DVML . . . | ‘Make the stadium work’ losses continue

Dunedin Venues logo 2 copyDunedin Venues Management Ltd (DVML) is a Council Controlled Organisation (CCO) —operating losses and compounding debt

### ODT Online Tue, 1 Oct 2013
DVML loss bigger than forecast
By Chris Morris
Ratepayers will not be hit in the pocket again despite the company running Dunedin’s Forsyth Barr Stadium missing its mark by nearly $700,000. Dunedin Venues Management Ltd on Monday revealed a $986,000 loss for the 2012-13 year, which chief executive Darren Burden said represented progress after a $3.21 million loss the previous year. However, the company had been forecasting an even better turnaround, with a $298,000 loss predicted for 2012-13 in a statement of intent published in July last year.

In the end, the $986,000 loss was $688,000 worse than expected, the company’s annual report confirmed.

Mr Burden said the loss could be covered internally using income from other sources, such as ground memberships and other private sector sponsorship arrangements.

Mr Burden said the forecasts for 2012-13 were actually completed in early 2012, about 18 months before this week’s results were released. Because of that, they were also based on only about six months of trading by DVML, he said. For those reasons, there was always going to be ”a level of uncertainty”, but the accuracy of future forecasts should improve, he said.
Read more

Associated comments at ODT Online, in the public interest:

Really?
Submitted by overit on Thu, 03/10/2013 – 9:24pm.

As has been pointed out elsewhere, these figures may not be true reflection of the FB Stadium earning its way. Now that DVML has other income streams from the Railway Station and the Dunedin Centre it would be very interesting to see what the separated financial result for FB stadium is rather than DVML as a whole.

Maybe the ODT could report on this?

A grip
Submitted by russandbev on Wed, 02/10/2013 – 6:38pm.

MikeStK, the Larsen report and the PWC report – both of which were published in the ODT – made it plain that the whole basis of the stadium’s finances were nothing than hyperbole. Huge under-estimation of costs of construction, huge over-estimation of economic benefits, and under-estimation of on-going operational costs. By now, surely most proponents of this White Elephant can see how completely destructive this project has been on Dunedin’s well-being. The only people or groups to have benefited directly from this project have been the very fortunate land owners who sold at round 3 times the budgeted amounts, the private CST who received regular fees for their management of the project, the various “consultants” who provided glowing future forecasts for stadium usage which have all proved to be optimistic at best, the ORFU who have been bailed out, the few promoters that have received subsidies for bringing in the few shows that have been staged at the stadium, the anonymous economic impact analysts who provide regular non-peer group reviewed reports on mythical income, and of course the highly paid executives of the entities themselves who seem to make sure the balls are continually being juggled to obscure the true position.

And of course the people to pay for all of this are the ratepayers. Behind it all are the potential governance people who, it seems largely, want to just pretend that all in the garden is lovely. Well, everyone now has the opportunity to make your views known. If you don’t vote, then you are as much to blame as those that made this mess happen. Vote wisely.

Diverting debt repayments
Submitted by MikeStk on Wed, 02/10/2013 – 1:26pm.

Now just a minute – back when we were pretending that income from memberships were really “private fundraising” rather than pre-purchased ticket sales the city borrowed $45m to cover the fact that this money wasn’t going to be paid up front but would instead dribble in over 5-10 years. If Mr Burden’s now going to divert this money that was supposed to be used to pay off the debt borrowed against this future income to paying off his own losses who is going to pay off the actual $45m in principal and associated interest?

This whole rugby stadium thing appears to be a giant game of cups and balls.

Posted by Elizabeth Kerr

*Image: Dunedin Venues logo overstitched (re-imaged by Whatifdunedin)

29 Comments

Filed under Business, Construction, CST, DCC, DVL, DVML, Economics, Events, Hot air, Media, Name, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums

29 responses to “DVML . . . | ‘Make the stadium work’ losses continue

  1. I have just received my hard copy of DVML’s 3013 Annual Report and it confirms the online fact as noted item 24. Events After Balance Sheet Date:

    Since balance date the Company has made calls on share capital of $4,106,065. Part of these funds have been received and have been used to repay the advance from the Dunedin City Council of $3,381,065. The balance will be used to repay term debt.

    Now the difference is $724,000. This looks to me like an injection of that sum from the DCC which at this point in time no-one has heard of. I wonder if Dave Cull knows? Is this the events promotion money talked about or is it extra on top? Who knows? JimmyJones, what do you think?

  2. Inaugural Otago Food, Wine and Music Festival held at the Fubar on Saturday, featuring “75 food, wine and beer stalls and included 10 music acts on the Otago Daily Times Stand”.
    http://www.odt.co.nz/news/dunedin/282802/organisers-rapt-first-festival

  3. “And that ‘dear readers’ is the Stadium news that was, on Saturday 23rd November 2013, Good night and sweet dreams.”

  4. Link supplied with comment:
    “We know – we have the same problem here”

    Posted: Nov 18th, 2013 by NewsBiscuit
    Crowds failing to flock to dull sports
    A House of Lords report has criticised the London Olympic legacy committee for failing to sustain interest in sports such as the discus, triple-jump and shot-putt. ‘Thousands of people turned up to watch these events during London 2012′ said the committee chairman. ‘But now it seems that a regional triple jump competition is failing to fill the Olympic stadium. Who would have thought it?’
    An extended debate then followed on what athletes were actually supposed to do in the triple jump, and if indeed there was such an event or whether it was just footage of the long jump with athletes tripping up during the run up. The committee then adjourned to watch Champions League highlights on Sky Sports One.
    http://www.newsbiscuit.com/2013/11/18/crowds-failing-to-flock-to-dull-sports/

  5. ‘A move to the new Forsyth Barr Stadium and better success on the field – although this year was disappointing in terms of results on the scoreboard – had improved finances…’

    ### ODT Online Thu, 28 Nov 2013
    Rugby: Share of franchise up for sale
    By Steve Hepburn
    The Highlanders are going on the market. The process to get some part of the Highlanders into private hands is due to start early next year. The southern franchise will be the last of the five New Zealand Super 15 sides to go through the process and if all goes to plan, it may be completed in under a year’s time.
    Read more

    • Sale of the Highlanders could be a godsend. Childless, wish you had a grown-up son to help with the house maintenance that’s getting too much for you? Not interested in adopting a Chinese orphan and having to wait at the very least 15 exhausting, expensive years before the hedge gets cut and the fridge pulled out because of the occasional whiff as if a mouse expired after 3 rounds of biffo with the cat? Buy a Highlander!

      They’ve got to be good for something……..

      • Mike

        I think they’re a poor investment, they seem fragile and injure easily, many are past their prime

        • Hey Mike, The Chinese are smart – they wouldn’t use Chinese players …nope …more likely Southern Africans. The Chinese would be in the casino betting on the result of the game.

        • Mike

          I think that anyone who’s smart knows not to play the game

          What we need to look out for here is any hint that someone (you all know, the usual someone’s) thinks that it would be a good idea for the ratepayers to own a rugby team

        • Mike

          or perhaps it might look like someone claiming they have a great secret deal that will bring tens of millions of dollars to the region, if only they can use the stadium for free …..

  6. The Chinese might like to buy this. Could fill the stadium.

  7. Malcolm, Eion, where are you? This is the greatest opportunity you could ever wish for. Invest in the Highlanders and you can make a small fortune by simply raking all the loose change into your pockets and then plead hardship to the owners of the Stadium. I am sure you will find them sympathetic to the point that they might reduce all charges for the facilities. In fact you might even qualify for an annual subsidy. They really like the place to look busy. So contact the Highlanders board now, it is waiting for you.

  8. Whippet

    STOP THE ASSET SALES. Where are the Greens and Labour when we need them. A petition is needed NOW to stop the Highlanders sale.
    Will the mums and dads of Dunedin be given preference in acquiring shares in the Highlanders?
    If the NZRFU do their homework, they will probably find that they will have to pay the mums and dads of Dunedin to take shares in the Highlanders. Then with any luck the mums and dads could sell their shares to an overseas buyer, who could take the franchise to a far away land.
    To good to be true.

  9. Could be the opportunity of a lifetime for Bill Acklin. If he took an interest (with his Council superannuation) he could collar the sideline entertainment. There could be Scottish dancing (instead of the haka) and even something for the kiddies. Like “Hey diddle diddle, the cat and the fiddle, and the cow jumped over the moon”. OOPs not a runner that one. There’s a roof. Still, the footy just might interest. I just knew that Stadium would come right. Now is the time?

  10. Elizabeth! Yeah, been cutting hedges, and that’s when I get all cerebral and the best ideas flow like buttermilk. Did I just say that? Right, it must be the sun. But seriously, Bill needs a break. Take his mind off the other thing, like “where did I put that mind?”

  11. Pssst….. Hype, what sort of Highlander would you prefer? One with multi colour dreadlocks – excellent for rooting out dead mice from under the fridge- or would you prefer one who models his ‘smalls’ on the public stage? Better still, how about one who will model your ‘smalls’? They all come with a fully vetted CV, so I am sure you could get suited. What about a ‘prop’ to hold up the clothesline? Don’t think you would really care for a hooker, but then there is no accounting for taste is there? A halfback perhaps? Nooo, more like a half sucked lolly compared with a fullback isn’t it? Then there is the risk of getting three quarters of five eighths of ‘eff’ all. On balance I think you should give it the miss.

  12. This is why What if? continues as a creative outlet.

  13. Without Landfall, Fortune Theatre, Otago University Press, dealer and public galleries and many many others who do the unglamorous work of providing a place for “consumers” to access the work of NZ’s creatives where would we be, where would today’s culture explore ideas seriously, satirically, absurdly and earnestly? Not in the mainstream media, that’s for sure.
    The CreativeNZ post was for a laugh but there’s a bit of seriousness associated, and the one that I’m on about now is an objection to your word “merely”, Elizabeth. There’s nothing “mere” about the work of providing a place where people can readily access a range of things to think about and contribute their own thoughts.

  14. EXCLAMATION: Wider picture [note ODT “soft reporting” below].
    ● Dunedin is not getting rugby tests after this financial year.

    ### ODT Online Tue, 3 Dec 2013
    Rugby: England test confirmed for Dunedin
    By Steve Hepburn
    The New Zealand Rugby Union has released its 2014 test schedule, which features the All Blacks taking on England at Forsyth Barr Stadium on June 14.
    It is expected that [the test] window may be closed in 2015, as teams prepare for the World Cup, and then disappear a year later with an expanded Super Rugby competition.
    Read more

  15. Elizabeth, mentioning “Greater Dunedin’ in the same breath as mothballing the Stadium is something of an oxymoron don’t you think? Then it is an injustice to the genus oxen to associate it with the GD morons.
    I prefer the unintended consequences, as: ‘if a moth flapped its wings in the tropical jungles would it cause a financial disaster to a Stadium in the temperate regions’? Bloody oath it would.

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