Tag Archives: Private sector funding

Finance Department (payments area)

Both items supplied.

ClarkeAndDawe 7 May 2014

Clarke and Dawe – Some steadying words on the current situation
“Robin Peter, Payments Officer with the Australian government.” Originally aired on ABC TV: 08/05/2014

[Quote: ‘Remind you of anything? DVML, DVL… Liu & Woodlouse… Very timely!’]

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A Simple Idea for PSF (Farry’s Folly)

ODT 8.5.14 DCC DAP In Brief (page 13)ODT 8.5.14 In Brief (DCC DAP) – page 13

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Stadium costs, read uncapped multimillion-dollar LOSSES

Forsyth Barr Stadium critic Russell Garbutt, of Clyde, is not surprised by reports of looming stadium losses.

### ODT Online Wed, 26 Feb 2014
Opinion
Stadium costs predictable, so why the surprise now?
By Russell Garbutt
The ongoing revelations on stadium losses detailed today (ODT, 21.2.14) come as no surprise to anyone who has closely followed this debacle from when the Otago Rugby Football Union first gathered the Carisbrook working party together until now, when a succession of different managers, directors and councillors are all realising that what was promised is as chalk is to cheese.
While not directly specified in the article, the turnaround of an expected $10,000 profit to a $1,400,000 loss in 2014-15 is in the operational budget, and it seems Sir John Hansen, chairman of DVML, is putting most of the blame for this truly stupendous reversal of fortunes down to costs of running the stadium.

While ratepayers continue to face annual injections of over $9 million into the stadium, this is by no means the real figure.

The ”realities” of the real costs of running the stadium are now being recognised, it seems. But let us all just remember a few things that occurred when the stadium was being proposed and then built.
Read more

Related Posts and Comments:
11.2.14 Stadium: ‘Business case for DVML temporary seating purchase’
24.1.14 Stadium: It came to pass . . .
20.12.13 DVML: No harassment policy or complaints procedure, really?
3.12.13 DVML issues and rankles [Burden’s reply]
30.11.13 DVML in disarray
18.11.13 DVML: Burden heads to Christchurch #EntirelyPredictable
12.10.13 DVML works media/DCC to spend more ratepayer money
4.10.13 DVML . . . | ‘Make the stadium work’ losses continue
20.8.13 DVML foists invoices on DCC
20.6.13 Stadium: DVML, DVL miserable losers! #grandtheftdebt

For more, enter *dvml* or *stadium* into the search box at right.

Posted by Elizabeth Kerr

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Carisbrook Stadium Trust: ‘Facts about the new Stadium’ (31.5.08)

The Marketing Bureau ForsythBarrStadiumImage: The Marketing Bureau

### dunedintv.co.nz February 24, 2014 – 7:16pm
Stadium proud of numbers despite opposition and projected losses
The Forsyth Barr Stadium is crowing over numbers through its gates, as the DCC debates a projected $1.4m loss for the facility.
Meanwhile, a stadium opponent is calling for reports from 2008 she says backed claims the stadium would run at a profit.
Ch39 Video

24 February 2014
Reports tabled at the meeting of the Dunedin City Council:

Report – Council – 24/02/2014 (PDF, 566.6 KB)
DVL Financials for the Six Months Ended 31 December 2013

Report – Council – 24/02/2014 (PDF, 638.8 KB)
DVML Financials for the Six Months Ended 31 December 2013

Report – Council – 24/02/2014 (PDF, 47.8 KB)
Statements of Intent – DCHL Group Plus DVL and DVML

Report – Council – 24/02/2014 (PDF, 276.4 KB)
Statements of Intent – Dunedin Venues Ltd

Report – Council – 24/02/2014 (PDF, 284.1 KB)
Statements of Intent – Dunedin Venues Management Ltd

Other reports

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Media Release
Bev Butler
Monday 24 February 2014

TIME FOR SOME PLAIN, HONEST ANSWERS

Dunedin ratepayers are being informed by Sir John Hansen, Chairman of both Dunedin Venues Management Ltd and Dunedin Venues Ltd, that the projected $10,000 operating profit forecast for 2014-15 is now forecast to be a $1,400,000 loss, with similar or even greater losses forecast in future years. He puts this staggering reversal in fortunes down to the reality of costs of running the stadium, and few events occurring at the stadium.

But even these revelations don’t tell the full story of this stadium debacle and financial scandal.

Accompanying the annual injection of well over $9 million to run the stadium, are all of the costs of servicing the debt to build the stadium. Because these costs reside within DVL, they are not reported on in the DVML forecasts.

However some very basic questions remain unanswered.

Readers of the Otago Daily Times will recall a full-page advertisement placed by the Carisbrook Stadium Trust on the 31st of May, 2008, at the time the stadium project was being considered. Headed up “The Facts about the new Stadium”, it said: “The stadium will be profitable. The funding target establishes a debt free stadium. On this basis the business plan for the stadium shows that it makes a profit. Unlike nearly all other Council owned facilities it will not need annual funding support. This assessment has been confirmed by two of New Zealand’s leading accountancy firms.”

These statements are unequivocal and cannot be misinterpreted.

Bev Butler has, for over a year, had an official request in to Mr Malcolm Farry, Chair of the Carisbrook Stadium Trust, to supply the names of those two leading accountancy firms and for the documentation supporting the validity of the claims to build a debt-free stadium and for it to run at an annual profit. Mr Farry has so far failed to deliver that information as required under the requirements of the LGOIMA.

“Mr Farry leaves me no choice but to submit an urgent complaint to the Office of the Ombudsman. There is no reason whatsoever why Mr Farry shouldn’t supply this information, if it exists. Mr Farry has breached the requirement under LGOIMA to supply this information,” said Bev Butler.

How much notice was taken by members of the public and those Councillors and others who were considering whether it made sense to build a new stadium? Perhaps hard to assess. But surely it must not be too hard for Mr Malcolm Farry to reveal to Dunedin ratepayers just how it was that they would have a debt-free stadium and an annual profit instead of a stadium that is millions in debt and costing ratepayers further millions in its staggering operational losses.

[ends]

odt may 31 2008-1 (pdf cleaned)[click to enlarge]

Related Posts and Comments:
22.2.14 Carisbrook Stadium Trust costs
2.2.14 Stadium: ODT editorial (1.2.14) —Garbutt debunks myths
1.2.14 Stadium: ODT editorial (1.2.14) —“Palpable claptrap” says Oaten
27.1.14 Stadium: No 4 at interest.co.nz
24.1.14 Stadium: It came to pass . . .

For more, enter *cst*, *carisbrook stadium charitable trust*, *carisbrook stadium trust*, or *dvml* in the search box at left.

Posted by Elizabeth Kerr

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Stadium: Brent Edwards cuts the grass (ODT 29.1.14)

Sports Comment (ODT 29.1.14, page 26)
Underperforming stadium needs to lift its game
By Brent Edwards
OPINION There needs to be a more collaborative approach if Forsyth Barr Stadium in Dunedin is to have a chance of fulfilling its enormous potential. It’s here and it’s not going away, whether the naysayers like it or not. It’s a prized asset which has to be maximised and that is not the case at present. […] Rugby watching at the stadium is an experience. But there has been a lack of strong leadership, of continuity, and the resignation of two chief executives in quick time has not helped placate the doubters. Cont/

Free speech and all. Discursive, ill-informed, vacuous —how did Edwards’ opinion piece get past the editor. The column isn’t available online, imagine the comments if it was. By letters or email, pens and typewriters across the city should be flaring with indignation, and FACTS, to pummel the columnist —to educate his sorry arse.

Because papers are still selling today, for the avoidance of ‘plagiarism’, the column isn’t scanned for your amusement. Read it though if you get the chance —at your local library, cafe, McDonalds or workplace staff room. Damned silly to pay for his thoughts.

All those ideas, Brent. Are you rorted, doubters ?????

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Garrick Tremain: Our Stadium

Garrick Tremain 16.1.14 (1)16 January 2014

See this image full size and other recent work by Tremain at http://garricktremain.com/cartoons/

Posted by Elizabeth Kerr

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Highlanders “Buy Us” entertainment: Obnoxious, noxious PROFESSIONAL RUGBY —stay away DCC !!!

One other possible investor could be Dunedin Venues Management Ltd as a shareholding in the Highlanders would keep the side playing at Forsyth Barr Stadium for the foreseeable future. –Steve Hepburn

### ODT Online Wed, 11 Dec 2013
Rugby: ORFU keen to be stakeholder in privatised Highlanders
By Steve Hepburn
The NZRU said yesterday the Highlanders were being considered for privatisation next year. The Otago Rugby Football Union is keen to be a stakeholder in the southern franchise, but whether the union has the financial muscle to get involved is still open to question although any discussion is months away.
Read more

DVML is drowning in debt and is on shaky management ground (there is more to say about that in coming days).

ORFU is the entity DCC has continually ‘helped’ to the tune of hundreds of millions of dollars over a considerable number of years without qualification, openly, illicitly — without the required checks and balances in place to conservatively and prudently manage ratepayer funds — DCC has been the unsanctionable open chequebook of assistance to a fraudulent sporting regime.

No doubt Mr Mayor Rugby-is-Us Cull (with ex Cr Brown and the like pulling strings), the DVML Boys, and the money-laundering GOBs of Dunedin… will want to buy a rugby team. Because the GOBs/ORFU sure as hell did not buy the stadium – they connived and deceived to have it gifted by all ratepayers and residents such that the city council’s consolidated debt is $623 million and rising. They haven’t raised the (conditional) $45 million in private sector funding they promised to the stadium construction project. And now, they want MORE.

Disgusting.

█ ODT 11.12.13 A levelled playing field – the end of Carisbrook

Posted by Elizabeth Kerr

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This is all painfully familiar…

blog.svconline.com

The trials of the Phoenix Coyotes, the least popular hockey team in the NHL, offer a lesson in public debt and defeat.

### theatlantic.com Sep 7 2012, 2:37 PM ET
Business
If You Build It, They Might Not Come: The Risky Economics of Sports Stadiums
By Pat Garofalo and Travis Waldron
In June, the city council of Glendale, Arizona, decided to spend $324 million on the Phoenix Coyotes, an ice hockey team that plays in Glendale’s Jobing.com Arena. The team has been owned by the league itself since its former owner, Jerry Moyes, declared bankruptcy in 2009. For each of the past two seasons, Glendale has paid $25 million to the league to manage the Coyotes, even as the city faced millions of dollars in budget deficits. Now, Greg Jamison, who is also part of the organization that owns the NHL’s San Jose Sharks, is making a bid for the team, and would therefore be the beneficiary of the subsidies.

“Take whatever number the sports promoter says and move the decimal one place to the left. Divide it by ten. That’s a pretty good estimate of the actual economic impact.”

To put the deal in perspective, Glendale’s budget gap for 2012 is about $35 million. As the city voted to give a future Coyotes owner hundreds of millions of taxpayer dollars, it laid off 49 public workers, and even considered putting its city hall and police station up as collateral to obtain a loan, according to the Arizona Republic. (The latter plan was ultimately scrapped.) Overall, Glendale is not only on the hook for $15 million per year over two decades to a potential Coyotes owner, but also a $12 million annual debt payment for construction of its arena. In return, according to the Republic, the city receives a measly “$2.2 million in annual rent payments, ticket surcharges, sales taxes and other fees.” Even if the Coyotes were to dominate the league like no other in recent memory and return to the Stanley Cup Finals year after year, the city would still lose $9 million annually.

“It’s kind of a perverse argument that taxpayers should subsidize this because businesses depend on this deal that isn’t viable.”

This is an altogether too common problem in professional sports. Across the country, franchises are able to extract taxpayer funding to build and maintain private facilities, promising huge returns for the public in the form of economic development.
Read more

[Link supplied]

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