Docklands - Buy early or wait til 2025

[RussellEbertHandball]

Probably worth noting this is after financing costs..

No its operating revenue before financing costs. Docklands owners lost $16.7mil for the year ended 31 December 2013. From the story I linked.

The financial report of the stadium’s owner, Stadium Operations Limited, revealed net operating profit reached about $4.8 million in 2013, up from $3.9 million the year before.

Total revenue rose by about 10 per cent to $79 million. However, the stadium’s net loss after about $21 million worth of interest expenses was $16.7 million, down slightly from the $17.3 million loss recorded in 2012.

 

[theflea]

Going on the 79M revenue(before interest payments), that's not a bad increase in revenue for the AFL once the stadium is ours.

 

[RussellEbertHandball]

And thats why it makes sense to wait. There is a $199m loan in the stadium's books which is about how much the AFL would have to payto buy it now and most of that payment would be debt financed. Wait 10.75 years and they get all that revenue - no debt associated with the stadium all for $30.

 

[theflea]

And thats why it makes sense to wait. There is a $199m loan in the stadium's books which is about how much the AFL would have to payto buy it now and most of that payment would be debt financed. Wait 10.75 years and they get all that revenue - no debt associated with the stadium all for $30.

Yep agree. Cheaper to assist the difference up to min mcg standards to those clubs. In the Collins piece on inside footy, he stated the payment was $1 for the stadium in 2025.

 

[Our Game]

I think the AFL will do the right thing as there are some very shrewd business people on the commission that will know when the time is to the best advantage to the league.