AFL bid to buy Olympic ground for new Sydney team

[Demonoid]

THE AFL wants to buy Sydney's Olympic stadium to cement its push into the harbour city's western suburbs.
The AFL made a $200 million bid for the Homebush Bay stadium more than a year ago.
The ANZ-led trust that now owns the stadium prevailed but it is believed a renewed offer is being devised as the AFL prepares to launch its western Sydney franchise in 2011.
If successful, the move could spell disaster for cash-strapped Sydney rugby league clubs that rely on the stadium's generous $100,000-a-game guarantee to prop up their bottom lines.
Five Sydney NRL teams play home matches at ANZ Stadium -- formerly known as Telstra Stadium -- and the venue hosts 38 NRL games a season.
Should the AFL gain control of the venue, the NRL would be faced with a hostile landlord.
AFL boss Andrew Demetriou spent half a day at Olympic Park five weeks ago.
Mr Demetriou and NSW AFL supremo Dale Holmes met stadium CEO Ken Edwards after taking a tour of the 80,000-seat ground.
When asked this week if the AFL was preparing to buy the stadium, Mr Demetriou responded with a "no comment".
An AFL source last night said that the league had looked at the proposal as one of several options for a second Sydney team.
In late 2006, AFL chairman Mike Fitzpatrick pulled together a consortium, including Westpac, to offer about $200 million for the stadium.
The bid was attractive to shareholders, but was ultimately hampered by the fact ANZ owned the stadium's $140 million debt.
Westpac chiefs were nervous about owning an asset whose debt was controlled by a competitor.
Their apprehension is believed to have proved decisive.
But a source said the AFL had not given up hope.
"It's clear they have an interest in establishing a team in western Sydney, so it would make sense to try and buy ANZ Stadium," the source said.
"They effectively control the leasehold over Telstra Dome and it's been their business plan to control stadia around Australia."
The venue's remaining 23-year leasehold from the NSW Government is now managed by Stadium Investments Pty Ltd (SIPL), an ANZ-controlled entity.
SIPL managing director Mark Norville last night denied further discussions with the AFL were under way.
"I can confirm there was an approach from the AFL some time ago, but that failed," Mr Norville said.
"We keep hearing about bids, but no one from the AFL has approached us."
Mr Norville said he would be compelled to entertain an offer from AFL if the money was right.
NRL boss David Gallop said an AFL-controlled stadium "would be a concern".


This is doing the rounds with 80 coments so far on the Daily Telegraph. For some contrast..the editor of the Telegraph has also put in his 2 cents...surprisingly...he reckons this could be a good thing for all parties....
http://www.news.com.au/dailytelegraph/story/0,22049,23749002-5001030,00.html

[St Specky]

Muhahahahaha. What do the NRL do if the AFL own the stadium? Either pay shitloads of money or get out I guess.

[Glory and Fame]

The AFL will continue to rent it out to the NRL, and to rugby union and soccer, at market rates. It wouldn't be in their commercial interests not to.
But AFL will get priority. So if this goes ahead, the AFL would never again be gazumped by a rugby union international like they were in 2005; or locked out of a home final.

In some ways soccer has the most to lose. With the AFL owning the ground, there's no way they would vacate it for 2 months mid-season. So this sale, should it go ahead, effectively scuttles the 2018 World Cup bid.

[AngelEyes]

The NRL has preached that the AFL wants a war in order to create hostility against the AFL expansion. If the AFL buy the stadium and come in and actually keep all the contract etc and treat the NRL clubs favourably then it would be very hard for the NRL to say its war.

The AFL will honour contract and be nice to the NRL. Its in the AFLs interest to create less hostility. If the NRL crowds are average 16,000 over 38 games, its very possible that the AFL can provide more people going through Stadium Australia's turnstiles than Rugby can during the regular season if both Sydney teams are receptive to the venue.

If it was Macquarie Bank buying the stadium, no one would have issues as it would be a business decision. Why can't the AFL from a business perspective invest in a Stadium? It make logical sense and compliments it's current business activities. The AFL and associated bodies will be the biggest stadium owners in Australia irregardless of Stadium Australia. Why not have a crack?

The AFL isn't going to kill the NRL clubs as it would be a disaster and lets face it most of the contracts are for ten years. The AFL has plenty of time.

[SweetLeftFoot]

Gotta love AFL logic.

They try and get a team to move but don't provide a stadium.

Now they want to buy a stadium before they have a team.

[1908]

It won't happen, so dream all you like. It's a media beat up.

[Father Jack]

Yeah, it doesn't make a lot of sense. Especially when they have to sort the GC stadium thing out first. At least ANZ actually exists. Carrara needs a bulldozer through it.

[SweetLeftFoot]

Yeah, it doesn't make a lot of sense. Especially when they have to sort the GC stadium thing out first. At least ANZ actually exists. Carrara needs a bulldozer through it.

Maybe the GC team could play out of ANZ until 2015 or whenever the Gabba contract expires?

The AFL - forward planning at its best.

[The Teflon Dean]

$200 million

$12.5 million of that is Norths money.

[Fire]

I dont get it.

Are they hoping to buy it, and then own it forever?

Or are they just going to buy the lease, and ultimatley have to hand it back to the NSW government in 2 and a half decades?

200 million seems dirt cheap for such a stadium, it would cost 4-5 times that to build it new.

Similarily, 200 million is an insane ammount of money to spend on an asset they wont actually own.

[The Teflon Dean]

50 million of this money belongs to North, Bulldogs, Melbourne and StKilda.

STUFF SYDNEY!

We want this money spent on a 30,000 seat upgrade of an exiisting suburban ground to overcome the costs of Telstra Dome.

DO IT, Dogmeatriou.

[cos789]

200 million seems dirt cheap for such a stadium, it would cost 4-5 times that to build it new.


In financial terms it's the value of the land and the annual return .
At present the stadium returns stuff all .

.

[numchuks]

What a HUGE ****ing waste of money.

The AFL will never be able to recoup that, and in 2025 they'll have to hand it over to the NSW government for $1 anyway, so what's the point?

[huntos]

What a HUGE ****ing waste of money.

The AFL will never be able to recoup that, and in 2025 they'll have to hand it over to the NSW government for $1 anyway, so what's the point?

The point of buying the stadium, as previous posters have said, is to ensure that the Western Sydney club gets a priority for occupancy. Vlad has previously expressed his frustration with the NRL and ARU getting into the stadium over the AFL, this purchase ensures that they are not shafted. They could also make some money if they stop paying the NRL clubs a million dollars a season to play there.

Also an excellent point made about the soccer world cup, FIFA will not take kindly to the idea that another sport will profit off their success. It is said that Melbourne is at a major loss for hosting the final, assuming its in Australia in 2018, because the major sporting stadium is a cricket ground.

[Chuq]

The point of buying the stadium, as previous posters have said, is to ensure that the Western Sydney club gets a priority for occupancy. Vlad has previously expressed his frustration with the NRL and ARU getting into the stadium over the AFL, this purchase ensures that they are not shafted. They could also make some money if they stop paying the NRL clubs a million dollars a season to play there.

Also an excellent point made about the soccer world cup, FIFA will not take kindly to the idea that another sport will profit off their success. It is said that Melbourne is at a major loss for hosting the final, assuming its in Australia in 2018, because the major sporting stadium is a cricket ground.

Specifically, it isn't because it is a cricket ground - it is because more than x % of the seats are more than y metres from the field of play, so it doesn't reach FIFA spectator visibility standards or something like that. Of course the fact that it is a cricket ground - and a large one - influences this.

[Professor Knowall]

None of us here know enough about the $$$ and sense of this proposal to make have informed opinion. Obviously, the AFL will have their bean counters go through all the figures (that aren't available to the general public) before committing to any such venture.

Then again, finally for once, I think I agree with 1908 - its probably just a media beatup.

[cos789]

None of us here know enough about the $$$ and sense of this proposal to make have informed opinion.


Lets start .
Return on $200 million is say $18 million annually in term deposit .
Ground hire is running $100k a game .
Currently I think there are 38 games a year at Homebush .
Add 11 for WS and that gives $4 million per year .
So Homebush is not an attractive investment (for buyer or sellor) .
OK so some nrl clubs will leave , but the Sydney Swans would fill the void
as the AFL attempts to maximise return .
But there are intangibles .

Homebush will be renamed "AFL Greatest Game of All" Stadium .

:thumbsu:

[Ricardo]

All a media beat-up.

[cos789]

All a media beat-up.



You haven't thought through all the implications .

:o

[Funkalicous]

Sounds great. More power to the AFL, and a stronger grip on national outposts. :cool:

[Fender]

Would be great if they did this then barred out the NRL so no more NRL games could be played at Homebush. Then the game would be back on the right track. Upgrade the SFS to a 80,000+ (double capacity) and we are set with a stadium that is actually good enough to host SoO and Finals.

[RUNVS]

Would be great if they did this then barred out the NRL so no more NRL games could be played at Homebush. Then the game would be back on the right track. Upgrade the SFS to a 80,000+ (double capacity) and we are set with a stadium that is actually good enough to host SoO and Finals.

It would cost hundreds of millions to double the SFS capacity and i dont think the infastructure around the stadium could handle double the people. It takes forever to get out of the SFS car park as it is and i honestly cant see it fitting twice as many cars.

[Ricardo]

You haven't thought through all the implications .

:o

Of course i have, but i don't think it'll happen and until someone high up in the AFL states they want to buy it (in other words a credible source) then its just another 'we understand' story.

It'd be great for them to own the stadium that the Western Sydney team is most likely to play all its home games at, though i'd rather they concentrate on securing a Gold Coast stadium first.