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3.6.1 Each subseat must have an airport, the construction and security of which must answer IATA specifications. Moreover, it must have landing capacity for jet traffic.

3.6.2 Existing rail connections between the subseats.

3.6.3 Existing road connections between the subseats

## 3.7 Price Politics

Prices for hotels and other accommodation for all people accredited by FIFA shall be frozen as from 1.1.86. It shall equally be established by governmental decision that rooms must only be paid for the number of days of effective use.

3.8 Guarantee for the playing of national anthems of the participating teams and the hoisting of the respective national flags.

3.9 State Taxes

Guarantees that state, provincial and municipal taxes on gate receipts must not exceed a total of maximum 15%.

3.10 Guarantee that organisations in charge of domestic sales shall not demand more than a 10% commission on ticket sales.

These 10 points show that prior to a FIFA World Cup, a country's government must take a series of decisions of national importance. Thus, special laws, orders or decrees must be promulgated to guarantee the basis for the organisation and execution of a football World Cup.

## 11. Finances

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### 11.1 Expenses

Structural expenses for the organisation of the 1986 FIFA World Cup can in no way be debited to FIFA. These shall entirely be charged to the organising Association, i.e. the host country. We would particularly like to mention the following points:

- reconstruction, expansion and construction of the stadia

→ Local

- construction of a telecommunications centre

->

- all installations for the media representatives

- possible reconstruction/renovation of airports

- construction of new roads and car parks

- construction of new hotels

- expansion of the national and international telephone and telex networks

The Organising Football Association must draw the Government's attention to these expenses.

### 11.2 Receipts

The actual receipts to flow directly into the funds of the Organising Football Association shall only proceed from the marketing of the '86 World Cup emblem to be created by the Organising Football Association. This marketing can only take place domestically as the worldwide rights have already been conceded by FIFA. Beside these direct receipts, the Organising Football Association shall receive 25% of the net profits from the financial pool.

These net profits are obtained by deducting expenses from the receipts.

The receipts consist of

a) TV rights

b) advertising rights (ground advertising)

c) entrance tickets (less the deductions specified in the Regulations)

The expenses comprise costs anticipated for teams and FIFA in Article 33 of the World Cup Regulations.

FIFA
founded 1904

FÉDÉRATION INTERNATIONALE
DE FOOTBALL ASSOCIATION

P.O. BOX 85 · CH-8030 ZURICH

TELEPHONE: 55 54 00

CABLE ADDRESS: FIFA

TELEX: 55 678 FIFA CH

- Confederação Brasileira de Futebol, Rio de Janeiro

- The Canadian Soccer Association, Ottawa

- Federacion Mexicana de Futbol Asociacion, Mexico

- United States Soccer Federation, New York

ZURICH,
HITZIGWEG 11 7 January 1983

JSB/tr:mb

Dear Sirs,

We acknowledge receipt of your positive answer to our request for offers
of 20 December 1982. Thus, we can now submit you the Terms of Reference
which will enable you to prepare your Football Association's candidature
for obtaining the 1986 World Cup. In this respect, we would like to
draw your attention to the following points:

1. The Regulations of the 1986 FIFA World Cup will be adapted to the new demands of a Final Competition of a World Cup with 24 teams according to the experiences gained in Spain in 1982. This will especially concern

a. the financial aspects and

b. the technical aspects i.e. the manner in which the Final Competition progresses.

2. Merchandising and ground advertising contracts

As you can see from the chapter on "Finances", FIFA has already signed contracts with international partners with regard to merchandising and ground advertising incorporating the official suppliers for the competition. The organising Association has the possibility of creating its own emblem and of commercializing it domestically. In order to realise these points in practice, more detailed information and a possible discussion will be essential.

3. Television

Equally in the sector of TV, FIFA has already signed a contract with an international Consortium. The TV company of the organising Association's country will thus have to produce the signal and place it at the disposal of the Consortium members as well as to the USA and Canada for the English- and French-speaking programmes since these 2 countries do not form part of the Consortium.

FIFA
Founded 1904

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4. We would like to remind you that we need the candidature file of your National Association by 11 March 1983 at the latest, answering all the questions asked in chapters 1 to 11 and supplying the documents requested in chapter 12.

After this date, a Committee formed of Messrs. Hermann Neuberger and Carlos Alberto Lacoste, Chairman and Deputy Chairman of the Organising Committee for the 1986 World Cup respectively, as well as Messrs. Horst Schmidt, Technical Adviser and Dr. Artemio Franchi responsible for financial matters and the FIFA General Secretary will study the files.

5. Information

The FIFA General Secretary is at your disposal should you need any
explanations on the various items or any additional information you
may deem necessary.

For necessity's sake, we would be grateful if you could acknowledge
receipt of the Terms of Reference for the 1986 World Cup.

Thanking you for your interest, we remain

Yours sincerely,

FEDERATION INTERNATIONALE
DE FOOTBALL ASSOCIATION
General Secretary

J.S. Blatter

Enclosures:

- Terms of Reference

- Final accounts of the 1982 World Cup in Spain

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[LC]

# 1. Fundamental Provisions

## 1.1 Competences

The FIFA World Cup is a competition of the Fédération Internationale de Football Association (FIFA) and is thus embodied in the Federation's Statutes.

In its capacity as executive body of FIFA, the Executive Committee delegates its competences as **organiser** of the World Cup to the FIFA Organising Committee which thus takes on the responsibility for the organisation and execution.

The FIFA Executive Committee also appoints one of the National Associations affiliated to FIFA as **executive agent** of the World Cup. This National Association is also answerable to the FIFA Organising Committee, whatever the internal regulations may be concerning the local organisation.

It is also important to point out here that the FIFA World Cup can only be assigned to **one** National Association and that the entire competition must take place within the frontiers of this **one** country.

The appointed National Association and its organising committee (the LOC - Local Organising Committee) are subject to the control of the FIFA Organising Committee for the World Cup. The latter shall have the last say in fundamental decisions about all matters.

FIFA does not recognize any 3rd parties or organisations outside the Football Association. Any pending problems and questions shall be settled directly with the National Association affiliated to FIFA or with the LOC. Hence, the local organising committee shall consist for the most part of representatives from the Football Association. This will guarantee that the authorized National Association bears the responsibility and control in its own country and not the other instances which are also necessary for carrying out a World Cup.