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Stadium still viable despite reported loss

The purpose-built Mbombela Stadium, one of the specially constructed 2010 Fifa World Cup stadia, is running at a loss of R12 million to R14 million per annum.

MBOMBELA – The purpose-built Mbombela Stadium, one of the specially constructed 2010 Fifa World Cup stadia,

is running at a loss of R12 million to

R14 million per annum.

This includes maintenance, running, and capital costs which Mbombela Local Municipality (MLM) has to atone for. However, this is only one side to the story as the stadium has filled a crucial gap in the province.

Numerous events create ample opportunity for investment and economic prosperity especially on the sport-tourism front, according to stadium manager,

Mr Roelf Kotze.

He is of the opinion that the two anchor teams, Steval Pumas and Mpumalanga Black Aces, use the stadium to their advantage and this boosts its value.

“Attendance is very important and over the past financial year the attendance levels have improved as the teams’ profile gets bigger in their respective leagues.

“The Pumas have won the Vodacom Cup and this has boosted their marketability massively. This will attract more sponsorship, advertisements and the sale of naming rights in the coming months,” Kotze explains.

MLM struck a R10 million new anchor- tenant deal with the Steval Pumas and Mpumalanga Black Aces in March this year. These sides represent the city in their respective premier sporting leagues and their matches provide an opportunity for regular use and match revenue.

“The main goal is to utilise the stadium as a community facility but also to ensure that it does not become an unnecessary burden for taxpayers.

“There is an ongoing focus on marketing the stadium as a multipurpose venue.”

The hosting of international matches has also had an indirect effect on the local economy as it created a huge financial injection for the hospitality industries and had a snowball effect.

“There has been a huge need for a multi-purpose sporting venue and the stadium fulfils this need.

“It also fulfils its function as it caters to four million residents in the region. In the past residents had to watch their national heroes on television. Now they can see them live at the stadium,” Kotze mentions.

Interesting facts

• The 43 500-seater stadium was completed at a project cost of R1 070 million. It only hosted four matches and had the lowest per seat cost of all the 2010 Fifa World Cup stadia. Construction took place from February 2007 until November 2009.

• Platinum Sport Consulting manages the stadium on behalf of the municipality. It is also the only large multipurpose stadium of its nature in a 300-kilometre radius.

• There are approximately 30 rugby and soccer matches hosted per year as well as 170 other functions, which range from corporate conferences to musical concerts.

• The Nelspruit Marathon Club is based at the stadium.

• It has plans to include further facilities such as an athletics track to develop sport in the province.

• Conferences, church events and examination rooms on behalf of the North-West University are also part of the stadium.

• It is also used for other sporting activities such as cycling and marathon events, such as the Kaapsehoop 3-in-1 Marathon.

At Caxton, every story is written by humans. We use AI only to perform quality checks - never to generate the news. Happy reading!

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