Tag Archives: Otago Rugby deal

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

Jeff Dickie: Edinburgh tough, Dunedin (DUD)

Further to the contents of an email from Jeff Dickie last month, who was writing from a hotel on Orchard Road at the time:

Supplied. ODT 13.7.15 (page 6)

ODT 13.7.15 Letter to editor Dickie p6

****

INVOICE FRAUD AND MORE

TWO corrupt council officials and two businessmen who supplied them with cash and hospitality have been jailed with a warning they face “significant” sentences.

### HeraldScotland.com Wednesday 17 June 2015
Corrupt Edinburgh council officials face lengthy jail term
[…] Former local authority employees Charles Owenson and James Costello were treated to dances and drinks in lap dancing bars as valuable Edinburgh City Council contracts were secured through bribery. Ex-directors of Action Building Contracts Ltd (ABC Ltd) Kevin Balmer and Brendan Cantwell provided the rewards over the allocation of work for public buildings including schools, care homes and cemeteries.
Following their earlier guilty pleas a sheriff told them that he would continue their case until tomorrow for sentencing at Edinburgh Sheriff Court to consider the information he had been given. But Sheriff Michael O’Grady QC told the four men: “Having regard to the gravity of the offences, it is clear to me the sentences will require to be custodial and require to be significant.” He remanded all of them in jail ahead of sentencing.
Owenson and Costello were provided with hospitality, including corporate seats at Hibs and Hearts football grounds and meals out as well as cash, by Edinburgh-based construction firm ABC Ltd (Action Building Contracts). The contractors even submitted inflated invoices to the local authority for work carried out to cover the costs of the bribes they were paying council officials. Fiscal Keith O’Mahony earlier told the court: “In essence, the council was being charged for the cost of bribing its own officials.”
[…] Police began carrying out enquiries in 2010 as a result of complaints about the statutory notices system and were later informed that senior management had received “a whistleblower letter” alleging that Owenson was showing favouritism when allocating work to contractors. The Crown has raised proceedings to recover crime profits in the case.
Read more

█ 18.6.15 BBC News: Four jailed over Edinburgh City Council bribes

Shades of the ‘Screaming Orgasm cocktails’ saga following Dunedin City Council’s decision to build the stadium. That evening, the board members of Carisbrook Stadium Charitable Trust went out to celebrate, booking their drinks at Alibi Bar & Restaurant to the Ratepayers.
Of course, there have been masses of local big-ticket ‘corruptions’: the stadium land purchases (including for realignment of SH88); the Carisbrook ‘deal’ with Otago Rugby Football Union, and further ‘Otago Rugby’ deals with Dunedin Venues (DVML); the Delta subdivisions and service contracts (Jacks Point and Luggate, and more recently Noble Village); the unravelling Citifleet fraud and insurance scam (substantially greater than 152 fleet vehicles lost off the inventory, allied to ‘traffic’ in car parts, tyres, service contracts, and fluid cash); the Dunedin Town Hall Redevelopment Project (via City Property) yet to be fully detailed; and field lights for Otago Cricket Association…….. et al.

Posted by Elizabeth Kerr

10 Comments

Filed under Architecture, Business, Carisbrook, Citifleet, Construction, CST, DCC, DCHL, DCTL, Delta, Democracy, Design, DVL, DVML, Economics, Events, Media, Name, New Zealand, NZRU, OAG, OCA, Ombudsman, ORFU, People, Police, Politics, Project management, Property, SFO, 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

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?

### 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

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.

Posted by Elizabeth Kerr

7 Comments

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

DVML on Otago Rugby and Rod

Received from Anonymous

DVML Otago Rugby waste

Interesting, when DVML and ratepayers have propped up Otago Rugby for such a long time….

DVML Rod-dollars

Nick Smith is being called on to help fund concert bids….

Really quite a sad situation. “DVML staff still bullied.”
“Board members spent a fair time in Suite 29 too.”

Where this will all end we don’t know….

Stadium Review due for public release this month(?) is unlikely to fix it.

Related Posts and Comments:
13.9.14 DVML and ORFU refuse to disclose 2012 Otago Rugby deal
10.9.14 Stadium: Behaviours at Suite 29 (intrepid tales)

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

Posted by Elizabeth Kerr

17 Comments

Filed under Business, Concerts, DCC, DVL, DVML, Economics, Enterprise Dunedin, Events, Highlanders, Hot air, Name, New Zealand, NZRU, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Tourism

DVML and ORFU refuse to disclose 2012 Otago Rugby deal

Terry Davies [re-imaged screenshot - youtube.com] 1
Dunedin Venues chief executive Terry Davies was asked to release details of the “Otago Rugby deal” struck in 2012 as part of the Otago Rugby Football Union recovery package.

Surprise! Mr Davies and ORFU don’t want you to know how much DVML pays ORFU for each rugby game played at Forsyth Barr Stadium, and given DVML is struggling to meet the sponsorship commitment (see previous post). Worse, DVML keeps paying even though ORFU is now flush with funds.

Just how are these payments passing through Council-owned books? The money comes from your rates; piling on top of every other subsidy DCC is gifting to the stadium and professional rugby.

The 2012 deal involved David Davies, the previous DVML chief executive. Who else was involved at ORFU, NZRU and DCC? Was the Mayor of Dunedin Dave Cull a signatory? More to come.

Correspondence received from Bev Butler
Fri, 12 Sep 2014 at 2:38 p.m.

Message: They really don’t want any part of this agreement out.

From: Terry Davies [DVML]
To: Bev Butler
Subject: LGOIMA request: DVML/ORFU venue hire agreement
Date: Wed, 10 Sep 2014 22:28:54 +0000

Dear Bev

Please find attached a response to your email request dated 27 August 2014 as per below. A copy has been posted to you today.

Yours faithfully
Terry Davies [DVML]

From: Bev Butler
Date: 27 August 2014 10:08:59 am NZST
To: Terry Davies [DVML]
Subject: RE: LGOIMA request: DVML/ORFU venue hire agreement

Thanks, Terry.
I would still appreciate a redacted copy of the agreement.
Thank you.
Regards
Bev

From: Terry Davies [DVML]
To: Bev Butler
Subject: FW: LGOIMA request: DVML/ORFU venue hire agreement
Date: Tue, 26 Aug 2014 04:19:21 +0000
Dear Bev

Thank you for your email below. Please find attached the response which has also been posted to you.

Yours faithfully

[Terry Davies, DVML]

From: Bev Butler
Sent: Monday, 28 July 2014 9:01 a.m.
To: Terry Davies [DVML]
Cc: Sandy Graham [DCC]
Subject: LGOIMA request: DVML/ORFU venue hire agreement

Dear Terry

In 2012 DVML signed a venue hire agreement with the ORFU. I request the following:

1. The date of this agreement;
2. The names of the signatories on the agreement;
3. A copy of this agreement.

Thank you.

Yours sincerely
Bev Butler

Letter from DVML to Bev Butler 11.09.14

█ Download: Letter to Bev Butler 11.09.14 (PDF, 49.4 KB)

Related Posts and Comments:
8.9.14 Jim Harland and the stadium MESS
● 1.8.14 DVML and the “Otago Rugby” deal (sponsorship and payments)
15.7.14 Stadium: Who is being protected?
24.6.14 Stadium: DVML, mothballing, and ‘those TVs’ #LGOIMA
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
23.5.14 Stadium | DCC Draft Annual Plan 2014/15 ● Benson-Pope…
11.5.14 Stadium: DCC proposes extra funds for stadium debt repayment
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
10.4.14 Stadium: Edgar’s $1m donation (private sector fundraising)
3.4.14 DVML: Lost in transaction II (flatscreen TVs)
22.3.14 DVML, ‘Money for jam…..fig jam’
19.3.14 ORFU: Black-tie dinner, theft or fraud?
17.3.14 ORFU: Black-tie dinner on ratepayers
15.3.14 Mayoral DISGRACE: DCC won’t ask ORFU to repay $480K bailout
14.3.14 ORFU flush to pay creditors
4.3.14 Bev Butler: Guy Hedderwick’s departure package (LGOIMA)
7.9.13 Stadium: $266 million, more or less?
30.7.13 Stadium: Accountability, paper trail leads unavoidably to NEWS
4.7.13 Carisbrook: DCC losses
15.2.13 Carisbrook: Call for OAG investigation into DCC / ORFU deals

Posted by Elizabeth Kerr

*Image: whatifdunedin – re-imaged screenshot from YouTube clip, Terry Davies press conference regarding streaker (ODT 15.6.14)

3 Comments

Filed under Business, DCC, Democracy, DVML, Economics, Highlanders, Name, New Zealand, NZRU, ORFU, People, Pics, Politics, Project management, Property, Site, Sport, Stadiums

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 ????

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.

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

————————————

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

————————————

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

————————————

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)
Terry Davies letter 1.8.14 (2)

Crowe Horwath report cover (May 2014)

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

Posted by Elizabeth Kerr

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