News AFL Close to Purchasing Etihad

[dewah07]

will provide more benefits to the club than any laverde + marchbank combined, today has been a great day for the club, you can take that to the bank

Deal would pave way for new-look Etihad
THE AFL is on the brink of buying Etihad Stadium in a win for Victorian fans.

AFL CEO Gillon McLachlan confirmed the league was getting closer to securing the maligned venue.

The Herald Sun reported “significant movement” in talks between league chiefs and the consortium that operates the Docklands ground and a sale worth about $150 million is tipped before Christmas.

McLachlan said the AFL wanted to make the stadium better for fans and tenant clubs.

“There’s a chance, there’s a chance six months ago, a chance a year ago, we just keep chipping away, yeah, there’s a chance (sale finalised before the end of the year),” McLachlan said on 3AW.

“Really what we want to do is make it better, spend money in the stadium for our supporters and our fans and also our tenant deals for our clubs so they make some money.”

The AFL plans a $300 million revamp of Etihad Stadium.

The vision is to open the stadium up to the Docklands waterfront.
The AFL could take ownership of the stadium for just $30 in March 2025, but has been negotiating its early release.

A deal would dramatically improve gate returns for three of the stadium’s five tenant clubs — North Melbourne, St Kilda and the Western Bulldogs. Essendon and Carlton have different arrangements.

The AFL is planning a $300 million revamp of Etihad Stadium, including a new waterside gateway, open-air bars, restaurants, parks and a running track, as revealed by the Herald Sun earlier this year.

The league hopes an overhaul of Etihad would kill off a rival plan pitched by Collingwood president Eddie McGuire to build a $1 billion stadium next door to the MCG.

But a redevelopment is dependent on the State Government forking out the costs.

McGuire’s concept involves the bulldozing and sale of Etihad and construction of a 60,000-seat venue in Melbourne Park.

Commercial real estate experts estimate that if the AFL decided to sell the 7.5ha Etihad Stadium site to developers, it could reap a $1.3 billion payday.

A state government taskforce was established in June to decide the future of Melbourne’s sporting stadiums and precincts.

The Cabinet committee, led by Premier Daniel Andrews, is exploring a series of proposed redevelopments of Punt Rd, Brunton Ave, Richmond railway station, Olympic Park and the Docklands.

Plans to build over the railway tracks that separate the MCG from the Melbourne Park Tennis Centre are also being examined.

michael.warner@news.com.au

http://www.heraldsun.com.au/news/vi...s/news-story/8b5243944f24ebd4e3b8ba1c57dd2639

 

[cooperrules]

now this good news

 

[Gangnam Saint]

Think we just cashed our "Get out of jail free" card.
Huge news for the club.

 

[AFLOnline]

It seems strange for the AFL to buy it out so early in the lease for $150m or whatever.

Yeah it helps clubs like us make some dough, but if they can get it for $30 in 8 years, why wouldn't they just continue to support us and other clubs financially during this time? Surely that would be cheaper than going out and splashing $150m like it's nothing?

Either way, this is great for us. Such an underrated stadium. I am a massive etihad fan. Everything about it (besides the clubs stadium deals) is good imo.

 

[Gangnam Saint]

It seems strange for the AFL to buy it out so early in the lease for $150m or whatever.

Yeah it helps clubs like us make some dough, but if they can get it for $30 in 8 years, why wouldn't they just continue to support us and other clubs financially during this time? Surely that would be cheaper than going out and splashing $150m like it's nothing?

Either way, this is great for us. Such an underrated stadium. I am a massive etihad fan. Everything about it (besides the clubs stadium deals) is good imo.

It will be cheaper to buy it out now. The lease contains a financing cost component.
And there's the revenue generated from other events held there which the AFL should pick up.

 

[StCicatriz]

It seems strange for the AFL to buy it out so early in the lease for $150m or whatever.

Yeah it helps clubs like us make some dough, but if they can get it for $30 in 8 years, why wouldn't they just continue to support us and other clubs financially during this time? Surely that would be cheaper than going out and splashing $150m like it's nothing?

Either way, this is great for us. Such an underrated stadium. I am a massive etihad fan. Everything about it (besides the clubs stadium deals) is good imo.

because the combined loss of income for those 8 years probably exceeds 150m or what ever they want to buy it for, plus there's maintenance issues and whole host of other potential problems

i think people might be surprised by how much a stadium costs to run after this and that our gate probably doesnt magically improve over night

 

[Tommy Wigs]

I didn't quie follow on what the improvements are to be?

 

[sauce_head]

Essendon and Carlton have different arrangements.

****ers.

We have put 800,000 more people through that stadium than any other club. The AFL owe us more than any other tenant.

 

[sauce_head]

because the combined loss of income for those 8 years probably exceeds 150m or what ever they want to buy it for, plus there's maintenance issues and whole host of other potential problems

i think people might be surprised by how much a stadium costs to run after this and that our gate probably doesnt magically improve over night

It does if you don't have to pay rent.

 

[Dopey BJ]

I didn't quie follow on what the improvements are to be?

The side that faces the harbour is going to be opened with bars and eaterys with harbour views, should generate non footy revenue

 

[PoppedCorn]

If the combined loss of 3 clubs over 8 years is over 150 mill then fmd something needs to be done now
So 150 purchase and 300 to spend on it
Nearly half a billion coins

As local leagues around the country struggle with infrastructure and numbers
The league I played in collapse a few years ago.
Many are going this way

 

[Hayes4PM]

Gil: Let's just buy Etihad ya know? Make our own deals and stuff?
AFL Execs: Ok, but, why..?
Gil: Just a good business call you know, have another stadium, amirite? Let's do it! *whispers into lapel* I think they've made me, going to have to back off for a bit. Over.

 

[Sunnyjim]

Wait why does the AFL only have to pay $30 in 2025?

 

[dewah07]

Wait why does the AFL only have to pay $30 in 2025?

pre arranged buy out with clauses to buy out earlier

 

[Nutsngum]

One of the things is that the $30 handover also includes refurbishment of the stadium by the current owners so they might be interested in cutting a deal early to avoid that massive expenditure whilst the AFL doesnt have to worry about an already "aging" stadium being left for another 9 years before a facelift.

 

[StFly]

Wait why does the AFL only have to pay $30 in 2025?

The AFL outlayed 30mil in '99 to build it under the proviso that at a set date they would pay a nominal fee to then become outright owner of stadium, similar to how the MCG has the MCC, so from the interim to this point a consortium effectively runs the business side of the stadium and the AFL simply doesn't pay to play there, whereas it does pay to play at the MCG.

In essence the AFL Commission is defato owner of the Docklands Stadium, which is currently leased to some fund management company of some sort who maintain and run the stadium commercially during this time until the handover.

One of the things is that the $30 handover also includes refurbishment of the stadium by the current owners so they might be interested in cutting a deal early to avoid that massive expenditure whilst the AFL doesnt have to worry about an already "aging" stadium being left for another 9 years before a facelift.

Not as far as I'm aware it doesn't cover refurbishment. The current consortium needs to maintain the stadium in a working capacity and can of course upgrade in line with their commercial interests, but they are not required to upgrade and say provide leather upholstery to seating prior to vacating the stadium.

I would think the sticking point between the parties is the interest being paid on loans taken out and such, as when you're talking millions interest on loans would be hundreds of thousands on the scale of multipurpose stadium upkeep.

pre arranged buy out with clauses to buy out earlier

I don't think there are actual clauses to buy out earlier, otherwise the Commissions previous offer (250mil) under Andy D's watch, if reports were that it was 5-10mil off signing would have then been pushed through, since the AFL had the coin to do it and tabled the offer. That it didn't, effectively makes it a buyers market between the two until the handover point where it's enforced at a nominal cost which was previously agreed upon. That said, the AFL would need to re-buy Docklands stadium from the fund management consortium.

 

[STK2020]

Why cant the AFL just buy all of North Frankston ( pack of twisties , 1 sucked on cough drop ) and bulldoze the suburb and build a 100,000 seat stadium ?

 

[Sunnyjim]

Why cant the AFL just buy all of North Frankston ( pack of twisties , 1 sucked on cough drop ) and bulldoze the suburb and build a 100,000 seat stadium ?

Lol before they do that they n Ed to invest in spotless. If a prelim potential grand final team is playing in a ground that can only hold 25000 it is an embarrassment to the afl

 

[STK2020]

Lol before they do that they n Ed to invest in spotless. If a prelim potential grand final team is playing in a ground that can only hold 25000 it is an embarrassment to the afl

Na just kidding , my second option was to just turn North Frankanistan into a Jail.

 

[Nutsngum]

Not as far as I'm aware it doesn't cover refurbishment. The current consortium needs to maintain the stadium in a working capacity and can of course upgrade in line with their commercial interests, but they are not required to upgrade and say provide leather upholstery to seating prior to vacating the stadium.

http://www.heraldsun.com.au/sport/a...ter-deals-a-must/story-fni5f22o-1226880353943

Etihad Stadium is also required to spend money on the venue in coming years to hand it over as a state-of-the-art stadium as stipulated in its contract with the AFL.

I could have sworn I read in an article ages that the contract required an upgrade/refurb before handover but a quick google only brought that up so I could have misremembered or misinterpreted to an extent. Regardless it would be a lot of money "keeping it up to date" over the next 10 years.

 

[STK2020]

Maybe the AFL should look into purchasing Sandown Racecourse, perfect location for a 50,000 seat stadium. Any thoughts ?

 

[Dopey BJ]

Maybe the AFL should look into purchasing Sandown Racecourse, perfect location for a 50,000 seat stadium. Any thoughts ?

Perfect but I think it has already been sold for a housing development