MBOMBELA STADIUM Management and Operation of Stadium

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1 MBOMBELA STADIUM Management and Operation of Stadium

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6 WC2010ATTENDANCE FIGURES Management by Municipality Management by Commercial Operator Management by Resident Team Management by non-profit Organisation

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8 MANAGEMENT CONCEPTS Management by Municipality Management by Commercial Operator Management by Resident Team Management by non-profit Organisation

9 AIMS AND PRIORITIES 1. To ensure that the Stadium is utilised and that there are feet in the Stadium at all times; 2. To ensure accessibility to the facility for all levels of events and all communities; 3. To generate adequate income from events to cover the maintenance cost of the Stadium; 4. To manage the infrastructure sustainably rather than for profit regardless of the cost and the long term effects.

10 ALTERNATIVE MANAGEMENT MODELS 1. Municipal Managed: Manage and operate the Stadium in-house as a department of the Mbombela Local Municipality; 2. Stadium Operator: Put out a proposal call to Stadium Operators for the management and operation of the Stadium for their own cost and profit, and for a quantified (tendered) benefit to the City; 3. Stadium Trust: Establish a Stadium Management Trust to manage and operate the Stadium through the appointment of a Stadium Manager or management company with income accruing to the City

11 BASIC MANAGEMENT FUNCTIONS 1. Day to Day Operation of Stadium 2. Facility Maintenance 3. Management and Staging of Events 4. Generating Income

12 EXPANDED MANAGEMENT FUNCTIONS 1. Day to Day Operation of Stadium 2. Increasing the daily Activities at the Stadium 3. Ongoing Facility Maintenance (Inventory, etc) 4. Preventive Maintenance Programmes 5. Managing and Staging Events 6. Initiating and Implementing Events 7. Generating Income 8. Generating Income to Fund Secondary Initiatives

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15 FIXED OPERATING EXPENSES 1. Running Costs 2. Facility Maintenance 3. Service Provider Contracts 4. Salaries

16 INCOME RELATED EXPENSES 1. Promotional and Fees 2. Security, Cleaning, Marshals 3. Technical Support 4. Temporary Installations, etc.

17 INCOME OPPORTUNITIES 1. Branding, Sponsorship, Naming Rights 2. Rental Income and Commercial Opportunities 3. Income form Resident Home Teams 4. Income from Major Events 5. Income form Minor Events 6. Sale of Suites 7. Spectator Related Income Potential 8. Fixed Advertising 9. Electronic Advertising

18 INCOME OPPORTUNITIES

19 INCOME OPPORTUNITIES

20 INCOME OPPORTUNITIES

21 INCOME & EXPENDITURE

22 INCOME & EXPENDITURE

23 INCOME & EXPENDITURE

24 SALES AND ADVERTISING INCOME

25 SUITE INCOME

26 SPECTATOR INCOME

27 SPECTATOR INCOME

28 SPECTATOR INCOME

29 EVENTS PLANNED FOOTBALL / SOCCER 1. Bafana Bafana or Equivalent (1 50%) 2. PSL Matches (2 50%) 3. Events initiated by Stadium (2 75%) 4. Events by Commercial Managers (2 5. Half of Home Team matches (9 40%) 6. Local Club Matches (10 50%) 7. Local School Matches (10 75%)

30 EVENTS PLANNED RUGBY 1. Springboks / International (1 50%) 2. Super Fourteen Top Team (2 50%) 3. Super Fourteen Lions (1 50%) 4. Curry Cup Top Team (2 5. Curry Cup Lower Team (8 50%) 6. Local Club Matches (10 75%) 7. Local School Matches (10 75%) 8. Local Primary School (10 75%)

31 EVENTS PLANNED ENTERTAINMENT 1. Major International Stars (1 25%) 2. Concerts initiated by Stadium (1 50%) 3. Concerts by Commercial Managers (1 50%) OTHER EVENTS 1. Conferences (6 2. Weddings (6 50%) 3. Other Functions (4 50%) 4. Club Meetings, AGMs (17 50%) 5. Examinations, Prize Givings (2 50%)

32 EVENTS PLANNED RENTAL INCOME 1. Auditorium (12 50%) 2. Cafeteria (12 50%) 3. Sport Shop (12 50%) 4. Gymnasium (12 OTHER INCOME 1. Courses and Camps (3 25%) 2. Sport and Arts Academy (1 25%)

33 EVENTS CONFIRMED Soccer Matches Plan. Conf. Event Bafana Bafana Sep-10 PSL Matches Top Teams In Process Initiated by Stadium t.b.c. Commercial Managers t.b.c. Black Aces/Other PSL Confirmed Local Clubs 5 5 In Process Local Schools In Process TOTAL SOCCER MATCHES

34 EVENTS CONFIRMED Rugby Matches Plan. Conf. Event International Games Seven-a-side Super 14 (Bulls or Sharks) 1 0 Feb 2011? Super Fourteen (Lions) In Process Curry Cup (Bulls, Sharks) Aug-10 Curry Cup (Lions, Pumas) Aug-10 Local Clubs In Process Local Schools In Process Primary Schools Aug-10 TOTAL RUGBY MATCHES

35 EVENTS CONFIRMED Concerts Plan. Conf. Event Major International Stars t.b.c. Initiated by Stadium In Process Commercial Managers t.b.c. TOTAL CONCERTS Other Events Plan. Conf. Event Conferences /09 Aug Weddings 3 1 R. Gumede Functions 2 1 Spar TOTAL OTHER EVENTS 8 5 TOTAL CONFIRMED EVENTS

36 EVENTS CONFIRMED Aug 2010 AST Gijima Conference 27 August 2010 Bulls vs Pumas Match 05 Sept 2010 Bafana Bafana Match 01 Oct 2010 Annual Sixties Party 20 Oct 2010 Spar Function 14 Nov 2010 PSL Match 22 Dec 2010 PSL Match January 2011 International Sevens Tourn. February 2011 Super 14 Team Match 19 March 2011 PSLMatch 30 April 2011 PSL Match

37 ADDED VALUE EVENTS In-die-bos Concerts Panorama Cycle Tour Jock Cycle Tour Three Day Kaapse Hoop MTBTour Weekly Time Trial (Running) Fun Runs and Road Races Basketball, Netball, Ringball, etc. Tourist Bus-stop Symbiosis of Activites

38 QUICK WIN INTERVENTIONS Furniture for Suites and Restaurant makes it possible to rent out immediately until long term sales have taken place (MLM) Indoor Hall required for conference and Sport Academy use. Cost minor related to income advantage (MPG) Region requires Athletics track which also influences feasibility of Sport Academy (Lotto) Kitchen and catering equipment (from income) Upgrade old school buildings for Sport and Arts Academy (MPG, Lotto)

39 MEANINGFUL INTERVENTIONS Price Cutting by Stadia to be avoided (Cities) Differential Ticket Pricing required for Soccer Competition by too many Stadia for same events should be negotiated to spread business Allocation of International Matches to smaller federations (SAFA and SARFU) Agents are skinning the industry for own profit with little or no benefit to Stadium owners Need to build spectator base bad experiences affect all other Stadia and must be avoided Category for Lotto allocations to Stadium events

40 MBOMBELA STADIUM MBOMBELA STADIUM PRESENTATION TO PARLIAMENTARY PORTFOLIO COMMITTEE 17 AUG 2010

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