Wednesday, October 21, 2009

Green Point Stadium 1 Rand Lease Deal Irks Locals

The city of Cape Town is on the verge of sealing a deal with a French-South African consortium to lease the 4.5 billion Rand ($610 million USD) Green Point soccer stadium. Under the proposed agreement, the company would only have to pay 1 Rand per year to lease the stadium, unless it is able to clear a profit. Many assume the stadium will likely be profitable, but others are concerned that the high public price tag is being gambled.

Despite fears that the venue will become a costly white elephant after the 2010 Fifa World Cup, the city is pushing ahead with a controversial deal with a French-South African consortium. The city hopes to receive a 30% share of the after-tax profits of the SAIL Stadefrance Operating Company.

If the operator does not make a profit, however, the city will recover just R1 a year in rent while spending millions more on maintaining the stadium. To be viable, the building will have to host between 20 and 40 events a year.

Rent row hits stadium
City Press
October 4, 2009