SOUTH
AFRICA
2010
Contents
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Global Football Economy
The Event
Planning
Cities & Infrastructure
Legislative timetable
SOUTH AFRICA: AN AFRICAN WORLD CUP
A LAND OF INFINITE POSSIBILITIES
Where else can you
•feel nature’s beauty
•experience first-world
technology
•face a fiery passion for
sport, and
•live the world’s only
political miracle
GLOBAL FOOTBALL ECONOMY - U$D 360 Billion
MANCHESTER UNITED SUCCESS
-$317m in sales: 40% to global market
-Expand global fan base through exhibition
matches
DIFFICULT INDUSTRY
-Real Madrid : $42m for Beckham – ended only 4th
in League after spending $86m for Zidane
-2003 – Abrahamovitch paid $230m for Chelsea &
players
GLOBAL FOOTBALL DOMINANCE - TV
70
60
62
61
57
50
49
%
47
46
40
Football
Tennis
30
Baseball
28
25
20
Basketball
28
10
12
8
0
0
USA
0
0
China
Japan
Country
6
0
EU
THE 3 HISTORICAL PERIODS OF THE
WORLD CUP
PRE-1990
POST-1990
2010
GERMANY
1974
GERMANY
2006
SOUTH
AFRICA
# OF FIFA MEMBERS
ENTERING WORLD CUP
COMPETITION
99
197
205
NUMBER OF
PRELIMINARY MATCHES
226
857
881
NUMBER OF TEAMS IN
WORLD CUP FINAL
16
32
32
NUMBER OF FINALS IN
WORLD CUP MATCHES
38
64
64
1.7 million
3 million
2.78 million
NUMBER OF SPECTATORS
Contents
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


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Global Football Economy
The Event
Planning
Cities & Infrastructure
Legislative timetable
THE EVENT
•64 Matches
•32 Teams
•28 – 43 Days
•13 Stadia
•2.78 million tkts to be sold
•40 Billion TV Audience
•200 Viewing Hours
WORLD CUP TICKET SALES
WC EVENT
# of
MATCHES
# of
TICKETS
(mn)
PRESTIGE
TICKETS
% of
PRESTIGE
TICKETS
% of
TOTAL
TICKETS
SOLD
AVG
TICKET
PRICE
(CHF)
TOTAL
REVENUE
($ mn)
1994 USA
52
3.60
360,000
10.0%
100%
459
125
1998 France
64
2.6
216,000
8.5%
100%
1,300
186
2002 –
Korea Japan
64
3.2
85,000
3.4%
100%
1,850
150 –
200
(est.)
2006 –
Germany
(proj)
64
3.46
346,000
10.0%
100%
1,926
N/A
2010 –
South
Africa
64
2.78
333,600
12.0%
89%
N/A
N/A
THE EVENT: FOOTBALL FANS SPEND
•
Licensed merchandise
•
Transport
•
Meals
•
Accommodation
•
Entertainment
TOTAL SPECTATOR SPEND
R9.8 BILLION
Contents
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
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Global Football Economy
The Event
Planning
Cities & Infrastructure
Legislative timetable
To deliver a World Class 2010 FIFA World CupTM four
key pillars need to be built. Social Legacy is a high
priority on the Government’s agenda
Pres. Mbeki’s State of the Nation Address
Three Platforms
Four Key Pillars
M
E
G
A
E
V
E
N
T
S
A
S
S
O
C
I
A
T
I
O
N
First Economy
T
E
A
M
S
S
O
C
I
A
L
Second Economy
Social Security Net
World class
Mega Event
competencies
and delivery
A stable image with
good governance and
financial integrity with
strong corporate and
government
relationships
World class
competitive
teams in all
age groups
Social
upliftment
across key
communities
Objectives
• Encourage growth and development
of First Economy – formal
economy (e.g. raise the rate of
investment, reduce the cost of doing
business in SA, speed up skills
development)
• Address challenges of Second
Economy – informal economy (e.g.
launch Expanded Public Works
Programme, improve financing
related to the Urban Renewal and
Rural Development Programmes,
improve micro-crediting, increase
support of agricultural activities)
• Build a Social Security Net to meet
the objective of poverty alleviation
(e.g. new agency to improve social
grant systems, increase number of
children eligible for child support,
and implement school nutrition
programmes)
Core response to the struggle against poverty and
underdevelopment
Through improved football development
SAFA will contribute to social upliftment
(e.g. skills transfer, improved funding)
The 2010 FIFA World CupTM offers a unique opportunity for
South Africa to advance the three Platforms set out in
President Mbeki’s State of Nation address
Core response to the struggle against poverty and
underdevelopment
Pres. Mbeki’s Three Platforms
Potential Benefits to be derived from 2010
 Expanded partnerships with government to promote growth and
economic development
First Economy
 Event is expected to generate 21 billion rand into the economy, with
direct spending estimated at 12.7 billion rand
 Increase in Tourism
 Tournament expected to attract 400,000 visitors to the country
during its 43 day duration
 Improvement of infrastructure for long-term growth
 Upgrading as well as the building of new stadiums in the country
 Transportation infrastructure
 Creation of new jobs and improving sustainable livelihoods
 More than 160,000 jobs are expected to be created from hosting the
event
Second Economy
 Accelerating BEE by procurement and sourcing policies
 Economic benefits will lead to greater self-sufficiency of citizens –
developing Small Business sector
 Transfer of skills and training of key people
 Ama 2010 and FIFA Secondments and Observers
 Development of strong regional identity
 Collaboration with First Nations
Social Security Net
 Upgrading of safety and security by increasing number of police
force
 High-profile example of potential to generate economic growth,
while respecting environmental sustainability
 Promoting sports development and healthy lifestyles and providing
education related to 2010
 Awareness of 2010 and implementation of school nutritional
programmes
 Critical Success Factors of healthy lifestyles for sportsmen – address
HIV/AIDS
 Geography of 2010 participating nations
A holistic and comprehensive approach is needed to
successfully stage the event which will ensure long term
Economic Impact
Venues & Infrastructure
IT, Internet & Telecom Solution
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Architecture & Integration
Event systems
Internet
Hardware and software
Testing & technical rehearsals
Event network (voice and data)
Network equipment & cabling
Telephones and fax machines
Wireless
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Venues
Accommodation
International media center
Hotels
Airports
Rail and bus stations
Conversion to municipal use
Venue services (waste, food etc)
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•
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Sports management
Opening & Closing/other events
Visitor services
Accreditation
Volunteer training and
coordination
Officials
Cultural program
Security
General staff/management
services
•
•
•
•
•
Sponsor (ViK) Management
Marketing & advertising
Licensing
Rights Protection
Ticketing & Sales
— International & Domestic
— Merchandise &
Accommodation
Communications
• Media operations and Production
• Hospitality
Transportation and Logistics
Event Co-ordination
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•
•
•
•
Marketing, Sponsorship &
Media
Economic Impact
• Direct Benefits
— Event specific (Broadcast
rights, Tickets, Licensing)
— Induced (Tourism, Local
Business, Tax Revenues)
• Indirect Benefits
— Employment from
construction, tourism, and
event-related jobs
• Transportation infrastructure
• Public transportation
• Transportation planning
— Officials
— General public
• Transportation operations
• Warehousing and logistics
• Materials management