Crucial to plan for post-2010

Posted On Tuesday, 27 November 2007 02:00 Published by eProp Commercial Property News
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These are issues that face all host cities, but traditionally not many have been proactive enough to address them in advance

2010What happens when the World Cup showpiece is over? And what will be the future of the 10 venues in SA, when the television cameras have moved on to the next event?

These are issues that face all host cities, but traditionally not many have been proactive enough to address them in advance, says Mark Roberts, senior consultant for the UK-based Deloitte Sport Business Group.

“Most of the time the organisers of the event are so focused on doing whatever it takes to host a successful event that they cannot see beyond the final match or closing ceremony. But addressing the issue post-event is too late.”

Several of the five stadiums that are being upgraded for the World Cup will probably revert back to their pre-tournament use. Ellis Park in Johannesburg, for instance, will continue to be used by the Pirates and the Lions. But, Roberts points out, unlike Germany in 2006, where all of the venues were used after the tournament by Bundesliga soccer clubs, this is unlikely to be the case in SA.

“With stadiums likely to be owned, operated and maintained by their local city municipalities, it will be important to explore the optimal post-tournament operation and management strategy to ensure that they are commercially sustainable in the long term.

“With capital costs for stadium construction projects rising — raw material costs are increasing by 5% to 10% a year — and central government committed to investing R8,4bn into the venues, it is more important than ever that detailed analysis on the most appropriate business model for a stadium is undertaken by advisers who are experts in this field.

“Ensuring that a stadium is viable and sustainable in the long run after the event is a process where research is the key, and knowledge of the prevailing local market demand and supply conditions is invaluable. It ensures that the stadium becomes a viable destination.”

He says that the Sports Business Group at Deloitte has methodologies that ensure a bespoke commercial model is developed to fit a stadium’s unique situation, location, event day and non-event day requirements and, importantly, meets the needs of all stakeholders and end users.

The Deloitte Sports Business Group publishes the Deloitte Annual Review of Football Finance Report. This report of European football finance provides a record to the end of the 2005/06 season. The 16th edition was launched in May.


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