Gremio Arena

Site Review

The arena is located in the city of Porto Alegre, which is on the southern part of the Lagoa dos Patos lagoon in Southern Brazil. Porto Alegre is the country’s second largest city, and among the wealthiest because of it being an industrial centre. Solutions (2012) points out that the Gremio Arena is proposed to replace the Estadio Olympic Monumental, which until then it has been the home stadium ever since 1954. As such, the arena is anticipated to be the permanent home for the Gremio who are one of the top club teams in Southern Brazil. Guide (2012) asserts that the stadium scheme started in the year 2007 with the establishment of an association that would oversee the process in progress. The site for the erection of the stadium decided upon in year 2008, and Humaita area was preferred. This was because Humaita is in the north of Porto Alegre. The construction of the site commenced in 2010 and expected to conclude, in 2012.

Funding Model

Designed by the Brazilian Architectural firm PLARQ, the new stadium will have a capacity of 60,000 including those standing divided over four rows. According to the architects, the exterior part is to be transformed by installation of an integrated cover that takes the shape of a wedge. Institute (2012) indicates that the structure started with the lower stands that were constructed closer to the playing field. The stands shall have their angle of vision attuned to eliminate blind visions. As such, players and the spectators will not be constrained in watching the events on the pitch. In the interior part of the Stadium, there will be the creation of new boxes and changing rooms. All this is to be done in order to achieve the FIFA federation requirements. Fire (2012) observes that, in the interior part of the multipurpose arena, there is a plan to establish a convention hall, shopping unit and pillars for erecting hostels, corporate offices and residential equities. There are also plans in progress to establish a trade plant that will accommodate the residents who are business people. In terms of transport, the district of Humaita; where Gremio Arena is located, is near Port Alegre, and that means that it will be convenient for travelers to reach and leave the stadium. According to Advisory (2012), road construction is in place that will link the stadium with the motorways exiting from the city. For instance, there is the construction of the overpasses that will join Gremio Arena with the BR-116 highway. It is expected that the complex constructions will eliminate the industrial units with the commercial and residential assets. Guide (2012) points out that, with all these constructions at stake, the contractors estimated that the arena would cost 600 million BRL before full completion. In summary, these are the planned expenditures.

Earlier, the Gremio founded a partnership with the OAS construction company to fund the construction process. Later on, with the intervention of the government, it was agreed that priority be given to private sector finances in the construction and renovation of the stadium through long-term concessions. At the end, the public, private affiliations will be formed that will promote renovations and maintenance of the facility. Solutions (2012) points out that the goal to these is to establish a modern stadium that will meet FIFA’s wants. On the other hand, public funding will be directed towards construction and maintenance of infrastructure such as roads, airports and medical facilities.

Anticipated challenges

According to Fire (2012), the partnership agreements made between the Gremio and the OAS for the OAS’s funding of the project appear to discourage the Gremio. For instance, it is expected that as soon as the stadium is complete, OAS will become the immediate owners of the old Gremio stadium, which is located in more central and significant areas of Porte Alegre. OAS will thus have full control over the old stadium. For instance, they will demolish the stadium and in place erect towers. As such, this will reduce the anticipated revenues of Gremio that would have been collected from the use of the stadium. The partnership agreement ascertains that the OAS would be getting a certain percentage of the stadium income in the next twenty years. Furthermore, OAS will invest in the surrounding of the stadium that includes a hotel, residential towers and a shopping centre. This will mean that Gremio will not earn full revenue from the stadium though they will own the stadium legally.

Uses of the Stadium

The Gremio Arena is expected to be one of the stadiums in Brazil that will be hosting the confederation matches in 2013 and the World Cup football matches in 2014. Institute (2012) points out that, the stadium will house other games apart from football that will be held in the country. It is expected that the Gremio football club will own the stadium.

Ownership and Management Structure

The Gremio football club will own Gremio Arena. There will be a board of governors under the directorate of Paulo Odone as the president of the Board. However, the government, and especially the Ministry of sports will also be part of the management organization. The government will in particular manage and maintain the infrastructure.

In conclusion, Brazil in particular has done much in terms of managing their facilities. For instance, the Gremio Arena will not only bring revenue to the country but will also create employment to the citizens. The construction of the facility will also necessitate proper maintenance and use of infrastructure such as roads and medical facilities.