DVML: Two directors gone before release of stadium review

Last week at DCC I was asked if I knew Rolfe and Brown had left DVML, I did not although I was aware of the advertising for new directors (see previous posts).
In the ODT story we’re privileged to see the misguided views of Ms Rolfe in lights (what an asset… not meaning the lights!) —hard being the token woman, brain cells would help. And Mr Brown why he can easily think of better boards to decorate, it’s very wise that he moves on.
Public release of the council’s stadium review is now past due. Of course, Dunedin City Holdings Ltd chairman Graham Crombie has diligently attempted to water down the report. A pale shadow by the time it hits the council table then goes public. The unpalatables. And Mr Hansen?

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### ODT Online Wed, 12 Nov 2014
Confirmation DVML losing two directors
By Chris Morris
An outgoing director responsible for Dunedin’s Forsyth Barr Stadium says she is leaving with high hopes for the future of the venue.
Jen Rolfe, a Dunedin Venues Management Ltd board member, is one of two directors confirmed to have resigned, along with Peter Brown. The pair’s exit, to be signed off at a DVML board meeting next week, were confirmed yesterday in response to questions from the Otago Daily Times.
Read more

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Related Posts and Comments:
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)
18.6.14 Crowe Horwath Report (May 2014) – Review of DVML Expenses

For more information, enter the terms *dvml*, *terry davies*, *dchl*, *review* or *stadium* in the search box at right.

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Posted by Elizabeth Kerr

DVML and the “Otago Rugby” deal (sponsorship and payments)

Is Terry Davies, chief executive of Dunedin Venues Management Ltd, telling porkies about the “Otago Rugby” deal signed in 2012 ???
(DVML/ORFU/NZRU)

Compare Mr Davies’ reply to Bev Butler today with information Whatifdunedin received from a source in mid-July 2014.

The reply to Question 1.(d) is interesting. Mr Davies states that none of the $3 million sponsorship was paid to ORFU but DVML does provide a staff member to assist ORFU with its sponsorship proposals. This is probably Paul Thompson. The other information from a source claims that DVML has to make up the difference to $1 million per year; this is paid to ORFU if less than $1 million in sponsorship is obtained. So the other staff member only spends one hour per week for six months each year?

Question 3. He says there’s no DVML company record of staff movements and NZ/overseas travel in approaching sponsors. Really? If true, that’s a large management failing which the DVML board is ultimately responsible for.

Why the discrepancies, Terry Davies ????

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INFORMATION FROM SOURCE

Received mid-July [paraphrased]
Re the “Otago Rugby” contract – DVML did the Sponsorship but had to guarantee a certain amount. There was a heated exchange over this between Darren Burden (DVML chief executive) and one of his managers who said ‘we work for the ratepayers not rugby’. Burden was going to pay Otago the difference between what was raised and what DVML had to raise in the contract, despite Otago making a profit. The manager said DVML shouldn’t pay Otago, because they were deciding what was sponsorship and what was not.

[One day later]
The Otago Rugby deal is something like this:
DVML assist Otago Rugby with their sponsorship and the target is $1 million per year. DVML’s Paul Thompson was supposed to assist Otago Rugby. In the first two years, sponsorship didn’t reach the $1 million mark.
DVML still pays Otago Rugby to play at the stadium. Ask how much DVML have paid to Otago Rugby in the last two years to keep them afloat despite them making a profit.

[Two days later]
Not sure how it’s recorded in the DVML accounts, it was around $150k in the first year and similar in the second year. This is the difference between the $1 million DVML had to ensure ORFU got for sponsorship and what ORFU got. The deal lasts for three years. So this would be the last.

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From: Bev Butler
To: Neville Frost [DVML]
CC: Kim Barnes [DVML]
Subject: LGOIMA Request: DVML Sponsorships
Date: Tue, 1 Apr 2014 08:57:35 +1300

Tuesday 1st April 2014

Dear Neville

It was reported in the ODT (22/03/14) that Mr Guy Hedderwick played an “integral” part in securing over $3 million in sponsorship for the stadium during the period ie Jan 2010 to Dec 2013.

I request:

1.
(a) How much of this $3 million figure has already been paid to DVML?
(b) Does DVML receive the full $3 million or does some other organisation receive some of this $3 million?
(c) How much of this $3 million is earmarked for the ORFU with payments already received or payments yet to be received?
(d) What percentage of the sponsorships secured by Mr Guy Hedderwick and/or other DVML staff does the ORFU receive?
(e) Is the ORFU making any financial contribution to Mr Hedderwick’s salary or expenses? If so, what percentage?

2.
(a) Did Mr Hedderwick’s salary package include commission on any sponsorship agreements he secured in his role as commercial director of DVML?
(b) What percentage commission did Mr Hedderwick receive for the $3 million sponsorship agreements secured as reported in the ODT (22/03/14)?
(c) Did the commission payments received by Mr Hedderwick exceed the salary range as stated in the DVML annual reports? If so, on what date was the DVML board informed of this?

3.
Thank you for your recent email containing the list of Mr Hedderwick’s DVML business trips. In this list the main reason for the majority of these trips was “meet with potential sponsors”. I request the names of the sponsors which Mr Hedderwick was successful at securing coupled with the name of the city where he met these potential sponsors. For your convenience, I have supplied a summary of these cities and the number of times he visited each city. Note I have included only the cities where it is stated the reason for the trip being “meet with potential sponsors”.

City (Number of trips)………Names of Sponsors
Christchurch (11 times)
Singapore (once)
Sydney (once)
Auckland (20 times)
Wellington (4 times)
New Plymouth (once)
Rotorua (once)

Please respond electronically. Thank you.

Yours sincerely

Bev Butler

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From: Bev Butler
To: Terry Davies [DVML]
Subject: LGOIMA Request: DVML Sponsorships
Date: Tue, 17 Jun 2014 07:06:59 +1200

Dear Mr Davies

I understand the LGOIMA request I sent below was delayed due to the investigation by Crowe Horwath. Now that the Crowe Horwath report has been released and the report does not answer these questions would you please respond to my LGOIMA request.

Thank you.

Yours sincerely

Bev Butler

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From: Bev Butler
Sent: Monday, 28 July 2014 2:51 p.m.
To: Terry Davies
Subject: FW: LGOIMA Request: DVML Sponsorships
Importance: High

Monday 28th July 2014

Dear Terry

The LGOIMA request below is still outstanding and has now breached the 20 day requirement under the provisions of LGOIMA.

I would appreciate a response to this request.

Thank you.

Yours sincerely

Bev Butler

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From: Terry Davies [DVML]
To: Bev Butler
Subject: FW: LGOIMA Request: DVML Sponsorships
Date: Fri, 1 Aug 2014 02:56:12 +0000

Dear Bev

Further to your email dated 28 July and original request of 1 April, please find attached the response. A copy of the letter has been posted to you today.

Yours faithfully
Terry Davies

CEO [DVML]

█ B Butler 310714 (PDF, 82.8 KB)

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█ Crowe Horwath Report – Review of DVML Expenses (PDF, 363 KB)

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Posted by Elizabeth Kerr

DVML, ‘Money for jam…..fig jam’

Why does no-one want to discuss invoices created by DVML commercial manager Guy Hedderwick on his extensive travels, except for Dunedin campaigner Bev Butler? Who signed them off? Neville Frost (DVML finance manager) and Darren Burden (ex DVML chief executive). Why is Hedderwick at Adelaide working part-time for DVML when there’s an empty, brand new multimillion-dollar stadium sinking into the mire at Dunedin? Doesn’t Hedderwick also work for the Otago Rugby Football Union (ORFU)? What’s really happening?

This morning we have seen media reaction to Bev Butler’s investigation into Guy Hedderwick’s expenses using the Local Government Official Information and Meetings Act (LGOIMA) to obtain invoices —we have also seen Otago Daily Times reporting various replies it has sought from the local burghers about this.

Some invoices show stays in five-star hotel rooms costing up to US$300 per night. There is a swathe of rib-eye steaks and expensive bottles of wine attending Hedderwick’s travel across the world and domestic.

█ What did Butler say in her Media Release to upset DVML finance manager Neville Frost (ex ORFU)? Find out below.

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### ODT Online Sat, 22 Mar 2014
DVML head slams Butler’s allegations
By Chris Morris
Allegations of inappropriate spending by a former manager at Forsyth Barr Stadium have prompted an angry retort from the company running the venue. The claims came from former Stop the Stadium president Bev Butler in response to invoices and other documents released to her by Dunedin Venues Management Ltd, which runs the stadium. The material showed DVML’s former commercial manager, Guy Hedderwick, had accrued nearly $80,000 in travel costs and expenses while taking 51 work-related trips since 2010.
Read more

### ODT Online Sat, 22 Mar 2014
Company threatening to charge for OIA answers
By Chris Morris
The company running Dunedin’s Forsyth Barr Stadium is threatening to charge for future responses to official information requests after being inundated with questions from stadium critic Bev Butler. The move by Dunedin Venues Management Ltd was immediately slammed by Ms Butler yesterday, who said it was ”an attempt to keep me off their trail”.
Read more

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█ MEDIA RELEASE Sunday 23 March 2014
By Bev Butler

MONEY FOR JAM…..FIG JAM

Ratepayers of Dunedin will once again be amazed with the news that they have paid over $80,000 for the activities of the “departed” commercial manager of DVML, Guy Hedderwick, to travel the world leading the life of Riley with little noticeable benefit.

Readers of some newspapers will have learned recently that Dunedin Venues Management Ltd (DVML), the Dunedin City Council owned company that runs the stadium, paid out over $54,000 in entitlements to former chief executive David Davies when he returned to Wales, and just on $30,000 when CEO Darren Burden left to run the Christchurch stadium after a year’s work with DVML. The amounts and details of any “entitlements” paid to DVML’s commercial manager were refused on the basis of Mr Hedderwick’s privacy after the DVML board chairman, Canterbury resident, Sir John Hansen was advised by DVML staff that Mr Hedderwick’s privacy outweighed public interest.

While these details remain hidden, what has surfaced is just what it has cost Dunedin ratepayers to keep Mr Hedderwick in the manner to which he clearly has become accustomed.

Mr Hedderwick left Dunedin around August of 2013 to pursue a role with DVML in Adelaide similar to the one he had in Dunedin; with arrangements in place that see DVML continuing to employ Mr Hedderwick and meet his expenses while he pursues his role of attracting acts and sponsors to the stadium. His efforts have been almost totally in vain. The only act to appear at the stadium since Mr Hedderwick has been living in Adelaide has been an Australian based franchised Abba look-alike band, Bjorn Again, who in their previous visit to Dunedin appeared at the Regent Theatre. The act attracted 3500 people to the stadium. It was reported at the time that while a similar event the year before had attracted twice this number, DVML were “pleased” at this response. The rationale for this pleasure is hard to fathom.

But the cost of Mr Hedderwick’s “work” has been, in contrast to his work achievements, simply staggering. The facts behind Mr Hedderwick’s spending have been revealed after constant requests for information by Bev Butler to Neville Frost, financial manager of DVML. The information has had to be teased out over a significant period of time, but now is starting to be revealed in some sunlight.

Mr Hedderwick’s travel, in his quest for acts and sponsors for the stadium, has taken him to:

● Italy
● Singapore
● USA
● Brisbane
● Gold Coast
● Sydney
● Melbourne
● Adelaide
● Auckland
● Wellington
● Christchurch
● Napier
● New Plymouth
● Rotorua
● Hamilton

The vast number of these visits has been listed as “seeking potential sponsors”. Sufficient to say that few new sponsors for the stadium have been notified by DVML or DCC. Mr Hedderwick also seems keen on attending “conferences” around the world. There is no indication or record of any significant contributions that Mr Hedderwick has made to such conferences, nor of any benefit whatsoever to DVML for such attendances.

But it is in Mr Hedderwick’s spending that some light shines upon what appears to be a lavish lifestyle endorsed and approved by Mr Neville Frost and Mr Darren Burden. It is neither reasonable nor justifiable for expenditure down to chewing gum and shaving gear at one end of the spending paradigm, to the luxury of five-star hotels and pursuit of fine wines – an interest of Mr Hedderwick according to his Facebook page* – that really takes the cake.

Mr Hedderwick has visited many of the above destinations on several occasions. The list supplied by Mr Frost for Mr Hedderwick’s travel outside Dunedin numbers 55 trips. However, there appear to be numerous invoices missing from the almost 300 invoices already supplied. Some invoices are for trips not actually listed; and some invoices are for five-star hotel bills (including The Hilton, The Sheraton, and Radisson Resort Gold Coast for as much as $US300 per night in some instances) and rental cars, but no flights to get to the destination. Yet other invoices include expensive meals, blocks of chocolate, boy’s t-shirts, hat and gloves.

With the recent Dunedin City Council announcement of a review of the governance and management of DVML, it would well be advised, in the interests of Dunedin ratepayers, for the council to include a full investigation of all the DVML finances especially the excessive personal expenditure of the DVML management.

Contact for further information:
Bev Butler
Ph (03) 477 6861

[ends]

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*The Facebook page is in dispute, only because Neville Frost went to the wrong page. We refer our readers to Hedderwick’s recent writing (February 2014) for International Association of Venue Managers (IAVM):

### venuenet.iavm.org Mon, Feb 10, 2014 07:15 PM
I am number 9344728427550
By Guy Hedderwick, AEVP
I am number 9344728427550 or at least that is what my loyalty rewards card at my local food store says I am. I presume that large scale food stores issue customers with loyalty cards so they can reward them for their loyalty. I also imagine that it is a great way to collect buying habit information of individual customers so they can target them with relevant advertising, know exactly what products customers buy, when they buy them, monitor their buying patterns and treat them as individuals. […] We live in a small village outside Adelaide […] I am a Million dollar customer […] I wonder how I would be treated as a million dollar customer if I walked into your business.
Venues, along with their teams and ticket providers, have huge amounts of personal data and should understand the emotional reasons guest [sic] attend their events. I don’t really expect my local food store to know me by name, but I do expect to be treated with the dignity “my spend” should demand. There is a huge discussion about big data and the use thereof. How understanding buying patterns and buyer behaviour can be used to sell tickets, merchandise, seat upgrade and improve the customer experience. […] People no longer buy products or services, they buy experiences. We sell the live experience but we need to understand people’s motivations for coming, their behaviours and touch points in order to make the experience truly personal. Then I will happily part with my hard earned dollars. At the end of the day, entertainment and sport (along with good wine) is what makes life worth living.
I am not number 9344728427550, I am Guy Hedderwick and I want to feel like a million dollar customer.
Read full article

● Guy Hedderwick at LinkdIn
● Guy Hedderwick at Twitter @GuyHedd
● Guy Hedderwick (GuyHedd) at Facebook

█ Guy Hedderwick is now General Manager of Arena Stadium Management Pty Ltd (ASM). He took up the appointment at the privately owned Adelaide Arena in 2013. ASM is Adelaide Arena’s new management company formed by joint owners Scouts Stadium Incorporated and Savethearena Pty Ltd. (Link)

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Related Post and Comments:
5.3.14 Stadium: Mayor Cull stuck in his rut, ‘going forward’
4.3.14 Bev Butler: Guy Hedderwick’s departure package (LGOIMA)
24.1.14 Stadium: It came to pass… [stadium review]
30.11.13 DVML in disarray
14.11.11 DVML, Guy, wth ?
26.9.11 Donations – the quest for clarification
26.9.11 Private sector funding (donations) to stadium construction
12.9.11 Stadium: Private sector funding
9.2.11 DCC and DCHL, was there ever any doubt?
5.11.10 International connections
16.2.10 Owing $45.5 million in private sector funding
5.2.10 Commercial manager Guy Hedderwick on stadium sponsorship

For more, enter *dvml*, *hedderwick*, *burden*, *davies*, or *stadium* in the search box at right.

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Posted by Elizabeth Kerr

Bev Butler: Guy Hedderwick’s departure package (LGOIMA)

Received from Bev Butler
Tuesday, 4 March 2014 12:21 p.m.

Subject: LGOIMA request: Guy Hedderwick’s departure package

Feel free to put up my LGOIMA requests below and attached re Hedderwick’s departure package and the subsequent responses.
I noticed MikeStk at ODT comments said Hedderwick may have been paid a performance payment.

{Some personal contact details have been removed. -Eds}

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From: Bev Butler
Sent: Friday, 24 January 2014 10:05 AM
To: Neville Frost [DVML]
Subject: LGOIMA request: Guy Hedderwick’s departure package

Friday 24th January 2014

Dear Neville

I request the following:

1. On what date did Mr Guy Hedderwick depart from his full time position as Commercial Director of DVML?

2. How much did Mr Guy Hedderwick receive as a payout on his departure? Please itemise the reasons for each portion of his payout.

3. How much of Mr Guy Hedderwick’s departure payout was extra to the entitlements outlined in his contract?

4. Who authorised Mr Guy Hedderwick’s departure payout?

5. Did the DVML board also authorise the departure payout and if so was the departure payout authorised by the full DVML board or just the board Chair, Sir John Hansen?

6. Please supply the minutes of the DVML board meeting (including the names of all present) where Mr Guy Hedderwick’s departure payout was authorised.

Yours sincerely

Bev Butler

——————————————

From: Kim Barnes [DVML]
To: Bev Butler
CC: Neville Frost [DVML]
Subject: LGOIMA request: Guy Hedderwick’s departure package
Date: Fri, 31 Jan 2014 03:31:56 +0000

Dear Bev

Thank you for your email dated 24 January 2014. Please find attached a copy of the original letter which will be posted to you.

Please acknowledge receipt of this email.

Yours sincerely

Kim Barnes
Marketing & Communications Manager

DDI +64 3 4794399 • M +64 27 5452545
E kim.barnes @ dunedinvenues.co.nz
130 Anzac Avenue, PO Box 5506, Dunedin 9058
T +64 3 479 2823 • F +64 3 471 7436 • www. dunedinvenues.co.nz

——————————————

From: Bev Butler
Sent: Sunday, 2 February 2014 10:09 p.m.
To: Neville Frost [DVML]
Cc: Kim Barnes [DVML]
Subject: Re: LGOIMA request: Guy Hedderwick’s departure package

Monday 3 February 2014

Dear Neville

Thank you for your letter dated 31 January 2014 re Guy Hedderwick’s departure package.

Just a few points of clarification required.

In Question 3: “How much of Mr Guy Hedderwick’s departure payout was extra to the entitlements outlined in his contract?”

Your response was “Mr Hedderwick received his contractual salary entitlement and holiday pay.”

Would you please clarify whether

(a) Mr Guy Hedderwick received any payments extra to the entitlements outlined in his contract;

(b) If so, how much were these extra payments and what were the reasons for these extra payments;

(c) Who authorised these extra payments?

In Question 2: “How much did Mr Guy Hedderwick receive as a payout on his departure? Please itemise the reasons for each portion of his payout.”

Your response was “Mr Hedderwick received his contractual salary entitlement and holiday pay.”

Your response has not answered the request for the amount Mr Guy Hedderwick received as a payout on his departure so please state the amount and reason for each amount as requested.

I remind you that as an organisation accountable for public money there is a keen public interest in how this public money is spent. I also remind you that the final payment to Mr Shamrith Paul, CEO Otago Museum, was made public so there is no reason why Mr Guy Hedderwick’s departure package is not also made public.

Yours sincerely

Bev Butler

——————————————

From: Kim Barnes [DVML]
To: Bev Butler
CC: Neville Frost [DVML]
Subject: RE: LGOIMA request: Guy Hedderwick’s departure package
Date: Fri, 21 Feb 2014 21:01:51 +0000

Dear Bev

Thank you for your email dated 2 February 2014. Please find attached a copy of the original letter which will be posted to you.

Please acknowledge receipt of this email.

Yours sincerely

Kim Barnes
Marketing & Communications Manager

DDI +64 3 4794399 • M +64 27 5452545
E kim.barnes @ dunedinvenues.co.nz
130 Anzac Avenue, PO Box 5506, Dunedin 9058
T +64 3 479 2823 • F +64 3 471 7436 • www. dunedinvenues.co.nz

Download: BButler 180214

[ends]

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Posted by Elizabeth Kerr