Debt could derail Dubai's big-money events

Reuters

SEVENS UP: New Zealand players celebrate with the trophy after beating Samoa in the final of the Dubai Sevens, the first round of the IRB's World Sevens Circuit.

Reuters

GOLF WIN: South Korea's Kim In-kyung holds her trophy after winning the Dubai Ladies Masters European Tour golf tournament in Dubai.

Reuters

SANDY SUCCESS: Brazil's players hold up the trophy after winning the final of football's Beach World Cup against Switzerland in Dubai.

Reuters

LEE LEADS FIELD: Lee Westwood of England celebrates his trophy for the Race to Dubai after winning the European PGA golf tournament in Dubai.

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Dubai's ability to host big-money events in tennis, golf, rugby and horse racing is coming under scrutiny as the emirate struggles with massive debt.

Many wonder whether the Persian Gulf sheikdom can afford to continue bankrolling high-profile events that offer lucrative prize money.

"I suspect there could be slight cuts in prize money," said Sean Ennis, a professor of sports marketing at the University of Strathclyde in Glasgow, Scotland.

Dubai could attempt to re-negotiate its initial commitments to some events, particularly in golf, Ennis added, but "my gut feeling is that the upcoming tournaments will go ahead as planned."

Dubai has worked hard to build itself into a financial power, pouring billions into tourism, entertainment and sports. The buildup has raised Dubai's international profile and led the emirate to consider bidding for the 2020 Olympics.

The sports boom even attracted Tiger Woods to Dubai - to play and invest in a course bearing his name.

The 18-hole, par-72 course was designed by Woods and became one of Dubai's best-known sports projects. The first phase of the US$1 billion layout was set to open by the end of the year. However, months before Woods' personal life unraveled, his business dealings with Dubai stalled. The opening was delayed for at least six months, with Woods declaring in June it was all "out of my hands."

Dubai's inability to pay for its opulent skyscrapers and artificial islands built on borrowed money has led to doubts that Dubai can afford to complete other ambitious projects.

Dubai poured millions into sports infrastructure in the past decade, including building the Sports City - a cluster of large venues that will stage sports and entertainment events. It also has academies for golf, tennis, football, rugby, cricket and swimming.

In April, a US$120 million cricket complex with seven fields and 25,000 seats was opened. A field hockey stadium for 5000 spectators is planned to open in 2010 along with a 60,000-seat outdoor stadium for rugby, football, and track and field. A 10,000-seat indoor venue is scheduled to be completed soon after.

The debt crisis put a question mark over Dubai's ability to continue staging the world's richest horse race - the Dubai World Cup - and hosting lucrative ATP and WTA tennis tournaments and European Tour golf events.

Dubai sports officials did not respond to requests by The Associated Press to confirm the status and prize money of the upcoming events.

The Dubai Desert Classic golf tournament is scheduled to begin February 1. Woods, who is taking an indefinite break from golf to try to repair his marriage, was scheduled to play the event again in 2010. He has played the Dubai tournament eight times and won twice.

The prize money for WTA and ATP tournaments have not been made public so far. Organisers of the upcoming Dubai Marathon, however, are offering the winner a US$1 million bonus - on top of a US$250,000 prize - for breaking the world record.

Earlier this week, neighbouring Abu Dhabi injected US$10 billion into Dubai's battered economy, sparing the emirate the humiliation of a potential default by its main development engine, Dubai World.

"There might be strings attached and Abu Dhabi might insist Dubai cuts spending in certain areas, including sports," Ennis said.

In an interview with the AP today, the general secretary of the Abu Dhabi Sports Council said that Abu Dhabi had no desire to replace Dubai as the Gulf's sports hub.

"We're talking about international competitions, and we are representing the UAE, not individual cities," Mohammed Ibrahim al-Mahmood said. "It doesn't matter if it's Dubai or Abu Dhabi - both will continue to be important destinations."

Al-Mahmood also said there will be no changes in the prize money for tournaments in both emirates and added that "all our events are on as planned."

Last month, Abu Dhabi hosted its first ever Formula One race. This week, it is hosting the Club World Cup, a tournament featuring the club football champions of each continent and the host emirate.

- AP