Hobart stadium business case

[Mr Tassie]

I'm just interested to know if people believe the business case for the Hobart stadium is a strong one or do you believe it's a bad deal with too many risks?

 

[kreuze_missile]

I have a PhD in Businessology and I think it's really good

 

[Mr Tassie]

I have a PhD in Businessology and I think it's really good

So what to you think about how the stadium will run at a loss?

 

[catstorm]

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.

 

[Mr Tassie]

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.

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?

 

[kreuze_missile]

So what to you think about how the stadium will run at a loss?

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.

 

[Mr Tassie]

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.

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.

 

[maskmcgee]

Just arrest all the CFMEU members and get china to send over people to build it for us. Will fix the shortfall.

 

[dbthesuperstar]

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.

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.

 

[BigFrizz36]

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.

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.

 

[BigFrizz36]

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.

The Townsville stadium had a BCR of 0.21 but is still operating successfully for it's community.

 

[Mr Tassie]

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.

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 ?

 

[BigFrizz36]

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 ?

Tassie won't get an AFL team. Pretty simple really.

 

[Mr Tassie]

The Townsville stadium had a BCR of 0.21 but is still operating successfully for it's community.

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.

 

[Mr Tassie]

Tassie won't get an AFL team. Pretty simple really.

So a renegotiation wouldn't be possible?

 

[BigFrizz36]

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.

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.

 

[BigFrizz36]

So a renegotiation wouldn't be possible?

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.

 

[Mr Tassie]

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.

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.