Spending up on facilities

Sport Business News

Highlighting once again the sheer spread of sporting infrastructure development occurring right around Brazil, a new report at the end of September 2010 has detailed how over R250m that is not directly linked to FIFA World Cup 2014 preparations is being spent on other facilities across the country.

According to the report, by Brazil's Folha. com site, at least five non–2014 FIFA World Cup host cities – Vitãria (ES), São Luís (MA), Maceiã (AL), João Pessoa (PB) and Campina Grande (PB) – have already committed public funds to stadium projects, justifying the spend on the lure of hosting lead–up friendlies or becoming the base camp of one of the competing nations in 2014. The spate of works is being called a new 'boom' in Brazilian sporting infrastructure development, similar to what occurred in the 1970s when many of the country's existing football stadia, including most of those currently being redeveloped, were erected. Governments and private groups from hundreds of other Brazilian cities are also studying the best chances to attract tourism, sub–hosting and associated business opportunities stemming from the 2014 FIFA World Cup. Meanwhile, in a development that shows both the growing wave of support for Olympic sports in Brazil as well as an important source of investment for sporting projects across the country, the Minas Tennis Club in Belo Horizonte has just finalised two new funding arrangements involving the Brazilian Ministry of Sport's 'Incentive for Sport Law'. The club has utilised the law to create two new programmes: 'The Establishment and Development of Athletes through Sport Science' and 'The Fiat and Minas Tennis Club Olympic Swimming Project/Rio 2016'. Together, the projects will benefit over 900 athletes and cost $11. 5m, much of which will come by way of the innovative regulation. In effect since August 2007, the Incentive for Sport Law is aimed at encouraging greater support of sport by the private sector by allowing companies and private donors to sponsor a wide range of approved sporting entities, programs, facilities and activities in return for significant tax deductions. To take advantage of the law, sporting organisations must apply to the Ministry of Sport to be included in the annual list of approved projects, which can be viewed by anyone through the Ministry website, with sponsors and donors then choosing what they would like to support and going through their own application process. The funds then go directly to the owners/supervisors of the project. Approved projects are many and varied, in general incorporating athletes and teams without other sponsorship and sporting disciplines with little support. Since the beginning of the programme in 2007, sponsorship and donations of R250m have been captured through the programme out of a possible R941m in approved projects, with close to a 40% increase in funds captured from 2008–09. After certain restrictions and limits have been applied, the Ministry estimates that the maximum amount possible through the programme is a not insignificant R300m per year. About Simon TarmoA journalist from Sydney, Australia, and co–founder of industry journal Australian Sponsorship News, Simon Tarmo now lives in Belo Horizonte, Brazil. Having worked on a range of writing, research and trade projects across a number of industries including sport, entertainment and wine, he is currently focusing on business opportunities involving the 2014 World Cup and Rio 2016 in Brazil. With fluent Portuguese language skills, he has an extensive network of contacts throughout Brazil and can advise and assist foreign groups doing business in the country. More details http://simontarmo. blogspot. com/ ~ Simon Tarmo+55 31 9196 0069simon@pando. com. auhttp://simontarmo. blogspot. com/

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