Four World Cup 2014 host stadia have been earmarked as future white elephants by Brazil’s ‘Accounts Tribunal of the Union’. The federal body, which oversees the administrators of public funds, released a report in July warning that the stadium projects for Brasilia, Cuiaba, Manaus and Natal are at risk of losing money following the 2014 Cup, with all four locations lacking a strong football tradition.
Specifically, the tribunal stated that the earning potential of each project is not considered sufficient to cover the cost of ongoing maintenance, and that none are likely to provide a return on investment.
Defenders of the four projects, particularly those in key tourist destinations (Cuiabá – The Pantanal, Natal – northeast beach resort region, Manaus – the Amazon), have cited untapped non-football revenues, such as from concerts and other entertainment possibilities, as the rationale for the investments; critics argue that such multi-purpose facilities are untested in Brazil and are too risky. The Brasilia project, in the nation´s capital, is considered too large (60,000+ capacity, mainly to compete for the opening ceremony) to be sustainable in the long run.
The combined cost of the four projects currently sits at R$1.94 billion, all of which will be financed by the government, with up to 75% to come from the Brazilian National Development Bank on favourable terms.
For the other eight 2014 host stadia projects, the tribunal labelled four as essentially risk-free thanks to strong existing demand led by football usage (Belo Horizonte, Rio de Janeiro, São Paulo and Porto Alegre), while the other four are considered to have a good chance of recuperating their respective investments (Curitiba, Fortaleza, Recife and Salvador).