1. The Future of Stadia - Post 2010 Briefing to Chairperson of the Portfolio Committee on Sport & Recreation Future of Stadia Post 2010

2. The Future of Stadia - Post 2010 Future of Stadia Post 2010 Stadia Stakeholders Government National Sporting Bodies Football Clubs & Rugby Unions Third Party Stadium Managers and Rights Holders Public - Safety, Needs & Expectations Stadia Management Process

3. The Future of Stadia - Post 2010 Current Stadia Managers Appointment Process Government Funding Design, Develop, Build and open all new and revamped 2010 related Stadia Public Tender Process Appoint Stadia Managers Process Anchor Tenant Negotiations PSL Clubs Rugby Unions Concert Promoters Tenants Service providers Stadia Stakeholders

4. The Future of Stadia - Post 2010 Government obligations Post 2010 contractual obligations Legacy expectations Stadia control OwnershipTenancy Feasibility Events & Usage Financing Factors influencing Stadia Sustainability

5. The Future of Stadia - Post 2010 Ownership PublicPrivate Sporting Codes Management Public Private – Third Party Sporting Code In-House Usage Multi Sport Single code Frequency of events Skills Property Management Knowledge Experienced operator Outsourced or In-house Financing Governmental Grants Rental Income Event & Rights Fee Income Five elements to consider in establishing “best fit” stadia model

6. Shopping Centres * Regional * Neighbourhood *Strip Mall Commercial Properties * Office Parks * Industrial Parks *Tertiary Eduction establishments * Multi Type Facilities * Conferencing Leisure Facilities * Hotels & Gaming establishment * Theme Parks *Residential Villages Stadia & Arena’s * Large * Medium * Small Comparable Property Management Types The Future of Stadia - Post 2010 Understanding Property Industry Norms

7. Tenants * Leasing * Management * Relationships Operational * Finance * Administration * Facility Management * Safety & Security Marketing & Public Relations * Image * Awareness * Competitive * Promotion Visitors & Third Party Stakeholders * Needs *Expectations * Experience Property Management Activities The Future of Stadia - Post 2010 Common Property Management skills across the industry

8. The Future of Stadia - Post 2010 Legacy Model Ownership Body Management Type Utilisation Football Needs SAFA – National Team & football development PSL – Rights Protection and commercial programs Clubs – Individual goals Sustainability Maximising Revenue Generation Managing Stadia Expenditure Asset Value Protection – R & M and capital growth Stages effecting Stadia sustainability

9. The Future of Stadia - Post 2010 Stadia Success Performance of Teams/Anchor Tenant on field and Rights Management & Protection programs Multi-Usage offering Team Supporters Base loyalty programs Experience of visitors and teams at stadia Competition for the leisure rand spend Broadcasters influence – “Area Blackouts” Protecting Environment Precinct – Enforcement of Bye-Laws and policing of area Stadia Accessibility & non-sanitisation of area Public Transportation programs Events type and Event management Maintaining Asset Value Protecting Property Value through Preventative Maintenance programs Clubs/Anchor Tenant profitability Stakeholders returns Ensuring Stadia Asset Value sustainability

10. The Future of Stadia - Post 2010 PSL Sustainable Model on Stadia Management Agree value of Governmental, Lotto, SAFA & PSL financial Stadia grants Nominate Stadia per region Allocate Team per stadia per league Agree Management Model per stadia Setup Management Company structure with stadia owners & team Allocate PSL/SAFA owned competitions & tournaments fairly across stadia Ensure local government resource allocation per stadia Ensure compliance of all relevant stadia legislation Protect Stadia rights – Enforce broadcast blackouts for certain matches Promote matches and teams fairly Match management - Safety, Rights Protection and spectator experience Ensure financial and corporate governance

11. The Future of Stadia - Post 2010 SA Professional Football 2010 Teams [32] PSL Teams Ajax AmaZulu Wits Aces Celtic FS Stars Arrows Chiefs Sundowns Maritzburg Swallows Pirates Plat Stars Santos SuperSport Vasco Coastal Black Leopards Warriors Witbank Spurs Batau FC Dynamos Pretoria Univ United FC Winners Park Inland Vasco D Nathi Lions Bay United Carara Kicks Thanda Royal FC Cape Town Hanover Park Ikapa FC [16]

12. The Future of Stadia - Post 2010 South African Main Stadiums

13. The Future of Stadia - Post 2010 South African Stadiums “Smaller non-2010 Venues” 1.Johannesburg 1.Orlando Stadium 2.Rand Stadium 3.Dobsonville 2.Pretoria 1.Atteridgeville Super Stadium 3.Nelspruit 4.Polokwane 5.North West 6.Free-State 7.Kwa-Zulu Natal 1.Umlazi 2.Kwa-Mashu 8.Eastern Cape 9.Cape 1.Athlone Stadium

14. The Future of Stadia - Post 2010 Stadia Sustainability Stadium Profitability Expenditure - Events and R & M programs Event & Rental income Sponsorships & Rights Fess

15. The Future of Stadia - Post 2010 Stadia Expenditure [Excluding Team costs] Stadia Management Costs Event & Marketing Costs Ongoing Annual Repairs & Maintenance and local Utility Costs Long Term Structural & Technical Preventative Maintenance Costs

16. The Future of Stadia - Post 2010 Stadia Expenditure [Team managed Stadia] Stadia Team & Marketing Costs Event Costs Ongoing Annual Repairs & Maintenance and local Utility Costs Long Term Structural and R M Programs

17. The Future of Stadia - Post 2010 No of seats Grant Value P/A No of pitches Grant Value P/A No of Suites Grant Value deducted Additional Revenue generators Grant Value deducted Total Grant Value P/A >10 000R1R>50-RParking-RR >20 000R2R<50-RRetail-RR >30 000R3R<100-ROffices-RR >50 000R4R<150-RConferencing-RR <50 000R5R<200-RHotel-RR Formula to be applied i.r.o the annual Government And PSL Grant Calculated at a per seat rate

18. The Future of Stadia - Post 2010 Independent Stadia Management Report Appoint agency to consider all current stadia operations Report on proposed stadia R & M and preventative maintenance costs Report on existing Premier & First Division “home base” needs Ascertain National Team home base needs Interrogate Football Rights & obligations Consider stadia various and different commercial opportunities & income streams Propose stadia management structures and required value of annual grants

19. The Future of Stadia - Post 2010 Thank you