Impact of the TV deal on stadiums - buy Etihad or build a boutique?

[nobbyiscool]

I thought this post was probably best placed here, rather than in the larger discussion about the tv deal - it's really more focused on stadia.

The title really says it all.

For over a decade we've had the smaller clubs getting reamed by terrible deals at Etihad Stadium. As we know, the AFL takes ownership of the stadium in 2025, and once a year we get some newspaper articles talking about how the AFL would like to take it earlier to resolve the rubbish agreements, but that the current owners are asking too much.

Throughout that time, also about once a year, a major figure from a poor team getting screwed by Etihad calls for a boutique stadium to be built in Melbourne - this year it was Peter Gordon's turn.

So with the AFL about to be rolling in money from the new tv deal, what's the priority? I don't imagine the current Etihad owners are about to lower their price knowing how much money the AFL has... but is it worth building a new stadium if that's going to take 2 years, and if the AFL takes ownership in 2025 anyway?

I thought I'd throw it open and see what others thought, because in weighing up pro's and cons, I'm buggered if I know which option I prefer. I do know that, now I live in Melbourne, calls for the redevelopment of Princess Park confuse me... there's no parking and it's rubbish to get to! (I can't imagine how people used to deal with Waverley!)

That said... I guess you're not about to get any more land that's within walking distance of the CBD/city train stations... If pushed, I'd probably lean towards just buying out Etihad, but I'm curious to hear what others reckon.

 

[Bomberboyokay]

Bulldogs, Kangaroos etc have poor stadium revenues due to low crowds and low demand for the good seats. They also have a tendency to dishonestly not include membership money in their matchday totals when doing the "poor us" radio interviews.

They're not getting reamed and I have no idea who they expect to build a stadium for them to pay jack s**t to play in.

 

[Justinpa1]

How much do the Etihad owners want for the AFL to buy it out 10 years early?

Once they buy it out, there will be no need for a smaller stadium anyway. Clubs will get better deals, and surely will start making money with 25K crowds.

Surely the AFL and clubs will start looking overseas to create better atmosphere at the ground when there is less than 20-25000 there, look at what they do at BC Place in Vancouver, Canada (where the Women's WC Soccer Final was recently), they have large screens (not sure what they are made of) that completely hides the top deck of the stadium and brings capacity from 50K to 30K. I think they were looking at this for ANZ Stadium if the redevelopment went ahead and they would make the screens glow in club colours for NRL games.

If you blocked off the Top deck at Etihad behind the goals (Lockett & Coventry ends) for games against Interstate teams when most of the time you get less than 25K it would create a better atmosphere and look heaps better than empty seats (esp. at ES as the seat colours and designs are the worst I have ever seen).

 

[Scotland]

(A) Buy Etihad
(B) Build boutique stadium

I'll lock in (C) maintain status quo and control puppet clubs with a drip feed from a big bag of cash, thanks Eddie.

 

[le dominateur]

(A) Buy Etihad
(B) Build boutique stadium

I'll lock in (C) maintain status quo and control puppet clubs with a drip feed from a big bag of cash, thanks Eddie.

Bit of a no-brainer really, even if the AFL have to chip in $5M each for WB, Carlton, Saints and NM for the next 10 years they will be well and truly in front.

 

[Eugenio94]

Need to explore Ballarat. Someone like a North or Western Bulldogs needs to look into taking a few games there a year. there is potential to draw an extra 5-10k paid members from what ive heard from many locals ive spoken to

 

[bombersfan4000]

Bit of a no-brainer really, even if the AFL have to chip in $5M each for WB, Carlton, Saints and NM for the next 10 years they will be well and truly in front.

buying etihad will fix a lot of those clubs money flows in returns on games

 

[bombersfan4000]

Need to explore Ballarat. Someone like a North or Western Bulldogs needs to look into taking a few games there a year. there is potential to draw an extra 5-10k paid members from what ive heard from many locals ive spoken to

didn't the Andrews labour government promise to up grade the stadium out there?

 

[Eugenio94]

didn't the Andrews labour government promise to up grade the stadium out there?

thats what i thought

 

[themidlandmaster]

buying etihad will fix a lot of those clubs money flows in returns on games

The AFL doesnt want that. Better to give out TV money as aid to clubs and keep leverage over them

 

[Rob]

buying etihad will fix a lot of those clubs money flows in returns on games

The problem is that there isn't the money flows coming into the games in the first place.

 

[DERIBERATE]

Need to explore Ballarat. Someone like a North or Western Bulldogs needs to look into taking a few games there a year. there is potential to draw an extra 5-10k paid members from what ive heard from many locals ive spoken to

Regional Victoria is low hanging fruit. It's easy travel distance from Melbourne, it's not a full relocation to flush a club's supporters down the shitter, and it's an opportunity to establish a profitable niche every bit as successful as Geelong. North shouldn't look at a couple of games there, they should bloody well live there.

 

[thegreig]

Need to explore Ballarat. Someone like a North or Western Bulldogs needs to look into taking a few games there a year. there is potential to draw an extra 5-10k paid members from what ive heard from many locals ive spoken to

The Western Bulldogs will be playing two (possibly 3) games at Eureka Stadium in Ballarat from the 2017 season onward.
http://www.thecourier.com.au/story/...-play-two-afl-games-in-ballarat-every-season/

didn't the Andrews labour government promise to up grade the stadium out there?

He did and has delivered on his promise.
http://www.westernbulldogs.com.au/news/2015-06-17/eureka-stadium-funding-confirmed

 

[SugarHealey]

I thought this post was probably best placed here, rather than in the larger discussion about the tv deal - it's really more focused on stadia.

The title really says it all.

For over a decade we've had the smaller clubs getting reamed by terrible deals at Etihad Stadium. As we know, the AFL takes ownership of the stadium in 2025, and once a year we get some newspaper articles talking about how the AFL would like to take it earlier to resolve the rubbish agreements, but that the current owners are asking too much.

Throughout that time, also about once a year, a major figure from a poor team getting screwed by Etihad calls for a boutique stadium to be built in Melbourne - this year it was Peter Gordon's turn.

So with the AFL about to be rolling in money from the new tv deal, what's the priority? I don't imagine the current Etihad owners are about to lower their price knowing how much money the AFL has... but is it worth building a new stadium if that's going to take 2 years, and if the AFL takes ownership in 2025 anyway?

I thought I'd throw it open and see what others thought, because in weighing up pro's and cons, I'm buggered if I know which option I prefer. I do know that, now I live in Melbourne, calls for the redevelopment of Princess Park confuse me... there's no parking and it's rubbish to get to! (I can't imagine how people used to deal with Waverley!)

That said... I guess you're not about to get any more land that's within walking distance of the CBD/city train stations... If pushed, I'd probably lean towards just buying out Etihad, but I'm curious to hear what others reckon.

I'd like to see the AFL build a Boutique stadium at Dandenong Sth. servicing the Eastern suburbs, the Mornington peninsular, the Sth & East Gippsland communities.
So it should be built in easy access to both the rail lines servicing East Gippsland & the Cranbourne region.

The AFL should maintain etihad stadium, until its handover to the AFL @ the end of current agreements. & just prior to handover, the AFL IMO should start to develop 'Eastgate', Or the 'Footscray ground', into a Boutique stadium as well.
Leaving the AFL with the MCG, & 3 boutique stadiums; Geelong, Dandenong, & Eastgate/Footscray stadiums. At this point it might be right to sell etihad for redevelopment.

 

[FootyJunkie]

will the dogs play any night games at ballarat?

 

[bombersfan4000]

will the dogs play any night games at ballarat?

Probably deoend on local council and residents on approval of lighting towers. Their is usually one or two cranky local residents who kick up a fuss

 

[JD Tomahawk]

The ballarat idea for the doggies will be every bit as successful as hawks and tassie or giants and canberra. They'll get a fair few members, like existing fans that can now see them often and kids.
The stadium should be enclosed right the way round eventually.
They should move there full time by 2020. Western Victoria bulldogs

 

[TropperFarquhar]

Know a lot of people in the construction industry at firms such as Mirvac and Lend Lease and a lot are saying the AFL will be buidling a boutique stadium where Olympic Park is now.

 

[bombersfan4000]

Know a lot of people in the construction industry at firms such as Mirvac and Lend Lease and a lot are saying the AFL will be buidling a boutique stadium where Olympic Park is now.

If Eddie magconflict of interest has his way he would be making sure the pies would have their fingers in the pie. Aamii park is a good stadium, that spot where the pies are now would be a great spot for another stadium

 

[TropperFarquhar]

That is my understanding.

They will build a stadium around the new Glasshouse development.

 

[Ned_Flanders]

Know a lot of people in the construction industry at firms such as Mirvac and Lend Lease and a lot are saying the AFL will be buidling a boutique stadium where Olympic Park is now.

Isn't that just for the pies though?

Isn't it the new training oval they got when they booted the Athletes out?

 

[bombersfan4000]

That is my understanding.

They will build a stadium around the new Glasshouse development.

Not a chance Eddie and pies have a lease on that place now. Eddie has used millions of tax payers funding to build the pies new training facility

 

[JD Tomahawk]

Interesting... The afl will probably forget etihad and use this new stadium. I wonder how long they'll keep it a secret before they make an announcement

 

[TropperFarquhar]

The AFL had a study and 3 venues were looked at, Princess Park, Punt Road & Olympic Park. Olympic Park was deemed as the best venue to build a boutique stadium.

Olympic Park has MCG standard lights and it's the easiest ground to build around apparently.

 

[RussellEbertHandball]

Neither option should be taken.

Docklands selling price goes down by about $12-$15mil every year before the 31/12/2025 hand over. Thats a pretty decent incentive not to buy it if the AFL is subsidising the 5 home clubs with only $10mil extra distributions to cover the poor net stadium yield. Plus there is all the maintenance costs and if they owned the stadium they would have to employ a stadium management team which all up might be another $7-$15mil cash out goings given both recurrent + long capital maintenance costs usually anually average at about 2% of original construction costs.

Build a 30,000 seater and you are looking at $5k to $10k per seat cost depending how basic or fancy you want it. Now the banks will give the AFL a 10 year loan but they might be able get a 20 year loan from the banks. Either way capital and interest payments plus maintence costs and setting up a stadium management divison at the AFL is still a more expensive option than waiting 10 years and 2 weeks to take over Docklands and keeping up the current subsidies.

Now if you get a government to pay for one or both alternatives then thats a different situation and I read the thread headline as the AFL has to fully fund either option.