World Cup Brazil 2014

A few weels ago, FIFA officially informed that “Morumbi stadium is excluded from the 2014 FIFA World Cup“. That same note estates that  the “City of São Paulo sent recently to the LOC a sixth project, which will not be examined as it has been received long after the deadline.

Today, Morumbi is the second biggest stadium in Brazil, second only to Maracanã (for 2014, if the respective projects go as planned, other stadia could be bigger than Morumbi, such as Beira-Rio). The stadium belongs to Sao Paulo FC, and for a long time it was the biggest private stadium in the World.

Why then Morumbi, which was claiming to host the opening match of the World Cup, was excluded from the event? The answer is, basically, money.

São Paulo FC owns the stadium, and should pay most expenses to adapt the venue to meet FIFA requirements. It was estimated that it would take R$ 650 million (about US$ 350 million) to implement the design presented to FIFA (the sixth project mentioned by FIFA was an attempt to reduce the cost to R$ 265 million, or about US$ 150 million). It looks like Sao Paulo FC double checked the numbers, and decided that the investment was not worthy.

The public stadiums don’t suffer the same problem, because the Federal Government opened generous credit lines to finance the building or restoring of stadiums; the Governments taking the loans still have to provide collaterals, but Governors don’t hesitate in taking the money – for the World Cup brings immediate political gains, whereas the debts will be paid in the distant future. São Paulo FC and the owners of the other private stadia talked to the Federal Development Bank about loans, but they didn’t get into agreement.

The Governments  of São Paulo (both the State and the city) were not much enthusiastic about pumping money into the project, either. Besides adapting the stadium, FIFA requires extensive changes in the neighbourhood, such as more transportation, more parking space, more and wider access streets – and all of this is incumbent to the Governments.

Morumbi is one of the poshest quarters in Sao Paulo, and the Governments knows that any infrastructure intervention here is very expensive. Both the State and the city of Sao Paulo are ruled by the same Party coalition (more to the right wing than the Federal Government), and they often say that spending money with basic health and education could be wisere than funding the World Cup – the Mayor of Sao Paulo is in South Africa, and declared that “if Sao Paulo can’t host the matches, so be it”.

It is not a coincidence that, along with Sao Paulo, Curitiba is the host city which causes most preoccupation to CBF. The stadium of Curitiba, Arena da Baixada, is also private owned, and the city is also known for being a wise spender of public money. And it will be no surprise if Beira-Rio, in Porto Alegre (the third private owned stadium), also becomes reason of concern soon.

This entry was posted on Thursday, July 8th, 2010 at 6:04 pm and is filed under cities, infrastructure, stadium.