NZ taxpayers handed World Cup bill
Sat, 17 Oct 2009 08:44
Taxpayers will be expected to make up most of the projected NZ$40 million (US$30 million) loss the New Zealand Rugby Union will incur in hosting the 2011 World Cup, the tournament's chief organizer said Saturday.
Organizing committee head Martin Snedden said expected losses on the tournament had risen from NZ$30 million (US$22 million) to NZ$39.3 million (US$29.7 million) because of a decline in projected ticket sales.
The New Zealand government has agreed to meet two thirds of the deficit while the NZRU will pay one third from its own financial reserves.
Under the hosting agreement for the World Cup, the International Rugby Board takes all revenues from broadcasting contracts, advertising and sponsorships while the host nation is expected to meet the cost of staging the tournament from ticket sales.
Tickets go on sale in April and, though prices have not yet been announced, a ticket to the final at Auckland's Eden Park is expected to cost as much as NZ$750 (US$565).
Snedden said a decision to play Cup matches at 13 venues, rather than 10 as first intended, meant several smaller stadiums would be used, reducing the number of available tickets.
Eden Park will be the largest stadium used for the tournament, with a capacity of about 60,000.
Snedden said he expected around 1.5 million of the 1.7 million available tickets to be sold, with about 1 million being bought by New Zealanders.
SAPA-AP
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