Tag Archives: +$20M pa stadium losses

Lively dialogue with DVML’s Terry Davies —Not ! #LGOIMA #Stadium

Received from Calvin Oaten
Sat, 28 Nov 2015 at 5:35 p.m.

—–Original Message—–
From: Calvin Oaten
Sent: Sunday, 1 November 2015 10:10 a.m.
To: Sandy Graham
Cc: Dave Cull; Sue Bidrose
Subject: [LGOIMA] Request

Hello Sandy,
I have been reading the annual reports of Dunedin Venues Management Ltd (DVML) and am somewhat uncertain as to the true position regarding the matter of charges/fees for the use of the Stadium. We were given a detailed report in the 2014/15 Annual Plan wherein it [was] disclosed that the DCC/ratepayers would be making a one off lump sum of $2.271m to DVML by way of calling up unpaid capital. Then there is to be $715k per annum paid also by way of calling up unpaid capital. An event attraction fund of $400k per annum, source ratepayers? These two annual sums are I believe revenue to DVML. We won’t talk about the later decision to fund $2m per annum as a rent subsidy to DVL, due to DVML’s inability to meet the $4m rent required towards DVL’s debt reduction.
There is no mention of the Stadium in the 2015/16 Annual Plan with any reference to funding shortfalls even though both DVML and DVL continue to run deficits.

Zeroing in on sports events held in the Stadium (because that is its primary purpose) I see that in 2013 there was (sic) 44 events attracting 205,511 attendees.
In 2014 there were 39 with 206,123 there and in 2015 for 33 events 174,575 turned out in support.

DVML showed revenue of $6.085m in 2012 and $8.205m in 2013. These were of the Stadium only, thereafter it includes the Edgar Centre, the DCC Convention Centre plus the Ice Stadium management. This brought about an increase in revenue to $9.127m for 2014 and $9.960m in 2015. Similar pattern for the operating expenses over those same years.

In order to enable one to get an assessment of where these obviously inadequate revenues come from I would request under the [LGOIMA] the following points;

1. The main events being rugby, which of the ORFU, the Highlander Franchise or the NZRFU staged what events over those years? What was the rental received by DVML from those respective bodies per event and do they figure in the revenue statements?

2. What was the amount of revenue received from the other lesser codes which used the same facilities?

With respect to the Operating Expenses outlined in the reports, 2012 as $3.862m, 2013 $3.589m, 2014 $4.361m and 2015 $5.407m.

1. Of those expenses I would request under the [LGOIMA] the amounts of those expenses which could be described as paid inducements or subsidies to perform in the Stadium, albeit sports and concerts?

I trust that this information could be made available within the statutory twenty-one days and thank you in anticipation.

Cheers,
Calvin Oaten

Terry Davies (1) 194022Terry Davies, DVML Chief Executive [via whatifdunedin]

From: Terry Davies
Subject: FW: [LGOIMA] Request
Date: 27 November 2015 3:53:09 pm NZDT
To: Calvin Oaten

Dear Mr Oaten

I refer to your email dated 1 November which has been referred to DVML to respond. I have responded directly to your questions below:

1. The main events being rugby, which of the ORFU, the Highlander Franchise or the [NZRU] staged what events over those years? What was the rental received by DVML from those respective bodies per event and do they figure in the revenue statements?
The rental received for these events is withheld under section 7(2)(h) and (i) of the Local Government Official Information and Meetings Act 1987 to allow DVML to carry out commercial activities without prejudice or disadvantage.

2. What was the amount of revenue received from the other lesser codes which used the same facilities?
The revenue received for these events is withheld under section 7(2)(h) and (i) of the Local Government Official Information and Meetings Act 1987 to allow DVML to carry out commercial activities without prejudice or disadvantage.

With respect to the Operating Expenses outlined in the reports, 2012 as $3.862m, 2013 $3.589m, 2014 $4.361m and 2015 $5.407m.

1. Of those expenses I would request under the [LGOIMA] the amounts of those expenses which could be described as paid inducements or subsidies to perform in the Stadium, albeit sports and concerts?
The expenses incurred and event attraction funding for these events is withheld under section 7(2)(h) and (i) of the Local Government Official Information and Meetings Act 1987 to allow DVML to carry out commercial activities without prejudice or disadvantage.

DVML’s audited annual accounts are published which shows revenue and operating costs and this is available on line at http://www.dunedin.govt.nz/__data/assets/pdf_file/0006/519711/Dunedin-Venues-Management-Limited-2015-Annual-Report.pdf

You are entitled to have this decision reviewed by the Ombudsman.

Yours sincerely
Terry Davies

———————————————

From: Calvin Oaten
Subject: Fwd: [LGOIMA] Request
Date: 28 November 2015 12:08:46 am NZDT
To: Sue Bidrose

Hello Sue,
You will have been aware of my queries expressed recently via the [LGOIMA], re the DVML revenue [breakdown].
Well I would have to say that the reply as received is totally underwhelming. This would have to be the most condescending, snivelling, performance by a highly positioned manager one could expect. Hiding behind a clause in a flawed piece of legislation to deny a citizen stakeholder information which ought to be available, on the grounds that it would compromise the company in carrying out its business without prejudice or disadvantage is nothing but
a complete ‘cop-out’ by a less than forthright person. Unless there is detail showing activities detrimental to achieving maximum returns to the company, then I find it a disingenuous and rude dismissal of an honest request.

Sue, I am dissatisfied with his response but if you think it is the way it should lie, then I would be deeply disappointed. I would appreciate your comments as I treat this as a serious affront.

Cheers,
Calvin

[ends]

█ In other developments, ICC felt the need to secure games for its stadium. What have Terry Davies, (“make it work”) Dave Cull and Sue Bidrose been up to in behind ?

### ODT Online Fri, 27 Nov 2015
Rugby: Highlanders private investors revealed (+ video)
A group of South Island private investors has been granted a five-year licence to run the Highlanders. The group, headed by Ticket Direct boss Matthew Davey, has taken a 77% stake in the Dunedin-based Super Rugby franchise, with Otago, Southland and North Otago Provincial Unions having a 13% stake. New Zealand Rugby (NZR) retains a 10% share for the first two years.
Read more

Otago Daily Times Published on Nov 26, 2015
Highlanders private investors revealed

29.11.15 ODT: Rugby: New operators for Highlanders
The Invercargill City Council has underwritten the venture to the tune of up to $500,000 in return for one guaranteed game at Rugby Park each year for the next five years.

29.11.15 ODT: Canadian finds his ticket to success
Matthew Davey says the Highlanders helped make him – now he is ready to help return the favour. The Dunedin businessman says he started the company he founded, Ticket Direct, at Carisbrook in 1999, and it has since grown into a multinational entity based in Dunedin.

Related Posts and Comments:
6.10.15 DCC v Tauranga CC + costly stadium cycle/walkway :[
18.9.15 Tsunami stadium #DUD
● 29.7.15 Otago power consumers pay stadium debt, SO SORRY
● 24.7.15 Stadiums: Auckland works to limits —Dunedin, never
30.6.15 DCC low lifes #RugbyDebtStadium
● 18.5.15 DCC laundering – wring out Regent Theatre Trust, pump DVML
● 11.4.15 Stadium Tides = Subsidies (new English)
● 20.3.15 Stadium costs +$20M per annum, against one Fleetwood Mac…
10.3.15 *Surprise!* Farry’s f.u.b.a.r. Stadium not attracting first year Efts
1.3.15 DCC: DCHL/DVL/DVML limited half year result | Term borrowings…
28.2.15 Blonde ‘lawyer’ takes over DVML —expect no change
2.1.15 Stadium: Online petition to pressure $1M donation
14.12.14 ‘Stadium liability’, from the ODT unprintable letters file
1.12.14 Stadium Editorial Support strategy —ODT
1.12.14 Stadium Review: LGOIMA request and 2009 Town Hall speeches
22.11.14 ODT puffery for stadium rousing ?
● 21.11.14 Stadium Review: Mayor Cull exposed
● 19.11.14 Forsyth Barr Stadium Review
15.11.14 Stadium #TotalFail
12.11.14 DVML: Two directors gone before release of stadium review
● 8.10.14 Stadium: Liability Cull warns ratepayers could pay more to DVML
● 6.10.14 Stadium misses —like it would ever happen, Terry
4.10.14 DCHL & DVML: Call for directors
30.9.14 DCHL financial result
● 25.9.14 DVML on Otago Rugby and Rod
13.9.14 DVML and ORFU refuse to disclose 2012 Otago Rugby deal
10.9.14 Stadium: Behaviours at Suite 29 (intrepid tales)
1.8.14 DVML and the “Otago Rugby” deal (sponsorship and payments)
22.7.14 DVML catering and commercial kitchens….
21.7.14 DVML: No harassment policy or complaints procedure II
16.7.14 Stadium: Out of the mouths of uni babes…. #DVML
● 15.7.14 Rugby stadiums not filling #SkyTV
1.7.14 Southern Region, serving itself —or professional rugby (and Sky TV)
27.6.15 Stadium costs $23.4144 million per annum
24.6.14 Stadium: DVML, mothballing, and ‘those TVs’ #LGOIMA
23.6.14 DCC Annual Plan 2014/15 + Rugby and Rates
● 18.6.14 Crowe Horwath Report (May 2014) – Review of DVML Expenses
9.6.14 DVML: Crowe Horwath audit report (Hedderwick)
2.6.14 Stadium costs ballpark at $21.337 million pa, Butler & Oaten
● 20.5.14 Tim Hunter on Ward, McLauchlan, Hayne #Highlanders
7.5.14 Stadium: Jeff Dickie on costs
17.4.14 Aussie wine – NO parallels at DCC/DCHL/DVML/DVL/Delta/ORFU
3.4.14 DVML: Lost in transaction II (flatscreen TVs)
3.4.14 DVML: Lost in transaction (flatscreen TVs)
22.3.14 DVML, ‘Money for jam…..fig jam’
11.2.14 Stadium: ‘Business case for DVML temporary seating purchase’
● 11.12.13 Highlanders “Buy Us” entertainment: Obnoxious, noxious PROFESSIONAL RUGBY —stay away DCC !!!

Posted by Elizabeth Kerr

20 Comments

Filed under Business, DCC, Democracy, DVL, DVML, Economics, Events, Highlanders, Hot air, Name, New Zealand, NZRU, OAG, Ombudsman, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums

Stadium Tides = Subsidies (new English)

ON TOP OF TICKET PRICES
RATEPAYERS PAY TO GET ACTS TO F.U.B.A.R. STADIUM

An insider said DVML paid $350,000 to get Rod Stewart here.
No doubt it was more.

The stadium is costing ratepayers +$20M pa to stay open.
ODT mentions FLOOD, in a SEA OF COUNCIL DEBT.

Flood - Dave Granlund 129564_600 [cagle.com]

The rising value of New Zealand’s dollar against the Australian had closed the profit gap for promoters considering whether to cross the Tasman or add another Sydney show.

### ODT Online Sat, 11 Apr 2015
Sellout gets promoters’ full attention
By Chris Morris
Australasia’s biggest promoters are promising more big acts as Dunedin’s concert drought threatens to become a flood. Michael Gudinski once vowed never to return to Dunedin. But, more than three years after the accomplished Australian music promoter slammed the “completely unprofessional” managers at Forsyth Barr Stadium, he is back. Mr Gudinski is the man behind Frontier Touring, the company bringing Rod Stewart to Dunedin for tonight’s stadium concert.
Read more

****

IS NICK SMITH PAYING THE PROMOTERS TO BE HERE

### ODT Online Sat, 11 Apr 2015
City in line for more top acts
By Chris Morris
Promoters for some of the world’s top musical performers say Dunedin is now firmly on the radar as a destination for a steady stream of headline acts. The glowing endorsement comes as Forsyth Barr Stadium prepares to host 25,000 fans at tonight’s Rod Stewart show. The concert, being brought to Dunedin by Frontier Touring, has also attracted three of Australasia’s top music promoters to Dunedin, eager to evaluate the event and the venue.
Read more

*ODT understands Stewart is staying at the Scenic Hotel Southern Cross in High St, and that he arrived on Thursday night.

Related Posts and Comments:
20.3.15 Stadium costs +$20M per annum, against one Fleetwood Mac concert….
1.3.15 DCC: DCHL/DVL/DVML … half year result | Term borrowings $586.5M
28.2.15 Blonde ‘lawyer’ takes over DVML —expect no change
21.11.14 Stadium Review: Mayor Cull exposed
19.11.14 Forsyth Barr Stadium Review
15.11.14 Stadium #TotalFail
12.11.14 DVML: Two directors gone before release of stadium review
8.10.14 Stadium: Liability Cull warns ratepayers could pay more to DVML
6.10.14 Stadium misses —like it would ever happen, Terry
25.9.14 DVML on Otago Rugby and Rod
13.9.14 DVML and ORFU refuse to disclose 2012 Otago Rugby deal
10.9.14 Stadium: Behaviours at Suite 29 (intrepid tales)
1.8.14 DVML and the “Otago Rugby” deal (sponsorship and payments)

For more, enter the terms *dvml*, *terry davies*, *orfu*, *nzru*, *stadium* or *flood* in the search box at right.

Flood - Hands-Drowning-Sea [blogs.swa-jkt.com]In which DVML’s Terry Davies buys a house in Dunedin, moves his family here and lives happily ever after.

Posted by Elizabeth Kerr

*Images: (top) cagle.com – Dave Granlund 129564_600; blogs.swa-jkt.com – Hands-Drowning-Sea

35 Comments

Filed under Architecture, Business, Concerts, Construction, CST, DCC, DCHL, DCTL, Democracy, Design, DVL, DVML, Economics, Enterprise Dunedin, Events, Fun, Geography, Highlanders, Hot air, Media, Name, New Zealand, NZRU, OAG, ORFU, People, Politics, Project management, Property, SFO, Site, Sport, Stadiums, Tourism, Town planning, Urban design