Tag Archives: Loss-making stadium

Mayor Cull limp biscuit on North-South match

Earlier yesterday, DVML chief executive David Davies issued a statement confirming revenue of $114,808 had been generated by the match, with a profit of $21,412 once costs of $93,396 were covered.

### ODT Online Tue, 24 Jul 2012
North-South game profit falls short
By Chris Morris
Dunedin ratepayers are on the right side of the scoreboard, despite receiving just a fraction of what had been hoped for from last month’s North-South charity rugby clash, Mayor Dave Cull insists. It was confirmed yesterday the game at Forsyth Barr Stadium had generated a profit of just $21,412, after teams shorn of All Blacks and other top players drew a crowd of 7427 fans. The profit was much less than the $200,000 hoped for by Mr Cull when details of the match were unveiled in March, as part of the rescue package designed to save the Otago Rugby Football Union.
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Related Post:
23.7.12 DCC media release

Received.

From: bevkiwi@hotmail.com
To: david.davies@dunedinvenues.co.nz
Subject: LGOIMA request: Full costs of North South game
Date: Tue, 24 Jul 2012 08:45:21 +1200

68 Russell St
Dunedin Central 9016

Tuesday 24th July 2012

Dear David

It was reported in today’s ODT that the North South game generated a revenue of $114,808, with a profit of $21,412 once costs of $93,396 were covered. It is also reported that:
“Match costs included about $13,000 spent on advertising and promotion by DVML, but staff costs were not part of the bill and nor was any venue hire agreement, it was confirmed yesterday.”

It is normal business practice to include ALL costs before declaring a profit.

As this was a fundraising match, I do not anticipate any “commercial sensitivity” excuses for not disclosing all the costs.
I, therefore, request a full breakdown of ALL the costs, including the staff costs and normal cost for hiring the venue.

Yours sincerely
Bev Butler

Posted by Elizabeth Kerr

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Filed under Business, DCC, DVML, Economics, Events, Hot air, Media, ORFU, People, Politics, Project management, Sport, Stadiums

Submission to DCC draft long term plan (2)

By Bev Butler

The Long Term Plan [2012/2022] as a document is only beneficial to the community when it fully incorporates the probable financial outcomes for the city. This Long Term Plan has not taken into account the financial future of the stadium. (The DVML six-monthly report has been delayed until after submissions close). The DVML report will reveal that the stadium is running at a multimillion dollar loss and it is now time to do a cost-benefit analysis of whether it is financially viable for the stadium to remain open or not. The results of a cost-benefit analysis of the stadium would then put the city in a clearer position to then make decisions for the future. The city in its present overwhelming debt situation can ill-afford to continue to sustain the stadium multimillion dollar losses. The Council has been capitalising interest for the last few years to the tune of over $40m. This situation if allowed to continue will eventually result in bankruptcy.

The main anchor tenant of the stadium (the ORFU) is technically insolvent and has already come to Council requesting a bailout. The Dunedin ratepayers cannot afford to keep on bailing out the ORFU. It will not be long before the ORFU again request another bailout. This has been the pattern over many years. I have no confidence that the ORFU bailout conditions will be met just as the stadium conditions were not met (see attached spreadsheet).

The council has to change its mindset that ‘what is good for Otago rugby is good for Dunedin/ Otago.’ Clearly, on a financial basis, this has not been true for many years. It is not the DCC’s role to continually ‘wet nurse’ the rugby interests in this town by caving in to their repeated, self=destructive mode of operating. Namely, their calling on public funds when they get into financial trouble.

It has become clearer as Official Information has been released that the process that led to the building of the stadium was corrupt. I request that the Council instigate a full independent inquiry into the whole stadium project so that those responsible for misleading the community are held to account. Until this happens the stadium will continue to divide the community.
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Filed under Business, Construction, DCC, DVL, DVML, Economics, Events, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums