Daily Archives: February 25, 2013

Walk this way – Aerosmith to play stadium

Received from Rob Hamlin
Monday, 25 February 2013 11:37 p.m.

Best do this quickly quickly as there is one major oddity that has not yet been picked up here. Aerosmith are performing here on April 24 – that’s only weeks away. How long was Elton coming – months/years – that’s the usual lead time for acts of this size, and with good reason. People have to decide to come, make plans, book tickets, hotels etc, in plenty of time. The same applies for preparation in the venue and destination, especially if it’s a small one like Dunedin – eg extra flight capacity. More importantly, the tours themselves are major logistical exercises that have itineraries that are usually planned years in advance.

So what’s happened here? Did they lose a venue at short notice? It certainly hasn’t been reported if they did. Then why the devil are the promoters diverting a major act at considerable inconvenience, cost and at very short notice in our direction.

I suppose that we will be told that it was for the love of the Foobar. However, major events promotion is a hard and chancy business that allows those who play the game successfully over the long term little room for love other than that for money. So my call is that they are coming for money – a lot of it, well over and above their expenses, and guaranteed as well.

I suppose that 40,000 people at $100 a head and no charge for the Stadium, plus help with the travel costs (maybe $450,000 or so that DVML just happened to have come by recently will be a factor here) might deliver a $4 million profit for a few days work – which might interest them.

Maybe the 40,000 will not come, or they will not pay $100. That’s OK, there’s still the guarantee – often innocuously referred to as an ‘event underwrite’. This underwriter is a third party who agrees to cough the agreed amount of revenue if the punters won’t. Some may recall North Island Councils losing their shirts this way before. Is this event underwritten as part of the agreement with DVML? I would be surprised if it wasn’t – Who’s underwriting it? Easy – DVML don’t have that kind of cash. So, got a mirror handy?

Holding big events in small towns is a risky business. Holding them at such very short notice makes it even riskier. That’s why I really don’t think that these guys are taking a risk of this nature. If they aren’t, then we are instead. Maybe we’ll roll the dice and not get burnt this time. But we will eventually if this is indeed what is going on. I would suspect that at a minimum the $450,000 that DVML were recently given by DCC as strategic fund is already well spent. But Darren did say he might (would) be back for more pretty soon.

It’s suddenly getting pretty crowded at the Foobar Multi-Purpose Community Asset innit? Hardly room for Rugby any longer these days. Fifa’s still in the loop with private meetings with our Councillors too – could still be a double booking in the offing. Still no contract with the Highlanders/ORFU and DVML? Now, I wouldn’t be betting on that if circumstances made it worth their while to have one of a certain type in hand when said double booking actually occurs. However, the turf’s still immaculate down the road at DCC/CS Partnership Point – Lucky, eh?

[ends]

Posted by Elizabeth Kerr

127 Comments

Filed under Business, Concerts, DCC, Economics, Events, Name, People, Politics, Project management, Property, Site, Sport, Stadiums

Darren Burden’s ratepayer subsidy bubble and other Fubar myths

The Elton John concert at Fubar is lauded by ‘prostadia’ as having generated a $14-15 million spend in Dunedin.

Dunedin Venues Management Ltd (DVML) commissioned Howard Research to ascertain the economic benefit of the sold-out November 2011 concert.

“Of the $14.9 million, $4.6 million was spent on retail shopping, $4 million on food and beverage and $3.4 million on accommodation.” (ODT 11.2.12)

Nobody seriously believes that, except ‘prostadia’.

With each ratepayer-subsidised act or event to appear at the stadium we’re reminded (no, told) of the great windfall that was ‘Elton John’.

Dunedin Venues’ books say differently. With more events being diaried, what happens when the ratepayer subsidy and events fund runs out? What will the city council dream up next to borrow against, or sell?

[Can we hock off Darren and his team of DVML ‘managers’ and their EPAs?]

Aerosmith, Tampa Florida 11.12.12 The Global Warming TourAerosmith at Tampa, Florida (11 December 2012). The Global Warming Tour. B.Moore | Visuals

ODT 25.2.13 Walk this way – Aerosmith to play stadium

Posted by Elizabeth Kerr

10 Comments

Filed under Business, Concerts, DCC, DVL, DVML, Economics, Events, Fun, Hot air, Media, Name, People, Politics, Project management, Property, Site, Stadiums