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S.Africa’s World Cup hosts say FIFA owes them money

SoccerNews in World Cup 8 Oct 2010

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South Africa’s World Cup host cities say FIFA still owes them money, with one city manager threatening Friday to “go to the next step” if the world football governing body does not pay up.

Michael Sutcliffe, city manager for east coast host city Durban, said Friday that FIFA still owes the city a promised 10 percent share of ticket revenues and reimbursement for work the World Cup organiser requested.

“We need to be paid very urgently,” Sutcliffe told AFP.

“We have negotiated for two years. We are ready to go to the next step. FIFA did not give us anything.”

Sutcliffe said besides the 10-percent share of ticket revenues agreed before the tournament, FIFA still owes the city money for expenses related to post-tournament clean-up, electricity, water and additional requests on the new 3.4-billion-rand (494-million-dollar, 355-million-euro) Moses Mabhida Stadium.

“There was some additional work they have to pay for,” he said, but would not give details of the city’s negotiations with FIFA.

The Times newspaper reported that the country’s nine host cities are all demanding payment of money they say the football governing body still owes them, totalling 500 million rands.

FIFA distanced itself from the dispute Friday, saying it was between the cities and the South African organising committee.

“This is a matter between the Local Organising Committee and the host cities. FIFA has therefore no comment to make,” the organisation said in an e-mailed statement.

The local organising committee said it plans to honor the revenue-sharing agreement and will begin meeting with host cities next week to resolve any outstanding issues.

“The ticketing revenue figures are currently being audited, and once that process is completed, (the cities) will receive the 10 percent of ticket sales as per our agreement with them,” chief organiser Danny Jordaan told AFP.

“We’ve set up meetings with each and every host city starting next week. The financial situation or the issues for each host city and each stadium is different. We will handle all issues on a case-by-case basis.”

South Africa’s host cities poured 11.7 billion rands (1.5 billion dollars, 1.2 billion euros) into 10 stadiums, including five built from scratch, to host Africa’s first World Cup.

But with the fanfare over, city officials are concerned the stadiums will become white elephants, with Durban, Cape Town, Polokwane and Nelspruit all struggling to find long-term uses.

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