Thursday, October 28, 2010

With Management Company Out, Stadium's Future is Uncertain in Cape Town

The city of Cape Town had justified the major expense it was taking on to build the brand new Green Point Stadium for the 2010 World Cup by pointing to the fact that it had contracted a management group to make sure the stadium remained in use and pulled in revenue. But now that company has pulled out and the city's $639 million stadium is treading towards white elephant territory.

Capetonians are divided over whether the stadium is an elegant icon or a useless monument to South Africa’s excessive spending on the World Cup. Other stadiums – such as the 45,000-seater Mbombela stadium in Nelspruit, which cost R1.3bn (€134m), and the Peter Mokaba stadium in Polokwane (cost: R1.25m) were always expected to become white elephants. But Cape Town’s stylish stadium was the most expensive of the 10 World Cup venues, leading everyone to believe that the number crunchers considered it sustainable.

The empty stadiums: South Africa’s white elephants
October 21, 2010