Twentytwo13

Privatisation, planning vital in ensuring stadiums in Malaysia up to mark, says Ahmad Faizal

Axiata Arena's roof being repaired.

A former youth and sports minister said Malaysia should rethink how it manages and operates sporting venues. This follows the recent incidents at the Axiata Arena in Bukit Jalil, Kuala Lumpur, where leaks inside the stadium on Jan 7 and Jan 8, disrupted the ongoing Malaysia Open badminton tournament.

Datuk Seri Ahmad Faizal Azumu said it was fortunate the roof didn’t collapse, causing injuries or even worse, casualties.

“Thank God, no one was hurt. What would have happened if the roof had collapsed?” he asked.

“I had relatives at the venue cheering on our national players, so I’m grateful nothing happened. I don’t want to play the blame game, but we must seriously look at how we manage and operate sporting venues. With proper planning, the situation could have been avoided.”

Ahmad Faizal suggested the government look into privatisation to help reduce the burden on national coffers.

He said sporting arenas are underutilised and don’t generate revenue, forcing the government spend to over RM1 million a month for salaries, and minor maintenance.

“But for a major renovation, the Malaysian Stadium Corporation will seek funds from the ministry, and we will apply to the Finance Ministry,” said Ahmad Faizal, who served as Malaysia’s youth and sports minister from Aug 30, 2021, to Oct 10, 2022.

“Unfortunately, the government, through the Finance Ministry, is spending huge sums annually because the venues are not self-sustaining and underutilised.

“However, with proper planning, we can turn these venues into income-generating arenas. We need a change in mindset and to be prepared to make a one-time investment.”

He cited the Velodrome Rakyat in Ipoh, Perak, as an example of “penny wise, pound foolish,” as the track has been upgraded several times. Each refurbishment costs approximately RM8 million.

“If we had just added a roof to protect the track from the elements, we could probably have made only one upgrade,” said Ahmad Faizal.

“That is why I say we need to be smarter when planning our sporting facilities..

“We should also look at enhancing the surrounding areas, with food and beverage outlets, gymnasiums, and other facilities.”

Ahmad Faizal said sporting venues can be used to host events such as concerts, exhibitions, expositions, conferences, conventions, cultural festivals, and corporate events.

He highlighted the home of the LA Lakers basketball team – Staples Center, which has since been renamed The Crypto.com Arena, following a world-record US$700 million naming rights deal in 2021. During his visit there, Ahmad Faizal discovered that the venue hosts close to 250 events each year.

Besides basketball, the arena can host ice hockey matches, boxing bouts, and it will be the venue for the 2028 Olympic Games gymnastics competition. It can also hold concerts, and will next month host the Grammy Awards for a record-extending 22nd time.

“The Lakers only play a handful of games at home each month, but the venue is used 250 times a year. Many sporting stadiums and arenas in the United States have non-sporting events, as that helps generate income for the venues,” said Ahmad Faizal.

“We must do the same in Malaysia, but we must ensure proper maintenance so that sporting events are not affected.

“The National Stadium in Bukit Jalil is an example of how sporting venues can generate income by hosting concerts, but the lack of proper maintenance means the football pitch is often damaged.”

Most remember that it was during Ahmad Faizal’s time as minister that the pitch at the national stadium was water-logged and contractors used cardboard and dustpans to clear the water.

Ahmad Faizal requested that the match between Malaysia and Bahrain be delayed by 30 minutes, but officials from the Football Association of Malaysia didn’t listen and asked the workers to clear the water

“I told FAM we needed to start upgrading works at the National Stadium, but they begged us to allow them to use the stadium,” recalled Ahmad Faizal.

“That resulted in criticism as the contractors used cardboard and dustpans to clear the water. I got the blame for the fiasco.”

He added he should have stood firm and rejected FAM’s request.

Meanwhile, Ahmad Faizal said another way to generate income is to sell the naming rights of stadiums to corporate sponsors and to ensure that the money is channelled into maintaining the venues and hiring top professionals to look after them.

“We have venues like Etihad (Manchester City) and Emirates (Arsenal), home of two of the biggest football clubs in England, while Barcelona’s home is now known as Spotify Nou Camp,” he said.

“We should look at doing this for our stadiums. Encourage corporate sponsors to pay significant sums, which will free up the country’s finances. We can then hire the best people to help maintain the venues.”

Ahmad Faizal also questioned why the event and management company ASM Global, which signed a deal with MSC in 2022 to take care of the 87,400-capacity National Stadium and Axiata Arena and make them attractive destinations, has not been utilised.

AEG, ASM Global’s parent company, expanded into Southeast Asia with two new arenas in Bangkok, Thailand, which opened in the last quarter of 2022

“After I left office, ASM has taken on more of an advisory role, when they should be at the forefront of bringing in world-class acts to Malaysia,” said Ahmad Faizal.

“We should use their expertise to generate income from the venues.”