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Hosting could prove costly for Ukraine

  • Reuters, Wednesday, May 30, 2012 2:03 AM

Ukraine may never recover all of the billions of dollars it has spent to co-host the European Championship and the outlay might complicate its chances of servicing its debt, reports Natalia Zinets.

The mathematics of financing Euro 2012, being co-hosted with Poland, are crucial for a country that faces $11.9 billion in debt obligations this year. Staging Euro 2012 -- absorbing a total of $13.4 billion including $6.6 billion from state coffers -- is unlikely to make the former Soviet republic any more inviting for foreign investment, analysts say.

"In effect, the (state) budget took on the additional debt burden and taxpayers for many years to come will be paying for the Euro soccer holiday," said Erik Nayman at brokerage Capital Times.

Analysts at analytical group Da Vinci AG forecast financial losses suffered from hosting the championship could total between $6 billion and $8 billion. "Ukraine will not receive any financial income or significant economic impact from co-hosting the Euro 2012 championship," Da Vinci AG's Andriy Kolpakov said.

Read the whole story at Reuters »

1 comment about "Hosting could prove costly for Ukraine".
  1. Carlos Thys, May 30, 2012 at 2:29 p.m.

    This once more shows why one cannot turn an "in the shadows" country for a sport suddenly into the limelight. FIFA and UEFA are both guilty completely of passing the financial burden right into the laps of every day citizens in Poland and the Ukraine. Soccer America, I know that you are just pulling this story off the "wires" and re-posting it here. But please never refer to state budgets or state money. What exactly is that? Only Erik Nayman of Capital Times got it right in this article -- the burden is on the citizen taxpayers as we have seen in Portugal 2004, Austria in 2008, South Africa 2010. It is the working citizens who pay for these through taxation and over-taxation for years. This practice of "let them eat cake" from UEFA and FIFA probably dates back to at least Mexico 1986. You are in California. If ever there was a place that ought to understand how lunatic governmental plans (Sacramento) saddle the taxpaying citizens for decades to come, it is you. In essence, it is why FIFA should have chosen England over Russia (for many reasons, not just the taxpayers) to host in 2018. Question: When will Soccer America send an intrepid reporter to South Africa to check out four years later how or in what ways hosting the 2010 fiasco 'concretely' benefited South Africans?

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