2010 and beyond sustainability: The case of Durban

eTHEKWINI MUNICIPALITY In 2005 we presented our 2010 and beyond strategy for Durban

„ Africa’s sporting and events destination „ Scale up infrastructure in city, region „ Attract investment „ Create jobs „ Develop sports infrastructure „ Urban renewal 1. Economically Sustainable Stadium

„ Financially sustainable „ Multi-functional to host sporting and other events (bowl and non-bowl) „ Tourist attraction, also through iconic design „ Had a flexible capacity: „ 70 000 seats for the FIFA World Cup „ 56 000 seats in legacy mode thereafter „ Can be extended to 85 000 seats in future Where we have come from?

Kings Park Soccer Stadium – June 2006

The vision of a new stadium....

Competition images What we built!!

The real thing! Oct 2009

1.1 Durban’s Sky Car 1.2 Moses Mabhida Stadium Adventure Walk 1.3 Big Three – end April 2010

„ Over 250 000 spectators „ Over 136 000 visitors „ Over R6m to date on Big 3 1.4 Adding opportunities: The Moses Mabhida Stadium Swing

1.5 Retail Area 2. MOSES MABHIDA STADIUM PRECINCT

Improved pedestrian Ablution facilities Restaurant – with walkway along outdoor seating Isaiah Ntshangase Change rooms Rd Emergency access road Open air amphitheatre

Imbizo Place - retail

Moses 1 Km run/walking Mabhida track Place Re-aligned M4 Upgrade to Access road Masabalala Yengwa Avenue

Moses Mabhida People’s Park - After

MOSES MABHIDA STADIUM PRECINCT

The Beach Link allows safe and easy pedestrian access to the stadium from the beachfront

3. Beachfront Upgrade Development Objectives: Design Principles: „ Integrating the Central „ Promenade 15-20m wide Beachfront „ 150m sight lines „ Providing amenity for a „ Activity node every 300m diverse range of beach with dedicated parking users. „ Improved „ Greening lighting/landscaping „ Safety through „ Increased east-west linkages environmental design „ Promoting a healthy lifestyle „ 766 000 Fans attended t FIFA FAN FEST Fan Park alone „ 1.3 million visitors to the beach festival „ Over 300 000 fans watched games at PVAs FIFA Fan Fest

Princess Magogo Stadium Kwamashu

Sugar Ray Xulu Stadium - Clermont

King Zwelethini StadiumUmlazi Princess Magogo Training Venue….Before

Sugar Ray Xulu Stadium - before

Sugar Ray Xulu Stadium - afterwards

King Zwelithini Stadium - before

King Zwelithini Stadium - afterwards

5. Ownership

„ Municipalities best placed to ensure strategy for usage fits into IDP and meets city’s economic objectives „ Stadia are economic entities „ Cities invested own funds in stadium „ Events Act quite onerous and requires municipalities to ensure it is implemented „ MFMA requires assets to be sold at market value 6. Management „ Stadia are complex entities requiring highly specialised and complex skills, from engineering to facilities management „ Suite holders expect professional servicing with clear standards and deliverables „ Each stadium is unique and requires its own strategy for sustainability „ City must have oversight of management to ensure city’s economic, social and environmental objectives are met. „ Institutional model to be finalised based on business case Management responsibilities

„ Appoint and manage services providers such as cleaning, security, and pitch maintenance. „ Responsible for maintenance and repairs of entire stadium and precinct. „ Provision of all stadium catering. „ Letting of private suites and manage suite contracts. „ Letting of retail shops and manage retail contracts. „ Operate stadium attractions: SkyCar, SkyWalk and stadium tours. Management responsibilities continued…

„ Letting the stadium for events and management of the events and/or event organisers. „ Act as project managers and appoint professionals where necessary for design aspects for all further capital expenditure at the stadium (e.g. reinstatement & repairs after FWC, further stadium fit-out). 7. Events legislation

„ This has had a huge impact and will result in significant increase in the costs of hosting events particularly related to the stadium’s security, health and safety „ Also there are significant cost implications for cities eg. Metro Police, disaster management, fire etc. 8. Income possibilities

„ The breakdown of the main revenue income streams up to the end of June 2010 is as follows: „ Event Income (excludes hospitality): R 5 822 030 „ Hospitality Income: R 8 051 446 „ Catering Income: R 6 311 641 „ Retail & Attractions: R 6 091 758 „ Other (e.g. recovery of costs from third parties): R 108 114 „ TOTAL INCOME TILL 30 JUNE 2010 R 26 384 990

„ Income owed by FIFA/OC for rental and utilities has not been paid or included in above income. 9. Expenditure

„ Fixed vs variable costs: Variable will depend on number of events/functions „ Event costs (excludes hospitality): „ Marketing Costs: „ Hospitality Costs: „ Catering Costs: „ Retail & Attractions: „ Finance & Admin & Management: „ Operational Expenses: „ Security „ Cleaning „ Electricity & Water „ Salaries, Wages & Consulting Fees „ Other „ Repairs & Maintenance „ 10. Moses Mabhida Model

„ In the short term, Amazulu and Lamontville Golden Arrows will play their major games at MMS „ Will continue to attract major matches „ Have also secured T20 international cricket match India and South Africa. „ Concerts, rallies, etc. on the events schedule „ Maximise revenue from retail areas, tourist attractions and non-bowl events/functions „ Stadium in-house catering model to be optimised „ Have a good working relationship with Sharks and exploring synergies for the future. The business case must work for everyone. Other Venue model

„ Multi-functional „ Minimum charge for use of facility and 10% ticket revenue share „ Maintenance programme fund „ Single strategy for all stadia „ Consolidated stadium management of 4 smaller venues 11. Dealing with sustainability

„ Short-term sustainability: Ticket revenue share to be more equitably apportioned with minimum of 50% of the ticketing revenue to the stadiums to ensure their sustainability „ Security costs to be paid for by teams „ Share of other match income such as TV rights to be considered „ National Treasury to set aside funding for structured maintenance of stadia so as to ensure stadiums remain world class facilities able to compete for global events „ Stadiums should submit detailed facility management plans showing planned maintenance costs Conclusion „ Strategies for the stadia must be linked to IDPs „ Stadia sustainability strategies must focus on what is possible „ There is a need for a national fund to assist, but not in ways that promote inefficient or uncompetitive situations to continue Thank-You