Brazilian oil revenue sharing bill casts new shadow on 2014 World Cup and 2016 Olympics

Thursday, 08 November 2012
By Andrew Warshaw

rio 08-11-12November 8 - The 2014 FIFA World Cup and 2016 Olympic and Paralympic Games have come under fresh pressure because of new legislation that would seriously slash Rio de Janeiro's revenues and therefore its ability to stage the competitions.

A bill passed by Congress would share out oil revenues equally among Brazil's 27 states, with Rio, which has been experiencing an oil-led boom, standing to lose about $2 billion (£1.3 billion/€1.6 billion) in 2013 and $39 billion (£24 billion/€31 billion) by 2020 according to state officials.

State Governor Sergio Cabral warned both major sporting events would be in serious danger if the new bill goes through.

"It's absolutely not viable," he said.

"The state would have to close its doors.

"There would be no Olympics, no World Cup."

Brazil's President Dilma Rousseff has not decided yet whether to sign or veto the bill.

Already, congested airports, insufficient public transport and constant stadium delays have raised concerns about Brazil's readiness to hold the World Cup in two years' time.

Contact the writer of this story at andrew.warshaw@insidethegames.biz
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