Terry Crawford-Browne, the anti-arms-deal activist, is on yet another campaign - this time to have the multibillion-rand Cape Town stadium demolished.

He has labelled the stadium a white elephant despite the City of Cape Town's recent announcement that drastic steps have been taken to make it profitable.

He accused world soccer controlling body Fifa of blackmailing the city into building the stadium.

"The stadium was foisted onto Cape Town by Fifa and the national government, and all suggestions and objections were brushed off," said Crawford-Browne.

"The alternatives of Newlands, Athlone or Khayelitsha were dismissed because of Fifa's insistence on Green Point, irrespective of its shortcomings in transport and other town-planning considerations."

President Jacob Zuma appointed a judicial commission of inquiry into the arms deal last year after Crawford-Browne took the government to the Constitutional Court over the matter.

"The [stadium] project was totally lacking in transparency, thus unconstitutional, and, predictably, costs rocketed to over R4-billion. Throwing good money after bad will not make the stadium economically viable.

''Cape Town will predictably end up with a tatty eyesore, per the Good Hope Centre and the 'pepper pots', with negative social and economic consequences for Green Point," Crawford-Browne said.

The city announced on Thursday that it had commissioned independent business analysts to find ways to generate income to sustain the stadium.

The options include reviewing the zoning conditions, which prohibit commercial activity in the stadium precinct.

Councillor Grant Pascoe, responsible for tourism in the city, said the analysts had suggested the establishment of "a public entertainment node containing standalone restaurants, coffee shops and sports bars".

"In the post 2010 Fifa World Cup scenario, it has become clear that to reduce the burden on the rates base of the city alternative forms of revenue need to be generated," said Pascoe.

Crawford-Browne said the situation was "unfixable" and the stadium would have to be demolished.

"Compounding its blunder and complicity in yielding to Fifa pressure, bribes and blackmailing, the city council is now trying to force the SA rugby board to relocate from Newlands.

"Cape Town already had a world-ranking stadium that could have been upgraded for a fraction of R4-billion plus," he said.

"The further legal principle is that the fraudsters should not be allowed to walk away with financial benefits, hence the need to send the bill for demolition to Fifa and the central government."

• Pascoe refused to comment on Crawford-Browne's suggestion.