Keeping the venues ticking over

Two and a half years after the World Cup 'The Times' assesses the financial viability of the stadiums across the country.

FNB Stadium

Barry Pollen, director of Stadium Management SA, which runs the 90000-seater Soccer City, won a 10-year contract in 2009 to run the venue on a "full financial risk" basis. This means whatever profit the company makes, the company take, but it takes the risk of losses as well.

The stadium cost R3.3-billion to build at R39000 per seat.

It costs around R2.5-million a month to maintain, with an annual turnover of around R100-million. It has hosted major events like Lady Gaga and U2 and Springbok rugby Tests, with attendance figures of 1.3 million in the first year after the World Cup.

Cape Town Stadium

The stadium is at the centre of a heated debate about its future.

The city has launched an investigation to examine its business viability options and whether the stadium should be managed directly by the City of Cape Town or involve the private sector.

The stadium is one of the most expensive in the world, having cost R4.5-billion to build.

The operating budget for the 2011/12 financial year was R56-million - almost twice as much as Soccer City. In that period, it generated an annual income of R13-million and hosted U2, Lady Gaga and Neil Diamond and a Man United game against Ajax Cape Town.

The city secured a R306.5-million loan - with annual repayments of R12.8-million - to supplement funding provided by national and provincial government.

Negotiations are still under way to attract the Western Province Rugby Union to use the stadium.

Moses Mabhida Stadium

The stadium has failed to attract the Sharks rugby franchise away from Kings Park.

In a 2006 report, former city manager Mike Sutcliffe said the upgrading of Kings Park would cost at least R500-million. It was considered too old to use for the World Cup.

Tex Collins, caucus leader for the DA in eThekwini, cannot remember when last the stadium had been filled to capacity since the Soccer World Cup. He says most tickets are given away.

"When there's a football match, they will sell 1000 tickets and give 3000 away," he said. "We have the most beautifully designed white elephant in the country."

According to the stadium's general manager, Simon Ngubeni, the R3.2-billion stadium made R61-million last year, R42.3-million in 2011 and R25.2-million in 2010.

"The total operating expenses were R72-million. The deficit incurred by the stadium is within the approved council budget."

Mbombela Stadium

The R1-billion stadium has an annual operations budget of R12-million.

Stadium manager Roelf Kotze says they have worked hard to increase revenue of between R2-million and R3-million a year.

"We got Bidvest Wits to come and play here, and got the Pumas rugby team to move over."

As Nelspruit is slightly removed from mainstream sports, the stadium manages to attract slightly bigger crowds for games, compared to similar games in the main metropolitan areas, says Kotze.

The venue has hosted around 40 events over the past three years.

Port Elizabeth Stadium

"If you ask me whether a R2.4-billion stadium should have been built in Port Elizabeth, I would say 'no'," says Pierre Voges, CEO of the Nelson Mandela Bay Development Agency, which is responsible for running the Port Elizabeth Stadium.

The city has a small population and has trouble regularly filling the 48000-seater stadium.

"But we have it, so we have to make it work," says Voges.

The stadium was the first one of the six newly built stadiums to be finished.