MBOMBELA STADIUMManagement and Operation of Stadium

WC2010ATTENDANCE FIGURES

• Management by Municipality• Management by Commercial Operator• Management by Resident Team• Management by non-profit Organisation

MANAGEMENT CONCEPTS

• Management by Municipality• Management by Commercial Operator• Management by Resident Team• Management by non-profit Organisation

AIMS AND PRIORITIES1. 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.

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

BASIC MANAGEMENT FUNCTIONS

1. Day to Day Operation of Stadium2. Facility Maintenance3. Management and Staging of Events4. Generating Income

EXPANDED MANAGEMENT FUNCTIONS

1. Day to Day Operation of Stadium2. Increasing the daily Activities at the Stadium3. Ongoing Facility Maintenance (Inventory, etc)4. Preventive Maintenance Programmes5. Managing and Staging Events6. Initiating and Implementing Events7. Generating Income8. Generating Income to Fund Secondary

Initiatives

FIXED OPERATING EXPENSES

1. Running Costs2. Facility Maintenance3. Service Provider Contracts4. Salaries

INCOME RELATED EXPENSES

1. Promotional and Fees2. Security, Cleaning, Marshals3. Technical Support4. Temporary Installations, etc.

INCOME OPPORTUNITIES1. Branding, Sponsorship, Naming Rights 2. Rental Income and Commercial

Opportunities3. Income form Resident “Home” Teams4. Income from Major Events5. Income form Minor Events6. Sale of Suites7. Spectator Related Income Potential8. Fixed Advertising9. Electronic Advertising

INCOME OPPORTUNITIES

INCOME OPPORTUNITIES

INCOME OPPORTUNITIES

INCOME & EXPENDITURE

INCOME & EXPENDITURE

INCOME & EXPENDITURE

SALES AND ADVERTISING INCOME

SUITE INCOME

SPECTATOR INCOME

SPECTATOR INCOME

SPECTATOR INCOME

EVENTS PLANNEDFOOTBALL / SOCCER1. Bafana Bafana or Equivalent (1 No.@ 50%) 2. PSL Matches (2 No.@ 50%)3. Events initiated by Stadium (2 No.@ 75%)4. Events by Commercial Managers (2

No.@40%)5. Half of Home Team matches (9 No.@ 40%)6. Local Club Matches (10 No. @ 50%)7. Local School Matches (10 No.@ 75%)

EVENTS PLANNEDRUGBY1. Springboks / International (1 No.@ 50%) 2. Super Fourteen Top Team (2 No.@ 50%)3. Super Fourteen Lions (1 No.@ 50%)4. Curry Cup Top Team (2 No.@50%)5. Curry Cup Lower Team (8 No.@ 50%)6. Local Club Matches (10 No. @ 75%)7. Local School Matches (10 No.@ 75%)8. Local Primary School (10 No.@ 75%)

EVENTS PLANNEDENTERTAINMENT1. Major International Stars (1 No.@ 25%) 2. Concerts initiated by Stadium (1 No.@ 50%)3. Concerts by Commercial Managers (1 No.@

50%)OTHER EVENTS1. Conferences (6 No.@50%)2. Weddings (6 No.@ 50%)3. Other Functions (4 No. @ 50%)4. Club Meetings, AGMs (17 No.@ 50%)5. Examinations, Prize Givings (2 No.@ 50%)

EVENTS PLANNEDRENTAL INCOME 1. Auditorium (12 No.@ 50%) 2. Cafeteria (12 No.@ 50%)3. Sport Shop (12 No.@ 50%)4. Gymnasium (12 No.@50%)OTHER INCOME 1. Courses and Camps (3 No. @ 25%)2. Sport and Arts Academy (1 No.@ 25%)

EVENTS CONFIRMED

Soccer Matches Plan. Conf. Event

Bafana Bafana 0.5 1 05-Sep-10

PSL Matches Top Teams 1 0.5 In Process

Initiated by Stadium 1.5 0 t.b.c.

Commercial Managers 1.5 0 t.b.c.

Black Aces/Other PSL 3.6 4 Confirmed

Local Clubs 5 5 In Process

Local Schools 7.5 8 In Process

TOTAL SOCCER MATCHES 20.6 18.5

EVENTS CONFIRMED

Rugby Matches Plan. Conf. Event

International Games 0.5 1 Seven-a-side

Super 14 (Bulls or Sharks) 1 0 Feb 2011?

Super Fourteen (Lions) 0.5 0 In Process

Curry Cup (Bulls, Sharks) 1 2 27-Aug-10

Curry Cup (Lions, Pumas) 4 4 27-Aug-10

Local Clubs 7.5 5 In Process

Local Schools 7.5 8 In Process

Primary Schools 7.5 8 27-Aug-10

TOTAL RUGBY MATCHES 29.5 28

EVENTS CONFIRMEDConcerts Plan. Conf. Event

Major International Stars 0.25 0 t.b.c.

Initiated by Stadium 0.5 1 In Process

Commercial Managers 0.5 0 t.b.c.

TOTAL CONCERTS 1.25 1Other Events Plan. Conf. Event

Conferences 3 3 07/09 Aug

Weddings 3 1 R. Gumede

Functions 2 1 Spar

TOTAL OTHER EVENTS 8 5TOTAL CONFIRMED EVENTS 59.4 52.5

EVENTS CONFIRMED07-09 Aug 2010 AST Gijima Conference27 August 2010 Bulls vs Pumas Match05 Sept 2010 Bafana Bafana Match01 Oct 2010 Annual Sixties Party20 Oct 2010 Spar Function14 Nov 2010 PSL Match22 Dec 2010 PSL MatchJanuary 2011 International Sevens Tourn.February 2011 Super 14 Team Match19 March 2011 PSLMatch30 April 2011 PSL Match

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

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)

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

PRESENTATION TO PARLIAMENTARY PORTFOLIO COMMITTEE 17 AUG 2010

MBOMBELA STADIUM

MBOMBELA STADIUM