, it would also open a link to the Middle Eastern countries.

The doors that football can open in both business and government are well-documented. Having the World Cup in Australia would go a long way towards providing Australian government and business with informal meetings and discussions they have never had, and always wanted.

This would be worth even more than the estimated revenue the World Cup itself will bring.

So my theory is that the influence and informal opening that would flow from within Asian Football Confederation nations is irresistible to government and business.

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The Crowd Says (38) | Page 1 of Comments

Kurt said | December 15th 2009 @ 4:09am | Report comment

In the immortal words of Paul Keating, “Never stand between a premier and a bucket of money”.

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Redb said | December 15th 2009 @ 4:25am | Report comment

Kevin Rudd has rushed head long into engaging FIFA, he literally doesn’t know he is dancing with the devil.

Governments like corporations need to exercise proper corporate governance and due diligence with potential business partners. Australian ABC journalist Andrew Jennings 2006 investigation into the bribes rife in FIFA including Sepp Blatter should give Kevin Rudd pause for thought.
http://www.abc.net.au/pm/content/2006/s1656776.htm

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- MV Dave said | December 15th 2009 @ 7:18am | Report comment
  
  Gee what a shock something negative in reply to a positive article on football…the doomsayers are at it early in the morning today.
  The Oz governments at State and Federal level have been made aware of the size and scope of a WC in this country and with such an unusually long lead in time, should the bid win, it will provide a great platform for the Aussies to do additional business throughout this region in particular.
  That FIFA the IOC or any other major sporting/business doesnt have a squeekly clean history so what? In a perfect world would we like every one of the individuals, organisations and countries we deal with to have uphold all the standards we as Aussies (by your implication) bring all the time? Yes (Dont mention the AWB dealings in Iraq!). However FIFA deal in the real world with every country in the world and all that such a cross section of humanity, cultures etc bring to the table.
  
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  - Michael C said | December 15th 2009 @ 7:59am | Report comment
    
    that was a positive article??
    
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  - Redb said | December 15th 2009 @ 3:39pm | Report comment
    
    MVDave,
    
    I actually took the lead off Francis Leach (soccer commentator) who raised this issue on SEN last night.
    
    IMO Government /business should not deal with corrupt organisations.
    
    Heard of the strife AWB are in for kickbacks and the whole Iraqi food for oil scandal?
    
    Redb
    
    Reply
    - Art Sapphire said | December 15th 2009 @ 3:58pm | Report comment
      
      redb – does that mean we should never have hosted the Olympics in 2000 because we had to deal with the IOC??
      
      The AWB sold wheat to Iraq for decades to Saddam – for years he was a mate of the U.S then he became an enemy with imposed sanctions. However, the whole time he was a despot.
      So you have to ask yourself why did AWB sell wheat to Saddam in the first place.
      Well, it made money for AWB, the farmers and the Australian economy and it fed the Iraqi people.
      
      Just like the our bid for the WC, we might not like who we are dealing with but end result justifies it.
      
      Its knowing where to draw the line, thats the hard part.
      
      I though you had a much more sophistiicated view of the world redb
      
      Reply
      - Redb said | December 15th 2009 @ 4:25pm | Report comment
        
        maybe idealistic?
        
        Reply
    - MV Dave said | December 15th 2009 @ 8:57pm | Report comment
      
      Love to see your list of non corrupt (or should that be minmised level of corruption) for the major multi national companies/organisations around the world that we do business with? You know those with an unblemished record.
      
      Your view maybe idealistic but also in the current world unrealistic. ie are AFL clubs corrupt because they on sell GF tickets for a much greater value than they receive them for and so rip off the customers (usually their own supporters)? Does that mean Govt shouldn’t deal with the AFL or its clubs? l think the euphemism for this kind of club activity is fundraising? Just using this as an example and not wishing to start a code war.
      
      Reply
- AndyRoo said | December 15th 2009 @ 10:16am | Report comment
  
  RedB
  
  Apart from that investigation which came to zero his other huge allegation (which I will give the the benefit of being true) is that officials receive free tickets to the World cup that they not always use and perhaps sell……. I hope Andy D pays for his ticket to the GF!!!
  
  That’s not to say that FIFA isn’t corrupt, but gee how about getting some evidence.
  
  Reply
Midfielder said | December 15th 2009 @ 3:10pm | Report comment

Interesting responses so far, but little on topic.

My tho’s are a successful WC bid would place Australia governments and business at the forfront of Asian sport and this must be appealing to each state and the Commonwealth.

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Lazza said | December 15th 2009 @ 3:53pm | Report comment

Why do we bother with the Olympics when none of our traditional sports are part of it? Very few of those aging politicians would be Football fans but they know what these huge, global sporting events can do for our nation.

The more they know about Football the more they’ll want us to host the event. Both John O’Neil and Ben Buckley knew that Football was a huge global sport but both said they hadn’t really known just how big it was until they became involved.

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Midfielder said | December 15th 2009 @ 4:21pm | Report comment

Lazza

Astute observation… I have a mate a mad keen RL person … was in Europe during the last world cup on holidays… he came back and started telling me it was bigger than big and bigger than I had been saying… it is only when you see it and see the size that you can appreciate it..

I can see how other codes and their supporters have no real idea of what we are talking about and therefore raise questions… I can also understand how they smile and say OK yaaaa I agree it’s big but you are going over the top..

Hopefully we will win and many games are in NSW so I can get to as many as I can…

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- Art Sapphire said | December 15th 2009 @ 4:25pm | Report comment
  
  now your are being selfish Mid.
  Yu have gone a bit quiet on the CCM front after the Victory game
  
  Reply
Phil E Buster said | December 15th 2009 @ 4:54pm | Report comment

Regarding the cost/benefit of the World Cup, the following information may assist in a study conducted on behalf of the Brazil World Cup committee, into the enormous success of the German World Cup.

This report is from Fedor H Radmann. Vice President, Advisor to the Board, 2006 FIFA World Cup LOC Germany Consultant for Companies and Major Sports and Cultural Events.

“[German] World Cup as financial success

• Total budget: 430 million Euro
• Three sources of income:
•Ticketing (200 million Euro)
•National Partner (60 million Euro)
•FIFA grant (170 million Euro)

• Main expenses:
•Stadiums (120 million Euro)
•Personnel and material costs (100 million Euro)
•Transportation and traffic (80 million Euro)

• Profit: 155 million Euro
• Subtracting taxes (43,7 mil €) and the refund to FIFA (40,8 mil €),
56,5 million Euro remain that are split between the German Football League
(DFL) and the German Football Association (DFB)
• DFB spends all money on non-profit projects:
20 mil € go to Regional Football Associations to foster football for girls, football
at schools and integration of foreigners;
money also goes to the German Olympic Sports Confederation, the National
Paralympic Committee Germany and “Deutsche Sporthilfe”

• Total investments: 8-10 billion Euro (mainly infrastructure, stadiums, Deutsche
Bahn etc.) (Ruhruniversität Bochum)
• Rising consumer spendings, mainly in World Cup related industries and rising
expenses in sport sponsoring
• In total, GDP is expected to go up by 0,5 percentage points (Study Postbank)
• World Cup created 85.185 jobs and led to an ease on German labour market
• Deutsche Bahn has transported 15 million additional passenger
• Positive effect on German Bundesliga and the entire professional football
• More than 32,5 billion TV spectators in 200 countries throughout the world
• The real success of the WC starts the day after the Final: will the charmoffensive
pay off in the long run?
• Great promotion of Germany´s advantages as an tourist destination and as an
excellent business location
• Revaluation of Germany’s image abroad
• Rise in sympathy: not just punctual, reliable, disciplined, but also hospitable,
humorous, and service oriented
• 86% of Germans think that the World Cup has enhanced Germanys’
reputation in the world
• 73% of foreign visitors (around 2 million) came to Germany explicitly to see
the World Cup
• 90% of them became Germany-fans and will recommend Germany as a
holiday destination due to good experiences
• 91% felt very welcomed; 93% attest the World Cup being a great event
• Cooperation between LOC 2006 FIFA World Cup and GNTB (DZT)
regarding several activities in 2005 / 2006, e.g. conventions, media
cooperation, Guest Services etc.
• LOC and Federal Government wanted a special Art and Cultural Programme
to positively portray the cultural diversity of Germany
• The Federal Government provided a total of 30 mil. € in funding (out of
revenues from an LOC coins programme)
• André Heller, the artistic director / curator, also developed the concept for the
opening and closing ceremonies
• Around 40 projects were realized and attracted around 3,5 million visitors,
among these were e.g. a million visitors to the Football Globe, around 600
000 spectators at Frankfurt’s SkyArena at Whitsun 2006 and 8500 spectators
to the championship theatre play “Garuma”
• Beyond that, each Host City offered an extensive cultural supporting
programme”

Their profit actually exceeded their projected figures. In fact, if you thought 56.5 million euros in profit for the German football association and the football league was a huge success for them economically, remember on top of that the German government also received 43.7 million in taxes! How could any of this be a bad thing?

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- AndyS said | December 15th 2009 @ 5:10pm | Report comment
  
  Depends. If the Germans with their long history in Football had to spend 8-10B Euros on stadia and infrastructure, what might we be up for? And 15 million additional train passengers – shame we don’t really have a train network and they would all be looking to cars and planes.
  
  There are many ways it could be good, and bad, and the best we can hope for is that there is a clear eyed look at exactly how an event of this magnitude would be handled by a country with a quarter the population spread over twenty times the area.
  
  Reply
Phil E Buster said | December 15th 2009 @ 5:58pm | Report comment

Andy S, I once worked for an Australian airline, and for every AFL grand final they make extra planes available with the cheapest seats at premium economy (eg very expensive – almost business class price) prices. Folks buy them like hotcakes. Imagine the profit to our airline industry during the world cup…especially since overseas tourists don’t have the car, train or bus option to get here!

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- AndyS said | December 15th 2009 @ 6:21pm | Report comment
  
  Interesting point, illustrating the issue nicely. There might be as many as what, 30,000 people travelling by air for an AFL final? So instead of a one-off match one weekend in September, I’m trying to picture that situation stretching continuously for a bit over a month. One would hope that the benefit to Qantas etc would be weighed against the disruption and cost to the rest of the Australian business community of no cheap flights and nowhere to stay in all the major business centres.
  
  I’m not against the idea, but do have reservations about our ability to manage it. Some of those numbers are daunting to say the least.
  
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Midfielder said | December 15th 2009 @ 6:31pm | Report comment

Remember we are chasing the … http://www.youtube.com/watch?v=OAVqknI7GGI

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- KeviesKrooner said | December 16th 2009 @ 6:35am | Report comment
  
  haha lets not put you in charge of marketing.
  
  Reply
Aka said | December 16th 2009 @ 7:38am | Report comment

MiddyYou may be interested in this also. The world cup not only provides a boost up to and during the cup but in the following year(s) from a tourism viewpoint at least.

http://www.germany-tourism.de/pdf/DZT_WM_Bilanz_Bro2008_Eng.pdf

Also from a non business point of view the effect on the image of the country and the host town is believed to be very significant.

Personally I wouldn’t mind if Melbourne had only one stadium and we could get Tassie involved.

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- Midfielder said | December 16th 2009 @ 3:14pm | Report comment
  
  I think you have a good point.
  
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Phil E Buster said | December 16th 2009 @ 2:51pm | Report comment

Here’s one for Redb and Michael C

http://www.theworldgame.com.au/australia/expert-warns-of-afl-demise-268817

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- Redb said | December 16th 2009 @ 3:58pm | Report comment
  
  Will you yield the floor for a question?
  
  Is this article aimed at folk like you?
  
  http://www.smh.com.au/sport/football/zealotry-undermines-support-for-cup-bid-20091211-kolw.html
  
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- Michael C said | December 17th 2009 @ 11:57am | Report comment
  
  Great article :
  “Last week, AFL boss Andrew Demetriou claimed – incorrectly – an entire AFL season would be shut down if Australia hosted the FIFA World Cup.”
  
  Huh??
  
  Demetriou stated that if one of the possible scenarios identified by the FFA were to occur – that being the $130 million temporary rectangularisation of the MCG – then running a season would be pretty well impossible.
  
  HOw does this article come around to claim ‘incorrectly’.
  
  What a soccer lovin’ crock!!!
  
  The article seems to ignore the ‘regional backwater’ status of soccer in Australia, such that, like Basketball, it will only ever be a ‘feeder’ league to other larger external ones.
  The article ignore’s the notion of tribalism and the desire to have an uncompromised ‘domestic league’
  it seems to ignore the value of ‘national ownership’ of a code
  that boys are only so satisfied playing a ‘soft and sissy’ (I’m quoting here!!!) sport
  and in a market with a variety of choice – as clearly illustrated via attendances – that, people just don’t get ‘turned on’ by watching a 2nd rate regional backwater soft/sissy soccer league compared to other options.
  
  because, quite frankly, comparing Australia or the US with some 2 bit country in Europe or South AMerica is a bit of a crock too. Really.
  
  Perhaps instead, the author might want to ponder the capacity of the over inflated soccer bubble to not burst and come crumbling down in a red ink heap.
  
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  - MV Dave said | December 17th 2009 @ 4:18pm | Report comment
    
    “The article seems to ignore the ‘regional backwater’ status of soccer in Australia,” If reports are true (it was the Daily Terror after all) looks like your ‘regional backwater’ code just landed on its feet with the apparent $300 million deal with Fox Sports for 5 years…not too shabby after less than 5 seasons in operation me thinks. Just to think a few years ago it was $1-2 million per year now $60million per season…ahhhh how times are changin.
    
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    - Michael C said | December 18th 2009 @ 9:45am | Report comment
      
      ah good……time to cut off the life support from the Fed Govt (K.Rudds $32 million into the operational spend of the FFA to keep it afloat).
      
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      - Punter said | December 18th 2009 @ 10:02am | Report comment
        
        Ahhh, you are stuggling to get off this ‘Merry go around’.
        
        Reply