SOUTH SOUTH AFRICA AFRICA

20102010

Global Football Economy The Event Planning Cities & Infrastructure Legislative timetable

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SOUTH AFRICA: AN AFRICAN WORLD CUPSOUTH AFRICA: AN AFRICAN WORLD CUPA LAND OF INFINITE POSSIBILITIESA LAND OF INFINITE POSSIBILITIES

Where else can youWhere else can you

•feel nature’s beautyfeel nature’s beauty

•experience first-world experience first-world technologytechnology

•face a fiery passion for face a fiery passion for sport, andsport, and

•live the world’s only live the world’s only political miraclepolitical miracle

GLOBAL FOOTBALL ECONOMY - U$D 360 BillionGLOBAL FOOTBALL ECONOMY - U$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

28

0

25

49

62

0 0

57

47

8

46

6

61

28

0

12

0

10

20

30

40

50

60

70

USA China Japan EU

Football

Tennis

Baseball

Basketball

GLOBAL FOOTBALL DOMINANCE - TVGLOBAL FOOTBALL DOMINANCE - TV

Country

%

PRE-1990PRE-1990 POST-1990POST-1990 20102010

GERMANY GERMANY 19741974

GERMANY GERMANY 20062006

SOUTH SOUTH AFRICAAFRICA

# 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

NUMBER OF SPECTATORS 1.7 million 3 million 2.78 million

THE 3 HISTORICAL PERIODS OF THE THE 3 HISTORICAL PERIODS OF THE WORLD CUPWORLD CUP

Global Football Economy The Event Planning Cities & Infrastructure Legislative timetable

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THE EVENTTHE EVENT

•64 Matches •32 Teams•28 – 43 Days•13 Stadia•2.78 million tkts to be sold•40 Billion TV Audience•200 Viewing Hours

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 – 2010 – South South AfricaAfrica

6464 2.782.78 333,600333,600 12.0%12.0% 89%89% N / AN / A N/AN/A

WORLD CUP TICKET SALES

THE EVENT: THE EVENT: FOOTBALL FANS SPENDFOOTBALL FANS SPEND

• Licensed merchandise

• Transport

• Meals

• Accommodation

• Entertainment

TOTAL SPECTATOR SPEND

R9.8 BILLION

Global Football Economy The Event Planning Cities & Infrastructure Legislative timetable

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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

Four Key Pillars

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

MEGA

EVENTS

ASSOCIATION

TEAMS

SOCIAL

Through improved football development SAFA will contribute to social upliftment

(e.g. skills transfer, improved funding)

First Economy

Second Economy

Social Security Net

Pres. Mbeki’s State of the Nation Address

Three Platforms• 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)

Objectives

Core response to the struggle against poverty and underdevelopment

The 2010 FIFA World CupThe 2010 FIFA World CupTMTM offers a unique opportunity for offers a unique opportunity for South Africa to advance the three Platforms set out in South Africa to advance the three Platforms set out in President Mbeki’s State of Nation addressPresident Mbeki’s State of Nation address

Expanded partnerships with government to promote growth and economic development 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

Potential Benefits to be derived from 2010Potential Benefits to be derived from 2010

Creation of new jobs and improving sustainable livelihoods More than 160,000 jobs are expected to be created from hosting the

event 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

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

Pres. Mbeki’s Three PlatformsPres. Mbeki’s Three Platforms

First Economy

Second Economy

Social Security Net

Core response to the struggle against poverty and underdevelopment

A holistic and comprehensive approach is needed to A holistic and comprehensive approach is needed to successfully stage the event which will ensure long term successfully stage the event which will ensure long term Economic ImpactEconomic Impact

Marketing, Sponsorship & Media

• Sponsor (ViK) Management• Marketing & advertising• Licensing • Rights Protection• Ticketing & Sales

— International & Domestic— Merchandise &

Accommodation Communications

• Media operations and Production• Hospitality

Venues & Infrastructure

• Venues• Accommodation• International media center• Hotels• Airports• Rail and bus stations• Conversion to municipal use• Venue services (waste, food etc)

Economic Impact

IT, Internet & Telecom Solution

• Architecture & Integration• Event systems• Internet• Hardware and software• Testing & technical rehearsals• Event network (voice and data)• Network equipment & cabling• Telephones and fax machines• Wireless

Transportation and Logistics

• Transportation infrastructure• Public transportation• Transportation planning

— Officials— General public

• Transportation operations• Warehousing and logistics• Materials management

• Direct Benefits— Event specific (Broadcast

rights, Tickets, Licensing)— Induced (Tourism, Local

Business, Tax Revenues)• Indirect Benefits

— Employment from construction, tourism, and event-related jobs

Event Co-ordination

• Sports management• Opening & Closing/other events• Visitor services• Accreditation • Volunteer training and

coordination• Officials• Cultural program• Security• General staff/management

services