Tag Archives: Operational losses

Dunedin Venues Community Events Fund 2015

ODT 31.1.15 (page 4)
ODT 31.1.15 Advert Dunedin Venues p4

### dunedintv.co.nz February 2, 2015 – 5:57pm
Community groups and organisations invited to use Forsyth Barr Stadium
Dunedin community groups and organisations are invited to apply for funding to use Forsyth Barr Stadium. Each year the company that runs the stadium has to allocate $750,000 in funding for community use. That’s part of its agreement with the Dunedin City Council. The money covers the cost of using the stadium for non-profit groups and charities. It’s for events which encourage community use of the facility, resources and equipment. Funding is now available for events in the second half of this year. A second funding round, for next year’s events, will open in September.
Ch39 Link [No video available]

Posted by Elizabeth Kerr

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DVML catering and commercial kitchens….

FB Stadium: The exclusions included a kitchen fit-out, broadcasting facilities, electronic turnstiles, score boards and replay screens.

FB Stadium: On site commercial kitchens with secondary kitchen facilities on Level Two and Level Four
– Bar areas on Level Two and Level Four
– Suites and lounges on Level Four with air conditioning

Questions, questions.

Why is Dunedin Venues Management Ltd (DVML) getting rid of their employees in order to employ Compass Group (the caterers) employees?

Perhaps because Compass were going to pull out as it wasn’t viable to do business at the Stadium? If Compass pulled out they would make Dunedin City Council pay them back the $3 million they invested in catering equipment at the stadium?

Oi! What events?!

FBS kitchens [projectstainless.co.nz]Images: projectstainless.co.nz

Related Posts and Comments:
19.3.11 ‘Forsyth Barr Stadium Base Building Further Requirements’

Posted by Elizabeth Kerr

7 Comments

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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?

### stuff.co.nz Last updated 05:00 14/06/2014
Sport
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

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“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

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Stadium (fubar): cringe

Copy supplied.
Thursday, 15 May 2014 10:35 a.m.

The Press 13.5.14 Letters to the editorThe Press 13.5.14 [click to enlarge]

These letters to the editor were published in reply to the strong article by Fairfax News reporter Wilma McCorkindale, Stadium could cost Dunedin ratepayers millions (Stuff 9.5.14).

[Note there are 36 online comments]

Posted by Elizabeth Kerr

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Stadium: DCC proposes extra funds for stadium debt repayment

Comment received from Mike
Submitted on 2014/05/11 at 12:42 pm

Now is a great time to remind people of section 63 the Local Government Act which reads:

Restriction on lending to council-controlled trading organisation
A local authority must not lend money, or provide any other financial accommodation, to a council-controlled trading organisation on terms and conditions that are more favourable to the council-controlled trading organisation than those that would apply if the local authority were (without charging any rate or rate revenue as security) borrowing the money or obtaining the financial accommodation.

http://www.legislation.govt.nz/act/public/2002/0084/latest/DLM171886.html

Which as I read it means that the council can’t fund DVML in a more advantageous way than it would receive itself from its own bankers – my reading of this is that just bailing DVML because it’s losing money would be illegal, they have to loan them money at a comparative rate to what they would get from the bank.

It’s an obvious target for a ratepayer’s injunction …..

The reason for this law is pretty obvious, the government wanted CCOs to compete with private enterprise on a level playing field – if DVML wants to rent out space it shouldn’t be able to undercut a competing landlord who can’t tap the ratepayers’ pockets to charge a rent below cost.

[ends]

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Dunedin City Council – Media Release 9 May 2014
Extra Funds Proposed for Stadium Debt Repayment

The Dunedin City Council will consider using savings to repay more debt associated with the Forsyth Barr Stadium. The Council will next week consider approving a one-off payment of $2.271 million to help balance the Forsyth Barr Stadium accounts. Of that, $1.77 million would be used to repay DVML debt, with the balance to fund a cash shortfall. The payment would be funded from DCC savings made in the current financial year. DCC Group Chief Financial Officer Grant McKenzie says, “A one-off payment to reduce debt further would be good for all parties and would clearly respond to community demand for the DCC to reduce its overall debt level.” Read more

Download the Forsyth Barr Stadium 2014/15 Budget Report (PDF, 200KB)

Media Stories:
9.5.14 ODT Stadium debt reduction to be considered
9.5.14 Stuff (Fairfax News) Stadium could cost Dunedin ratepayers millions
10.5.14 ODT Stadium payment may rise

Related Post and Comments:
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
10.5.15 (via comment) ODT In Brief: Stadium review sought

Posted by Elizabeth Kerr

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Stadium: Low turnout to family show

Bjorn Again Ride the Rhythm 1.2.14

### ODT Online Mon, 3 Feb 2014
Organisers happy but crowd down
By Shawn McAvinue and Timothy Brown
Organisers are calling Ride the Rhythm’s second year a success despite ticket sales being almost half those of last year’s event. Event director Ross Farquhar said Ride the Rhythm, which attracted about 3500 people to Forsyth Barr Stadium on Saturday, was “really well supported”.
About 6500 attended last year’s event which was headlined by the Hollies.
Read more

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ODT Online
Spinning like a Dancing Queen
Submitted by nightimejohn on Mon, 03/02/2014 – 11:06am.
I can’t think of any other business that would be ‘pleased’ with a 50% drop in business in a year. But then Stadium logic applies.

Posted by Elizabeth Kerr

*Image: ticketdirect.co.nz – Ride the Rhythm Bjorn Again

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