Council approves Green Point stadium operator lease

By Mandisi Tyulu
04 December 2008

City of Cape Town Council unanimously approved the appointment of a long-term operator for the Green Point stadium, subject to the Executive Mayor negotiating finer details.

The City Manager would then be authorized to sign the lease agreement for a period of at least ten years and up to thirty years. During this time the City of Cape Town will receive 30% of Earnings before Tax from the stadium operation.

City of Cape Town’s Pieter Cronje says the multi-purpose facility for sport, events, concerts and spectaculars must also provide an income stream for the maintenance of the stadium itself and the redeveloped urban park and sport precinct on the Green Point Common where the stadium is located.

“The lease was awarded to the preferred bidder in a public tender process, SAIL Group Limited and the Consortium Stade de France. The joint venture will also manage the stadium in the run-up and during the 2010 World Cup tournament as they have extensive experience in hosting world sports finals and in dealing with their international bodies”, says Cronje.

Council also approved that R24,6 million be included in the City’s capital budget for two large television screens in the stadium, a system to protect the grass pitch during events and other items need for the successful operation. These investments will result in a greater usage of the stadium and improved viability. The City will share in the success of the stadium in its share of the earnings.

Executive Mayor Helen Zille said: “The City is very happy to have a reputable, successful and experienced consortium to operate one of its newest and most valuable assets. We believe that Stade de France’s track record of operating a profitable multi-purpose 80 000 seat stadium in Paris and SAIL’s local expertise as one of the largest sport marketing groups in the country is a winning combination. I would like to assure the Consortium that the City will commit itself to supporting the Stadium in order to turn Green Point Stadium into an international success story.”

Sail and Stade de France welcomed the progress towards the formal agreement and expressed confidence that the consortium could assist the City to deliver a world-class 2010 FIFA World Cup TM and thereafter successfully operate the stadium and adjacent park.

“The joint venture offers significant experience in stadium management and commercialization,” says Morne du Plessis, Executive Chairman of the Joint Venture and Director of SAIL Group.

“Stade de France has experience in international stadium management and the operational management of the 80 000 seater Stade de France stadium. SAIL is one of South Africa’s leading sports management companies with wide and diverse experience. We are committed to ensuring the financial viability of the Stadium and to working with the City to finalise the detail of the contract.”

Phillipe Collin-Delavaud, Managing Director of Consortium Stade de France says: “We are pleased about the prospect of partnering the City of Cape Town and SAIL in this venture. We believe Green Point Stadium will become one of the iconic stadiums in the world. On every visit we are impressed with the stadium progress, environment and infrastructure within Cape Town. The stadium in its unique location will become an invaluable asset to the city and its people.”