[imagesource: Gallo Images / Brenton Geach]

It won’t be too long before rugby in the Mother City moves to Cape Town Stadium, which has been on the cards for a number of years.

I’m sure residents of the Atlantic Seaboard will be stoked to have rugby on their doorstep – at least until they experience gameday traffic.

That move to Cape Town Stadium has now edged closer following an announcement that the Council of the Western Province Rugby Football Union (WPRFU) has voted in favour of a proposed agreement regarding the development of Newlands Stadium.

The vote took place during a special general council meeting last night, with Flyt Property approved as a development partner for Newlands Stadium.

In a statement to the press, Zelt Marais, president of the WPRFU, said that a loan agreement “will enable the WPRFU to pay off its R112 million debt to Remgro and Investec”, with “bank guarantees having already been obtained, subject to the ratification of the agreement by a Special General Meeting of the WPRFU on Wednesday 8 July 2020”.

Where this deal really sets itself apart from others that had been considered is the fact that, unlike previous loan and redevelopment arrangements, the WPRFU will have a 50% share in all economic benefits derived from the future development of the site.

With the Newlands Rugby Stadium property set to be turned into a mixed-use development, that could prove to the key factor in hauling the union of what had become a perilous financial situation.

More from the statement by Marais:

The previous development agreement with Investec lapsed on 1 June 2020 due to suspensive conditions not being met. Unlike the previous agreement, this new agreement with Flyt Property Group will give the WPRFU a meaningful and equal stake in the proposed development. It is therefore a much better deal for the WPRFU and the future of rugby in the province, which the body of voters clearly recognise.

Additionally, the Council also approved a proposal that another new company be incorporated between the WPRFU and Flyt Property Group called Brookside DevCo. This new company will purchase the Brookside property and its purpose will be to develop the Brookside property as a mixed-use development. This deal will give the WPRFU access to an estimated R40 million in cash, plus 50% of development profits down the line.

Marais added that this heralded “the beginning of an exciting new era for rugby in the Western Cape”, and that the move to Cape Town Stadium would give fans “a better viewing experience, top-notch safety and security measures, and modern corporate hospitality suites”.

As long as we give the Sharks a proper hiding whenever we do battle, I’m not too bothered about where the rugby takes place, but it’s great to see a deal struck that can helps solidify the WPRFU’s financial position.

[source:wprfu]