Cape Town Stadium regularly hosts sporting and entertainment events.
Cape Town - The R4 Billion Cape Town Stadium is set to get a new name in a bid to make it more economically viable.

The venue built for the 2010 Fifa World Cup is looking for bidders who want to attach their names to the stadium - rated as one of the world’s best playing facilities.

But before new name boards will be hoisted, the City of Cape Town wants to appoint a company to conduct an auction for naming rights.

Mayoral committee member for assets and facilities, Stuart Diamond said the City is in the process of establishing a private company (a municipal entity).

“It would be much like the company that runs the Cape Town International Convention Centre, to manage the Cape Town Stadium in a more commercially viable manner.

“The City has recently re-evaluated its business plan and financial modelling for the Cape Town Stadium,” he said.

He said naming rights are internationally recognised as one of the biggest contributors to the financial sustainability of stadiums.

“The City, as part of its drive to lessen the financial load on its ratepayers, has decided to offer the Cape Town Stadium naming rights to the market.

“This tender represents the City’s desire to partner with a specialist major stadium naming rights adviser,” he said.

He said no bidders have approached the City yet, but the revenue from the renaming will be determined what the markets will offer.

“The City will be looking at sponsors that relate to its ethos and brand. It will be expected that the sponsor will have a reputable corporate image and that their brand principles are aligned with those of the City. The City is appointing an expert that will be driving this process,” he said.

The Cape Town Stadium entity has been established and had the first board meeting on December 13.

A service delivery agreement between the entity and the City is to be signed by both parties at the end of January after which the entity will be responsible for stadium operations.

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Cape Argus