​The City of Cape Town’s Council has approved the signing of a Binding Heads of Agreement between the City, the Cape Town Stadium and Western Province Rugby (WPR) which will make WPR the Primary Anchor Tenant of the Cape Town Stadium. The agreement will lead to both of these entities becoming more future-fit. While the Cape Town Stadium will be the new home of WPR, it will remain a multipurpose facility for all where a variety of sporting and other events can be enjoyed. 

The Binding Heads of Agreement (HOA) outlines the guiding principles for the parties. Council ratified the authority given to the CFO to sign the HOA. Once the HOA is signed, the parties will then seek to define the technical aspects thereof and have these captured into the Primary Anchor Tenant Agreement. The latter must also still be finalised.

The technical teams who were instrumental in the negotiation and the drafting of the HOA will start with the detailed discussions to finalise all the technical arrangements. 
 
From 1 February 2021, it is foreseen that WPR will become the Primary Anchor Tenant of the Cape Town Stadium, potentially for the next 99 years.
 
‘The City and WPR have agreed on a mutually beneficial revenue sharing model whereby WPR will have preferential access to play all of its senior professional rugby matches at the Cape Town Stadium. This is a new era for WP Rugby, Cape Town and for its people,’ said Western Province Rugby Group Chief Executive Officer, Paul Zacks.
 
As part of the long-term planning to make the Cape Town Stadium more viable, and following an extensive due diligence investigation, the parties have also agreed to the construction of additional suites at Cape Town Stadium.
 
This agreement does not affect continued guaranteed community access to the Cape Town Stadium and it remains a host for all sporting codes and events.
 
The City would also retain responsibility for repairs and maintenance and the operational costs of the Cape Town Stadium. It will remain a multipurpose entity for the enjoyment of all sports and events. The Cape Town Stadium will thus be retained as an asset for the people of Cape Town, with WPR as the Primary Anchor Tenant who will lease the Cape Town Stadium for games.
 
‘When the directive for the construction of such a world-class stadium was thrust on us as a host of the 2010 Soccer World Cup, we needed to make it happen for the economic opportunities and nation-building prestige that it would bring. However, we knew that after the event, we’d have to make it a financially sustainable landmark. As a consequence, we have been investigating ways to reduce the burden of carrying the operational costs of the Stadium. This has led to a number of programmes aimed at enhancing the viability of the Cape Town Stadium through the commercialisation of the Cape Town Stadium Precinct in general.
 
‘It also involved looking at ways to enhance the economic sustainability of the Cape Town Stadium operation itself, such as the construction of hospitality suites and getting a primary anchor tenant. Studies found that rugby would be the most viable economic sporting option and that this would benefit both rugby and the Cape Town Stadium equally.
 
‘The Cape Town Stadium is well on its way to becoming a more financially sustainable entity and this reduces the burden on future generations and ensures that there is yet another world-renowned public asset that all the people in Cape Town can be proud of,’ said the City’s Executive Deputy Mayor, Alderman Ian Neilson.
 
‘This is a watershed moment for Western Province Rugby as we open an exciting new chapter which will help ensure our financial sustainability and grow the game in the future,’ said Western Province Rugby Football Union President, Zelt Marais.
 
Once the HOA is signed, the parties will then seek to define the technical aspects thereof and have these captured into the Primary Anchor Tenant Agreement.
 
 
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