Perth Stadium (Optus Stadium)

[Defacto]

strap your selves in. this ones going to get really fun:
http://www.westcoasteagles.com.au/news/2016-02-08/club-statement-perth-stadium

The West Coast Eagles is disappointed with today’s State Government announcement regarding preferred operators for the new Perth Stadium.

“We respect the process, but this is very disappointing for West Australian football and it will be challenging for the game," club Chief Executive Trevor Nisbett said.

“All West Australian football parties – the West Coast Eagles, Fremantle Football Club, the WA Football Commission and the AFL – will need to get together to work a course forward. We have been wholly united through this process with an ‘all-in-football’ approach and will remain that way.

“This is a body blow for the industry.”

 

[FootyFan96]

strap your selves in. this ones going to get really fun:
http://www.westcoasteagles.com.au/news/2016-02-08/club-statement-perth-stadium

The West Coast Eagles is disappointed with today’s State Government announcement regarding preferred operators for the new Perth Stadium.

“We respect the process, but this is very disappointing for West Australian football and it will be challenging for the game," club Chief Executive Trevor Nisbett said.

“All West Australian football parties – the West Coast Eagles, Fremantle Football Club, the WA Football Commission and the AFL – will need to get together to work a course forward. We have been wholly united through this process with an ‘all-in-football’ approach and will remain that way.

“This is a body blow for the industry.”

Why?
Basically all it is saying is "we accept the decision, it is not the best case scenario but we will move on". Both AFL clubs would not have been as optimistic as the WAFC and probably have been getting ready for this scenario for a few months (Same as the AFL).

Remember, it may look as if Football is in control, but remember if they play at Subi and there is a world class stadium not being used it would be a PR disaster for the AFL, WCE and FFC.

 

[The_Wookie]

It's no surprise that packer was happy to give up land near his casino. Now it is even more intriguing that he is the major shareholder of the stadium Australia company. Corruption lots of money made and us the plebs will indefinitely lose out.

I cant find a reference to Packer being the major Shareholder in the stadium australia operations company anywhere. By far the largest shareholder in the company is Mike Fitzpatrick.

 

[Vigour]

Good comment here:

https://au.news.yahoo.com/thewest/sport/afl/a/30767345/football-spits-the-dummy/

While it is odd that the govt. committed to the site and construction before key tenants were contracted, there's nothing about the present management of Domain/ Subi that encourages the view that it was essential the footy commission be part of the management consortium. Far from it.

 

[Kwality]

what ever happened to the investigation into colin barnett breaking the law by telling packer ahead of the announcement to government?

What law are you referring to ??

 

[The_Wookie]

Good comment here:

https://au.news.yahoo.com/thewest/sport/afl/a/30767345/football-spits-the-dummy/

While it is odd that the govt. committed to the site and construction before key tenants were contracted, there's nothing about the present management of Domain/ Subi that encourages the view that it was essential the footy commission be part of the management consortium. Far from it.

Great article from the West Australian. They really have gone off halfcocked at the moment.

 

[Kwality]

No its not actually, An organisational chart just shows the way the business runs such as who reports to who and what each department looks after, it has nothing to do with cashflow.

Your earlier posts suggested you had no idea of the scope of the WAFC - sorry for trying to lead you to the bigger picture.
In pictures, the chart shows the WAFC areas of responsibility, all of which need funding. IF, as you suggested the WAFC were to have funded a contingency, which of these areas would you have stopped funding?
Of course you could use the Financials for that too ...

Reality is its all academic in terms of the Stadium.

 

[Kwality]

Great article from the West Australian. They really have gone off halfcocked at the moment.

To be expected, its SA footy/Adelaide Oval being re run, huff & puff ... see REHs post for the detail of the complexity of the deal still to be done. Sorry cant link so I've quoted it in full.

So WAFC will miss out on making any food and beverage revenue and profit like they have at Subiaco for years even after selling rights to an outside group in the earlier years as caterer eg Spotless as per page 23 of 2006 WAFC Annual Report.

What about rent? I assume the government via the Perth Stadium Trust or what ever structure it sets up, will collect that and nothing goes to the WAFC? What about the clubs will they get charged rent or will the corporate inventory mix - which will be greater than Subi be a replacement for that? The 2 clubs might have to pay bigger licence fees to the WAFC.

There are lots of ways of structuring up Rent for the 2 clubs and for the body managing the stadium.

At Adelaide Oval the joint venture between SACA and SANFL ie Stadium Management Authority (SMA), run the stadium which is owned by the SA government and sits in the books of the Department of Planning Transport and Infrastructure. The SMA did not have to pay the government a rent for 2013/14 and 2014/15 financial year and then between 2015/16 rent starts at $200k and increases by $200k per year and it hits $1mil rent in 2019/20. After that it goes up by CPI. The rent is then paid into the government's Sport and Recreation Fund. This is in The Adelaide Oval Redevelopment and Management Act 2011.

There also is a compulsory Sinking Fund that has to be established and maintained by the SMA for future Capital equipment purchases and Capital repairs and maintenance. The SMA has to tell the government what has happened in the previous year and what will be spent in the current year by 1st September each year. The SMA and government have agreed $2.7mil has to banked into the Sinking Fund by 1st September 2016. So this is an effective rent as the 2 footy clubs will have to cover this is the SMA dont get a lot of other events and make profits from them and bank them into the Sinking Funds. After this first payment I would expect a regular annual payment to be made. This is an effective rent.

The 2 SA Clubs dont get charged a rent, but they have the right to sell a shitload of corporate inventory and advertising and signage rights. There are 32 x 18 people super boxes that cost $125,500 inc GST and are sold for 12 months rights which the SMA collects and pass it straight through to the SANFL 77.0% and the rest 23.0% to the SACA. The same with the 12 month Stadium Club memberships 1,455 that cost $4,250 inc GST and the SANFL gets 69.70% of those monies and the SACA gets 30.30% of these monies. The SANFL's share net of GST of these 2 revenue streams was $6.73mil and the SACA got $2.54mil. These are the cost figures for these memberships for 2014 and 2015. All 32 super boxes and all Stadium Club memberships were sold out for both 2014 and 2015. So the SACA and SANFL would have got the same amounts in 2014 and 2015.

The SMA sold Football memberships for the SANFL in 2014 and the SANFL kept 100% of these monies and 8,206 memberships in 2014 and I guestimated that to be $3.78mil net of GST with a split for adults, concession and kids being in line with the 2 SA clubs for 2014. The prices went up in 2015 and those increases, $100 for adults, $55 for concessions and $30 for juniors was split equally between the 2 clubs and as 8,009 Footy members.

So in both years the SANFL collected an effective rent from the two clubs of approx $10.5mil, by selling, the super boxes, Stadium Club memberships and the Footy memberships.

The SACA sells 26,000 memberships directly for the cricket season (by passing the SMA) and that raises them about $11-$12 million.

The SACA and SANFL receive a sales commission from the SMA and its somewhere between 20% and 25% of food and beverage sale when a cricket event is hosted between 8th October and 14 March the commission goes to the SACA and the SANFL collect that commission during the footy season legislate as 15 March to 7 October. The SMA keeps any catering revenue hosting events outside of cricket and footy related events. AO was designed to be used 365 days a year and can serve 2,000 meals at lunchtime and also at dinnertime. The SMA is run to basically make a small profit of $300k to $500k in the first 2 years apart from collect monies for the sinking fund. In many ways its just a banker for the SACA and SANFL.

In 2014 the SANFL made about $4.4mil from sales commissions on catering that they received from the SMA as it was publicly reported the SANFL made $14.9mil from the first season of footy and I know my $10,5mil figure I mentioned above is pretty close to the mark.

The new deal didn't claw back anything in 2014, but the SANFL gave up some revenue streams for future years, some corporate inventory, gave some Footy membership fees - by increasing them, some seats that can be sold as reserved seats in the western stand and the clubs get that fee, some catering revenue when crowds are over 30,000, and some more adverting/signage rights. That gave the clubs an extra $3mil to share in 2015 and an expect extra $4mil to share between in both 2016 and 2017 if they maintain their crowds. The next stadium deal review is after the 2017 footy season.

The bigger winner for the 2 SA clubs is that they will be able to get what the WA clubs get when they host finals at Subiaco ie access to corporate inventory, catering and advertising revenue streams. Port got bugger all for the 2014 Elimination final at AO versus Richmond. Under the new agreement they would have made about $500,000.

 

[Kwality]

strap your selves in. this ones going to get really fun:
http://www.westcoasteagles.com.au/news/2016-02-08/club-statement-perth-stadium

The West Coast Eagles is disappointed with today’s State Government announcement regarding preferred operators for the new Perth Stadium.

“We respect the process, but this is very disappointing for West Australian football and it will be challenging for the game," club Chief Executive Trevor Nisbett said.

“All West Australian football parties – the West Coast Eagles, Fremantle Football Club, the WA Football Commission and the AFL – will need to get together to work a course forward. We have been wholly united through this process with an ‘all-in-football’ approach and will remain that way.

“This is a body blow for the industry.”

Guess Fitz had no idea of what this group was proposing ..... continuing the AFL Chairmans conflict of interest mimicking the late Ron Evans in his Spotless days.
Who could have faith in any Chinese walls at the AFL, where leaking is an art form. Sorry Mike.

 

[The_Wookie]

Guess Fitz had no idea of what this group was proposing ..... continuing the AFL Chairmans conflict of interest mimicking the late Ron Evans in his Spotless days.
Who could have faith in any Chinese walls at the AFL, where leaking is an art form. Sorry Mike.

if he had no idea what was being proposed...then where is is his conflict of interest exactly?

 

[Kwality]

if he had no idea what was being proposed...then where is is his conflict of interest exactly?

You have faith in a Chinese wall in the AFL, I don't.

 

[The_Wookie]

You have faith in a Chinese wall in the AFL, I don't.

Well i wouldnt call it a chinese wall for a start. And I dont wave conspiracys around like dollar notes at a strip club.

 

[aussiechris]

The stadium is looking great. Has the roof frame on now.

 

[Billy ray]

some more shots from around the traps that I have come across

 

[Garlic muncher]

The Subi locals, do not want the footy. Lights can only be used a fixed number of nights a year. Subi council are not known for their preparedness to enter negotiations.

Burswood has room to move on issue of lights, Council approvals, public transport, eating facilities, residents approval etc.

The local who sells me his carpark and hundreds of others don't mind it, the local pubs, cafes etc like it, the local council and the brown bombers like it, a few vocal locals who no doubt bought in after football had been there for 100 years probably object.

 

[Garlic muncher]

some more shots from around the traps that I have come across

If we look at that photo, the footbridge was initially across to East Perth ( where the little inlet is) where there is cafes, eateries and a pub etc, now the footbridge is going to where Gloucester Park ( trotting track way to the left on the photo ), there is nothing of note down there, just Trinity College, WACA and Gloucester Park, no Eateries etc and if you wanted to go back to the Eatery precinct at East Perth it is a another 10 minute walk up the hill.

 

[Defacto]

What law are you referring to ??

there was an article at the time about it

 

[RussellEbertHandball]

It's gonna be complicated like in SA. From yesterday's announcement presser

http://www.abc.net.au/news/2016-02-08/perth-stadium-contract-blow-to-wafc-future/7150298
WA Premier Colin Barnett said the financial situation of the WAFC was yet to be resolved, but it would not be ignored under the agreement with SAO.

"There will be a profit sharing arrangement which will see a revenue flow to the State Government," he said.

"Out of that we will be able to maintain funding for the WA Football Commission, and local football."
http://www.abc.net.au/news/2016-02-08/perth-stadium-contract-blow-to-wafc-future/7150298

 

[Defacto]

Why?
Basically all it is saying is "we accept the decision, it is not the best case scenario but we will move on". Both AFL clubs would not have been as optimistic as the WAFC and probably have been getting ready for this scenario for a few months (Same as the AFL).

Remember, it may look as if Football is in control, but remember if they play at Subi and there is a world class stadium not being used it would be a PR disaster for the AFL, WCE and FFC.

the PR disaster will be for the current liberal government. not football

 

[holybishop]

the PR disaster will be for the current liberal government. not football

When members start boycotting games the disaster will definitely be on football

 

[Defacto]

When members start boycotting games the disaster will definitely be on football

why would it be a disaster for football... if it gets communicated that the AFL, WCE and Freo cannot play games at the new stadium due to how bad the deal is, and they choose to play at subi, the pressure will be on the liberal government for screwing up the financials/making it unattractive

they cant have another fiona stanley here and they know it

 

[holybishop]

People aren't going to blame the government for building the shiny new stadium that the public were crying out for. They'll blame football for choosing to stay at Subi.

 

[Garlic muncher]

AFL WA will be coming, he WAFC has a decent history of funding football in this state and owns both teams, i can imagine the AFL wants to get them, now Fitzpatricks company will run the stadium, conflict of interest or not his aim with his AFL hat on is to own WA football.

Isn't the AFL buying out the SANFL of both SA teams in some complicated deal ?.

 

[holybishop]

WAFC Chairman's interview on 6PR this morning. He backtracks from PSM's statement last night, saying that AFL matches will go to PS in 2018, and the 'AFL' component in the statement refers to the fact that the Eagles and WAFC will still be based there in 2018.

http://www.6pr.com.au/news/well-live-with-umpires-decision-wafc-20160209-gmp7we.html

 

[Underdog]

If we look at that photo, the footbridge was initially across to East Perth ( where the little inlet is) where there is cafes, eateries and a pub etc, now the footbridge is going to where Gloucester Park ( trotting track way to the left on the photo ), there is nothing of note down there, just Trinity College, WACA and Gloucester Park, no Eateries etc and if you wanted to go back to the Eatery precinct at East Perth it is a another 10 minute walk up the hill.

Parking