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NMB World Cup stadium in line for financial sustainability boost

Sep 23, 2014
NMB World Cup stadium in line for financial sustainability boost

Sport and Recreation Minister Fikile Mbalula has outlined plans to address the financial sustainability of the Nelson Mandela Bay and other 2010 World Cup stadiums.

NMB Stadium Operator Access Facilities and Leisure Management announced earlier this month that it had recorded a gross operating loss of R12 million in the last financial year, although revenue was up to R46.9 million from a budgeted R33.2 million.

Replying to a question in the National Assembly, Mbalula said all the 2010 World Cup stadiums were “financially viable and sustainable.

“Since 2010, Government has managed to sustain and keep the stadiums operational,” he said adding that using different revenue streams had contributed to this.

Mbalula said that Government was now “exploring new revenue streams to ensure that in the future the stadiums are self-sufficient”.

He said the new National Facilities Plan and Grading and Classification Frame-work “now provides the sustainability plan to ensure the continued viability of stadiums,” adding that these had been developed “to guide municipalities and provinces to plan and manage the provision and maintenance of their facilities”.

Mbalula said that currently his department did not fund the provision and management of sports facilities as it did not receive a budget to do so.

However, the department was engaging stakeholders involved in managing the stadiums and he had met with all facility managers “to hear the challenges...as part of protecting the investments made”.

The Minister said that the department was also planning to have one component of Municipal Infrastructure Grant (MIG) funding allocated to the department.

This, he added, would be used to assist in addressing the facilities backlog, sustain existing facilities and address maintenance. This would include all the stadiums constructed for the 2010 World Cup. - metrominutes