Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

Community

Share knowledge. Find answers. Ask questions.

Online Share Trading

Engage and learn about markets and trading online

world cup to break even

Reply
Highlighted
Valued Contributor
0 Kudos
10 REPLIES 10
Highlighted
Super Contributor
Those figures do not include spending by host cities and provinces, which bring the overall bill closer to 40 billion rand. It all sounds a bit optimistic. However, there will be longer term benefits.
0 Kudos
Highlighted
Valued Contributor
ya, with income beign R38bil .. considering everybody tellign us that it was goign to cost tens of billions, but now seems maybe only a few billion ??
0 Kudos
Highlighted
Super Contributor
Also, it's ignoring the multiplier effect. Each rand given to some worker will move around the economy as it's re-spent. It doesn't disappear unless it goes overseas, and not all of it was. Consider the whole exercise a good way to inject money into the economy instead of giving it to Goldman, like the U.S. did. We get a shiny train and wider roads. Goldman gets a weekend in the Hamptons and a new Ferrari.
0 Kudos
Highlighted
Regular Contributor
I also read we got 33000 new police - permanently. The best perk of the WC in my books!
0 Kudos
Highlighted
Super Contributor
Now to see if these new cops go out and get the real criminals or end up criminalising the general population coz its much easier!
0 Kudos
Highlighted
Super Contributor
Lol...only if the event generates R40bn in actual tax revenues can it be deemed to "have broken even" financially. The headline is mere obfuscation to keep 5.5m taxpayers compliant and misinformed and is disingenuous at best. If correct, South Africans wouldn't have been required to soon start paying for toll roads or for ACSA to be granted a 100% tariff increase over the next 3 years. The ongoing maintenance of the various stadia will also be for the account of the relevant ratepayers. "Most of the income from the tournament, however, goes to football's ruling body FIFA, which is on course to gross 3.2 billion dollars from the World Cup" - the real winner therefore unless your are a pharmacist..and confuse the gross value of transactions i.e. turnover with income. Rather just be honest and focus on the so-called "soft" benefits, while they last as we evidently lack the rudimentaries of either economics or accounting. For a more fundamental insight, see http://www.economist.co.za/images/the%209th%20south%20african%20employment%20report.pdf
0 Kudos
Highlighted
Regular Contributor
Y the poor Pharmacist?
0 Kudos
Highlighted
Super Contributor
What a ludicrous statement for Gordhan to make.As topgun rightly points out,the man is confused between revenues and net income,and surely as our minister of finance he should understand this difference.The tax revenues from this event will be minimal compared to the outlay.If any praise can be made out of this WC it should be towards the ever compliant tax paying sector of our population.
0 Kudos
Highlighted
Valued Contributor
nah .. Gordhan is looking at the big picture rather then staring into the bottom of his wine glass wondering how to put a negative spin on a hugely successful WC ..
of course it is not direct income to the goverment coffers, it is the overall net effect ..
0 Kudos
Highlighted
Super Contributor
Sure - speak to the Greeks about the overall net effect of hosting a big sporting event ...
0 Kudos