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Executive Mayor: Plans for Cape Town Stadium's sustained financial viability


“Cape Town Stadium is the City of Cape Town’s most significant strategic asset in terms of attracting key events to Cape Town. The effective management and use of the stadium is in keeping with its commitment to building an Opportunity City and making Cape Town the events capital of Africa.

Since the start of this municipal financial year, in July 2012, the City has started securing major sporting and entertainment events at the stadium. This includes a three-year deal with Ajax Cape Town and the Bafana Bafana vs. Norway match set to take place in January next year. There are also discussions with major European teams which could see Cape Town Stadium being selected as an off-season training venue.

The City of Cape Town is still in talks with the Western Province Rugby Football Union (WPRFU) with regard to the potential move of the WPRFU to the Cape Town Stadium. Currently, presentations have been made looking at the operational plans of the Stadium and further presentations are imminent.

On the entertainment front the City is having discussions with Big Concerts. Massive sales were recorded for the recent Lady Gaga and Linkin Park performances. Tickets for the Red Hot Chili Peppers for 5 February 2013 have already sold out.

Negotiations with another two international acts have also started.

The Green Point Park and its operations continue to be strengthened with the soon-to-be activated tea room. It is intended that more City events will take place at the park in the upcoming summer season.

Between August last year and this year, events held at the stadium and the Green Point Urban Park generated more than R13 million. The target for this current financial year is similar.

Since January 2011, a total of 616 855 people have visited the Cape Town Stadium. The intended target is 650 000 visitors over the next year. To date 7 540 people have been to the Visitor’s Centre since it opened.  The target for the next 12 months is 10 000 visitors.

Last year, Cape Town Stadium hosted, amongst others, all the PSL soccer matches for Ajax Cape Town, which drew 107 013 spectators over the season; the Coldplay, Kings of Leon and Eagles concerts, with attendance figures of 106 348.

The Christ Embassy Higher Life Church Conference hosted 110 000 non-paying attendants over three days.

The clash between Ajax Cape Town and Manchester United was sold-out, with 55 000 spectators. This match was broadcast to more than 60 countries on 70 channels across the globe.

A total of 36 film shoots also took place at the stadium.

The management of the Cape Town Stadium has undertaken several new initiatives, which fall within current approved planning and are geared towards improving the viability of the stadium.

These include:

  • The refurbishment of the Stadium Visitor’s Centre to enhance the overall visitor experience scheduled for completion in 2013.
  • The Fan Retail Store will be brought on line by the end of next year.
  • The Conference Facility will be furnished and activated during this financial year. It is anticipated that rental of this facility will bring in additional revenue. This is expected to be operational during 2013.
  • Some digital advertising boards will be fitted to stadium infrastructure. The City is proposing the installation of electronic billboards on the second tier of the stadium bowl as part of a broader income generation activation program.
  • The creation of additional public mobile vending machines for food and beverage sales – units are aimed at increasing the spectator experience on the 6th level and on the external podium areas
  • A tender will be advertised shortly calling for food and beverage vending companies to bid for concession rights at Cape Town Stadium. A separate public advert will be made in this regard before the end of December 2012.

While these projects can start soon, the ultimate goal is to ensure the stadium's sustainability in the long run.

Current zoning restrictions are limiting the stadium's long-term viability.

To give substance to the revenue options identified by a business analysis the City has undertaken, two fundamental changes are needed.

The first is the lifting of the conditions of the Record of Decision. This is being dealt with and a tender calling for consultant specialists to draft this on behalf of the City is being finalized. The intention is that this tender to appoint specialists will be out as soon as possible.  This investigation and review is expected to take between nine and 12 months to complete.

The second process identified by the business analysis is that additional office and commercial development is needed in order to improve the income generation capacity of the stadium precinct.

All of these processes are governed by legislated public participation requirements that must be met.

Input from all affected parties will be carefully considered. We will strive to achieve a balance between the viability of the stadium and accommodating the reasonable concerns of the community. 

In this regard, the proposed Business Plan will be sent to official Ratepayers Associations and registered organisations with the City’s Public Participation Unit. It is also available on the City’s website. More information on dates of public engagements will follow in due course.”

Executive Mayor, Alderman Patricia de Lille

To access the Business Plan and provide feedback, click here.

Published by the City of Cape Town.
 
2012/12/06
© City of Cape Town, 2014