World Champs Economics
Feb 1, 1999
Tom Hoad, Executive Director of the 8th FINA World Championships conducted in Perth 7 to 18 January 1998 said today that the organising committee had been successful in its request to have the world governing body meet its contractual agreement.
"They reneged after a contract was signed. We (the West Australian Sports Centre Trust) took our lawyer to Lausanne and explained the facts of life to FINA. They didn't pay willingly, but they paid."
The amount paid, $US 1 million, is believed to be minor amount from the 'buckets of dollars' FINA is understood to have received from the world television rights. So FINA were among the winners from the conduct of the 8th FINA World Swimming Championships.
Now, how did the national and provincial governments who supported the bid and the conduct of the championships fare in the winners and losers stakes. On the surface the state of Western Australia lost between $2.5 and 3 million. However, the economic impact survey on the conduct of the 8th FINA World Championships shows that there was a positive result of $69 million for the home state and the country.
But what of the future for FINA World Championships, for host cities, federations and nations. The host for the 2001 9th World LC Championships offered $US 10 million to to win the right to conduct the competitions in the four disciplines.
Japan has a population 400% greater than Australia and like the Perth hosts, they have a long history of success in the aquatic disciplines, particularly swimming. With $US 10 million to pay out up front, the Japanese federation, the municipal and prefecture governments are going to need all the financial backing they can glean from all sources.
At this time, they have not yet announced their major sponsors. The state of the Asian economy and the co-hosting of the 2002 World Soccer Championships with South Korea will not make this an easy task.