Council approves stadium operator contract

The Green Point stadium is one step closer to becoming a viable asset for Cape Town after Council unanimously approved the appointment of the long-term operator for the facility on Wednesday, 3 December 2008. The City of Cape Town's Bid Adjudication Committee had recently recommended awarding the contract to Business Venture Investments 1317 (Pty) Ltd, a consortium of Stade de France and local sports marketing company SAIL Group. The finer details of the contract will be ironed out by Executive Mayor Helen Zille, before City Manager Achmat Ebrahim signs the lease agreement, which will be for a period of at least 10 years and up to 30 years. Zille told Council that the City is “very happy to have a reputable, successful and experienced consortium to operate one of its newest and most valuable assets.” She gave her assurance that the City will commit itself to supporting the consortium "in order to turn Green Point stadium into an international success story.” In terms of the agreement, the City will benefit when the stadium makes a profit, by earning 30% of earnings before tax from the stadium operation. The consortium will also be responsible for the maintenance and upkeep of the surrounding Green Point Common urban park and sport precinct. In addition, it will operate the stadium in the run-up to the 2010 FIFA World Cup™, using its experience in hosting major sporting events to assist in preparations for the event. Council also approved the investment of a further R24.6-million from the City’s capital budget for two large television screens in the stadium, a system to protect the grass pitch during non-sporting events, and other items which will improve the stadium. The consortium also welcomed the approval. “The joint venture offers significant experience in stadium management and commercialisation,” said Morne du Plessis, Executive Chairman of the Joint Venture and Director of SAIL Group. “We believe Green Point stadium will become one of the iconic stadiums in the world. The stadium in its unique location will become an invaluable asset to the city and its people,” said Phillipe Collin-Delavaud, Managing Director of Consortium Stade de France.

Martin Pollack