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Hobart stadium business case
- Thread starter Mr Tassie
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- Jun 9, 2008
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I have a PhD in Businessology and I think it's really good 
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- #3
So what to you think about how the stadium will run at a loss?I have a PhD in Businessology and I think it's really good
catstorm
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- Dec 9, 2011
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Business case is build stadium get an AFL team don’t build stadium don’t get an AFL team.
Everyone will be fine no matter which decision Tasmania takes.
Everyone will be fine no matter which decision Tasmania takes.
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- #5
But isn't this just building at all costs?...i support a stadium if the Projects of State Significance recommend it for approval,but can you honestly see it passing it when it is expected to run at a loss?
- Jun 9, 2008
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What loss?
PwC has assessed that the new stadium will inject $300 million into the Tasmanian economy during construction. Once built, the stadium will generate $85 million in additional economic activity and 950 jobs in each year of operations. This is in addition to the $120 million forecast to be generated by Tasmania’s own AFL and AFLW team per annum.
Macquarie Point Stadium is estimated to attract up to 420,000 attendees each year, contributing $162 million in indirect expenditure annually.
The new stadium in Hobart is estimated to contribute $85 million directly and indirectly in gross state product annually or $2.2 billion over 25 years.
PwC has also analysed the economic impact that would be generated by commercial land in the precinct, outside the stadium development. Commercial activity from developments in the 3 hectares available could generate up to a further 6,720 jobs and $6.4 million in revenue during operations, excluding construction benefits. This includes provision for an Antarctic SciencePrecinct and a dedicated space for community and cultural development.
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- #7
The stadium has a BCR rating of 0.69 which means it won't beak even and if the stadium blows our like many believe,then these figures are no longer correct. The other thing to remember is this is based on a lot of events that are not even likely to be played in Hobart like a yearly test match and Matilda games. So in other words a lot of it is just wishful thinking and like I said I support a stadium but it can't be at all costs in a state that’s struggling financially.
Just arrest all the CFMEU members and get china to send over people to build it for us. Will fix the shortfall.
dbthesuperstar
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- Jul 1, 2024
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Between the Liberal and Labor party there are enough votes to ensure that the stadium passes the Parliament, it also has support of the Federal Labor Government.
Here is the simple truth, at the end of the day there is already too much money and contracts committed to the stadium for the project to simply fall over.
- Mar 20, 2017
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I just don't get the negative Nellie's. I keep hearing "bands won't go to Tassie". The Killers just announced a tour to Australia and are playing a one off concert at the newish Townsville stadium. Townsville has a slightly smaller population than Hobart.
Build a decent stadium and people will turn up to the footy, cricket and concerts. The stadium will be the making of tassie.
- Mar 20, 2017
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The Townsville stadium had a BCR of 0.21 but is still operating successfully for it's community.
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- #12
I heard a politician yesterday say that will it will mostly likely get through the higher house,but the lower house is a lot more questionable. When it come's to the stadium what do you think will happen if the Projects of State Significance knocks it back ?
- Mar 20, 2017
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Tassie won't get an AFL team. Pretty simple really.
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- #14
The only thing with the BCR rating for Mac Point is that is taken from a business case that relies on a lot of events that won't likely come to Hobart. It has it down as hosting a yearly test match,Matilda matches and rugby which let's face are not highly likely in Hobart.
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- #15
So a renegotiation wouldn't be possible?
- Mar 20, 2017
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They did two scenarios 1) with core games only and 2) with "optimistic" games and events.
The core games figures counted one soccerroo and one matldas game every 4 years. It's fairly easy to have a read as to how they calculated the figures - just type in Hobart stadium bcr case and the abc site has a fairly in depth article.
- Mar 20, 2017
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The afl has always said that getting a team was conditional on a purpose built stadium.
All of the funding is in place, nearly 200,000 members are keen (albeit @ $10 each) so if Tassie fumbles the ball they won't have anyone to blame but themselves.
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- #18
The thing is all the funding isn't in place. The government is contributing $375 million the afl $15 million and the federal government $250 million but that is not GST exempt and is for all the Macquarie Point development.
This is also before blow-outs so short on the required money but private investment is apparately being sourced for the rest but many believe they won't sign on because it will bring them no benefit. The number of foundation members also recently passed the 200,000 thousand mark so hopefully that will help the case.
dbthesuperstar
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I think it still gets up.
Liberal+Labor+O'Byrne = 25 Seats
Labor says that it's support is reliant on the Government not spending a cent more than what they have committed to, but here's the thing if the Government does have to throw in extra money it won't be until late in the project, which is well after the stadium has been approved and signed off on.
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- #21
The reality is this is Tasmania which is a place where major projects rarely happen due to all the anti groups. If the stadium doesn't get up then I wouldn't be surprised at all, but hopefully a renegotiation of the deal would still be considered by the afl.I struggle to see us losing the team now because the High Performance centre will already be under construction before the stadium decision is made and a huge amount of work has already gone in to building the team.
I think the AFL have reluctantly attributed a provisional license to Tasmania under strict provisions. The stipulations are ambitious because they are attempting to provide a model that will ensure the greatest opportunity for the new team to be successful in the long term. Having a stadium that meets the AFL's requirements, means usage and patronage to the ground is independent of the weather and the stimulates the local economy. Ultimately, people have to look past what this does for the AFl and think more about the additional revenue this creates for the state as a whole.
- Sep 22, 2011
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Needs to happen.
The AFL is past venues like Football Park and Waverley, which is what Bellerive is.
The AFL is past venues like Football Park and Waverley, which is what Bellerive is.
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- #24
The thing with this is many opposed believe the huge cost and potential overruns along with the stadium running at a loss will cancel all those benefits out. They talk about the interest that has to be payed every year on it and the fact the federal government contribution is for the whole precinct not just the stadium with it not GST exempt.
The state government has capped it's spend at $375 million, but that will mean a lot will have to be found from private investors including potential overruns. I'm not sure if private investors will be interested considering it's expected to run at a loss but apparently a fair few have shown interest.
The big question is will it bring a lot of benefit or will it end up being a constant strain on the state. I'm hopeful it will be successful, but the proposal definitely looks rocky so I'm not sure. I would be interested to know if the afl would still renegotiate the deal if the stadium is knocked back and that definitely couldn't be ruled out in anti Tasmania. It would be a huge loss to lose our afl team we have pushed for around 100 years for.
I struggle to see that the afl could walk away from the team now even if the stadium is knocked back. They have already done a lot of work on the team and the High Performance Centre will be under construction when the stadium decision is made. If the team falls over now I would be extremely surprised because so much time has been put in to it.
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- #25
Sadly it wouldn't surprise me at all if the stadium fell over considering this is Tasmania where major projects rarely get up. This state is full of anti groups and the opposition to the stadium is huge from what I can see.
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