Tournament ran over budget due to additional investment in football development, but the World Cup is expected to provide a $6 billion boost to the South African economy
The Associated Press said the ‘2010 FIFA World Cup Country Report,’ detailed that $1.1 billion was spent on building and redeveloping stadiums alone.
However, transport infrastructure was the biggest cost, with $1.3 billion assigned to improving road, rail and air links and a further $392 million on the country’s main ports of entry.
Although the report failed to include any official figures on revenues earned by hosting the World Cup, it added that the tournament had left an intangible legacy of pride and unity among South Africans and had changed the country’s image as undeveloped, crime-ridden and dangerous in the eyes of the rest of the world.
A mid to long-term projection from risk analysis and finance company Grant Thornton stated the World Cup is expected to provide a $6 billion boost to the South African economy.
FIFA in January stated that it expects the 2014 World Cup to help generate profits of $1.2 billion for the organisation over the 2010-14 financial cycle, almost double the figure achieved from South Africa’s tournament.
FIFA made a profit of $631 million over the four years leading up to South Africa’s World Cup, with 87% of its $4.19 billion turnover generated by the tournament itself.
FIFA’s financial report for the period confirmed that expenditure over the four years was $3.56 billion, $105 million over budget due to additional investments in football development and a $31 million overspend on the 2010 World Cup.