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The Mandela Bay Development Agency has recommended that the Metro should provide financial incentives for a stable, well-run PSL team to relocate to the Metro and become an anchor tenant at the Nelson Mandela Bay Stadium.
Presenting various options to the Economic Development, Environmental Affairs and Tourism Committee this morning, MBDA CEO Pierre Voges said that continuing to secure once-off matches was “financially unsustainable” as match fees were increasing significantly.
He said purchasing a team would cost in excess of R70 million and the municipality would be responsible for operating costs of more than R25 million. There was also no guarantee that it would not be relegated at any time.
With regard to the possibility of supporting a local team, Voges said there was no guarantee that it would achieve PSL status and how long this would take.
He said the Stadium Operation had started engaging informally with a number of PSL clubs and it was evident that there were only three or four clubs in the relocation target market, adding that an estimated R36 million would be required over a three-year period to entice a PSL Club to relocate.
Voges said there were a number of economic benefits including the presence of local administrative, coaching and academy staff as well as the respective playing squads with a payroll of at least R25 million a year spent in the local economy.
In addition, there would be approximately 20 match days a year which would require 25 cleaning staff and 230 security guards a game “as well as numerous SMMEs involved in service delivery.
Further, he said, accommodation, transport and entertainment would be required by visiting teams.
Voges pointed out that the prestige of being the only South African stadium with both PSL soccer and Super 15 rugby had significant commercial value in terms of sponsor-ships and attendance so reducing the burden on the ratepayer.
(Source: Metro Minute - to subscribe mail metminutes@iafrica.com)
