The City of Cape Town has contracted a company to pull together a plan which city authorities hope will make the Cape Town Stadium more profitable in the long-term.
The multimillion-rand nineweek contract with International Risk Management is to end in November.
Although the price tag for the contract was not immediately clear, an online document from the city says the value is just more than R3.8 million.
Grant Pascoe, mayoral committee member for tourism, events and marketing, said the company employed specialists in a variety of fields.
Some of these included expertise in stadium and facility management and financial and risk advisory services.
Consultants also had experience in engineering and environmental management, Pascoe said.
In June, he said the city had begun the open tender process and invited business analysts to bid for the contract to develop a stadium business model.
This was the core duty of International Risk Management, he said.
"The business consultant is expected to develop a variety of stadium management and operating models aimed at achieving financial sustainability and optimum operational efficiency."
Reassessing zoning at the stadium would be one of the aspects, Pascoe said.
In April, the city said it wanted zoning restrictions at the stadium to be relaxed to improve profitability.
At the time, it said zoning meant parts of the stadium could not be leased for use, for example, by restaurants.
Another aspect that has to be decided in developing a model is property development and how best to use the space at the stadium, along with "rental and hire opportunities".
The R4.5 billion stadiumhas an operating budget of R57m for this financial year.
Questions have been raised about the sustainability of the stadium, but the city has emphasised that none of the events held there has incurred a loss.
A few big-name concerts have been held there, and they did not run at a loss.
One of the biggest was the Irish rock group U2's concert.
It netted a profit of just more than R800 000 for the city.
International Risk Management also has to look at attracting more events.
And for this it has to formulate marketing strategies.
The company will also assess financial projections and predict "profit-bearing scenarios".
"Each model developed by the business analyst is expected to take into account a one-to three-year, as well as a four-to 20-year operating arrangement," Pascoe said.
"Once this modelling exercise is completed, the city is expected to scrutinise each model and weigh the opportunities and implications of each before deciding on a most appropriate long-term business plan."
Earlier this year the city said the council was expected to make a decision on a longterm business plan by the end of this year.
In October, the council decided to terminate its contract with Sail Stadefrance because the consortium would not agree to a long-term lease.
Sail Stadefrance would not enter into a 30-year lease because it believed the projected losses of running the stadium were too high.
- Cape Argus
The multimillion-rand nineweek contract with International Risk Management is to end in November.
Although the price tag for the contract was not immediately clear, an online document from the city says the value is just more than R3.8 million.
Grant Pascoe, mayoral committee member for tourism, events and marketing, said the company employed specialists in a variety of fields.
Some of these included expertise in stadium and facility management and financial and risk advisory services.
Consultants also had experience in engineering and environmental management, Pascoe said.
In June, he said the city had begun the open tender process and invited business analysts to bid for the contract to develop a stadium business model.
This was the core duty of International Risk Management, he said.
"The business consultant is expected to develop a variety of stadium management and operating models aimed at achieving financial sustainability and optimum operational efficiency."
Reassessing zoning at the stadium would be one of the aspects, Pascoe said.
In April, the city said it wanted zoning restrictions at the stadium to be relaxed to improve profitability.
At the time, it said zoning meant parts of the stadium could not be leased for use, for example, by restaurants.
Another aspect that has to be decided in developing a model is property development and how best to use the space at the stadium, along with "rental and hire opportunities".
The R4.5 billion stadiumhas an operating budget of R57m for this financial year.
Questions have been raised about the sustainability of the stadium, but the city has emphasised that none of the events held there has incurred a loss.
A few big-name concerts have been held there, and they did not run at a loss.
One of the biggest was the Irish rock group U2's concert.
It netted a profit of just more than R800 000 for the city.
International Risk Management also has to look at attracting more events.
And for this it has to formulate marketing strategies.
The company will also assess financial projections and predict "profit-bearing scenarios".
"Each model developed by the business analyst is expected to take into account a one-to three-year, as well as a four-to 20-year operating arrangement," Pascoe said.
"Once this modelling exercise is completed, the city is expected to scrutinise each model and weigh the opportunities and implications of each before deciding on a most appropriate long-term business plan."
Earlier this year the city said the council was expected to make a decision on a longterm business plan by the end of this year.
In October, the council decided to terminate its contract with Sail Stadefrance because the consortium would not agree to a long-term lease.
Sail Stadefrance would not enter into a 30-year lease because it believed the projected losses of running the stadium were too high.
- Cape Argus
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