Thulas Nxesi. Picture GALLO IMAGES
Thulas Nxesi. Picture GALLO IMAGES

The Cabinet has had given its go-ahead for SA to bid for the 2023 Rugby World Cup‚ Communications Minister Ayanda Dlodlo announced on Thursday at a media briefing in a post cabinet media briefing.

The Cabinet will be asked to underwrite a R2.8bn tournament hosting fee so SA can buy the rights to host the event should its bid succeed.

It will also be asked to underwrite the operational and capital budget.

The government will also be asked to underwrite the operational and capital expenditure for hosting the event‚ which has been estimated at £415m pounds‚ which.

The South African Rugby Union (Saru) hopes the expenditure will be recovered from sponsorships‚ broadcasting‚ ticketing and merchandising.

SA will be bidding against France and Ireland and will be arguing argue that it can offer an event at a third of the price of its rivals.

An interministerial committee has been established to drive SA’s bid and to ensure that the country benefitsed economically from the event.

Dlodlo said that SA already had the necessary infrastructure and would not have to spend more to host the tournament.

The Cabinet was aware of the spin-offs of hosting the games, especially to stimulate the economy — and in particular the tourism and hospitality industry in particular.

Sports Minister Thulas Nxesi‚ who was also present at the media briefing‚ said SA had a proven track record in hosting international sporting events and that the stadiums were ready.

Saru will be bound to transformation targets ahead of 2023.Dlodlo said Cabinet had approved the overall proposed package for Rugby World Cup‚ which she said was an economic bid which would "minimise the demands on the fiscus as well as stimulate economic activity‚ employment and empowerment. The tournament will contribute to stimulating our economy by supporting government priorities‚ especially as it relates to preferential procurement and adherence to the sport transformation charter and the sharing of the profits derived.

"This will once again afford SA an opportunity to showcase the country to the international community‚" Dlodlo said.

"SA has previously hosted world-class events such as the All Africa Games‚ Cricket World Cup‚ 2010 Fifa World Cup and many international conferences. We have learnt from these past experiences, particularly the costs overruns and collusion which accompanied 2010."

Meanwhile, France, having all but secured Paris hosting rights for the 2024 Olympics, are is now pulling out all the stops to stage the 2023 Rugby World Cup.

They are It is trying to dazzle World Rugby with their its significant financial muscle and have has secured two guarantees totalling more than €400m Euros (R6.2 billion)‚ well in excess of what the game’s governing body has set as a prerequisite.

The first guarantee‚ as assured by their government‚ totals €171m Euros (R2.6 billion)) for the right to organise the tournament. The organisers stress that it the money does not come out of any public finance budget and that they would will not be required to make any early payments.

They claim the tournament fee will be more than adequately covered by projected revenue of €477m. Euros (R7.49 billion).

Ticket sales alone‚ they forecast‚ will rake in €373m. Euros (R5.86 billion).

The second guarantee has been provided by a private bank, which will cover the tournament hosting fees, which totals €236m. Euros (R3.7 billion).

"These two commitments lend even greater credence to the bid put forth by France‚ which presents the most attractive and secure economic offer‚ to the benefit world rugby‚" said Claude Atcher‚ director of the #FRANCE2023 French bid.

The bid organisers said that these financial commitments gaves World Rugby "firm‚ unconditional and irrevocable financial guarantees".

When their its bid book was presented to World Rugby at the end of May‚ SA Rugby said in a press release that hosting the 2023 World Cup would inject R27.2bn into the local economy.

They It then also indicated that the bid was made up of 827 pages and that it weighed 8.2kg, but there was no mention of what they it would pay World Rugby.

Ireland‚ who are which has yet to host the event‚ are is also in the running, but their its ability to sell tickets is limited compared to with that of SA and France.

Attempts to speak to SA Rugby president Mark Alexander were unsuccessful. TimesLIVE"As a result of this government refused to sign an open-ended blank cheque which led to SA withdrawing its bid to host the Commonwealth Games."

Dlodlo said the programmes to be rolled out throughout the country leading to 2023 would leave a lasting legacy for the development of rugby in underprivileged communities.BusinessLIVE

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