World Cup cities want Fifa cash

South Africa's nine Fifa World Cup host cities are demanding an estimated R500-million that they claim Fifa owes them.

Durban city manager Michael Sutcliffe told The Times yesterday that the host cities had been "engaging" with Fifa for at least three years but were still waiting to be paid for work done in the run-up to the tournament.

Host city contracts with the world soccer body state that the cities are entitled to 10% of World Cup ticket sales.

"Fifa also has to pay a rehabilitation fee, which was used to rehabilitate different areas. In Durban's case, it was the area outside the stadium known as People's Park," Sutcliffe said.

"Fifa also owes us money for additional work on stadiums, which they requested." He said Durban had sent "letters of notice" to Fifa, and was considering legal action.

"There will come a time very soon when letters will not be enough and we will be forced to go the legal route," he said.

The Times understands that Fifa owes the host cities about R500-million in total.

Before the tournament, local organising committee chief Danny Jordaan said Fifa set a revenue target of $3-billion for the event. He could not be reached for comment yesterday.

The host cities' demands are being made as stadiums built for the soccer tournament are under threat of becoming white elephants.

Cape Town yesterday announced the collapse of its 30-year lease with stadium operator Sail Stadefrance Operating Company.

It cost R4.4-billion to build Cape Town stadium.

Morné du Plessis, executive chairman of Sail Stadefrance, said his company had analysed market trends and operating costs and had found that it would incur major losses if it entered into the lease agreement with the city.

The company's shareholders were not prepared to sign the deal with the city "under circumstances that projected substantial losses", he said.

Du Plessis refused to reveal figures and neither would the city.

Yesterday, Cape Town municipal spokesman Kylie Hatton said: "Granted, there might be costs involved with running the stadium. There could also be many opportunities."

Durban's Sutcliffe admitted that sustaining the stadiums was not an "easy challenge".

"At the moment, we are trying. I think for now we can say that we are doing the best we can," he said.

The sky-car at Durban's R3.4-billion Moses Mabhida stadium began bringing in money months before the tournament and is still profitable.

The stadium has hosted Premier League Soccer matches and concerts.

A Twenty20 cricket match between South Africa and India will be played there in January.

But it remains to be seen whether the local Sharks rugby team can be persuaded to leave its home at the neighbouring King's Park stadium.

"We are still engaging with the Sharks and hope that in the next few months we will have an answer," Sutcliffe said.

Reuters reports that Jordaan, when speaking at the Leaders in Football conference in the UK on Wednesday, said that eight of South Africa's 10 World Cup stadiums would flourish.

But, he said, Polokwane's Peter Mokaba and Nelspruit's Mbombela stadiums would "struggle to be sustainable".

Polokwane 2010 communications and marketing manager Mantlako Sebaka agreed.

"We do have challenges at the Peter Mokaba stadium but they are not insurmountable," he said.

There were "battle plans" in place to keep the stadium busy and profitable.

Sebaka said Polokwane 2010 was at "advanced stages of negotiations" with the Blue Bulls and the SA Football Association to rent offices there.

"We are also at an advanced stage of talks with Mamelodi Sundowns, Kaizer Chiefs, Moroka Swallows and Supersport United to host home games here, and league games," said Sebaka.

Nelspruit 2010 marketing, events and communications manager Ronny Moyo said: "We don't have a team that has signed with Mbombela stadium yet. It is not a challenge as such, but it is a cause for concern.

"What we are doing is to approach the PSL and request that some games be held here."

As managers of other stadiums report being involved in sensitive negotiations with local rugby unions to use their facilities, Western Province Rugby Football Union boss Theuns Roodtman said Western Province were determined to stay at Newlands, which they own, and not move to Cape Town stadium.

"The [Western Province] clubs took a decision in 2008 to stay at Newlands and nothing's changed," Roodtman said.

Amid speculation that the Golden Lions Rugby Union would move to the 94000-seat FNB Stadium, the union's president, Kevin de Klerk, said: "It's not on our agenda at this time. Though the Test [between the Springboks and the All Blacks] went well and people got excited, the stadium is a sensitive issue that involves fans, suite holders and other stakeholders - so it's on the back-burner."

One of the few successful stadiums is Rustenburg's Royal Bafokeng.

With an annual operating budget of R5.5-million, and with 22 matches to be played there by the end of the year - including six World Cup games, 12 Platinum Stars games in the PSL, four Platinum Leopards Currie Cup matches and local athletics meetings - no cash problems are expected.