Stadium – serious work for the pay

Will this role end in tears…

### ODT Online Mon, 9 Nov 2009
Salary of stadium boss revealed
By Chris Morris

The Welshman head-hunted to manage the Forsyth Barr Stadium in Dunedin is set to become the Dunedin City Council’s second highest-paid employee. David Davies (50) has negotiated an annual salary of up to $250,000 for his role as chief executive of Dunedin Venues Management Ltd (DVML), the company formed by the council to run the stadium and other ratepayer-owned venues.
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Post by Elizabeth Kerr

13 Comments

Filed under Economics, Events, Project management, Sport, Stadiums

13 responses to “Stadium – serious work for the pay

  1. Seems a lot of money for a small, poorish city. He has his work cut out for him. How many empty seats in Chch at the NPC (Air NZ cup) final on Sat?

  2. Phil

    It might just be a poor choice of words in the article, but it reads as though the new CEO of DVML is a direct employee of the DCC? Rather than of the council owned company. Which would mean that he is paid from the general DCC staff salary fund, rather than from income generated by the venues. Reducing the venue overheads by 250k. Sounds like a bit of paper shuffling to aid a bottom line target if that’s the case. The CEO of Delta isn’t a council employee (I presume), so I would struggle to see why this position should be treated any differently. But, as I said, it may have simply been a poorly written article.

  3. The crowd at the Rugby Sat night – any number of reasons why there wasn’t a big crowd, none the least is the malaise which is pervading rugby in NZ at the moment. The fact that Sky coverage in CHCH is free. Not many other cities in the world you actually get to watch your team live on the TV too. In Vancouver the Ice Hockey is delayed broadcast, as is the Cricket and Rugby in Australia.

    Keep the ticket prices down low and I think we should also be doing the same in NZ. Passionate fans (if the price is right) will go to games. Those still keen on the live aspect will listen in on the radio, and then like the delayed free to air Prime coverage of the All Black tests later on a Sat night could be an option for the city. It works elsewhere and should seriously be considered, even more so now ChCh and Auk are building massive capacity stadiums.

    As for his pay, sure we’ll have to see what his performance is like, but I’m still shaking my head as to how the CST/DCC managed to get seemingly the perfect person for the position. Remember he has been in charge of some pretty big sporting/entertainment organisations. He’s no council hack and thus shouldn’t be seen in the light of other council staff, he’s the head of the DVML.

    And personally I don’t care what his salary is if he is the right person for the job and performs correctly.

    If you want to grumble about public employee salaries, why not have a gibe at the $200,000 increase in salary of the VC of the University in 5 years – that’s a shocker.

    Alex – don’t fool yourself, this isn’t a poorish city, just somewhat impoverished when it comes to using the grey matter.

    • Elizabeth

      Re: “don’t fool yourself, this isn’t a poorish city, just somewhat impoverished when it comes to using the grey matter”

      Paul, we’re all paid huge salaries in Dunedin. Not. And we don’t have a high level of people on low incomes. Ah well.

      And we’re really cool with the idea that an venues/events manager might be paid from same fund as DCC staff salaries ????!! Nooooooo…. (clarification required – Phil may be right about ODT’s coverage)

      I expect to see DCC staffers go on full strike if what we read/infer is correct. That would be fun.

  4. Phil

    Oh, I’ve got no problem with his salary, if he can deliver the goods. I was more concerned about where his salary was being drawn from. Which doesn’t follow the way of other Council owned companies, I believe. And the only reason I can think of for removing such a large expense from the company, is if it is believed that the generated income from that company cannot sustain the expense. At least, that’s why I would remove it from the books. If company expenses are being paid for by someone else, it makes it very difficult to determine whether or not a company is profitable or even viable. One needs to be able to compare apples with apples. 100% income against maybe 75% expenses are not the same apples.

  5. David

    Paul says “Alex – don’t fool yourself, this isn’t a poorish city…”

    Paul – don’t fool yourself that this is NOT a poorish city.

    Statistics NZ says the average Otago weekly wage $626 compares to average Wellington wage $836.

    That’s just on $11,000 less per year that the average Dunedin person has to spend.

    We have a much larger percentage of non-earning students and elderly than other cities.

    And we don’t have all the top end managerial salaries for all the head offices based in bigger cities.

  6. David I wasn’t talking household incomes, did I say weekly wages?

    I was talking metaphorically about the old money that is in this city, I was also talking about the city as a whole. This isn’t a poor city and sometimes statistics (scrub that many times) don’t tell the full story.

    • Elizabeth

      Can’t live here and not see numbers of people struggling at wits end. Starting to think make it compulsory everyone under 20 does a 6-month intensive with one of our social service agencies.

      • Elizabeth

        I note the ‘old money’ is pretty divided about the merits of the stadium. And about the divide as it’s been growing between haves and have-nots.

        More pressure:

        ### RNZ National News Updated at 9:07pm on 9 November 2009
        Rate of NZ grocery price hikes almost top of OECD
        Grocery prices have risen faster in New Zealand and Australia that most other industrialised countries, with prices in New Zealand increasing 42.5% since 2000.
        The study, by the University of New South Wales, says OECD figures show South Korea had the highest food price hikes in the period, followed by New Zealand, then Australia.
        South Korea (48.2%) had the highest food price hikes, followed by New Zealand, then Australia (41.3%).
        Japan recorded only a 1% increase in the period.
        Read more

        Listen to Professor Frank Zumbo on Checkpoint (5:34)

  7. David

    Paul – I think you’re wrong. Not many students have old money, nor does the vast majority of South Dunedin – one of the most densely populated areas in NZ.

    Look at house values, look at the age of cars on the road, boats in the marina – and compare that to Wellington, Christchurch, Auckland, Napier, Hamitlon, Tauranga etc.

    There’s a big difference. Dunedin is way behind.

    I suppose you could be right if as you say you are only talking about metaphorical richness – not actual literal richness measured in $ wealth.

  8. David

    Paul says “I was talking metaphorically about the old money…”

    I drive a metaphorical Rolls Royce (if compared to a ford cortina) and earn a metaphorical million bucks (if compared to the money I used to get for a milk run).

    I’m metaphorically rich (but I’d rather be literally rich)

  9. Our poor City has had big rates increases over the last two years and is facing more big rates increases in the years to come.
    The latest hare-brained scheme is to move the Library to the old Post Office. We already have an excellent library in a good location. And internet has reduced the importance of libraries: they are no longer the primary source of information in the community.

    {Comments in reply to Alistair or on the subject of the public library have been moved to a new thread Dunedin public library services. Elizabeth}

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