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Fri 1 Nov 2019 | 05:44

CONFIRMED: WP Rugby to start new era at Cape Town Stadium

CONFIRMED: WP Rugby to start new era at Cape Town Stadium
Fri 1 Nov 2019 | 05:44
CONFIRMED: WP Rugby to start new era at Cape Town Stadium
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NEWS: The Stormers and Western Province will have a new home in 2021.

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The City of Cape Town’s Council has approved a Binding Heads of Agreement between the City, the Cape Town Stadium and Western Province Rugby which will make Western Province Rugby the primary Anchor Tenant at the Cape Town Stadium from February 1, 2021 in a deal that potentially spans the next 99 years.

The parties have agreed on a mutually beneficial revenue share model whereby Western Province Rugby will have preferential access to play all senior professional rugby matches at the Cape Town Stadium.

The City will retain responsibility for repairs and maintenance and the operational costs of Cape Town Stadium. It will remain a multipurpose entity, with Western Province Rugby leasing the Cape Town Stadium for matches.

The parties have also agreed to the construction of additional suites at Cape Town Stadium.

This agreement does not affect continued guaranteed community access to the Cape Town Stadium and it remains a host for all sporting codes and events.

Western Province Rugby Group CEO Paul Zacks said that while it is rewarding to reach this important stage, there are still many details to be worked out before 2021.

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“These Heads of Agreement are the culmination of three long years of hard work. There is much ahead of us before we can play at Cape Town Stadium in 2021, with the Primary Anchor Tenant agreement still to be finalised,” he said.

Western Province Rugby Football Union President Zelt Marais said that this is a historic moment for the union.

“This is a watershed moment for Western Province Rugby as we open an exciting new chapter which will help ensure our financial sustainability and grow the game in the future,” he said.

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*Recent reports suggested Newlands will be ‘demolished’ and turned into a multipurpose office-cum-residential development.

This, according to the reports, is all part of an agreement with a major banking group, although the exact timeline for the new ‘development’ remains uncertain.

WPRFU reported entering into an agreement with an asset management group, who will provide the union with a ZAR110-million ‘loan’ for the development rights to the stadium from 2021.

The banking group will take on the development on a 99-year lease.

The ZAR110-million will assist WPRFU with their cash flow issues, including helping them settle a ZAR52-million debt they have with Remgro.

It will leave the union with over ZAR50-million as working capital.

WPRFU will get an income from the development of Newlands, but it will take several years before the new property is complete and the money starts coming in.

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CONFIRMED: WP Rugby to start new era at Cape Town Stadium | Rugby365