'Exorbitant' fee could deter ARU
Tue, 15 Jul 2008 08:17
The substantial fee the International Rugby Board (IRB) is seeking to host the 2019 World Cup could put off potential bidders, Australian Rugby Union (ARU) chief executive John O'Neill said Tuesday.
O'Neill said the ARU may have to seek government support to find the £120-million (US$240-million) the IRB is asking bidders to host the 2019 tournament.
O'Neill said Australia was considering bidding for the 2019 World Cup and would decide by August 15.
"The formula is somewhat a daunting one, especially with the tournament fee for 2019 being £120-million," O'Neill told The Sydney Morning Herald.
He pointed out that the IRB, as the owner of the Rugby World Cup, retained all the commercial revenue, including broadcasting and sponsorship.
"The host also has to pay for the cost of the tournament. In 2003 when we held the World Cup, the cost was 120 million dollars," O'Neill said.
"I would imagine that by 2019 you can make that figure around 300-400 million dollars. And that's on top of picking up the liability and guaranteeing to the IRB 120 million pounds.
"So in the end it could cost close to half a billion dollars to stage the event."
O'Neill said the exorbitant fee would turn a lot of countries off even considering hosting the event.
"My personal view is that there are very few countries who can put their hands up for that sort of commitment," he said.
"There's a view coming out from the success of the 2007 World Cup in France, that with the economic impact, governments will fall over themselves to write cheques for the figures we are talking about.
"I'm not sure that would be the case."
When asked by reporters if the ARU would approach the government to gauge the possibility of financial support, O'Neill said: "Australia is capable of hosting the World Cup, but it's just that the model has changed.
"When you factor in that sort of tournament fee, you've got to get the pencil out, and work out where you're going to raise that sort of money."
AFP
