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Hosting the World Cup comes with a $2.3b bill

A FUNDING brawl is looming over who will foot the $2.3 billion stadium bill if Australia's 2022 World Cup bid is successful this week.
By · 28 Nov 2010
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28 Nov 2010
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A FUNDING brawl is looming over who will foot the $2.3 billion stadium bill if Australia's 2022 World Cup bid is successful this week.

When football's world governing body FIFA published the full evaluation reports for each of the 2018 and 2022 World Cup bidders last week, it also unveiled a comprehensive breakdown of the costs required to either build or upgrade Australia's 12 designated tournament venues.

The figures, which remained a closely guarded secret until now, reveal a total of almost $400 million would be required in NSW to build a new stadium at Blacktown and revamp facilities at the Sydney Football Stadium, ANZ Stadium and EnergyAustralia Stadium at Newcastle.

While the NSW and federal governments say they are fully committed to turning the World Cup dream into a reality, The Sun-Herald can confirm neither party has dared to raise the crucial topic of funding.

A spokeswoman for Premier Kristina Keneally said: "All Australian governments would share the benefits, costs and risks of hosting the World Cup in Australia ... No further work on costing specific proposals would be undertaken by government until the bid is won."

The federal government has poured more than $45 million into the World Cup bid and at 2am on Friday FIFA's executive committee members will cast their votes.

If Australia is announced as the host, the federal government will need to decide how much of the $2.3 billion it can afford to cover and, more importantly, how that cash is distributed across the 12 projects without causing rows between the states.

Football Federation Australia architects have said $29 million will be needed to upgrade the Sydney Football Stadium at Moore Park.

While previous media reports suggested ANZ Stadium in Homebush would need a $200 million facelift to host either the opening match or the final, FFA believes the job can be done for as little as $19 million.

The two most expensive projects in NSW would be the new rectangular stadium at Blacktown, which has a $245 million price tag, and the renovation at EnergyAustralia Stadium in Newcastle, estimated to cost $104 million.

The single most expensive venue on the list is the proposed 60,000-capacity Perth Stadium, which has been earmarked to host a semi-final and would cost $670 million to build.

A 40,000-seat stadium near the Australian Institute of Sport in Canberra would cost $239 million. The upgrade planned for Adelaide Oval would require $361 million.

A spokeswoman for federal Sports Minister Mark Arbib said the federal government and all states and territories would all share the costs associated with hosting the World Cup, including the costs of stadium upgrades.

However, she said: "The exact split of costs across infrastructure and operational costs will be determined closer to the event when all requirements and timelines become clearer."

EditorialExtra, Page 12

$555m

Estimated running cost of staging both the 2022 FIFA World Cup and 2021 FIFA Confederations Cup.

3.4m

Predicted number of spectators at 2022 World Cup matches in Australia.

500,000

Number of international visitors expected to travel to Australia for the tournament (compared with 130,000 at the 2000 Olympics).

40b

Cumulative television viewing figures for this year's World Cup in South Africa (compared with 3.6 billion who tuned in to 2000 Sydney Olympics).

74,000

Number of jobs that would be generated by a World Cup in Australia.

ADELAIDE OVAL

Renovation

Capacity: 48,240

$374m

SUNCORP, BRISBANE

Minor renovation

Capacity: 49,150

$23m

CANBERRA STADIUM

To be built

Capacity: 40,150

$248m

SKILLED STADIUM, GEELONG

Renovation

Capacity: 43,584

$316m

CARRARA STADIUM, GOLD COAST

Renovation

Capacity: 40,021

$111m

MCG, MELBOURNE Minor renovation

Capacity: 88,048

$9.5 million

ENERGY AUSTRALIA, NEWCASTLE

Renovation

Capacity: 42,138

$108m

PERTH STADIUM

To be built

Capacity: 60,085

$695m

ANZ STADIUM

Minor renovation

Capacity: 82,480

$20m

BLACKTOWN STADIUM

To be built

Capacity: 40,402

$250m

SFS, SYDNEY

Minor renovation

Capacity: 40,402

$30m

DAIRY FARMERS, TOWNSVILLE

Renovation

Capacity: 40,068

$181.5m

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Frequently Asked Questions about this Article…

The article says the total stadium bill across 12 designated venues is roughly $2.3 billion. Individual estimates vary by venue — for example, Perth’s new stadium is the biggest single cost (listed at about $695 million), Adelaide Oval renovation is shown at $374 million, Canberra’s proposed stadium around $248 million, Blacktown about $250 million, and several NSW projects (Blacktown, Sydney Football Stadium, ANZ and EnergyAustralia Newcastle) together approach almost $400 million in upgrades and new build costs.

According to the article, federal, state and territory governments would share the costs, benefits and risks of hosting. However, no final funding split has been agreed — governments say they will work out exact infrastructure and operational cost shares closer to the event, and some jurisdictions have avoided detailed costing until the bid is officially won.

The article cites an estimated $555 million running cost for staging both the 2022 FIFA World Cup and the 2021 Confederations Cup. It also predicts about 3.4 million spectators at matches in Australia, around 500,000 international visitors, and an expected 74,000 jobs generated by staging the tournament.

Yes — the article warns a funding ‘brawl’ is looming. While federal and state governments say they are committed to hosting, officials have not yet settled how the $2.3 billion will be divided across the 12 projects, and the federal government will need to decide how much it can afford to cover without causing disputes between states.

Perth’s proposed new 60,000-capacity stadium is listed as the single most expensive venue in the article, at about $695 million in the venue cost breakdown.

The article notes conflicting figures: earlier media reports suggested ANZ Stadium might need up to $200 million for a facelift, but Football Federation Australia (FFA) believes the necessary work could be completed for as little as $19–$20 million, reflecting a big gap in estimates.

Yes. The article states the federal government has invested more than $45 million into the World Cup bid to date. If Australia is awarded hosting rights, the government will then need to determine how much of the larger stadium and staging bill it will cover.

A spokeswoman for the federal Sports Minister told the paper the exact split of infrastructure and operational costs will be determined closer to the event, once all requirements and timelines become clearer. The Premier of NSW also said no further detailed costing work would be undertaken by government until the bid is won.