Economic crunch unlikely to impact FIFA

FIFA is confident that the current global economic crisis will have a minimal impact on the organisation as well as the 2010 World Cup in South Africa.

Speaking at the pre-draw press conference for the 2009 Confederations Cup in Johannesburg today, the world governing body also stood by its decision to fix the rand-dollar exchange rate at R7, despite the current rate trading in excess of R10.

“We are not afraid even though we recognise there is a financial crisis,” secretary general Jerome Valcke told a press conference at the Sandton Convention Centre.

“We are glad that it has not touched FIFA because we are very old women and we are very careful with the use of our money. We are not Swiss for nothing.

“We are still a safe company. We recognise that it will impact on many businesses, but sport is one of the safe businesses today.”

Regarding the September rate verdict, Valcke pointed out that it was a decision that had to be taken, highlighting that FIFA had in fact scored with the current turn of events.

“There is never a good day for an exchange rate,” he continued. “You know that we are transferring money to the LOC in South Africa and when the exchange rate was just below R10, we decided to immediately change 200 million into rands in order to gain some money.

“So we gained R400 million into the budget for the LOC and it definitely added value for them.”

Danny Jordaan, chief executive of the Organising Committee (OC) was equally bullish about the markets, adding that it could work in the country’s favour.

He said: “We did not in the first place calculate that we’ll have a high number of foreign fans coming to the event to support the teams.

“We’re going to run a very strong focus campaign in getting South Africans to fill stadiums. And that was a decision taken long before the issue of the global economic crisis.

“Indications are that in the second quarter of 2010, there will be an improvement in the economic situation in the world. As things stand at the moment, even if you accept that people will have fewer dollars in their pockets, those dollars will still buy more rands.

“So that could also have an impact that people may still travel because the destination will become a cheaper destination as a result.”

The draw for the eight-team Confederations Cup, featuring the six continental champions along with world champions Italy and hosts South Africa, takes place on Saturday evening.