Cape Town - Western Province Rugby have confirmed a deal on Friday, which will see the union make Cape Town Stadium their new home in 2021.
In a press release statement, it was revealed that the City of Cape Town's Council approved the "Binding Heads of Agreement" between the City and WP Rugby.
The agreement sees WP Rugby as the primary Anchor Tenant at the 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.
Following an extensive due diligence process and the ratification of the WPRFU General Council, the Heads of Agreement were approved.
The City insisted that this agreement would not affect any guaranteed community access and that the stadium remains host to 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.
"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 in a press statement.
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.
- WP Rugby