In this paper we discuss the issues related to public-private partnership (PPPs) for building football stadiums. First of all we discuss the PPP and its risks. The uncertainties associated to the PPP and to the investments are incorporated in a real options model. As the city of Salvador is a candidate city for the Fifa 2014 World Cup, we simulate some alternatives for the financial viability of the stadium in Salvador. So, we calculate the insurance premium for situations of low demand of public. We conclude that uncertainties associated to the public demand require investments in the neighborhood of the stadium to mitigate the risks and to make the PPP viable.
PPP; Stadium; Football; Real Options