FIFA says economic downturn will affect World Cup sponsor activities in South Africa

FIFA: Economy will affect WCup sponsor activities

JOHANNESBURG — The governing body of world soccer says the recession will only affect next year’s World Cup in South Africa indirectly, with most of the impact being felt in sponsor activities at the monthlong tournament.

FIFA showed a $184 million profit in 2008 despite the economic slowdown, thanks in part to marketing deals struck for the 2010 World Cup.

“It would be wrong to say we will not be affected by the crisis because, at the end of the day, our partners, they will a little bit reduce their activities,” FIFA marketing director Thierry Weil said on Sunday. “So it will not affect us directly, but (it will) when it comes to activities and especially to activities like youth programs.”

FIFA has six sponsor partners for both this year’s Confederations Cup and next year’s World Cup, and Weil noted that they bring children into the host country to help promote their products.

He expects sponsors will cut back on the number of children they bring in from foreign countries and enlist more local youths to participate.

“Which is actually a nice thing that local kids will get the right to be part of those programs, but that’s the only … affect we (will) have,” he said.

FIFA and the local organizers also spoke about accommodation issues facing visiting fans for next year’s World Cup and the prospect of fan parks, areas away from stadiums where supporters without tickets or those in different cities can gather to watch World Cup matches on big-screen televisions.

About 450,000 fans are expected to travel to South Africa next year for the 32-team tournament played around the country, and reports are already surfacing that there will a shortage of hotel rooms.

“We’re looking at all forms of accommodation, hotel and non-hotel accommodation,” said Jermaine Craig, a spokesman for the World Cup organizing committee.

Fan parks are also a key issue facing the local organizing committee, especially considering that South Africa has one of the highest murder rates in the world with at least 50 people being killed a day.

Fan parks were used at both the last World Cup in Germany in 2006 and the 2008 European Championship in Austria and Switzerland. Craig said the matter was still under discussion between the organizing committee, FIFA and the various host cities, but FIFA spokesman Nicolas Maingot was sure they will exist next June.

“Fan parks in Germany were a huge success,” he said. “And there will be definitely fan parks next year in South Africa as well. Definitely.”