The City of Cape Town's Bid Adjudication Committee has approved the awarding of the contract for the operator of the Green Point Stadium and surrounding Green Point Common.

Business Venture Investments 1317 (Pty) Ltd, a consortium of Stade de France and local sports marketing company SAIL Group, will run and manage the new facility for up to 30 years. The announcement was made on 25 August 2008.

The consortium has extensive experience in sports marketing, stadium operations and events programmes.

The City will receive 30% of earnings before tax (inclusive of municipal rates) from the stadium on a fixed percentage basis, which will be to its benefit when the stadium is successful.

"This is very good news for Cape Town," said Mike Marsden, Executive Director of Service Delivery Integration.

"The City is very pleased that this comprehensive and detailed negotiating process has come to fruition. Cape Town is gaining a world-class, purpose-built stadium in arguably the most beautiful setting in the world.

"It is getting a team with an international and local track record of experience and success to maximise the value, revenue and viability/sustainability of its stadium," he added.

As part of the contract, the City will pay the consortium to manage the stadium from January 2009 up to and during the 2010 FIFA World Cup™.

After this, the top tier of seating will be removed, reducing the stadium to 55 000 seats to make way for commercial and facility space. The stadium will be then used for various sporting events, music concerts and other major events.

The consortium is to lease the stadium from the City for no less than 10 years and no more than 30 years. There will be review periods at certain points. A detailed contract, setting out the roles and responsibilities of each party, is still to be signed.

The approval for the lease of the stadium will be considered by Council on 3 December 2008.