Tag Archives: RWC 2011

Stadium: Who is being protected?

Received from Russell Garbutt
15 July 2014 at 4:30 PM

What is an advertisement, and what content of an advertisement needs to be able to be verified?

Readers of the Otago Daily Times, and followers of the on-going stadium debate which shows no signs of lessening in its intensity may be intrigued to know just where the sensitivities of the ODT lie.

Let us look at some simple facts which cannot be in dispute.

The Carisbrook Stadium Trust which was acting as an agent of the Dunedin City Council, decided to publish a full page advertisement in the 31 May 2008 issue of the ODT. The advertisement was headed up “The Facts about the New Stadium”.

In this advertisement it was claimed that “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”.

This is published and accessible and the wording of the advertisement cannot be interpreted in any other way as the heading refers to all that followed as “facts”.

The advertisement also claimed that the Trustees of the CST were “committed to delivering this stadium, under budget, on time and to achieve its financial, social and economic goals”.

Now of course some advertisements for wrinkle cream use all sorts of phrases like “clinical tests prove etc etc”. Many people are ready to pounce on claims that are unable to be substantiated, or are untruthful, or are misleading, or cannot be proven. In other words, the makers of the wrinkle cream need to be able to show that there were indeed “clinical tests”. The fact that the clinic may have been part of the company making the cream is sometimes understood, and in any case, the makers of the cream hardly ever claim that “totally independent clinical trials using double blind processes found what we are claiming is true”.

But this is not some pot of wrinkle cream.

The CST claimed a number of facts in their advertisement that they said were verified by two of New Zealand’s leading accountancy firms.

So, I submitted a very brief letter to the Editor of the ODT that simply asked this:

Dear Sir

In light of the continuing operating losses of the Awatea Street Rugby Stadium, and the on-going debt costs from its construction, it would be interesting to be informed of just who the two leading NZ accountancy firms were that confirmed the Carisbrook Stadium Trust’s claims published in the ODT in 2008 that the stadium would be built debt free and would return an annual operating profit. Maybe these two companies could now tell us how the reality differs so much from the published claims.

Yours sincerely

The ODT has informed me that my letter was noted but not selected for publication. This is newspaper speak for it’s been binned.

Why should this be?

Should the ODT not be interested in ensuring that an advertisement of a major size on a subject that had divided the City was not at all misleading in the same way that claims were made that may not be able to be substantiated, or could be shown to be unfactual?

Is the ODT particularly sensitive to the views of those that decided to publish this advertisement?

Had the ODT entered into any understanding or arrangement that the paper would support the stadium project which may have led to less than stringent standards of advertising being followed in this case?

But perhaps more telling is that to my knowledge, the ODT has not followed up on the obvious story of just who these two leading NZ accounting firms were that supported the claims of a debt free stadium and an annual operating profit. My point is that time and distance show us that these claims were so at odds with the claims made and published, that serious questions remain unanswered on just how the CST and these two companies got it so wrong.

Maybe another newspaper sees the story that the ODT doesn’t?

[ends]

CST advert ODT 31.5.08 detail

odt may 31 2008-1 (pdf cleaned)

█ Legible copy: CST Advertisement, ODT 31 May 2008 (PDF, 200 KB)

Related Posts and Comments:
9.7.14 John Ward, no mention of stadium or CST trusteeship
23.5.14 Stadium | DCC Draft Annual Plan 2014/15 ● Benson-Pope…
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
12.3.14 Carisbrook Stadium Trust: Financial statements year ended 30.6.13
8.3.14 Carisbrook Stadium Trust subject to LGOIMA
24.2.14 Carisbrook Stadium Trust: ‘Facts about the new Stadium’ (31.5.08)
22.2.14 Carisbrook Stadium Trust costs
24.1.14 Stadium: It came to pass… [stadium review]

Posted by Elizabeth Kerr

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Filed under Business, Construction, CST, Democracy, Economics, Hot air, Media, Name, New Zealand, NZRU, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Town planning, University of Otago, Urban design

What won’t get printed on ORT’s front page (pssst, about the Albatross…….)

UPDATED POST June 10, 2012 at 7:10 pm

A response at ODT Online.

Ahem
Submitted by farsighted on Sat, 09/06/2012 – 5:58pm.

There have been 18 major events since the stadium opened in August 2011. So it’s not “weekend in, weekend out”; on average it’s less than one a fortnight.

For the grand opening: around 650 (no hire fee); North Otago game: about 7500 (hire fee written off as bad debt to ORFU); Canterbury game: 14067 (hire fee written off); RWC: 4 games, attendance 30700, 25687, 20117, 28027 (no hire fee paid due to arrangement with RWC2011, cost to city $400K); Phoenix game 1: 15000; Phoenix game 2: 4628; Otago United games: 3 games at around 250 per game; Elton John: 35500 (no hire fee paid); Super Rugby: 5 games, attendance 22500, 17670, 18417, 18207, 14967.

Total attendance: 234337; Average attendance: 15240; Total cost of opening: 5 events at $30K, 13 events at $100K = $1.45M; Hire fees paid: 7 events out of 18; Total written off: $800K; Total cost to the city: $2.25M or $10/person (operating cost only).

These figures are useful to project what needs to happen for DVML to break even. They need to do that on approximately 300K visitors, 26 events per year. One event per fortnight is $2.8 million in operating costs, plus DVML’s $2M or so administration costs and the $5M or so they need to pay DVL, so they need revenue of about $30-$50 per visitor. At the moment, the average ticket price is around $20/person (student tickets sell at around $12 each), or a shortfall of $4M, which squares with the reported figures.

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Plus one: Big Night In – around 20,000 visitors (zero income); in addition to the $100K opening costs, DCC paid [$70K] for the event to take place.
(ODT Link)

SPREADSHEET
Supplied. Entries verifiable from public sources. It may be possible in most cases to report the ticket prices for sales via Ticket Direct website for past events.

stadium-event-attendance1 (21.5 KB)

Posted by Elizabeth Kerr

39 Comments

Filed under Business, Concerts, DCC, DVML, Economics, Events, Media, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums

SUNK Stadium: TOO MUCH ratepayer money going west STOP

Garrick Tremain – 11 May 2012


The point is $224 million is not the TRUE COST. It is FAR HIGHER. Dunedin City Council must stop all OBFUSCATION. Open the books to a full independent forensic audit of the council and related entities NOW.

Meantime, close the stadium to stem the losses.

### ODT Online Fri, 11 May 2012
Budget blowout pushes stadium cost to $224m
By Chris Morris
The final cost of the Forsyth Barr Stadium has risen to $224 million, after independent auditors uncovered a budget blow-out of more than $8 million, it has been confirmed. The findings showed the stadium’s capital cost had risen by $8.4 million, from $198 million to $206.4 million. Interest accrued during the stadium’s entire construction period, as loans began to be drawn down, also hadn’t been included in costs.

The $8.4 million overspend meant costs exceeded budgets by 4.2%.

The PWC review did not seek to apportion blame, but findings had been passed to council chief executive Paul Orders, who told reporters he would study them “coolly and calmly”.
Read more

Posted by Elizabeth Kerr

79 Comments

Filed under Architecture, Business, Construction, CST, DCC, DCHL, DVL, DVML, Economics, Events, Hot air, Media, ORC, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, STS, Town planning, Urban design

Can it be true? Nahhh #peepshow

Initially, did Ngai Tahu (Kai Tahu) get turned down for Dunedin City Council project funding towards the Haka Peep Show (‘black penis’), now resplendent in the Octagon?

Did Ngai Tahu then come back to DCC saying, more or less, that if DCC didn’t front up with the $50,000 then Council wouldn’t get any co-operation from the tribe with resource consents, etc?

No! This didn’t happen. In any case, the minutes of the Art in Public Places subcommittee (if released), or those of the Community Development Committee (which turned down the APP’s $100,000 funding request) wouldn’t be so specific as to the politics, surely?

No. No. No. A vile rumour, completely fictitious.
Not the way we do things in Dunedin!

****

### ODT Online Tue, 20 Sep 2011
Councillors join Ngai Tahu working party
By David Loughrey
Dunedin city councillors Fliss Butcher and Jinty MacTavish have joined a working party that will find “opportunities and mechanisms” for Ngai Tahu to contribute to the city’s decision making.
Read more

ODT columnist Dave Cannan has been asking questions about the artwork. In today’s ‘The Wash’ (ODT, 21.9.11) he says, “The cost of Rachael Rakena’s much-discussed installation is “in the vicinity of $115,000″, although some accounts are still being finalised.”

Posted by Elizabeth Kerr

39 Comments

Filed under DCC, Events, Hot air, People, Politics, Project management, Site, Sport, Town planning, Urban design

Abhorrent spending on RWC by Dunedin City Council

The council has budgeted $350,000 to pay for tournament planning and events, excluding stadium costs. ODT Online (7 July)

We will assume this sum doesn’t include the aggregated hours spent by Council staff on all planning and events management.

Posted by Elizabeth Kerr

27 Comments

Filed under DVML, Economics, Politics, Project management, Site, Sport, Stadiums

RWC Merchandise

### tvnz.co.nz 9:34AM Monday June 27, 2011
Investigation reveals RWC merchandise made in China
Source: ONE News
A Close Up investigation to screen on TV ONE tonight has revealed that tourists buying official Rugby World Cup merchandise could be in for a shock. Close Up reporter Kate Lynch told TV ONE’s Breakfast today that most of the All Blacks’ World Cup memorabilia isn’t made in New Zealand – it’s made in China.
Read more

Posted by Elizabeth Kerr

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Filed under Economics, Geography, Project management, Sport

Local media step up reports on RWC 2011 campaign, leaving real costs out

Dunedin Venues Management Ltd chief executive David Davies said the building of Forsyth Barr Stadium was going to plan and it was set to be handed over at the end of July.

### ODT Online Wed, 1 Jun 2011
Cup organisers confident
By Steve Hepburn and Hamish McNeilly
One hundred days from the kick-off of the Rugby World Cup, organisers say they are on track with tournament preparations. Travel companies handling accommodation for teams and fans had sourced hotel rooms as far afield as Queenstown, Oamaru and Gore on Dunedin match days, Tourism Dunedin chief executive Hamish Saxton said.

Dunedin City Council Rugby World Cup co-ordinator Debra Simes said the council’s transport and traffic management plan was in its final stages, and would include suburban train services.

Read more

****

The council has teamed up with the Otago Chamber of Commerce to provide information for retailers on how to capitalise on the tournament.

### ODT Online Tue, 31 May 2011
Dunedin shops urged to make most of World Cup
Dunedin retailers may extend their shopping hours as they seek to capitalise on the Rugby World Cup. The event represented a “once-in-a-generation chance” for the city, and businesses should start planning now, Dunedin City councillor and George St retailer John Bezett said yesterday.
Read more

Related Posts:
26.5.11 RWC Bunting: Drape It Good
26.4.11 RWC 2011, this isn’t looking grand
16.4.11 Dunedin conniptions over RWC 2011, yawn
14.4.11 The haunting
9.4.11 Watching Dunedin spend for RWC 2011…
10.3.11 Events could shift south #eqnz
12.2.11 How many additional (unbudgeted) dollars will be needed from DCC…
22.1.11 No Fanzone at Octagon
20.1.11 No final RWC party at new stadium
18.1.11 Bleed out at DCC continues for RWC 2011
18.1.11 Is the stadium worth it, to private hospitality spending during RWC 2011?
10.1.11 Trains for RWC 2011?
1.1.11 In a city spending up large on RWC 2011

Posted by Elizabeth Kerr

11 Comments

Filed under Construction, DVML, Economics, Geography, People, Politics, Project management, Site, Sport, Stadiums