News24

R30m to maintain Soccer City

2010-08-04 13:19

Johannesburg - The new 90 000 seater Soccer City built for the 2010 World Cup finals, will cost between R25 and R30 million per year to maintain.

But that will not be a problem, according to Barry Pollen, a director of National Stadium Management SA (Pty) Limited, the company who will manage the stadium.

A subsidiary of National Stadiums, Stadium Management SA, have the contract to manage Orlando Stadium, Dobsonville and the Rand Stadiums.

There are fears that some - if not all - of the new purpose build stadiums for the recent 2010 World Cup would become white elephants.

"Not Soccer City," Pollen told Sapa this week.

“Soccer City will more than pay for itself. We have already secured 27 events for the stadium this year - and that is not counting the matches we staged here during the World Cup.

"We will have no problem in finding the R2 million plus per month to successfully run this venue and that goes for Orlando, Rand and Dobsonville Stadiums.”

Top PSL outfit Orlando Pirates, will use Orlando Stadium as their home ground, Kaizer Chiefs are expected to utilise the Rand Stadium for home matches this season and Moroka Swallows will continue to play at Dobsonville as they did last season for all their home fixtures.

Pollen explained the R2 million plus per month expenses cover not just the running of the stadium, but making sure the pitch and the interior of the stadium will always be in top condition.

Pollen said Soccer City has become a multi purpose venue and had been booked for not just soccer matches.

“We have the Telkom Charity Cup here on Saturday and 90 000 tickets have been sold for this annual Premier Soccer League season opener, we have booked the stadium for rugby matches, concerts, cultural and church events.

"We will also use Soccer City for conferences, birthday parties and other corporate events. There is no fear that Soccer City will become a white elephant.

All news stadiums are built nowadays as multi purpose venues.”

A judgement on the naming of Soccer City is expected to be made in the High Court on Thursday.

As far as the other new stadiums are concerned - Cape Town, Moses Mabhida in Durban, Nelson Mandela Bay, Mbombela in Nelspruit and the Peter Mokaba Stadium in Polokwane - problems await.

Pollen, whose company is not involved in the management of these stadiums, did not want to comment on their feasability, but other sources told Sapa it would be almost impossible to manage them profitable.

Cape Town, Moses Mabhida and Nelson Mandela Bay Stadiums would need about R20 million per year to maintain, while the others would cost between R10 and R12 million per year to run.

The PSL are trying to stage double headers at the new stadium in Greenpoint, but the Cape based clubs, Ajax Cape Town, Santos and newly promoted Vasco da Gama, attract only a handful of fans for home matches and unless somebody gets a brain wave or has a magic wand that venue could be a white elephant as, could the new Durban stadium which, like Cape Town, does not have big PSL clubs to fill it each week.

Neither Nelspruit nor Polokwane have PSL teams in that region and unless the PSL or the South African Football Association come up with a plan to use those venues, they could prove to be very costly to maintain.

A former World Cup host, South Korea, was forced to bulldoze some stadiums build for the 2002 event after they found it cheaper to demolish than maintain them.

SAPA

Comments
  • Vinny - 2010-08-04 13:37

    Dont tell us you beggars ..Take it from the lotto or powerball coffers

  • Tim - 2010-08-04 13:46

    R30 million a year to maintain. That's just over R82 000 per day 365. Where is this money going to come from? Another extravagance the SA tax payer can ill afford.

  • David - 2010-08-04 13:48

    A former World Cup host, South Korea, was forced to bulldoze some stadiums build for the 2002 event after they found it cheaper to demolish than maintain them. SAYS IT ALL!

  • GT - 2010-08-04 13:51

    Host 1 event @ R400 per person and it is paid for! Call it stadium day and ask local sports and music to put on a show

  • MB - 2010-08-04 13:59

    And we did not know this before we build them.

  • Deric - 2010-08-04 13:59

    Gee... the stadiums will become white elephants, costing us, the tax payer, extra money? If only someone had mentioned this earlier.....

  • The Voice of Reason - 2010-08-04 13:59

    The R30 million per year can easily be made up. A stadium like this should be run like Wembley or the Stade de France. While they have no permanent club tenants, they are used for cup finals and high profile matches. The Charity Cup should be held there as well as both Soweto Derbies, and possible Chief/Pirtaes vs Sundowns/Swallows. The Nedbank Cup final should also be held here, as well as most of Bafana's matches.

  • Mike - 2010-08-04 13:59

    R 25m per annum to run ?? Who's kidding who ?? Lets see - Soccer City cost R 3 billion to build...Even at an interest rate of 6% pa that comes to some R 180m in interest = about R 500,000 per DAY !! and that's just to service the interest, not pay off any capital cost. Where's that money coming from ?? The ratepayers of JHB ?? And that cost won't go away even if it was bull dozed like in South Korea. Don't get me wrong, I think all the stadia are beautiful (particularly in Durban) and I'm proud that we built them - and on time. But we keep asking the question - at what expense ?? Unlike airports, roads and Gautrain they aren't really gainful additions to the country's infrastructure. We had plenty of soccer and rugby stadiums. Now Kings Park, Newlands, Ellis Park are all going to become white elephants too. Factor those costs in to the whole scenario....

  • Mike - 2010-08-04 14:00

    R 25m per annum to run ?? Who's kidding who ?? Lets see - Soccer City cost R 3 billion to build...Even at an interest rate of 6% pa that comes to some R 180m in interest = about R 500,000 per DAY !! and that's just to service the interest, not pay off any capital cost. Where's that money coming from ?? The ratepayers of JHB ?? And that cost won't go away even if it was bull dozed like in South Korea. Don't get me wrong, I think all the stadia are beautiful (particularly in Durban) and I'm proud that we built them - and on time. But we keep asking the question - at what expense ?? Unlike airports, roads and Gautrain they aren't really gainful additions to the country's infrastructure. We had plenty of soccer and rugby stadiums. Now Kings Park, Newlands, Ellis Park are all going to become white elephants too. Factor those costs in to the whole scenario....

  • 06 - 2010-08-04 14:01

    Soccer City will have more then enough teams and games to keep it going. The same goes for Durban and Cape Town. PE has a huge team on the way (SARU must work faster), but what the hell are we going to do with Nelspruit and Pietersburg??????? No rugby teams, no soccer teams, no cricket teams, etc.

  • Melktert - 2010-08-04 14:06

    For a 50,000 capacity stadium - 5 major sporting events (rugby, Cricket, Soccer) will generate at least R25,000,000 excluding food and beverage sales profits (estimate R2,500,000) - 4 musical/festival events will generate at least R50,000,000 excluding food and beverage sales profits (estimate R2,000,000) For the stadiums in Cape Town, PE and Jo'burg this should really not be a difficult task if they involve the right management. Most of these stadium were much needed and there really should be no reason even to debate their maintainance. The question is - do they want to make money? Management should work side by side with the events oranisers to prepare schedules of regular events. The people of SA are hungry for entertainment, we saw that with the World Cup. Busy stadiums will created thousands of jobs!

  • Uncle Bob - 2010-08-04 14:08

    R30 million per year for a brand new stadium! It would be most interesting to see what comprises that figure! Yes there is water, electricity and pitch maintenance. But considering the current state of the stadium, what would possibly constitute over R 2 million a month?

  • realist - 2010-08-04 14:15

    Housing for the homeless and soup kitchns

  • Tim - 2010-08-04 14:16

    Fark! Burn that piece of rubbish down rather!

  • Eric - 2010-08-04 14:19

    Assuming that the maintenance fees include the staff at the stadiums. If they only charge R200 a ticket(and when do they ever sell them for that low??), they'll make just over 17mil out of a sold out stadium. Quite plausible if you ask me. We're asking the wrong questions though. These stadiums will be well in use, but what about the smaller stadiums in the same areas? Why use them if there is something better? What about the Newlands stadium now that there's the Cape Town stadium? Just to take one example.

  • Jimbo - 2010-08-04 14:25

    Host rugby test matches there to bring in the bucks. Rugby supporters are rolling in it. They can easily afford R500 + for a ticket.

  • acm - 2010-08-04 14:29

    dont forget guys 1 ticket for soccer match maybe will cost R35,00, so for soccer city only if four games play there they might make R3,1million a day R12million a month R149million a year. dont panic!! im all behind u pollen u will make it, its a bargain any way.

  • Lorenz - 2010-08-04 14:33

    All the stadiums were planted with as special winter turf gras,witch will need total replacements with a heat and draught tipes of local turf gras. P E and Cape Town hat to import growing lights to keep the turf green and growning and the costs were Millions of Rands. With in weeks the two stadiums in the north will dead from heat exposure.This was well in advance reported in the Rapport before the W M.

  • adviceformaintaining - 2010-08-04 14:51

    i do not believe it will cost so much ,30millionper year, but let s assume it the case. the city should invest 600million in any bank for life and that will generate minimum at 5 percent per annum 30 million rand guarantie per year. the city can then sale the share of the 600million rands investment to any one .those investers will get very good return with all the money generated with all events taking place in the venue. this will be a recessionproof investment.

  • KB - 2010-08-04 14:51

    We knew this all along. It was recommended to upgrade most the stadia in SA, but no it will cost too much! We rather build new ones as it will result in less maintenance....what a load of C*%^$*%. People in this country dont really have a say anymore.. the powers that are just go through the motions and do what they want in anycase. Most the new stadia was doomed to be white elephants from the word go...but those that cautioned were merely told off as not being supportive and not patriotic....well see where it got us. Dont get me wrong, the SWC was a great success and the rich got richer.

  • Skhokho - 2010-08-04 14:52

    Come now we've got prisoners doing nothing in Prisons, get them working and maintaining these stadiums, not them profit chases trying to be reach with their tenders, bull crap R30M that is loads of notes, we can repay the prisoners by giving them experience and some skills.

  • Mike - 2010-08-04 14:59

    Did noboby notice that the rebuild of Orland Stadium was slipped into the World Cup spend. Oh, its going to used by Orlando Pirates. Oh, they're owned by Irwin Khosa. Oh, he's head of the World Cup org committee. City of Joburg, please tell us if he is paying the capital cost for the rebuild? just joking of course, I'm not that naiive

  • 407 @ Dubai - 2010-08-04 15:17

    You get 2 big concerts en asseblief nie Steve Hofmeyer nie and your money cashed in for teh year. Mr Rupert gets his money back and so do Mr Du Plessis. Madonna & Beyonce en in is die geld. Think out of the box julle idiots. Kom reg jong.

  • Brett - 2010-08-04 16:14

    Does anybody know how the company 'National Stadium Management SA (Pty) Limited' got the contract to manage this stadium? Was it put out on tender? What process was involved where large sums of tax-payers money is involved?

  • Cas - 2010-08-04 16:38

    The 30mil is inflated, so that we dont feel that bad when we have to pay R100 for a Bafana game.Smells like ESCOM doesnt it.

  • 407 @ Dubai - 2010-08-04 16:48

    Well said Brett i tell you what, who are they take a good look on who the owners of SAIL are. Ill give you a hint. He chairs the worlds 2nd largest luxury group in the world. Oh yes his SAn. You guys are so blind. And no his not ANC. So how did he pull it off???????? Interesting

  • MLH - 2010-08-04 16:49

    I believe that Durban soccer matches seldom attract more than 5 000 supporters. But how about this idea? Get all government departments and agencies to buy tickets to an ANC bosberaad at each stadium @ R500/head. Invest the proceeds to pay for upkeep and maintenance forever. They've done that once for the World Cup. One more time won't kill us. Is anyone anyway expecting reasonable service delivery over the next ten yeas? Who are you kidding? Make certain the local municipalities don't manage the upkeep themselves and ensure that no BBBEE companies are involved. Problems solved!

  • Kevin - 2010-08-04 17:01

    Wonder why people who battle to manage their own budgets become world class stadium management experts. I am surprised that it will cost so little to maintain such a spectacular stadium as Soccer City. They will make a serious profit from the stadiums easily. Moses Mabidha stadium took in R6m from people bungi jumping and riding the lift for the view from the stadium - so R20m for this is peanuts too. Cape Town has already leased their stadium to SAIL so that is covered. This really leaves Polokwane, Mbombela and PE to worry about. I don't know what the plan is there but I assume there is one. All you negative moaners your in such a minority - we really dont want to listen to you anymore go sulk on your own please. The rest of us are proud of what was achieved and what is still to be achieved.

  • Birdman - 2010-08-04 17:09

    These are brand new stadia. Surely, like a new house they will not need to be maintained for a while. R2.5m per month in maintenance? BS This is going into someone's pocket!! For this money they can employ 1000 workers R2500 per month. Even if they only work 2 hours per day, they will keep the stadium shiney bright! Who are they trying to fool?

  • Albert Einstein@Uncle Bob - 2010-08-04 17:30

    Admin costs.................yebo gogo

  • Ben - 2010-08-04 21:45

    People tend to forget that we need stadiums like these to progress on the world stage and to hold events. We can't keep using &**%#@ up stadiums for these events. Everything costs us in this country roads, infrastructure, its the way of things. The sooner we except it the sooner we move on... how do you think other countries pay for things!!

  • AJ - 2010-08-05 06:41

    A lot of you do maths based on the assumption that the stadium management company gets to keep the whole amount of the face value of the ticket, which is grossly inaccurate. The teams and unions and events companies and performers etc (depending on the type of event) get the lions share of the face value and much smaller portion goes towards the hiring of the stadium, which will (in the case of a concert for example, still have to bid against the Coca Cola Dome for example. 2-3 million is a LOT to come up with, make no mistake.

  • To all doomsayers - 2010-08-05 13:18

    I wonder how many of the commentators here actually work in one of these venues and know what is really going on?

  • Mandla - 2010-09-03 09:35

    You can use my lotto money I've been buying lotto tickets for years and contributed in making a few fat cats

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