Case Study

Course Name: Sport Facilities and Event Management Course Code: MSM 604

Case Study 1: Cape Town Stadium Development and Management

Instructor: Prof. K. Swart Date: 26 March 2018

When South Africa put forward its bid for the 2010 FIFA World Cup, Newlands Stadium was identified as the competition venue and Athlone Stadium was noted as the training venue, yet the final competition was hosted at Cape Town Stadium in Green Point. Despite this announcement being made in February 2006, the City of Cape Town undertook a study to evaluate alternative venues in July 2006 (Bayette Consulting, 2006, cited by Swart & Bob, 2009). In 2012, the City of Cape Town proposed a Business Plan for Cape Town Stadium and Green Point Park which was welcomed by Future Cape Town (2013) as a step forward in the future viability of the stadium and greater precinct.

Figure 1: Proposed mixed-use development adjacent to Cape Town Stadium site (Fataar, 2016)

This Business Plan (2012) acknowledges that the past two decades has seen unprecedented growth in the number of large stadiums worldwide; largely driven by the requirements of international sports federations in relation to their respective mega-events. The City of Cape Town (2012, p. 7) further notes that in many instances, “after the hosting of these events, owners and operators are confronted with the harsh realities of the extremely competitive major stadium environment.” Moreover, the running costs of these stadiums are considerable, and Cape Town is no exception to this reality. This Business Plan (2012, p. 7) also

underscores that “stadium owners have been forced to re-assess their traditional stadium management structures and event delivery models, and take a broader – and more strategic and professional – view of the spread of products and services required at their facilities.” Given the current operational realities, the City of Cape Town (2012) appointed a business analyst in September 2011 to develop and consider five potential governance and business models for Cape Town Stadium based on best practice. These included the following (City of Cape Town, 2012, p. 10):

• Model 1: City as operator, with anchor tenant • Model 2: Independent operator, with anchor tenant • Model 3: Anchor tenant as operator • Model 4A: City as operator, with no anchor tenant • Model 4B: Independent operator, with no anchor tenant • Model 5A: Analyst-proposed mixed management model – public-private partnership • Model 5B: Analyst-proposed mixed-management model – municipal entity

More recently, Chothia (2017) reported that the City has made a decision on the management and operation of the Cape Town Stadium.

Question 1

Evaluate some of the key aspects that need to be considered when selecting alternative venue sites when constructing a sport facility, and the Cape Town Stadium case in particular. Additionally, evaluate the proposed business models and justify the selection of the most appropriate business model.

(15 marks)

Special Instructions

• An essay of 2500 words is required (including Introduction, Conclusion and relevant sub- headings as required).

• Make sure to use APA format both in-text and referencing for the reference list.

Evaluation Rubric for Case Study

Course Code: ________________ Course Name: _____________________________

Program: _______________ Semester: _________________ Student: ____________________

Title of Case Study: ________________________________________________________________

Criteria Levels Marks allocated

Level-4

Level-3

Level-2

Level-1

Identification of the Case Problem

/2 Identifies all the management issues in the case study.

(2 marks)

Understands most of the issues mentioned in the case study (1.5 marks)

Identifies limited issues and problems of the case study.

(1 mark)

Identifies few issues and problems of the case study. (0.5 mark)

Analysis and Evaluation of Issues in the Case

/2 Very thorough and astute analysis and evaluation of case study issues (2 marks)

Analysis of most of the case study issues. A more thorough analysis can be done. (1.5 marks)

Superficial analysis of some issues mentioned in the case study. (1 mark)

Incomplete analysis of the issues mentioned in the case study. (0.5 mark)

Recommendation on Effective Management Strategies

/4 Well researched comments, structured solutions, apt suggestions to all issues mentioned in the case study (4 marks)

Appropriate comments / suggestions / solutions to most of the issues in the case study (3 marks)

Superficial or inappropriate comments / suggestions / solutions to some of the issues in the case study (2 marks)

Incomplete and superficial solutions of some of the issues mentioned in the case study (1 mark)

Conclusion and Further research

/2 Conclusions justify all the stated objectives of the issues of the case study. Excellent research was done on the issues in the case study, and is referenced. (2 marks)

Appropriate and relevant conclusion that covers most of the issues mentioned in the case study. The research has links to various materials to be referenced (1.5 marks)

Limited issues mentioned in the conclusion. The research is also limited to some issues of the case study.

(1 mark)

Incomplete and superficial conclusion limited to some issues of the case study. The research is incomplete and linked to limited readings. (0.5 mark)

Presentation /5 Well- articulated reporting to the audience, with excellent communication skills and structured details (4-5 marks)

Adequate reporting to the audience, with good communication skills and respective details included (3-3.5 marks)

Limited reporting to the audience, with adequate communication skills and lacking certain details (2-2.5 marks)

Lacking reporting details, with limited communication skills (0.5-1.5 marks)

Total /15

Faculty Name: ______________________________ Faculty Signature: _______________________

Date: ____________________