Soccer: Government funding key

Oceania under-20 champions NZ may not host the world cup in 2015. Photo / Getty Images

Organisers of the Under-20 World Cup are seeking $4 million in Government funding as part of a $20 million budget for the event.

There's a great deal of nervousness around staging major events in this country, especially with the projected losses from this year's Rugby World Cup - largely picked up by the taxpayer - and the $2.3m deficit from last year's rowing world championships.

New Zealand in March won the hosting rights for the 2015 Under-20 World Cup, considered by Fifa the second most important event in world football behind the men's World Cup, but won't be able to do it without Government funding.

The bid team, led by New Zealand Football, estimated the tournament would cost $19.8m to stage, with $5.5m coming from Fifa, $8m from ticket revenue, $4m from the Government and the rest from local sponsorship. Organisers are presently reviewing those figures and expect them to rise to as much as $22m but are adopting a conservative estimate of projected income that is likely to overtake those costs.

"We are all aware of financial issues around major sporting events in New Zealand and the fact people have forecast outcomes and the outcomes don't happen, which means a lot of people get embarrassed," Under-20 World Cup interim project manager Peter O'Hara said. "There's a keen drive to be conservative [in estimating revenue].

"All parties are nervous. There has been a lot of experience gained in recent times at sporting events that have made people sceptical and cautious about economic impact reports that project revenues. We all want to under-promise and over-deliver.

"I don't think the event will happen [if we don't get Government support] because Fifa, as part of all their age-group tournaments, look for Government support and the Government know that. I don't have any doubt they will support us."

The numbers are persuasive. Figures from the 2007 (Canada) and 2009 (Egypt) Under-20 World Cups suggest more than 450 million viewers globally will watch the event, more than this year's Rugby World Cup, which presents significant trade and tourism opportunities.

An economic impact report done by Covec has also projected $26m to flow into the New Zealand economy from overseas visitors.

It has not yet been established who will pick up the bill if the event falls short of budget expectations. Fifa underwrote the 2008 Under-17 Women's World Cup in New Zealand by $1m and could do the same for this one as well. Otherwise it could fall on NZF's shoulders.

"New Zealand Football does not want to be in that situation," O'Hara said.

The Ministry of Economic Development declined to comment on the application for assistance. A decision is expected from them in October.

Sparc have been helping NZF put together their application for Government money and CEO Peter Miskimmin said he hoped it was something the Government would support.

"This will be big for New Zealand and big globally," he said. "With these things, you can't assume anything [like Government funding] but it ticks all the right boxes. It's a great opportunity to showcase New Zealand to the world.

"It will be a large event for this country but it has the backing of Fifa and they will bring their expertise and money. Fifa are very confident New Zealand can deliver and want it here."

O'Hara last week wrote to 13 city councils inviting them to submit tenders to be host cities for the tournament. They are the same 13 originally selected for the Rugby World Cup - Whangarei, Auckland, Hamilton, Tauranga, Rotorua, Napier, New Plymouth, Palmerston North, Wellington, Nelson, Christchurch, Dunedin and Invercargill.

Six are likely to be successful - one for each of the six groups in the tournament - although organisers would consider eight if there were enough bids of sufficiently compelling quality.