New report shows World Cup cash benefits - Sports News - Fanatics - the world's biggest events

New report shows World Cup cash benefits

23/10/2008 07:17:09 AM Comments (0)

Nations looking to stage the Rugby World Cup in 2015 or 2019 could earn their respective economies as much as STG2 billion ($A4.94 billion), according to a new report.

Australia, South Africa, Japan and Italy together with Wales, Scotland and Ireland, have expressed an interest in hosting both tournaments.

England, who lost out in the race to stage last year's event, are now concentrating on a bid for 2015.

The Sports Business Group at leading accountancy firm Deloitte was commissioned by the International Rugby Board (IRB) to prepare a report into the potential economic impact of a World Cup.

They found staging the event could yield up to STG2.1 billion ($A5.19 billion) for the host nation.

Attendances at the 2007 World Cup in France topped two million, which provided a direct boost to the travel and leisure industries.

The report also found a government in the host nation might receive as much as STG100 million ($A246.97 million) in sales taxes alone.

IRB chairman Bernard Lapasset said: "Rugby is a sport that has an ethos almost unique in the modern sporting environment that includes traditions such as large numbers of travelling supporters, sportsmanship, and social and business networking.

"Add this to elite performance on the field and it makes Rugby World Cup very attractive to any potential host nation," the Frenchman added.

"The report confirms that the tournament is now the third biggest in the world in terms of spectator attendance and the influx of international visitors."

But the World Cup is not always a straightforward money-spinner.

The 2011 edition was controversially awarded to the New Zealand Rugby Union, home to one of the sport's traditional powers, instead of Japan, a potentially better economic prospect.

Organisers in New Zealand are projecting a possible loss of STG10.7 million ($A26.43 million), which has been labelled a potential "disaster" for the global game in a report called Putting Rugby First, co-authored by Quentin Smith, the chairman of English Premiership side Sale.

However, 2011 Rugby World Cup chief executive Martin Snedden said much of the loss would be covered by the New Zealand government.

"The NZRU went into this knowing the financial situation, but out of this they're getting some great stadiums for the future," he explained.

The IRB will announce the hosts of the 2015 and 2019 World Cups in July next year, the first time two sets of host have been appointed at the same time.

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