1 December 2008
A consortium consisting of South Africa's Sail Group and French-based Stade de France has been awarded the service contract to operate Cape Town's Greenpoint Stadium and ensure that it remains a sustainable multi-purpose venue after the 2010 Fifa World Cup.
The consortium, called Business Venture Investments 1317, will be expected to be involved in the management of the stadium from January 2009 onwards, and ensure the successful hosting of eight World Cup matches.
City of Cape Town service delivery integration executive director Mike Marsden said the world-class, purpose-built stadium would now get a dedicated team with an international and local track record of experience and success to maximise the value, revenue and sustainability of the stadium.
"Cape Town residents and visitors are getting a world-class facility which will host prime sports matches and spectacular events as well as gaining an upgraded sport and recreation
precinct," he said in Cape Town this week.
The city municipality will pay the consortium to manage the stadium up to and during the World Cup, after which the consortium will lease the stadium from the city for a period of not less than 10 years and not more than 30 years.
The municipality will receive 30% of earnings before tax (inclusive of municipal rates) on a fixed percentage basis, which, if the stadium becomes successful, will raise the city's returns significantly.
The in-principle agreement provides for a detailed contract to be signed between the parties, which will describe the roles and responsibilities of the city and the operator in terms of aspects such as maintenance, parking, informal trading, insurance for eventualities and sureties.
The operator has offered sureties totalling R10-million, while the approval of the lease on the stadium resides with the municipal council, and will be considered on 3
Once the World Cup is over, the stadium capacity will be reduced to 55 000, enabling it to cater for all types of sports, including rugby, as well as music concerts and other major events. The stadium will feature corporate hospitality suites, medical, training, conferencing and banqueting facilities.
The consortium will operate the stadium as well as manage and maintain the defined areas of the surrounding urban park and sport precinct on the 85-hectare Greenpoint Common from stadium revenue.
Stade de France is the operator of the successful and profitable 80 000-seater Stade de France multi-purpose stadium in Paris, France, which hosted the 1998 Fifa World Cup and the Rugby World Cup in 2007, while Sail is one of the largest sport marketing companies in South Africa.