Statement by Executive Mayor, Alderman Patricia
de Lille
Plans for Cape Town Stadium's sustained financial
viability
The Cape Town Stadium is the City of Cape Town’s most significant
strategic asset in terms of attracting key events to the city. The effective
management and use of the Stadium is in keeping with this
administration’s 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, the 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 nonpaying 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 have 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 2nd 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; registered organisations with the City’s Public
Participation Unit, and will be available as a pdf document on the City
website, which will be downloadable. More information on dates of public
engagements will follow in due course.