NZRU ‘hustles’ towns and cities to build stadiums

What happens to our cathedrals, the large stadiums found in every major centre, if we lose faith?

### Last updated 05:00 14/06/2014
What about the state of New Zealand stadiums?
By Matt Nippert
[Excerpts from a longer article…] The covered 31,000-seat Forsyth Barr Stadium in Dunedin, constructed in time for the 2011 Rugby World Cup, may be the newest major sporting facility in the country but has already proved the most controversial. The bulk of its $224 million construction cost came from Dunedin City Council, but ongoing costs to ratepayers have caused considerable angst. Ratepayers were forced into a $2.3m bailout in May, and are mulling whether a permanent annual subsidy will be required to keep it running.

Getting to grips with exactly how much stadiums cost is a tricky exercise. Construction has often been piecemeal, with grandstands redeveloped or rebuilt over time, blurring total capital expenditure. And determining operational costs – whether stadiums require ongoing contributions by ratepayers – is further complicated by many facilities being run from within city councils or by council-controlled organisations. This makes the extraction of a discrete set of accounts, most notably in Dunedin and Waikato, an impossibility.

Analysis of accounts for Wellington and Auckland, run by dedicated trusts and two of the most transparent stadiums, shows that break-even is realistically the best case.

At New Zealand Rugby headquarters, chief executive Steve Tew broadly agrees that the glory days [of attendance at games] are over. Viewers watching broadcasts of a game have supplanted punters going through stadium turnstiles.

But there is one niche where the faith of the rugby faithful remains strong: All Blacks tests. Hosting the national team is often the only time stadiums up and down the country reach capacity.

While great for New Zealand Rugby coffers, Massey University’s Sam Richardson says the All Blacks have warped stadium construction priorities. “It’s an absolutely huge detriment. If you’re building a stadium where the financial viability year to year relies on an All Blacks test, there’s no question New Zealand Rugby plays a massive part in whether these facilities are going to be used to their potential,” he says.

Canterbury University economist Eric Crampton says building capacity for a solitary annual All Black test is akin to “buying a six-bedroom house just in case both sets of grandparents come to visit at the same time”. Crampton says the proliferation of large loss-making stadiums, both in New Zealand and worldwide, has been mainly because of the economic equivalent of hustling. “Sporting teams have been able to convince councils all over the place – and have been able to play them off against each other by threatening to move – to build excessive stadiums.
Read more


“Fifa, like the International Olympic Committee, is widely regarded as corrupt. In that, it reflects our flawed species; while capable of fabulous feats, a dark side lurks.”

### ODT Online Sat, 14 Jun 2014
Editorial: Revelling in sport
OPINION As Dunedin and the South gear up for the excitement of tonight’s rugby test in the city, a sporting event in another league entirely kicked off yesterday.
Read more

Garrick Tremain – 14 June 2015

Posted by Elizabeth Kerr


Filed under Business, Construction, DCC, Economics, Geography, Media, Name, New Zealand, People, Politics, Project management, Property, Site, Sport, Stadiums, Tourism, Town planning, Urban design

87 responses to “NZRU ‘hustles’ towns and cities to build stadiums

  1. Cars

    A voice of sanity. You can bet his views will not be widely published.

  2. Hype O'Thermia

    When DVML was set up my first thought was that this was the purpose:
    “…determining operational costs – whether stadiums require ongoing contributions by ratepayers – is further complicated by many facilities being run from within city councils or by council-controlled organisations. This makes the extraction of a discrete set of accounts … an impossibility.”

    And so it has proved. How very convenient.

  3. Peter

    This report comes across as well considered. Thank God for journalists who ARE able to analyse something critically without being the arse wipes of vested interests. Something the old, dreary, self-satisfied ODT could ponder.
    I realise the ODT abhors anything remotely ‘intellectual’, but can’t they rise above the banal?

  4. Elizabeth

    ONE News all over Forsyth Barr Arena tonight (their words). LOL

    Haven’t watched 3News.

    It’s true I’ve no real idea who the All Blacks are playing tonight. Such is my non-interest in dumb brutes. All I could see were black white empty seats during a practice session. And our ‘groundsman’ on his little tractor. Then Terrence Davies selling Eskimos – a rave for the venue as could be expected.

  5. Russell Garbutt

    The TV3 sports dork pushed for another covered rugby stadium in Chch. Obviously not a single working brain cell there. Also he doesn’t need to pay for it.

  6. Elizabeth

    Thanks, will provide the TV links after dinner some stage tonight.

  7. Elizabeth

    [TVNZ News] All Blacks hell-bent on improved effort
    6:38AM Saturday June 14, 2014  
    The All Blacks are expecting to receive plenty of attention from the tourists, especially when they aim to play an expansive game under the roof of Forsyth Barr Stadium.
    [article +video]


    [3News] Dunedin energised ahead of second ABs Test
    Saturday 14 Jun 2014 6:31PM

    [article + video]

  8. Rob Hamlin

    I was speaking to someone today who was a member of the Stadium ($220+ per annum). They were asked for more ($170) for a single seat for last night’s test (on top of their ‘membership’) than it cost me to get my entire family into Warbirds over Wanaka for the entire day.


  9. Rob Hamlin

    And now look at this:

    While streakers are a pain, one has to look a the proportional force used here. The bloke was standing still as the clip begins, and was then hit (very hard and very high) from behind by a very large bloke when he was not expecting it. Look at the whiplash as his head goes back (he was not braced for the impact). He is then flattened as he is splashed’ by the same bloke who looks like he weighs well over 100 Kg. Various manhandling goes on after this as two security bods remove him. Just exactly what the third security twerp contributes to this as a late arrival on the scene is unclear to me, bar some further and unnecessary roughing up.

    This incident was unnecessary and could have ended very nastily. Although even if the bloke had ended up dead. I suppose that a ‘pre existing heart condition’ might well have been found in the post mortem leading to a subsequent discharge without conviction and name suppression for all concerned. Might have been difficult to make the story that the cardiac had been so violent that it had broken the bloke’s neck stick in a court, but it seems that all things are possible when pro-sport and the law come together in this country.

    • Russell Garbutt

      As you say Rob, these brainless, probably pissed interlopers are a pain, but in this case the way in which he was bought down was frightening. Not sure if the main security guy could be charged with excessive force and assault or not, but I have to say that this type of behaviour and retaliatory action is never seen when I attend performances of the Met Opera in HD, nor when I attend rowing events, swimming events etc etc. It only seems that this is seen in rugby matches in this country which sort of sums up the mental height of those attending these displays of hits etc that parade as a sport.

      • Hype O'Thermia

        Couldn’t they just do something annoying like spray them with the dye used to mark sheep? Or borrow the SPCA’s net that they fire out of a “gun” to capture animals, it goes all over them, they fall over and can then be bundled into the pound (or paddy) wagon. This would turn an annoyance into an amusement for the crowd, while resulting in ignominy for the streaker instead of hero status, esp the next day when trying to remove the dye which is formulated to stay on for a good useful period.

  10. So Rob; any idea how much the gate take was? Deduct from that the venue hire (peanuts) plus match expenses to the host, and the rest goes to the NZRU Wellington. Then we would have a rough estimate of the ‘economic benefit’ to the Dunedin economy. My bet is it was an enormous deficit. What say you?

  11. Rob Hamlin

    I see that this video has now gone ‘viral’ causing the ODT to rapidly change its article (Now disapproving in tone:

    I have added my five bob’s worth to it. May or may not appear – text below:

    “The security guard, whoever the security company is, DVML and the NZRU are all very lucky that this happened in New Zealand. In most other countries and particularly the USA the lawyers would now be gathering, and the medical specialists would be examining the whiplash and ‘irreparable life changing injuries’.

    In legal terms an American tort lawyer could now proceed with their eyes closed in pursuing a personal injury litigation case:

    1) Target standing still, not attempting to escape, or interfere with any third party.

    2) Unnececessary massive high and high velocity tackle. Impact appears to be at the maximum capacity of the attacker – No observable control or restraint

    3) No warning given to target.

    4) Outcome of points 2 & 3 above is massive observable neck whiplash.

    5) Victim then carried down under full weight of attacker.

    6) Whiplash injuries to head then exacerbated by unnecessary headlock and continuing violent wrenching actions therein.

    Given the events in the video and the deep pockets of those organisations who could be held liable in addition to the guard, if said American tort lawyer was even halfway capable, I would estimate that the entire proceeds of this test match (and then plus some) would eventually be paid to this naked individual and his legal team.

    All in all I would recommend that when the AB’s go to Chicago, they leave their security ‘professionals’ at home!

    Even in this country the video could form the basis of a case of common assault – Luckily it’s not manslaughter.”

  12. Martin Legge

    ASSAULT – the streaker was disrupting /entertaining a rugby crowd. His actions were silly and irritating but he was not threatening violence or resisting arrest. The security guard didn’t bother to talk to the guy to ascertain any of this but merely lined him up with a king hit.

    Irrespective of any complaint being laid by the streaker, I don’t see how the Police can ignore the evidence contained in this footage. If the streaker had died the TV footage would be listed as exhibit A.

  13. Martin Legge

    Well I hope that streaker sues [Armourguard] Security because one of their staff, a big man, probably on minimum wages, showed no restraint, skill or training other than to show us all how to execute a dangerous tackle on a little guy while his back was turned and he was standing still.

    • Elizabeth

      Hopefully, the streaker guy’s lawyer or any city lawyer keen to do pro bono good deeds will offer sensible advice!

  14. Elizabeth

    DVML at Forsyth Barr Stadium doesn’t only use ecurity firms (such as Armourguard and Allied) for event security – the job is also covered through use of untrained juvenile school students, and others, in various areas of the complex.

    The whole situation needs tidying.

    Terry Davies may wish to dwell on “security arrangements” and “security contracts” as part of DCC’s formal stadium review. Or be required to.

  15. Elizabeth

    The security guard who produced a show-stopping tackle on a streaker at last night’s All Blacks game is believed to be a Canterbury rugby player.

    Story via The Press

  16. Anonymous

    Oh and also: talk about economic benefits to Dunedin from the stadium…then get comp tickets…

  17. Elizabeth

    Tackle now under review:

    “Videos of security worker and New Zealand under-20 rugby team triallist and 2013 Crusader development team member Brad Hemopo’s tackle of a 28-year-old streaker had attracted more than 200,000 views on You Tube late yesterday and comments were divided on the incident.”

    AB management has gone hush, and the dis-ease is spreading:

    “Questions to DVML concerning both the qualifications and the conduct of Mr Hemopo went unanswered yesterday.”

    We’re unclear if the heavy tackler was in the employ of DVML or a security firm, or a volunteer – who may have received other reward for his time at the stadium on Saturday. Typically, there is ‘security staff’ reciprocity between Dunedin and Christchurch for big games.

    (17.6.14) Brad Hemopo was employed by Armourguard Security according to Terry Davies (DVML).

    • Hype O'Thermia

      On the radio, Todd Blackadder said the rugby player who was acting as “security” and assaulted the streaker was “doing his job” because his job was to “protect the players”.

      Holy batshit, he’s so right. Those rugby players were in imminent danger from a nude, not terribly fit looking naked bloke. He could have been a suicide bomber with explosives up his bottom, for all the intrepid security hero knew.

      • Elizabeth

        Yes the rugger lads, one a friend of mine… was tweeting last night that it was a “textbook tackle”. This is how scrambled the rugby thugs are in their peanut brains.

  18. Peter

    The local police clearly have to act. If, through the interference of local rugby thugs, they are ‘pursuaded’ not to intervene, I would anticipate a complaint process will eventuate through the Police Complaints Authority.
    I am sure they will not want this to happen as the tackle was an assault, clear and simple. This would be a severe embarrassment for the police. The local police have to be seen to uphold the law.

  19. Elizabeth

    All Blacks (Dunedin) Streaker Tackle
    Uploaded by Emily F. on 14 June 2014.

    Anyone citing the video, and Brad Hemopo’s name, can make a formal complaint to New Zealand Police to hasten things along. You may also want to cite Dunedin Venues Management Ltd (DVML) responsible for all venue security and venue management.

  20. Mike

    So how is hiring your security thugs from Christchurch “creating jobs in Dunedin”? jobs for the rugby boys again I guess

    • Elizabeth

      Christchurch hires Dunedin security staff at their test matches.

      However at this point we have no idea who Brad Hemopo was working for at Fubar.

      (17.6.14) Terry Davies in an email to a colleague received today says Mr Hemopo works for Armourguard Security.

      • Hype O'Thermia

        Canterbury player nobly gave up a game with his own team to do his bit down here as a security thug.

        • Elizabeth

          Thug misguidedly blind tackles in the VAIN hope to increase his career changes. The streaker better have expert counsel today to make a different sort of $killing.

  21. Search as I might, I could not find in the ODT a single mention of the ‘economic benefits’ for Dunedin from hosting the rugby test. Why? Is it because the management have finally woken up to the fact that there is no benefit for Dunedin, after the NZRU has taken the gate receipts to Wellington? Or, is it because the DCC have been asleep at the wheel and missed the opportunity to rave on about the benefits? Or is it that they have lost their can of ‘multiples’? Oh I forgot, Hamish Saxton is no longer in charge of the ‘propaganda machine.’

  22. Rob Hamlin

    According to Mc.P. today (which has still not published my comment, and is unlikely to if previous patterns are adhered to), the DVML ‘review of this ‘streaker flattening’ incident tis now complete:

    The guts of DVML’s position can be summarised in their own words via Mc.P.:

    “In a statement today, DVML said:

    ‘…the man had ‘invaded the pitch where he did not have the authority to do so’ and, in accordance with venue and security policy was ‘removed as quickly as possible to detract from delaying and interrupting the event. ‘The pitch invader has received a ban from the venue for two years. There have been comments around the tackle conducted by the security guard and DVML understands that the pitch invader was sore but not injured and did not require or request any medical attention. ‘Security staff are trained to deal with pitch invasions and standard operating procedures are [were?] followed.”

    I think that this means that DVML not only condones violent, dangerous and unsignalled physical assaults of this nature on people who attend their venues, but actually has a policy to inflict them on members of the public who ‘do not have the authority to do so [whatever]’.

    The unauthorised behaviour that might trigger such DVML sanctioned violent and unsignalled physical assaults clearly involves running on to the Foobar pitch naked….

    …But I guess that it could also include pushing into the pie line, inadvertently entering a VIP or corporate area, or wearing clothing/items that carry non-DVML/event authorised corporate logos.

    Personally, I would not enter this facility, or any other DVML controlled facility such as the Town Hall, if by doing so I am accepting/exposing myself to DVML’s current ‘standard operating procedures’ with respect to members of the public attending them, as officially confirmed by them today by this review…..

    …and I would definitely advised against member of the public who is not of a superb level of fitness and with eyes mounted in the back of their head from doing likewise – Calvin take note!

    • Elizabeth

      Which, with respect to DVML and Brad-thug, means that we all lay complaints to the police forthwith as honour bound citizens which clearly DVML is not.

    • Peter

      While DVML is talking about safety of others from this jihadist streaker, what’s the latest on their own procedures for spectator safety in the event of fire, mass rioting, collapse of seating and other dangers liable to create crowd panic? Or is it a case of a mad rush to the exits?

      • Call security

        This is all entertainingly misguided. The streaker has entered the field of play knowing full well he was going to get tackled. So this was not unsignalled. Violent? Well it would have been a legal hit had it happened in the game – arm raised so not a shoulder charge, not high, the fact it was from his blindside is irrelevant he should have shown some awareness. Dangerous? Sure that tackle could have caused injury just as if the tackle had happened around the legs it could have torn an ACL. The streaker was in an area he should not have been knowing that there would be security guards out to tackle him. Was the security guard supposed to go up and tap him on the shoulder and ask politely for him to go with him? Of course not, he needed to be taken down or it would have lead into a silly wild goose chase. Good luck getting the police to prosecute your vexatious complaints.

  23. Rob, I object!! I currently have a superb level of fitness. Got it online just recently from Ebay. I have an appointment with ‘Specsavers’ about rear looking eyes, so there is no reason why I should not attend any of these venues other than it would bring me out in a rash. A sort of STD. (code for stadium)

  24. Jerry.

    Player safety? Pull the other one. One lone, drunk streaker, with flab, versus two rugby teams on the field. For fuck’s sake. Davies couldn’t have thought of a weaker excuse for the thug.
    Davies is shaping up to be a dead loss.

    • Mike

      I suspect it’s a matter of “there’s a naked man on the field the All Blacks’ sexuality is threatened, we must do something”.

      I mean it’s not like one naked drunk man just standing there is really a threat to 30 burly guys at the peak of their physical condition.

      No I think that the NZRU powers that be panicked “what if one of the ABs cops a peek gets a hard on … on TV in front of the nation” so they had this Canterbury player-security guard take one for the team if you will and jump on the naked guy … in the most manly way possible of course …. crisis of sexuality averted.

      • John Thomas

        Mike. I have another theory that I think you can get a handle on. Maybe the streaker was hung like a horse and the action taken against him was a case of penis envy.
        There he was nonchantly walking around, on show, and posing no physical threat beyond what hung between his legs.

        • Elizabeth

          Mike and er, John T – is this how rugger lads think, what you’re thinking? Perhaps continue your conversation elsewhere eg you could get mauled at Fubar’s Facebook page instead. Or simply strive for subjects less ‘streakerly’. Thanks.

  25. Rob Hamlin

    ‘The DVML drill’

    The latest DVML effusion on the issue via Mc.P. (The third in 24 hours):

    The wreck of the Birkenhead in the Nineteenth Century led to the adoption of the ‘birkenhead drill’ – Basically women and children first in any serious situation.

    The comment above; “In the situation of a sporting event, player safety is paramount and any potential threat, especially when in close proximity to players, must be dealt with.” indicates that in the Twenty First Century we now have a ‘DVML drill’ operating in the Foobar, whose crowd safety shortcomings are already well documented.

    In short, the DVML drill is: ‘Women and children to safety first – but only after the AB’s have left the building!’

  26. Peter

    An interesting juxtaposition of news items on ONE News tonight. First up was a report on the findings of the Glen Inquiry into child abuse/domestic violence. Closely followed by a further report on the streaker episode at Fubar. People interviewed were not impressed by the use of this brute force except Terry Davies and the thug’s mum.
    It will be interesting to see if groups like Women’s Refuge, Men Against Violence and other groups tackling violence in our community have something to say about this unnecessary use of brute force. Might never makes things right.

  27. Elizabeth

    I imagine anything goes too at Terry Davies’ Munchies outfits in Oz. His media circus on Dunedin TV casts him in a very poor light indeed.

  28. Martin Legge

    Contrary to what Terry Davies would have you believe, the law gives a registered security guard no more rights than a civilian – that is the right to act in self defence or to protect life and property.

    Watch some of the footage and you will see that the security guard’s role is to watch the crowd but look how many are distracted and turn their head to watch the game – perhaps the reason why the streaker got as far as he did in the first place.

    • Elizabeth

      The DVML jocks and NZRU are trying a bit hard to make prosecution and damages go away. That shouldn’t stop any complainants.

      Tomorrow’s ODT features an interview with the streaker from Christchurch, and “other elements” around that.

  29. Mike

    Does Mr Davies from the DVML not have some minder from DCC legal to quietly whisper in his ear about liability (and the fact that they are self-insured which means that they don’t have actually have any insurance) before he goes on national television and actually admits their liability? He’s essentially saying “Hey! Over here! We’ve got deep ratepayer pockets, and no liability insurance, pay no attention to the hoon who assaulted you, he was just doing what we told him to, come sue us instead.”

    This is the time when you sit quietly on your hands in the corner and hope that the guy who was assaulted (and his lawyer) will decide that the hoon you hired to assault him will decide he’s not worth worrying about.

    I guess that if you’re used to having the ratepayers pay up whenever making a mistake there’s no incentive to actually stop making them.

    DVML management has risen to new levels of incompetence

  30. Elizabeth

    Today, with DVML’s new chief executive:

  31. Rob Hamlin

    I would tend to agree with you Mike. As I said earlier, in most other countries the papers would already be filed. However, the comments made today by Davies, which effectively stated that the guard was acting 100% in accordance with policy/directions/training given to him by DVML might cause the lawyers to withdraw the papers – but only to add another couple of noughts and names on and to then bang them back in.

    The teenage guard – acting on the spur of the moment and no doubt full of testosterone as he ‘performed in front of the ‘boys’ might be forgiven. Not so Davies, who is more experienced and is supposed to be a senior executive – (He is certainly paid as such) and who had plenty of time to think it over and take the necessary advice before opening his mouth in public.

    For the reasons stated above, the guard should not be hung out to dry, but neither should his actions be officially endorsed on behalf of DVML and the ratepayer owners, as Davies has done. This action effectively encourages a repetition of this incident, and next time they might not be so lucky.

    I cannot see how this bloke was threatening the safety of the players. he was after all not only unarmed and not moving, but stark naked. – Perhaps the guards suspected he had a bazooka up his bum?

    So what happens next – Do I get flattened into the sidewalk if I happen to not look at ‘St. Richie’ in the correctly respectful manner as he’s getting off the team bus at any DVML facility? God help you if you’re stupid enough to approach him with a hard cornered autograph book and a sharp pencil. Youth is no excuse, any ten year old who tries this should know better – and must suffer the consequences.

  32. Phil

    A 2 year ban. I wonder what exactly is he going to be missing out on during the coming 2 years ? Farmers Market ? Hot Rod Club open day ? Under10s rugby day ? South Island Masters Cheerleading ? Otago Master Painters Christmas Expo ? I bet he’s really regretting his decision now. Still, might be a moot point if the 2 year ban outlasts the stadium. It’s certainly going to outlast the current CEO’s tenure.

  33. Elizabeth

    Tackle completely unnecessary: law professor
    The tackle which felled a streaker at Forsyth Barr Stadium on Saturday night was ”totally unnecessary”, legal expert Prof Mark Henaghan says.


    Streaker on tackle: ‘Good hit, eh?’
    The man who streaked during Saturday night’s All Blacks test match says he bears no ill will against the security guard who crunch tackled him from behind.
    Adam Holtslag, 28, admitted he “probably started [drinking] a bit too early” on Saturday, and was egged on by his mates to streak across the pitch at Dunedin’s Forsyth Barr Stadium. [,..] But while Holtslag said he was left nursing sore ribs from “a bit of a cheap shot”, he doesn’t want to take the matter any further.

    How come the security firm isn’t being named?

  34. If Holtslag, the victim of the tackle isn’t bothered, then it’s a ‘dead letter’.

    • Elizabeth

      Calvin, I think there’s more at stake than the drunk streaker and that is the type of training the security guards are receiving for on-field paid work (Armourguard Security knows the law), DVML’s operations manual (if it has one?), and in this case Brad Hemopo’s decision-making process that led to an assault on a member of the public. Then there is the matter of the liability created by Terry Davies’ comments yesterday at his press conference. All this is in the firing line for consideration while DVML and rugby goons sanction an uncalled for act of violent assault in a public place. A social media and media sensation, what does the incident teach rugby players, young and old, and their families? The streaker appears to be playing safe while he is charged. He might like to rethink his fortunes with clued-up counsel once his fines are paid – or will he be nobbled by the Rugby bastion. Mark Henaghan did good service today.

    • Hype O'Thermia

      The law was changed to get past the situation where a woman who had been assaulted by her partner was unwilling to take it further, even when police had been called to break up the fight. Women were often scared of what the man would do to them at the next opportunity, so now police can charge him without her involvement where there is evidence of her injuries, and police and other witnesses. There are many reasons why a victim of an attack refuses to lay charges, “isn’t bothered”.

  35. Elizabeth

    Check out the post-incident Facebook entries:

    FBS Facebook/streaker vs security guard

  36. Elizabeth

    Terry Davies interviewed on Newstalk ZB – Saturday, 14 June 2014
    16:45 – 17:00

    Go to [On demand]

    Just three months into the job…

    Davies asserts the stadium will break even. [When???]
    [But woops, flawed model because DVML’s paying $4m rent on an $8m turnover.]

    Davies: “I think there are more that aren’t.”

  37. Elizabeth

    Whatever our sentiments, the matter illustrates our personal and our society’s hypocrisy.

    ### ODT Online Wed, 18 Jun 2014
    Editorial: Hypocrites and naked men
    OPINION In some ways, the hullabaloo about the tackle on a streaker at Forsyth Barr Stadium in Dunedin last Saturday night is much ado about not very much. […] We deal to the streaker not just as a pitch invader but for offensive behaviour when only a few hours before we have fun focusing on the Nude Blacks playing next door at the University Oval. Alcohol sponsorship is crucial for rugby and flows freely at the ground – and we then condemn the consequences.
    Read more

  38. Phil

    I guess if you’ve been good at selling ice creams, and almost good at playing cricket, you can’t be expected to be good at everything. I watched Terry, and I immediately saw that it would be a pointless exercise to try and explain to him what the point of rates was. He thinks it is some kind of penalty payment, and not payment for services used. Of course he would save $4m a year if he didn’t have to pay for his share of infrastructure use, but that cost wouldn’t simply disappear. Terry’s profit means a corresponding loss for the city. Someone, somewhere, has to pay for the things that Terry uses. Imagine how much extra money I would have in my pocket after buying one of Terry’s icecreams if he didn’t charge me for the cost of making it. Still, like I said, you can’t be good at everything.

    • Peter

      Phil. It’s a case of deja vu. Burden was always finding ways for the ratepayers to cover his costs so he could make a ‘profit’ for the stadium. Nothing is new. Terry Davies is aiming for the stadium to break even despite the financial forecasts. At least, to his credit, he did not claim the stadium had majority support.

  39. Elizabeth

    Former DVML chief executive Darren Burden started the campaign for reduced rates – as you say, now Terry Davies is talking “peppercorn rent” (based on his experience at Adelaide Oval). This won’t end well.

    • Mike

      Thing is it’s not really rent is it, that $4m is the remains of the $5m+ that was supposedly coming from the sales of luxury seats to pay for the $55m loan the council had to take out when rugby’s “private fundraising” didn’t actually happen.

  40. Peter

    I hope this isn’t the new stadium funding model. If so, all those who back it, stand condemned for utter financial ineptitude.

  41. Phil

    Last time I checked, “break even” meant covering your costs. It didn’t mean offloading your costs on to someone else just because you had insufficent income.

    But then I never sold icecreams.

  42. Mr Davies Mk2 will come to realise, like Mk1 did, that it is a dead letter and move on. It is just a question of when. As soon as he comes to the conclusion that there are never going to be enough events take place in that stadium to produce sufficient revenue to cover all operational costs’ plus the $4m pa rental, will be the time. Those facts are already established, so it just a matter of how thick his instincts of self preservation are. I would guess he’d ‘be gone by Xmas.’

    • anon

      Calvin. Like Katy Perry. Not here because of Xmas.

    • Russell Garbutt

      When you look at the job market for these very highly paid CEO’s, it seems to be a revolving door. They go from one lucrative post to another. Judging by Mr Davies performance so far it seems likely he will not be keen to stay – looking at it from his point of view, apart from the salary, what are the attractions?

  43. Cars

    The salary could attract a couple of councillors looking for a pay rise. They could hardly do a worse job than their precedents, unless of course they hire more Hedderwicks.

  44. Cars

    Ive thought about the stadium issue for a while. We could try to make my suggestion retrospective.

    We request the new government to legislate that the nzrfu must own and fund at least 50 % of any new stadium.

  45. Phil

    Great idea but the NZRU would never buy into it. They know that every stadium in the country loses money from hosting rugby matches. They don’t want a bar of that. They are only interested in the profit they make from broadcasting to South Africa and the UK. Everything else surrounding rugby, and especially in New Zealand, loses money.

  46. Elizabeth

    Letter to the ODT editor today (page 12):

    Did I get this right? Thirty international rugby players were threatened by a drunk naked man in front of 28,000-plus witnesses. So he was pole-axed, half-strangled and dragged away. If the streaker had been female would the same have happened? I think not. The poor rugby psyche couldn’t handle unexpected male genitalia in the playing area. It was sanctioned sexist thuggery disguised as security. Simple.
    Chris Collins, Roslyn

    • Elizabeth

      ODT today (page 8), article by Timothy Brown – ‘More than you can bare’.

      It begins, ‘Streaking is the issue which has hit the headlines globally and divided opinion nationally this week. Timothy Brown searches for the naked truth.’ Further on, ‘That some people had attacked [streaker Adam] Holtslag – some online commenters suggesting “Who the heck cares if he got hurt?” – was concerning, Prof Henaghan said.’

      Mr Brown adds absolutely nothing to what was published earlier – no criticality, no questioning of DVML’s responsibility for on-field security activity, codes of conduct, or the legal definition of assault. This is bottom rubbing journalism dressed with photographs of streakers, filling pages between large retail advertisements.

      It appears that ODT has run out of current news stories as well as the money to pay new staff to produce a great weekend read.

      RIP Allied Press.

      • Elizabeth

        Yep, the streaker’s confirmation – “today he said he had a fractured rib”.

        ### ODT Online Thu, 3 Jul 2014
        Crash-tackled streaker breaks even
        By Kurt Bayer – APNZ
        The streaker who was crash-tackled during an All Blacks match in Dunedin last month for a $500 bet has broken even today after being fined $500 at court. Christchurch builder Adam Holtslag, 28, appeared before a Justice of the Peace at Christchurch District Court charged with offensive behaviour. He pleaded guilty to the charge.
        Read more

  47. Rob Hamlin

    Posted today in response to latest DVML ‘squeal’.

    What’s the point?

    The ballpark cost of running this Stadium and paying its capital debt are around $20 million a year. Around $10 million appear to be running costs as far as available figures can be unraveled. DVML only currently have to deal with 20% of this total cost and about 40% of the running costs – and they are still squealing like a stuck pig about it.

    Mr Davies considers that 40% of the costs of doing business are an ‘unmanageable target’, and would prefer a ‘peppercorn rental’.

    I can only assume that a ‘peppercorn rental’ is required as the passing on of said peppercorn rental conditions will be a known condition of the Highlanders and ORFU continuing their ‘tenancy’.

    I find it unbelievable that Mr Davies would not by now know their position on this matter, as they are now the dominant source of revenue for this facility, and the contracts are now on the point of expiring.

    While we have to put up with the stadium debt and its interest payments as a ‘sunk cost’ the same is not the case for the circa $10 million ongoing operating and soon to be significant maintenance costs of this facility.

    If pro-rugby and its supporters will not pay the ongoing costs of this now pretty much dedicated pro-rugby facility, which now amount to around 10% on the total domestic rate, then regrettably, the only responsible act for Council will be to close both it and DVML down forthwith.

    Pro-rugby is after all, or so we are told, a business, and furthermore a business that employs a small group of largely itinerant individuals on short-term contracts. Its case for continuing public support depends largely upon incomplete economic impact analyses that count revenue, but ignore costs and displacement factors.

    If the same one-sided economic impact pro-rugby voodoo mathematics are applied to alternative community ‘business investments’ such as Scott Technology, Taylor Made or NHNZ among others, all of whom employ large numbers of skilled and long-term residents, I suspect that it will be discovered that redeploying the $10 million freed up by shutting down DVML and its stadium will generate a much larger positive economic impact sum in the long run.

    After all, what’s sauce for the goose is also sauce for the gander.

    {This comment also appears at ODT Online. -Eds}

  48. Elizabeth

    This is the second time Terry Munchkin Davies has signalled he wants a peppercorn rental – the first was on TV. He seems sold on this idea. And so he should be prepared for lynching mobs to arrive any second. But wait, this is ‘roll over and take it up the arse Dunedin’ where ratepayers remain submissive and torn to the bitter end of Rugby’s jollies.

    What a bunch of victims we all are. And so another usurer ‘statement of intent’ goes to council.

    ### ODT Online Mon, 23 Jun 2014
    Whistle to blow for stadium deals
    By Chris Morris
    The company which runs Dunedin’s Forsyth Barr Stadium faces an uncertain future as it eyes the expiration of deals with sponsors, members and even the Highlanders Super rugby franchise. It also continues to operate under a cloud while awaiting the outcome of a major review of the stadium operation, now expected by early August, that seeks to address the venue’s multimillion-dollar losses.
    Read more

  49. Elizabeth

    DCC Reports – Statements of Intent:

    Report – Council – 23/06/2014 (PDF, 164.3 KB)
    Statement of Intent for Dunedin Venues Limited

    Report – Council – 23/06/2014 (PDF, 170.1 KB)
    Statement of Intent for Dunedin Venues Management Limited

    The Dunedin City Council meets today in the Council Chamber, Municipal Chambers, at 2pm.

    Agenda – Council – 23/06/2014 (PDF, 122.0 KB)

    [See new Post and Comments]

  50. One would have to wonder how long the ‘charade’ of DVL and DVML annually presenting ‘statements of intent’ to council will continue. In DVML’s case the claim of achieving anything like a satisfactory economic performance, is sheer nonsense when it continues to persevere with policies of tenancy dealing at rates that have not a remote chance of achieving those outcomes. It is an insult to the average persons’ intelligence. Not of course to those sitting around council table, as the IQ level there is obviously lacking.

    • Mike

      Probably as long as the Local Govt Act requires them to do so …

      The real question are things like whether they have any meaning? and can they be held to them?

      I look forward to the changes to DVML that come from intents like:

      “To maximise the financial returns reasonably achievable from the venues it is responsible for”


      “To maintain the Company’s financial strength through sound financial management within the limitations of debt levels and rental payments.”


      “To keep the shareholder informed of matters of substance affecting the Company”.

      I think these last two might mean you’re considering you might stop going off borrowing millions of dollars without telling the council and then expecting to be bailed out.

      Section 5 says that they’re actually going to get around to reading what they have written in the statement of intent and have a bit of a think about how they might get around to consider doing what they have said they might do.

      Section 7 lays out the finances, it doesn’t seem to include any payment of rent at all, and assumes they will still lose millions.

      On a side note: so how does the management of the Town Hall etc work? Does DVML pass on the income to the DCC and receive a management fee? (I don’t see that there) or do they just get to keep what they earn to prop up the money-losing rugby? (how much was paid to the DCC for the rugby black-tie gala in the town hall the other week?)

    • Hype O'Thermia

      You can’t go past the classics. Who won’t sing along making the Council Chambers ring: “We will, we will rort you!”

  51. Phil

    Does City Property still physically own the Town Hall ? It used to be the case that the civic triangle of Town Hall, Public Library and DCC portion of Civic Centre building were exempt from rent and, from memory, rates.

  52. Jamie

    Anyone else see the ad on TV. Jethro Tull is coming to Invercargill, Blenheim and almost every other place except Dunedin. Anyone know why Dunedin is being missed….again?

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s