Stadiums have to diversify or there will be no more bums on seats

SOUTH Africa has too many stadiums and they have to reinvent themselves if they want to remain relevant. So argues Titans chief executive Jacques Faul, who adds: “Everyday I wonder how do you keep a stadium going.” Faul is not the only one. Nobody needs reminding that we have too many concrete behemoths. In the shadow of Table Mountain, debate continues to rage whether the Springboks should tackle the All Blacks at Newlands or Cape Town Stadium later this year.

A decision is expected soon, but the wider issue centres around stadium sustainability.

Faul gave a bleak prognosis of what stadiums can expect amid ever-shrinking revenue streams.

“You have to go the direction the market has taken, not where it’s been. No single sport is going to fully sustain a stadium,” said Faul, who knows a thing or two on the subject.

“I did a PhD in stakeholder management at mega events and I also did a MBA dissertation on the subject.”

He travelled to Yankee Stadium in New York and Boston’s Fenway Park to find out how he can place more bums on seats.

“I also looked at how it’s done in Sydney where I got an executive event management certificate,” Faul said.

“Their economies are very different. The Yankee Stadium hosts 81 home games a year. South African sports stadiums typically host between 15 and 23 matches. You are also operating in a different economy where the disposable income is very different.

“You have to be careful not to say they do so many things better. Their figures are also down, but English football is still doing well.”

Just this week, attendance figures for English Premier League clubs were released with West Ham United coming in tops at 99.9% capacity for the season, while Liverpool completed the top 10 with 98%.

Of course, having a compelling product helps, but even if you do, there’s no escaping rocketing operational costs. Super-Sport Park, the Titans’ home ground, pays up to R6-million yearly for water and electricity.

“A medium-sized stadium like ours can cost you between R13-million and R20-million to run a year,” Faul said.

His problem is exacerbated when you consider: “I can host four-day games that is not going to generate any income and that is my core business.”

Add to that local stadium operators’ income is almost exclusively generated over weekends. “At the Suncorp Stadium [in Brisbane, Australia] and Sydney’s Olympic Park, they literally have events over Thursday, Friday, Saturday and Sunday. We are not brave or skilled enough to do it.”

More people have arrived at the conclusion that stadiums built for the 2010 Soccer World Cup have diluted income potential.

“A country like ours has ended up with far too many stadiums, but that isn’t unique to South Africa,” said Faul.

“You often overestimate the value of mega events, underestimate running costs, while potential income is overestimated.

“After mega events, you never use venues’ full capacity again. It simply isn’t sustainable and people are now suggesting that it is more cost-effective to erect something and break it down afterwards.”

Barely six months after last year’s Rio Olympic Games, facilities are mothballing.

Faul calls stadiums “public benefit structures” which should be geared for multipurpose use.

To that end, the Titans branched out. “We started a running club [Outdoor Plus] and we are launching our Festival of Running.

“We have actively pursued another sport, otherwise we are not going to make it.”

People have concluded that stadiums built for 2010 World Cup have diluted income potential