The Stadium Taskforce Report seems to have put an end to the possibility of a new stadium being built in Brisbane using government funding, but could private financing come in to fill the breach?
The report makes it clear that the government’s priorities are on upgrading Lang Park and The Gabba as well as developing the Brisbane Live District. Add to that the fact that there’s $90 billion worth of debt on the Queensland Government’s books and I think it’s safe to say that any financing for a new stadium will have to come from private investment.
Here are a number of scenarios for how this could happen.
1 – The Bakries could put their money where their mouth is
The first and simplest way that a new stadium could be built with private money is if Brisbane Roar fund one for themselves.
The owners of Brisbane Roar have said in the past that they want to turn the club into the biggest in Australia and have floated the possibility of building their own stadium in the past. The only trouble with this however is that the Bakrie Group have a record, both in Australia and in Indonesia, of missing player payments and super contributions.
They have also been reported to have been nine billion dollars in debt at one point and they may not see building a stadium for the club as a high priority.
2 – Brisbane Strikers and Brisbane City could form a new “super bid”
During the expansion bidding process FFA encouraged bids that covered similar territories to combine their bids together.
This is what happened in Campbelltown where United For Macarthur and South West Sydney FC merged to form a single “super bid” which went on to win a licence.
Brisbane Strikers and Brisbane City refused to do this because they each wanted to stay at their own respective locations. But now that Ballymore is off the table maybe Brisbane City could change their minds and form a single bid with Strikers and redevelop Perry Park together with them.
3 – Brisbane Roar, along with a new North Brisbane super club could form a “strategic partnership”
Sharing a stadium isn’t ideal but as long as both clubs have a clear identity it can be done successfully. In Serie A for example Lazio and Roma share Stadio Olympico, Genoa and Sampdoria share Stadio Luigi Ferraris and of course AC Milan and Inter Milan share San Siro.
So, if Brisbane Strikers and Brisbane City formed a joint bid they would be seen as a northern club as both play on the north side of the river, while Brisbane Roar would be seen as a southern club as they have moved their training and administration facilities to Logan and have their origins in Lions at Richlands.
Does Brisbane need another stadium? (AAP Image/Darren England)
This scenario might seem unlikely but it isn’t impossible either. If a joint Brisbane Strikers and Brisbane City bid don’t have the money to build a stadium by themselves then they could ask Roar to chip in too (if they are willing) and share any ongoing operating costs with them which could be paid for in savings from not having to pay exorbitant fees to use Lang Park.
4 – A new consortium could take over Brisbane Roar
As mentioned earlier in the first scenario, the Bakrie Group have a mixed record in running clubs and Brisbane Roar are no exception.
Their lack of real interest in running the club has been noted by others and in October 2017 a Russian consortium approached the Bakries and offered to take over the club for a price of over $10 million.
The offer was turned down by the Bakries who wanted twice what they were offering, but they were prepared to sell for the right price.
Player agent Buddy Farah who was representing the Russian consortium said that, “They see a good future with the Roar. Our offer is still on the table if they choose to reconsider.” No details are known about who they are or if they would be willing to build a stadium using their own money but the possibility of a new consortium taking over Brisbane Roar is certainly out there.
Before the current round of expansion, the bid team representing Southern Expansion made approaches to Sydney FC, Western Sydney Wanderers and Central Coast Mariners making separate offers to take over each of them.
Could they make an offer for Brisbane Roar whose license expires 5 years from now in 2024?
5 – A new consortium could start a new team
Finally, another scenario that could unfold might be that a new consortium could start a new team. You never know, someone like Red Bull might pop up out of the blue and offer to build a stadium for a new club on the site of QSAC or out west in Ipswich.
What are the actual chances?
This is by no means a detailed or comprehensive examination of the way that a new stadium could actually be built in Brisbane. It’s just an overview of the different ways in which it might happen.
Having said that, there are a number of plausible scenarios where a new stadium could be built using private investment, so it may well be possible. But if you’re looking for government funding, forget it.
blood
Guest
biggest issue with dolphin park is public transport but if that issue can be worked out then it could work
blood
Guest
your forgetting one major thing mate, THE 2001 MAJOR STADIUMS ACT otherwise i think the Gold Coast would be perfect for a Red Bull team
Glen
Guest
First and foremost this is a discussion about stadiums in Brisbane that just happens to be in the football/soccer tab. Existing stadium issues relating to other sporting teams in Brisbane is relevant.
Don
Roar Rookie
Broncos home finals since 2003. 2004, 2005, 2006, 2008, 2009, 2010, 2011 x 2, 2015 x 2, 2016, 2017, 2018. So yeah, few and far between... Only 13 games in 16 seasons.
Waz
Roar Rookie
err, Cobb was an interesting character as the subsequent (not related to Roar) court cases proved. But him buying Roar, nah. Never a serious option.
Paul D
Roar Guru
From my reading of the stadiums qld report I agree that there's no chance whatsoever of the government funding a new stadium - the report is very clear that there are already too many underutilised stadia in the existing portfolio. One thing that hasn't been mentioned is the cost of putting on an event, specifically the policing costs - the report mentioned numbers from Cricket Australia who said that Queensland Police Service costs are 95% above national average for test matches and 251% above the national average for Big Bash League matches at the Gabba. For services that are passed on to venue hirers, Queensland Police Service officers are rostered onto Special Duty Police Services. These services are not categorised as business as usual because these events are variable and commercial in nature. The actual wage cost for Queensland Police Service officers could range from $70 to $120 per hour depending on rank. Police are paid double time rates for Special Duty Police Services and up to quadruple time on some public holidays. Any funds received by the Queensland Police Service for Special Duty Police Services that are not expensed through wages are retained by the Queensland Police Service to cover administration and operating costs including vehicles, motorbikes and other specialised equipment. Basically - it's a gravy train for qld police and our costs are way out of whack compared to other states.
Randy
Roar Rookie
AFL gets a free ride in this country, you just have to accept it. I wouldn't surprised if protecting AFL is part of national wide government charter.
Catfield
Roar Rookie
"Brisbane Strikers and Brisbane City refused to do this because they each wanted to stay at their own respective locations." That is rubbish. The Strikers approached City about merging their bids and were knocked back.
Brainstrust
Roar Rookie
They could have taken all the government money the Brisbane Lions have been gifted for a training base and build a small stadium. The reasons for spending all that money were beyond absurd, Brisbane Lions use the Gabba as their training and administration and are baulking at a pretty cheap rent,considering they get to use the Gabba as their training and administration base compared to the other teams who pay a lot more to hire out Suncorp just for match days. so to save a bit in rent they want 70 million spent. Queensland is the biggest joke in the country, they spent 150 million a stadium for the AFL a few years before its gets rebuilt for the Commonwealth games. The billion dollars that has been charity donated to AFl training facilities on top of the billions in new stadiums is getting beyond a joke.
Lionheart
Roar Rookie
Nick, Found an update reference, to 2034 for all bar 'Nix. https://www.myfootball.com.au/news/ffa-extends-hyundai-a-league-licences-2034
Lionheart
Roar Rookie
I think it's results related Waz. Reds are hopeless at the moment - too many of local players being used by States unable to produce enough players for themselves. Local AFL results 0 Lions haven't won anything since their three-peat, and nor has Roar quite frankly. Dud teams do not draw support in Qld, or most places really. Roar has to start winning.
coolncold
Roar Rookie
Mayne Rail Yards? It is an area which is well developed around. It is not a place not well developed like Tarneit where WMG proposes to build a stadium. Why would Brisbane City Council build another stadium? Cannot see a reason.
Lionheart
Roar Rookie
That's a fair call Waz, we do compete against more than A League clubs for sponsor funds and fans. And of course there's soon to be at least one more NRL club in Brisbane and maybe more in QLD. Plus the women's teams. When my original team, NQ Fury failed (I'd just moved from Townsville) and I swore allegiance to Roar, took the Orange as we should say, we were getting 18K at Suncorp. I believe we can get that again, but we have to get it right on the field. We'll wallow forever if our team's a dud.
Nick Symonds
Guest
"Recently, the Brisbane bids for an A-league licence have exited early probably because of having no fund for a new stadium like the Western Melbourne Group which seems to have property developers to go hand in hand." Strikers approached City to make a joint bid but City turned them down because they thought that Ballymore made them the stronger bidder. The new Stadiums Taskforce Report might make them reconsider and change their minds. They may have the money if they join forces. - "Anywhere in Brisbane area that developers would like to invest to build a new stadium to boost property market? Doesn’t seem one." The Mayne Rail Yards across from Perry Park are set to be redeveloped at some point.
Mister Football
Roar Guru
In other words: the cargo cult mentality. Waiting in vain for some powerful offshore entity to shower us with their gifts.
Nick Symonds
Guest
4 – A new consortium could take over Brisbane Roar THE WORLD GAME (8 JUNE 2016) - "Bakries agree to sell Brisbane Roar" The Bakrie Group's tumultuous reign over Brisbane Roar is almost over with the A-League club poised to be sold to a consortium led by Melbourne businessman Daniel Cobb. Cobb, the owner of energy comparison website Electricity Watch and former Adelaide United sponsor Clean Energy Enterprises, heads a group that has agreed to buy the Roar's A-League licence from the Bakries - a sale that is subject to due diligence and approval from Football Federation Australia. The process could see Cobb's consortium take either 100 per cent ownership of the club, or a controlling share, with the Bakries showing interest in staying on as a minority shareholder. https://theworldgame.sbs.com.au/bakries-agree-to-sell-brisbane-roar
Nick Symonds
Guest
@Lionheart "I wasn’t aware that the Roar licence expires in five years. I thought they’d all been extended by 20 years through to 2034, or thereabouts." - The World Game - 16 APRIL 2014 "TWG understands the Bakrie Group paid $8 million for the license, which has a term of 10 years." - https://theworldgame.sbs.com.au/brisbane-roar-takeover-complete
coolncold
Roar Rookie
Privately funding a new stadium? There are just two branches of discussions. Firstly, BR is to build their own stadium. Secondly, a new A-league club to do so. Why BR has to build a stadium? Apparently, the cost of renting the venue is high. However, where is the break-even point? Can BR start to make money if the crowd number is 18,000 (like the Brisbane Lions)? There are no figures to see or for studying. However, it may be possible to gain insight by comparing numbers from Europe as numbers from Japan and China seem not appropriate. According to the statistics portal (https://www.statista.com/statistics/261213/european-soccer-leagues-average-attendance/), the average attendance number in Italy and France is around 21,000. So, the target number of 18,000 in average is reasonable. This is supported by the experience that a crowd of 18,000 in Suncorp makes spectacular atmosphere. Therefore, start making money or not at an average crowd number of 18,000 depends on other factors: management, quality of football; and the stadium, etc. Poor management would lead to poor quality of football. Poor management would lead to wanting to move to a not as expensive venue. In turn, they will lead to lower crowd number. Then, spirally down, it is a dog chasing its tail. Suncorp is the best rugby and soccer stadium in Australia, no doubt. So, should BR move somewhere else, the management has to study the trading off. Can the gains in moving balance or overtake the losses? In business, the is a famous idiom: go big or go home. So, why to go to a smaller stadium with money out of BR's pocket in advance first? Why not think of better football to bring the crowd number to over 22,000? Can the number of 22,000 be reached? Yes! When the football is of high quality, number of locals increases. So do the visitors. I have seen big crowds of Jets's fans (2007 - 2008), Glory's fans (not the finale match) and WSE fans coming to support their team in Suncorp before. Before! If you run a restaurant and facing deficit, you don't raise the price, lowering the food or move to somewhere else. It is the management, the management to organize and plan, to provide high quality football, to do marketing... The stadium is just one of the Ps, should reference be made to the 7 Ps of Marketing, Queensland, https://www.business.qld.gov.au/running-business/marketing-sales/marketing-promotion/marketing-basics/seven-ps-marketing. The second stream of discussion is a new A-league club to build its new private stadium. Recently, the Brisbane bids for an A-league licence have exited early probably because of having no fund for a new stadium like the Western Melbourne Group which seems to have property developers to go hand in hand. Anywhere in Brisbane area that developers would like to invest to build a new stadium to boost property market? Doesn't seem one. Would it be better to focus on better football? When WSW had good football, they got a new stadium. Definitely, will go to have a look on the architecture.
Jack Russell
Roar Guru
Other than "Rich foreigner pays for it", there don't seem to be any options to privately fund a stadium in the article. I have heard a few - the sale of long term seat licences, a public-private joint venture, or even an ultra cheap venue with basically a small grandstand and a bunch of scaffold seating is an option. But ultimately it comes back to who's going to pay for it, and most importantly why. Let's say a basic 10,000 seat venue costs $50 million - the interest costs on that alone are going to be at least a few million. Add a fair bit in maintenance and stadium costs suddenly become twice the size of the salary cap! Will the revenue generated by the ownership cover that? Highly unlikely. 14 event days a year won't come close. It makes much more sense to rent. Which is why it's so rare that any club owns it's ground.
Mister Football
Guest
Mr Football - You are still way off key. Example------City of Vancouver built a 60,000 capacity stadium for the 1986 World Expo ,a once off event, and afterwards,like Brisbane, were left with this stadium on their books. I wont try to explain here what was done for the stadium to make money but suffice to say as a football ground it is used for Football, Canadian Football and American Football,being played on an all weather ,full size pitch which has the top rating from FIFA. the stadium has also hosted Winter Olympics and Paraplegic Olympics not to mention the hosts of exhibitions being held annually, all the time,just like Brisbane, being managed by a government body, no doubt being charged with making the stadium a paying concern in it's own right. I have attended a game in this stadium with 25,000 others,all directed into the front rows of seats close to the pitch.One word for the atmosphere------Fantastic. jb.