CAPE TOWN STADIUM: SUSTAINABILITY

FOR HOST CITY CAPE TOWNFIFA WORLD CUP SOUTH AFRICA 2010

FOR HOST CITY CAPE TOWNFIFA WORLD CUP SOUTH AFRICA 2010

CONTENTS

1. Management of the Stadium

2. Operator responsibilities

3. Financial

4. Challenges

5. Support required from National Government

FOR HOST CITY CAPE TOWNFIFA WORLD CUP SOUTH AFRICA 2010

MANAGEMENT OF THE STADIUM

• CoCT appointed SAIL Stadefrance Operating Company to manage Stadium

• Management Agreement concluded from 06 0ctober 2009 to 31 October 2010

• Long term lease agreement for 30 year period scheduled to commence on 1 November 2010

FOR HOST CITY CAPE TOWNFIFA WORLD CUP SOUTH AFRICA 2010

OPERATOR RESPONSIBILITIES

• Provide a business plan and event strategy• Planning training and resourcing of employees• Setting up and testing operational systems and procedures• Engagement with Stakeholders re CT Stadium matters• Maintenance and repairs to all stadium fixtures, fittings and equipment• Adequate supply of maintenance consumables• Pitch Management• Cleaning and Waste Management of Stadium• Procurement of Sponsorships• Communication and Media Releases in conjunction with CoCT• City and Stadium Operator actively secure events• Maximisation of Stadium usage• Business Plan and Event strategy

FOR HOST CITY CAPE TOWNFIFA WORLD CUP SOUTH AFRICA 2010

FINANCIAL

Current estimated annual Operational and Maintenance costs

• Maintenance Cost R18,000,000• Operational Cost (Staff and Admin) R10,000,000• Facility Management Cost (Security, utilities, cleansing) R11,000,000• Informal Traders R 2,500,000• Green Point Park R 5,000,000• Total R46,500,000

Above costs excludes provision of a “sinking fund” for the replacement of major capital elements (eg façade, roof, generators, etc)

FOR HOST CITY CAPE TOWNFIFA WORLD CUP SOUTH AFRICA 2010

FINANCIAL

Core Activities:• Bowl events (Stadium)• Suite sales• Advertising rights• Pouring rights

Non core Activities:• Conferences• Concessions• Peripheral opportunities

FOR HOST CITY CAPE TOWNFIFA WORLD CUP SOUTH AFRICA 2010

CHALLENGES

• Unprecedented electricity tariff increases

• Revised Transport Management Plan

• Restrictive ROD and zoning conditions

• Safety and security requirements

• Securing of an anchor tenant

• Securing of major events

Sustainability

• 13-20 events per year• Rentals through suites, concessions, supplier and partners rights• Operator developed two self owned events• Property development opportunities ie Sport , medical and fitness

facilities• Further develop as visitor destination• Develop conference facility• Partnerships with business ie V&A Waterfront

FOR HOST CITY CAPE TOWNFIFA WORLD CUP SOUTH AFRICA 2010

SUPPORT REQUIRED FROM NATIONAL GOVERNMENT

• Operating cost subsidy

• Establishment of sinking fund for replacement of major capital elements

• Utilisation of National Stadia for National sporting events (including soccer and rugby)

• Equitable allocation of National sporting events to National Stadia across the country

• Practical and uniform safety and security requirements

FOR HOST CITY CAPE TOWNFIFA WORLD CUP SOUTH AFRICA 2010

K YOU DANKIE ENKOSI