In order to unlock the commercial potential of the iconic Cape Town Stadium, a Joint Venture (JV) Company has been selected to secure a naming sponsor for the property.
On November 1 2017, a municipal group was given the rights to manage Cape Town Stadium, to ensure the facility was used commercially.
The City of Cape Town has now allocated a JV company, SMSA Commercial Consultants made up of SAIL Stadium Management South Africa and S-Factor to start the process of securing a naming sponsor.
Cape Town Stadium CEO, Lesley de Reuck, says its important to obtain a naming sponsor.
“The aim is to generate revenue through commercialisation, to bid for and to attract national and international events to our world-class stadium. This will in turn hold benefits for the economy and job creation. The ultimate goal is to incrementally reduce our dependence on City funding,” de Reuck said.
The overall aim is to ensure the stadium is used more commercially and more often to generate revenue, as well as create opportunities.
Currently, the stadium hosts several events such the World Rugby Sevens, soccer matches, music concerts, festivals, exhibitions and other sporting or religious events.
There is a surplus of potential for the property and the stadium, its location and backdrop makes it ideal for multiple purposes.
In order to increase the commercial use, de Reuck explains the functions of the municipal entity and the JV Company.
“The municipal entity of the stadium is developing its business model which incorporates tenants and commercial users, either of the entire stadium, or parts of its facilities and venues,” said de Reuck.
Chairman of the JV, Dr Jaques Grobbelaar, is excited for the possibilities that lie ahead with selecting a naming sponsor for the stadium.
“Already home to major international sport, music and entertainment events, this iconic venue in beautiful surroundings could bring more tourism, events and accolades to Cape Town with the resultant benefits,” Dr Grobbelaar said.
To provide accurate information for the market, the JV will analyze the commercial value of the stadium’s naming rights, considering local and international benchmarks, competition and various business models.
The City of Cape Town is hoping the implementation of the JV and a naming sponsor will increase the number of events hosted at the stadium and tourism exposure for the city.