The cost of living crisis and general economic anxiety are creating an environment in which government spending is coming under increased scrutiny by the public, with sport coming in for particular attention.
The cost of stadiums has come in for criticism and proposed venues in Brisbane and Tasmania have created a major political issue in both cases.
Some sports fans may dismiss such concerns as par for the course, they say that “stadiums aren’t cheap” and just say “suck it up”.
But the general public who pay taxes for them may have a different opinion and it is important to keep them onside.
Left unabated, stadium costs could rise to such high levels that they cause serious backlash. The case of the recent proposal for the Victoria Park Olympic Stadium in Brisbane is a watershed.
At a budgeted cost of $3.4 billion, it would have been the most expensive stadium in Australian history and would have been enough to build four contemporary major stadiums.
For example; the recent knockdown and rebuild of Sydney Football Stadium at Moore Park cost $828 million, the construction of Optus Stadium in Perth cost $820 million and the Adelaide Oval redevelopment cost $535 million in 2014, which works out to $680 million today.
But you can also make other comparisons.
Just to put $3.4 billion into perspective, a Canberra Class LHD, the largest ship class in the Australian Navy, cost $1.55 billion in 2007 working out to $2.37 billion today; still falling a billion short.
While in the Royal Navy, the HMS Agincourt, a nuclear submarine still under construction, is set to launch at a cost of £1.64 billion, or $3.17 billion once converted.
If you want to use buildings however, then the Pentagon cost US$83 million when it was built which works out to US$1.28 billion in 2022, or $1.9 billion once converted.
That’s for a building with 600,000 sqm of floor space, used by 26,000 military and civilian personnel. Yet that still falls $1.5 billion short of the Victoria Park proposal.
Or here in Australia, there’s the New Parliament House, which cost $1.1 billion in 1988, or $2.97 billion in 2023 dollars. That’s for a building with 250,000 sqm of floor space, including 4,500 separate rooms.
Not to mention the million cubic meters of earth and rock that had to be excavated and then used to cover the building, or the collection of 6,500 works of art and other heritage objects kept inside. Don’t forget the ten thousand construction workers, either.
The Victoria Park proposal was cancelled due to cost, presenting an important lesson for what can happen if costs reach too high.
Another important case study right now is the Macquarie Point Stadium proposal for the Tasmania Devils AFL bid. This is budgeted at $715 million for 23,000 seats.
This has also become a major political issue due to cost, and its future is now uncertain. At a cost of $715 million for 23,000 seats, that works out to $31,086 per seat.
Although with cost overruns the total build could even hit a billion, which would work out to $43,478 per seat. It’s little wonder then that despite huge overall community support for a team, that sentiment on the stadium may differ.
But what if a different design was used?
Carrara Stadium on the Gold Coast which has 27,500 seats, cost $144 million in 2011, which works out to $195 million today, or $7,090 per seat.
Wellington Regional Stadium in New Zealand cost NZ$130 million in 2000 with 34,500 seats at NZ$6,521 per seat, which works out to $225m today once converted.
This would give you a cost of between $137 million to $163 million for a 23,000-seat stadium.
With the Tasmanian government paying half the total, this would equate to between $68.5 million and $81.5 million paid for by the state. That would be a much easier sell with voters.
A stadium similar to Carrara or Wellington would also be well suited to the Brisbane Lions, in fact, it would cost less than the upkeep and renovations on The Gabba and would even fit within the same footprint.
Also, unlike a major stadium like Victoria Park or Optus Stadium, it wouldn’t require a second Brisbane AFL team to help share the bills.
As you can see, in the times we’re now living in it makes sense to keep costs down. That’s true whether you’re talking about a household budget or an AFL team.
The cost of stadiums plays a very big part in that equation and it’s a good idea to keep them down.
In the same way that the IOC is now advocating for lower-cost Games bids, the AFL should be encouraging and advocating for lower-cost stadium designs.
JamesH
Roar Guru
The only reasons Bellerive isn't ideal are convenience and transport. It's not really within walking distance from town and parking is a bit of a nightmare. These obstacles can be overcome in other ways though. Setting up better bus and ferry services would go a long way. There's plenty of room to increase/upgrade seating if that's an issue. I love the concept of the stadium (and if it got built I'd be walking through the gates for the first game) but it's such a pie in the sky idea.
dargerovitch
Roar Rookie
I didn't mention pop concerts, Jack , and didn't include them in my list above. Lots of people go to sports events , more people go to cultural ones. As I said - I'm more sporty that cultural , but it just happens to be true the culture bugs outnumber the sports fans.
Jack Russell
Roar Guru
Haha only when you include attendees at concerts like Taylor Swift and Pink....which are held in stadiums. In fact most major concerts are held in major stadiums, both indoor and outdoor.
dargerovitch
Roar Rookie
Thanks for the correction James. Never been to Tassie , live in Northern NSW closer to Brisbane than Sydney. Mistook the nature of the buildings. Has the AFL given any reasons why Bellerive where North plays and York Park that hosts the Hawks are unsuited for acceptable at less than the cost of a new stadium?
dargerovitch
Roar Rookie
You're wrong there , Jack Russell. Been shown statistically time and time again lots more people go to galleries , museums , opera theatres than go to sporting events. Some people go to both. I go to the football much more often than cultural events , but freely concede there are more arts patrons in Australia than sports attendees.
Micko
Roar Rookie
The stadium is apparently deemed unworthy by the AFL...who had no previous objection letting Tas taxpayers pay to host North Melbourne games there!!! :shocked:
Knackaz
Roar Rookie
Bread and circuses for the sheeple. Nero fiddled while Rome burned …
Jack Russell
Roar Guru
Given most arts facilities get far less patronage than stadiums, plenty is wrong with that if you hold a position that stadiums should be 100% privately funded. Most people aren't opposed to government funded entertainment spending, they just only want it for things they approve of.
Jack Russell
Roar Guru
Which of course is their choice. Want a team? Get the stadium. Don't want a stadium? No team then.
Christo the Daddyo
Roar Rookie
True. But again, nobody’s being forced to do anything. If I were the Tasmanian government I would never have agreed to a fully enclosed stadium. Should have been pretty easy to call the AFL’s bluff on that - commission a survey that shows it would have made no difference to fan support, and then point out the cost difference (particularly in the context of the not exactly stellar state of the local economy. The AFL would have folded on that part of the proposal. Particularly as half the games will be played at Launceston - which (wait for it folks) doesn’t have a roof!
JamesH
Roar Guru
It's not really near Salmanca Place, which is on the other side of the harbour. It would overshadow the historic jam factory buildings along Evans St but they aren't really a hub of activity anyway. There are good reasons why the current proposal shouldn't go ahead, but protecting Salmanca Place isn't really one of them.
JamesH
Roar Guru
Not strictly forced, but they've made the new stadium a condition of having a team.
JamesH
Roar Guru
A walking distance stadium is a nice idea, but it shouldn't be a requirement. It definitely wasn't for GC or GWS. The problem with the current location is that the ground would barely fit and there's no room for parking. They also need to relocate the existing sewage works, the most recent cost estimate of which is rumoured at about $300m. If they are going to target a location adjacent to the city then they should be using the site of the TCA ground on the Domain, or even slightly further north at the Crossroads Ground. There would still be objections because the construction and parking would eat into the reserve , but the important part is that the ground and the space are already there, as well as direct accesses out onto the surrounding highways. That said, there are also easy ways to address the transport issues with Bellerive Oval, like buses and ferries. And half the games would be played at York Park anyway, which is getting a $130m upgrade.
George Apps
Roar Rookie
What is wrong with that?
George Apps
Roar Rookie
If they want a Tassie team they have to build the f---ing stadium that the AFL stipulated!
Christo the Daddyo
Roar Rookie
And the quoted price also includes associated infrastructure. So comparing it to stadium only costs is not fair and accurate.
Christo the Daddyo
Roar Rookie
I hardly think football stadiums are “elitist” projects. And with that attitude, the Sydney Opera House would never have been built. Or the Sydney Harbour Bridge either for that matter (surely those elitist North Shore snobs could pay for their own bridge, right?).
Christo the Daddyo
Roar Rookie
“I think it’s disgraceful that AFL has forced Tasmania to build a completely new stadium“ Calm down Karen. Nobody forced Tasmania to do anything.
Don
Roar Rookie
Pretty selective with the info on the Victoria Park Stadium costs at 3.4B. The $3.4M was for: A major stadium with 60-80K seating. and a 12K seat indoor arena. The project is on a 90HA site that would be turned into a terrific parklands and entertainment precinct. And it would result in the closure and sale of the Brisbane Entertainment Centre at Boondall and, what no one wants to say out loud, the demolition of the Gabba and sale of the land. This area is currently zoned for buildings up to 20 stories and there’s DAs in council for buildings up to 40 stories. Everyone wants to speak about the upfront costs but no one wants to talk about the money recouped through the retired assets being sold. And no one wants to speak about the non event benefits of the Vic park proposal by way of public transport improvements. When you build a big stadium you build new train lines, light rail, busways and inter changes etc.
PeteB
Roar Rookie
They can build it but they still won’t come.