Is the end of the suburban stadium inevitable? Billions of dollars are at stake. Perth’s 80,000 seat Burswood project exceeds $1 billion, while about $600 million is pledged for ANZ and Alliance Stadia and another western Sydney venue.
Adelaide Oval’s 50,000-seat redevelopment exceeded $535 million. Even Townville’s 30,000-seat venue seeks $210 million. More will follow. Some suburban grounds will survive. Many will not. Here, we consider what will decide the winners and losers
Tomorrow’s stadia will not be training venues
Training was once divided between the field and gym. It now spans theatres, pools, sport medicine and offices for ever expanding staffing. An arms race has erupted as clubs compete.
The Western Sydney Wanderers and Parramatta Eels now train 15 kilometres apart at Blacktown International Sportpark and a new $26 million venue in North Parramatta, while Manly use AIS facilities at Narrabeen. Despite Redfern Oval’s multimillion dollar redevelopment, the Rabbitoh’s are developing all-new facilities at Maroubra.
The AFL Giants abandoned Blacktown for Tom Wills Oval at Olympic Park. The Bulldogs’ Belmore Oval has attracted so much redevelopment funding it will actually host an NRL game this year (its first since 1998). The Titans were almost undone by ambitious ‘Centre of Excellence’ projects. Is your club keeping pace?
Inside
Pressure is mounting. Despite increasing NRL club grants, the Dragons, Knights, Tigers and Titans have all needed additional support. Warringah and Kogarah councils struggle, with Brookvale Oval battling embarrassing lighting and surface issues in recent seasons. Venues NSW lost over $3.7 million in their latest results.
Fans need a compelling experience to leave their living rooms. The NRL already compensates clubs for small crowds opposite TV prime-time on Mondays. How will stadia respond?
Multi-coloured seating will hide small crowds (we’re looking at you ANZ). Burswood will pioneer wider seating with cup-holders. Cover will vastly improve, with 85 per cent of Burswood’s seats sheltered, and ANZ adding retractable roofing.
Burswood will feature 1000 displays to connect fans queuing for tickets, food and toilets. Scanning technology will allow ticket holders to walk straight in. Contrast this with thousands stranded outside Campbelltown Oval as the Tiger’s Round 2 match kicked off.
While government concentrate on fewer, bigger venues, clubs continue to branch out. Parramatta Stadium’s $100 million redevelopment will host fitness centres, offices, bars, restaurants and bowling “to ensure … financial security for decades to come,” notes chairman Steve Sharp.
Multipurpose Venues
The NRL’s newest ground – AAMI Park – shows the way. This 30,000-seat rectangular venue hosts the Storm (NRL), Rebels (Super Rugby) and Melbourne City (A-League) and the AFL Demons’ training grounds. The Rabbitohs, Bulldogs, Tigers, Eels and Dragons share Sydney’s ANZ Stadium.
Parramatta hosts the Eels (NRL), Wanderers (A-League) and Rams (National Rugby Championship). To even propose redevelopment, Brookvale Oval needed a coalition of the Sea Eagles (NRL), Central Coast Mariners (A-League) and North Harbour Rays (RCC). Burswood Stadium will support AFL, Super Rugby, cricket and soccer. In contrast Campbelltown Oval has secured just two A-League games to supplement the West Tigers, and faces an uncertain future.
Winners and losers result. ABS stats show fans attending one code are more likely to attend another e.g. 20 per cent of A-League attendees cross over with the NRL. On the other hand, sponsors like Pirtek can secure rights to a venue (Parramatta Stadium) instead of a club (the Eels) and reach a broader audience.
Mixed-use venues diversify revenue streams. Venues NSW (who manage Newcastle’s Hunter Stadium, Parramatta Stadium and Wollongong’s WIN stadium) have hosted the Wiggles, Mrs Brown’s Boys and Disney on Ice. ANZ has rocked with AC-DC and the Soundwave festival. Allianz will host Ed Sheeran. Local residents and poor connections leave venues like Brookvale or Leichhardt unable to compete.
Entertainment Precincts
The old days of financial support from local business, council and clubs have gone.
While this has been true for years, it’s now crunch time for several clubs. Leichhardt home games lose $70,000 for West Tigers and the club is surrendering its lease to the council.
Despite heavy federal investment, St George’s twin grounds in Wollongong and Kogarah are already losing four games a year to the SCG, Allianz Stadium and ANZ (which guarantees clubs a minimum $100,000 return).
Stadia now anchor whole precincts. Townsville’s new stadium shifts to the CBD, replacing both the old stadium and the Townsville Entertainment and Convention Centre. Melbourne’s AAMI Park is nestled in the same district as the MCG and Rod Laver Arena. These precincts maximise community spending before and after games.
Standalone venues like Campbelltown Oval face a huge disadvantage. Others are investing. Consider the Panthers’ new skydiving attraction, Cronulla’s apartment, club and retail projects or the new 300-room hotel anchoring Parramatta stadium.
How can your club respond?
In Part 2, we’ll cover how corporate hospitality, transport and technology all shape how you’ll cheer your team in the future.
Lloyd Curtis
Guest
I hate upscale modern stadiums. Ruins the experience.
CW
Guest
Forget millions for new stadia. Just build a decent underground car park for SCG and SFS patrons. I stopped driving to cricket games after it took me almost two hours to get out of the archaic grass car park. This is the 21st century. Wake up SCG Trust.
AR
Guest
Correct Perry. When you add up government contributions for stadia in Sydney, the numbers are even more stark.
Perry Bridge
Guest
Crosscoder - for the MCG Since 1989 it's been 100% redeveloped. First phase was the new 'Great Southern Stand'. That was reported to be around $142 million. No Govt funds on that - that was MCC debt built around AFL 35 year lease arrangement to fund it. The 2nd phase of re development was the rebuild of the Olympic, Ponsford and Members/Northern stands. This was said to be about $434 million. In time for the 2006 C'wealth games. Of that, $77 million came from the Vic state Govt. The feds had offered $113 million but with Peter Reith's IR strings attached - state ALP govt said no thanks and kinda substituted for it!! The MCC again funding via debt and the AFL pushing the lease out to 40 years. End sum : $576 million in total. Only $77 mill from Govt. And owned by state. Not a bad deal for Spring St. However back in 2009 the State Govt agreed to a capped $30 mill to help upgrade the Great Southern Stand. Etihad Stadium as a contrast - no Govt funds, Govt supplied the land, AFL put in $30 mill up front. Stadium fully privately funded - AFL pays it off over 25 year lease before assume total ownership. Value at build time said to be around $460 million or so. So in Vic - that's around $1.036 Billion of stadium build with only $77 million of Govt funding. Contrast to AAMI Park in Melbourne - around $267 million and 100% Govt funded. So, at very least in the state of Victoria it's hard to argue that the AFL hasn't been dudded - especially given the AFL can't use AAMI Park where as the other codes can and do use both the MCG and Docklands.
AR
Guest
"And Remondis may well be used by a Southern A League club" ??? Seriously? Your citing a non-existent ALeague club? And this - "The other rectangular stadiums in the main are used by 2- 3 codes not one ." First, this is completely incorrect (Etihad is used for cricket, football, soccer, rugby league, union...ditto the MCG). Second, it's irrelevant to the discussion. Again, I'll try and state this as plainly as I can - Every stadium – except Remondis (which is used by a solitary club) – that is utilised by the ARU, NRL and FFA, is 100% govt funded…*except* when those bodies use Etihad or the MCG.
SuperEel22
Roar Guru
Much of Parramatta Leagues' redevelopment hinges on this weekend's club elections. If Steve Sharp's group is not re-elected that plan will be shelved. That's my greatest fear as an Eels fan. I can see how far the Eels have come in their work off the field and I hope it soon pays off. Having a 35,000 seat stadium and multi-purpose precinct would be terrific for the game and the club's long term viability.
Crosscoder
Roar Guru
And Remondis may well be used by a Southern A League club.It has been used by other codes such as Touch That is the beauty of rectangular stadiums ,multi usage. The other rectangular stadiums in the main are used by 2- 3 codes not one . And during winter a few round ovals are used by a solitary club.That is specific without naming stadiums. No comment on Blacktown BTW and the washout.
AR
Guest
I thought I just admitted my oversight..? Every stadium - except Remondis (which is used by a solitary club) - that is utilised by the ARU, NRL and FFA, is 100% govt funded...*except* when those bodies use Etihad or the MCG. I can't be much clearer than that.
Crosscoder
Roar Guru
Then AR why continue to incorrectly promote all stadiums are 100% funded argument continually?
Crosscoder
Roar Guru
He (Clipper) agrees with Max and AR surely not?.Who would have thought.One is full of surprises. Please mate read my comments,as if the suggestion was a grant towards a feasibility study was the be all and end all of what the NRL will or won't do.You like to interpret to suit.
Crosscoder
Roar Guru
AR the pudding will be stirred when the state govt finally narrows the field down. Tens of millions for two stadiums? Who knows. What I would like to know and i'm sure so would a few others ,is a run down on the various stadium costs in Perth/Adelaide/MCG/SCG/Gabba/Metricon and the contributions made to each stadium. IOW how much the govt provided.
clipper
Guest
Agree with Max and AR, a feasibility study doesn't even come close to stumping up millions for one or more stadiums, but time will tell, and agree with crosscoder that the money should be prioritised for roads and hospitals before stadiums in Sydney.
AR
Guest
Quite right CC. Remondis stadium is not 100% govt funded. Bravo to the Sharks.
AR
Guest
"The AFL is contibuting money for 24 games a year which will also benefit RL, soccer, RU, cricket etc who are putting in nothing" That's the reason governments are happy to put funding into oval stadiums - because having AFL games there guarantees at least some return on investment. Take Adealide Oval. The *only* reason it received the sort of govt funding it did, was because it was guaranteed to have 45,000 patrons through the gate every single weekend throughout winter.
AR
Guest
If the NRL contribute tens of millions into stadia as CC predicts, that would truly be amazing. But pointing to a contribution towards a 'feasibility study' (which concerns a revamped SFS - the exact thing the NRL is campaigning for) isn't exactly the sort of contribution we're talking about. I guess the proof will be in the pudding.
Crosscoder
Roar Guru
kevin.Ole champion. Dreams have a habit of becoming reality.Watching the construction work yesterday next to the club,pier work going on over a huge area,cranes and pile drivers abound.warms "me" heart it does. Further approval for high density housing now in the pipeline with Sutherland council.People want to live on God's country .
Crosscoder
Roar Guru
AR wrong again RemondisStadium is not 100% Govt funded.Don't let the facts get in the way of a story.The overwhelming costs there by the league club ,to their financial detriment I might add.And yes the Feds(thanks to Costello) made a $10m grant for the Southern stand. How much money did State Govts get in poker machine taxes particularly over the last 5 decades,from leagues' clubs?
Crosscoder
Roar Guru
Max. The first point I made was an indication the code (NRL) was going to commit to infrastructure.The feasibility cost for the SFS was just the tip of the future.Your snipe in that regard was pointless. The NRL will be contributing on future stadiums or upgrades and yes that will be negligible in the scheme of things.With the money they are now banking,they would be held to ridicule if they did not. Smith mentioned this would be the case in regard to Townsville going ahead.His admin finally got together a lobby group for Govt.Gallop thought a lobby group,was friends gathered inside the entrance to a hotel. Secondly and I am not shying away from the fact,the NRL has also to shoulder blame through lack of funds under Gallop,through a poorly negotiated Tv deal,which would have provided a source of infrastructure funding. And indeed earlier generations of NRL clubs for relying on poker machine profits and neglecting the future funding.At least my club spent decent sums on their own field,and yes they got Govt grants in addition. I repeat the proportion of funds committed against an alleged $2bn overall infrastructure cost ,would I suggest be negligible.So yes TBH, there was a contribution, but let's not get carried away with the totality of it.Comments by people such a former Vic premier (Kennett)have echoed those views.And he was not the first. " Meaningful" is in the eyes of the beholder.Govts still had to outlay huge sums.And yes better than non contributing. ANZ stadium BTW would not have been built,if not for the 2000 Olympics,regardless of the NRL/ru/or soccer. In any case in one instance as you well know , a large sum of money committed by Govt for development for said code for a new area in the west of this city,and the club involved dumped the area,leaving the Mayor and area red faced. I am not" permanently cross" LOL .I don't spend time on other codes' threads to snipe,and i am outlaying facts ,which appear to be unpalatable for some.The subject matter is stadiums.My post is directly ,and unequivocally related to the subject matter.What has happened,what will happen I believe. If the truth be known,in this fair city I would be getting road infrastructure and hospitals solved by funding ,before stadium upgradings etc.The Govt has made a decision re sport ,it is how the funds are to be allocated and what part the codes especially the NRL has to play.
Crosscoder
Roar Guru
AR. Simple answer yes. Smith indicated such and the very reason they are building up a future fund.
kevin dustby
Guest
wait till they start losing. and the SCG has plenty of cover