Peter Mokaba Stadium remains huge loss

The new Peter Mokaba Stadium operated at a huge loss for the last four years, costing ratepayers more than R40 million.
In a report tabled in the meeting of the municipal council at the end of July, it was revealed that the expenditure for 2012/13 had been R20,5 million while the income only amounted to R5 million. For the 2013/14 financial year the income was R4 660 963 and the expenditure R14 868 454 and R10 821 453 spent with only R5 170 616 income during the 2014/15 financial year. The 2015/16 financial year yielded an income of R6 506 604 with expenses amounting to R14 976 803. It is evident that the municipality spent over R61 million and recovered R21 million, resulting in a deficit of R40 million for the last four years.

According to the report, spending during the 2015/16 financial year was for maintenance, hospitality, catering, security and standby operations during events. Income was derived from ticket sales at R3,6 million, VIP ticket sales at R736 880, office rentals at R170 142, stadium tours at R43 944 and pitch cover rental at R96 851. A further R43 599 was earned from advertising space rental, R956 201 from venue hire for meetings, political events and conferences for events and R1 159 140 payback from Computicket.
In the report, Ndavhe Ramakuela, Director Community Development of the municipality, confirmed that eight Premier Soccer League (PSL), two Nedbank Cup and four National First Division soccer games as well as one rugby game were hosted at the new Peter Mokaba Stadium during the 2015/16 financial year. A further ten PSL matches were hosted at the old Peter Mokaba Stadium over the same period.
Appearance fees paid to soccer teams since the 2012/13 financial year amounted to R40 775 000. The soccer teams hosted were Supersport United (22 games), Black Leopards (16), Kaizer Chiefs (14) and Polokwane City (50) with a total of 102 games played over the four years.
Ramakuela commented that the stadium is used as an instrument for social cohesion and an impetus for economic development within the city. “In the four years reported in the report the stadium has hosted more premier soccer events than any of its counterparts in the country. It has attracted up to one million spectators and visitors during the same period,” Ramakuela said and added that the presence of spectators has increased the economic input into the city which amounts to at least R2 to 3 million per weekend where a match with up to
30 000 spectators or more is hosted. The greatest beneficiaries are businesses, petrol stations, restaurants, accommodation and tourism who have jointly received no less than R160 million in the period referred to.
“With the number of matches and spectators hosted the stadium cannot be in any way come close to be referred to as a white elephant. If the stadium was never utilised at all then it would qualify to be called that.
“The annual rugby tournaments hosted in the stadium have raised over R3,5 million in the same period which has been distributed to take care of the special focus groups, youth, women and those running child care centres,” Ramakuela explained and mentioned that the municipality established a dedicated unit, Facilities Commercialisation, in 2011 which seeks to put the stadium and other targeted facilities at a mode where, beyond contribution to the economic growth, they should be self-sustainable in the next four to five years.

Story and photo: BARRY VILJOEN
>>barryv.observer@gmail.com

Featured photo: An aerial view of the new Peter Mokaba Stadium.