After following a thorough tender process, the City of Cape Town has appointed a joint venture (JV) company to kick-start the process of securing a naming sponsor for the Cape Town Stadium, which will help to unlock the commercial potential of the facility. Read more below:
The Cape Town Stadium was placed under the management of a municipal entity which was established on 1 November 2017 to ensure greater commercial flexibility and utilises a management model that is similar to the Cape Town International Convention Centre. SMSA Commercial Consultants, a joint venture company encompassing SAIL, Stadium Management South Africa and S-Factor, was the successful bidder to kick-start the process to secure a naming sponsor.
‘Being able to secure a naming sponsor will be a key milestone and the next major step in managing Cape Town Stadium as a commercially driven entity. 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,’ said Lesley de Reuck, CEO: Cape Town Stadium.
‘The iconic stadium is a multi-purpose venue set in an urban park with stunning views of the Atlantic Ocean and Table Mountain, one of the New Seven Wonders of Nature. Events such as the World Rugby Sevens, football (with a number of teams being hosted at the stadium), major music concerts, religious and sports events as well as exhibitions and festivals already form part of its calendar of events. 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,’ added de Reuck.
Dr Jaques Grobbelaar, chairman of the JV, said the team is excited about the naming rights opportunities around the stadium, taking it to market and the potential of a brand being associated with 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 Jaques Grobbelaar.
The JV will assess the commercial potential and value of the stadium naming rights, taking into account South African and international benchmarks, competition and business models.
In addition to securing a naming rights sponsor, the JV will develop a business plan with aspects such as timeframes, branding, media and marketing exposure. The plan also needs to take cognisance of increased future value of the naming rights flowing from tenants and users of the stadium as well as the level and magnitude of the events it attracts.