Tag Archives: Underwriting

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

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 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)

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Walk this way – Aerosmith to play stadium

Received from Rob Hamlin
Monday, 25 February 2013 11:37 p.m.

Best do this quickly quickly as there is one major oddity that has not yet been picked up here. Aerosmith are performing here on April 24 – that’s only weeks away. How long was Elton coming – months/years – that’s the usual lead time for acts of this size, and with good reason. People have to decide to come, make plans, book tickets, hotels etc, in plenty of time. The same applies for preparation in the venue and destination, especially if it’s a small one like Dunedin – eg extra flight capacity. More importantly, the tours themselves are major logistical exercises that have itineraries that are usually planned years in advance.

So what’s happened here? Did they lose a venue at short notice? It certainly hasn’t been reported if they did. Then why the devil are the promoters diverting a major act at considerable inconvenience, cost and at very short notice in our direction.

I suppose that we will be told that it was for the love of the Foobar. However, major events promotion is a hard and chancy business that allows those who play the game successfully over the long term little room for love other than that for money. So my call is that they are coming for money – a lot of it, well over and above their expenses, and guaranteed as well.

I suppose that 40,000 people at $100 a head and no charge for the Stadium, plus help with the travel costs (maybe $450,000 or so that DVML just happened to have come by recently will be a factor here) might deliver a $4 million profit for a few days work – which might interest them.

Maybe the 40,000 will not come, or they will not pay $100. That’s OK, there’s still the guarantee – often innocuously referred to as an ‘event underwrite’. This underwriter is a third party who agrees to cough the agreed amount of revenue if the punters won’t. Some may recall North Island Councils losing their shirts this way before. Is this event underwritten as part of the agreement with DVML? I would be surprised if it wasn’t – Who’s underwriting it? Easy – DVML don’t have that kind of cash. So, got a mirror handy?

Holding big events in small towns is a risky business. Holding them at such very short notice makes it even riskier. That’s why I really don’t think that these guys are taking a risk of this nature. If they aren’t, then we are instead. Maybe we’ll roll the dice and not get burnt this time. But we will eventually if this is indeed what is going on. I would suspect that at a minimum the $450,000 that DVML were recently given by DCC as strategic fund is already well spent. But Darren did say he might (would) be back for more pretty soon.

It’s suddenly getting pretty crowded at the Foobar Multi-Purpose Community Asset innit? Hardly room for Rugby any longer these days. Fifa’s still in the loop with private meetings with our Councillors too – could still be a double booking in the offing. Still no contract with the Highlanders/ORFU and DVML? Now, I wouldn’t be betting on that if circumstances made it worth their while to have one of a certain type in hand when said double booking actually occurs. However, the turf’s still immaculate down the road at DCC/CS Partnership Point – Lucky, eh?

[ends]

Posted by Elizabeth Kerr

127 Comments

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

NZMG another drain, another dollar

Yesterday’s D Scene reports (page 4):

Dunedin City Council is being called upon to honour its commitment to underwrite the lossmaking Masters Games. The biennial veterans sports event was a huge success on the field: more than 6000 people took part in a total of 7203 events, and almost half were out-of-town visitors. However, the Masters Games was unable to secure a naming rights sponsor. It also lost one silver level sponsor and was unable to use the University Union as its Games Village. That caused the games to lose revenue of $153,364, a report to the DCC said. #bookmark

The council has an agreement to underwrite the games, and Thursday’s finance, strategy and development committee meeting will consider a minimum $25,000 ratepayer contribution.

Report – FSD – 26/04/2012 (PDF, 400.9 KB)
2012 New Zealand Masters Games – Manager’s Final Report

Posted by Elizabeth Kerr

4 Comments

Filed under Business, DCC, Economics, Events, Media, Politics, Project management

DCC and ORFU…

### ODT Online Wed, 20 Jan 2010
DCC expecting best practice from ORFU
By David Loughrey
The Dunedin City Council is expecting best-practice governance from the Otago Rugby Football Union in return for its decision to underwrite the union’s debt for the next three years.
Read more

Post by Elizabeth Kerr

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