Hobart stadium business case

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It's true they said there's no team without a stadium. It's also true that there's nothing stopping anyone playing AFL football in Tasmania as we speak.
If the Tasmanian team is a success they will outgrow Bellreive oval immediately and they will need to build a stadium - in 5 years time when its more expensive and the current proposed location has been paved for hotels.

If they aren't successful, The tasmanian government will lose interest and stop funding the team and the AFL will be left propping up another club with even less upside that Gold Coast.

Forcing a new stadium gives the club the best chance of succeeding, and the best chance of keeping the Tasmanian government interested in the club.
 

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Probably need to ask all the anti's in Tasmania that one.
Well, as you mentioned the negative connotations apparently attached to the stadium running at a loss, I thought you would be able to expand on it for me.

As for me, I regard a new stadium as being public infrastructure, there for the public's benefit, so I am not sure why it would be a requirement for it to run at a profit.

If it was totally a private fund and build, of course I could see the requirement for it to be a profit making venture, but it's not that.

So I continually see this reference to the stadium being a potential loss-making thing, and I don't see how it is even relevant. And that's aside from the fact that it may generate a profit anyway.
 
Well, as you mentioned the negative connotations apparently attached to the stadium running at a loss, I thought you would be able to expand on it for me.

As for me, I regard a new stadium as being public infrastructure, there for the public's benefit, so I am not sure why it would be a requirement for it to run at a profit.

If it was totally a private fund and build, of course I could see the requirement for it to be a profit making venture, but it's not that.

So I continually see this reference to the stadium being a potential loss-making thing, and I don't see how it is even relevant. And that's aside from the fact that it may generate a profit anyway.
I agree with you,people just don't understand it's about the money it brings into the economy. Obviously you would hope it doesn't go to much over budget though otherwise those benefits soon disappear.

People are also concerned about the interest payments that have to be payed every year and maintenance costs. I think it will be very important they get private investors on board otherwise the government will have no choice but to contribute more money towards it.

I will say I see Regatta Point still being an option considering the huge opposition to the current location with the TSO the latest to express they're disapproval. The amount of groups against Mac 1.0 just continues to grow so I think a late twist in the stadium built could change.
 
What loss?

PwC has assessed that the new stadium will inject $300 million into the Tasmanian economy during construction. Once built, the stadium will generate $85 million in additional economic activity and 950 jobs in each year of operations. This is in addition to the $120 million forecast to be generated by Tasmania’s own AFL and AFLW team per annum.

Macquarie Point Stadium is estimated to attract up to 420,000 attendees each year, contributing $162 million in indirect expenditure annually.

The new stadium in Hobart is estimated to contribute $85 million directly and indirectly in gross state product annually or $2.2 billion over 25 years.

PwC has also analysed the economic impact that would be generated by commercial land in the precinct, outside the stadium development. Commercial activity from developments in the 3 hectares available could generate up to a further 6,720 jobs and $6.4 million in revenue during operations, excluding construction benefits. This includes provision for an Antarctic SciencePrecinct and a dedicated space for community and cultural development.

Is that the same PWC who were found to be exploiting confidential government tax information to help their corporate clients avoid tax? Just saying.
 
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Between the Liberal and Labor party there are enough votes to ensure that the stadium passes the Parliament, it also has support of the Federal Labor Government.

Here is the simple truth, at the end of the day there is already too much money and contracts committed to the stadium for the project to simply fall over.

Yes, but the Labor party has pledged to keep the Liberals to their original costings, and they still need several independents to pass the legislation, through two houses of parliament. If you knew anything about Tasmania even the most straight forward project can fall over.
 
I just don't get the negative Nellie's. I keep hearing "bands won't go to Tassie". The Killers just announced a tour to Australia and are playing a one off concert at the newish Townsville stadium. Townsville has a slightly smaller population than Hobart.

Build a decent stadium and people will turn up to the footy, cricket and concerts. The stadium will be the making of tassie.

Yes, but they don't have to ship a dozen or so containers back and forth from the mainland, the cost is stupid.
 
The afl has always said that getting a team was conditional on a purpose built stadium.

All of the funding is in place, nearly 200,000 members are keen (albeit @ $10 each) so if Tassie fumbles the ball they won't have anyone to blame but themselves.

Yeah, most people would pick up a membership for a team at $10, even for a team which doesn't yet exist. There is a lot of love for the Tassie project in club land, not so much in the state at the asking price. Most people here drive HiLux pickups, not Mercedes Benz.
 
I don't think you have to look much further than Adelaide and Perth to see the benefits of building a state of the art stadium in close proximity to the cities CBD. Both stadiums were very expense but both states have not looked back on the what the building has done to the culture, economics and relevance of each city. Hobart will attract additional events and, more importantly, significantly more tourism than it did previously. This then has a trickle on effect to business, sponsorship and even increased population.

I believe you under estimate the AFL's resolve in this instance. They will happily walk away from this license if their requirements are not meet. They do not want the Devils to become a financial burden on the competition and want any new team to be profitable and, its legacy to be a success for the club, competition and state.

The AFL are not interested in renegotiating the license. Any demand to do so will mean the end of this license and decades of further work for the state to try to enter in the league once again. The state agreed and needs to stand by that. They will not regret it despite a small minority of neigh-sayers beating their chests. Be reassured with the history of Adelaide and Perth's experiences. Your state with flourish as a result.

Like most mainlanders you fail to understand we are the poorest state by far on GDP. You think the AFL doesn't want this to become a burden upon the competition, what about it being a burden upon a whole state's social services? Everything here costs more due to freight, we can't afford this I agree. Gilligan came over and bedazzled Gutwein with tales of national relevance and he gave him a blank cheque this state can't afford to cash. Most people here don't even follow the AFL, it's a myth.
 

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If the Killers were playing Melbourne and Brisbane the costs to send their gear from Melbourne to Hobart and Brisbane to Townsville would be comparable.
Really you know this for certain? So their dozen odd containers get loaded onto a ferry in Geelong and sent to Devonport to be unloaded. Then driven to Hobart and back again, reloaded onto a ferry and back to Geelong to be unloaded.

So about 50 hours of travel, doing nothing, plus massive shipping costs (Victoria has been screwing us over freight cost since forever, it's a bit better now we ship to Geelong rather than Port Melbourne but still ridiculous, but what other choice do we have)?

You have no idea how much sea freight costs and times affect this state, do you now?
 
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Really you know this for certain? So their dozen odd containers get loaded onto a ferry in Geelong and sent to Devonport to be unloaded. Then driven to Hobart and back again, reloaded onto a ferry and back to Geelong to be unloaded.

So about 50 hours of travel, doing nothing, plus massive shipping costs (Victoria has been screwing us over freight cost since forever, it's a bit better now we ship to Geelong rather than Port Melbourne but still ridiculous, but what other choice do we have)?

You have no idea how much sea freight costs and times affect this state, do you now?
Band gear is flown in planes or shipped in trucks. Bands don't go off the road for months waiting for their gear to arrive in Australia via boat
 
The thing with this is many opposed believe the huge cost and potential overruns along with the stadium running at a loss will cancel all those benefits out. They talk about the interest that has to be payed every year on it and the fact the federal government contribution is for the whole precinct not just the stadium with it not GST exempt.

The state government has capped it's spend at $375 million, but that will mean a lot will have to be found from private investors including potential overruns. I'm not sure if private investors will be interested considering it's expected to run at a loss but apparently a fair few have shown interest.

The big question is will it bring a lot of benefit or will it end up being a constant strain on the state. I'm hopeful it will be successful, but the proposal definitely looks rocky so I'm not sure. I would be interested to know if the afl would still renegotiate the deal if the stadium is knocked back and that definitely couldn't be ruled out in anti Tasmania. It would be a huge loss to lose our afl team we have pushed for around 100 years for.

I struggle to see that the afl could walk away from the team now even if the stadium is knocked back. They have already done a lot of work on the team and the High Performance Centre will be under construction when the stadium decision is made. If the team falls over now I would be extremely surprised because so much time has been put in to it.
This is pretty much what I've been expecting from the outset. Promising a stadium is easy, standing up a team is not costly or complex in the scheme of things. Building a roofed stadium in a state with the tax base of less than 600k people and a largely farming economy is just wild. Like it's a Donald Trump promise, if you take it seriously then that's on you.
 
Really you know this for certain? So their dozen odd containers get loaded onto a ferry in Geelong and sent to Devonport to be unloaded. Then driven to Hobart and back again, reloaded onto a ferry and back to Geelong to be unloaded.

So about 50 hours of travel, doing nothing, plus massive shipping costs (Victoria has been screwing us over freight cost since forever, it's a bit better now we ship to Geelong rather than Port Melbourne but still ridiculous, but what other choice do we have)?

You have no idea how much sea freight costs and times affect this state, do you now?
I love in SA and I remember trying to explain this to people when we had the power outage and were shutting down the pt Augusta power station at the same time.

We shut down the coal fired power station because we ran out of coal. BuT tHeRe'S hEaPs Of CoAl iN qLd! Yeah nah that's out. Also South Australian gas is pipelined mostly through QLD so we "export" gas but we can't get it here to build a power station for. We're getting real close to 100% renewables through lack of choice. Upshot is power in SA has been getting cheaper year on year basically because of that
 
I'm not sure I follow the argument for more bands visiting Tasmania because of the stadium. Granted I don't follow truly huge artists like Coldplay and Kylie Minogue, but the likes of Perth and Adelaide often miss out on shows when bands decide they'll only hit the eastern seaboard. Maybe they'll get a massive artist like the Foo Fighters down there every once in a while but I'm not sold on how often that will really happen and subsequently how far such benefits would extend.
 
Yes, because flying gear in is so much cheaper than shipping, the trucks can't drive over Bass strait, you know that right?
Listen, I dunno the costs of flying band gear. But flying raw materials and the products I produce is wildly expensive and significantly more than getting a ton/pallet to Tassie. Rail freight/road freight is relatively cheap (rail can be slow though).
 
Listen, I dunno the costs of flying band gear. But flying raw materials and the products I produce is wildly expensive and significantly more than getting a ton/pallet to Tassie. Rail freight/road freight is relatively cheap (rail can be slow though).

The airports here can't take cargo planes that can carry container loads anyway, both Launceston and Hobart are relatively small, domestic airports. So, any containers would have to be stripped, the gear put on in smaller pallet cons (that's if it even fits) and then sent.

Unloaded here, reloaded after the event, sent back to the mainland and decanted back into trucking containers.

On top of the cost of airfreight, which you rightly point out is extortionate, it's all just more time and money that needs to be spent, when they can just play an extra date somewhere on the mainland.
 
The airports here can't take cargo planes that can carry container loads anyway, both Launceston and Hobart are relatively small, domestic airports. So, any containers would have to be stripped, the gear put on in smaller pallet cons (that's if it even fits) and then sent.

Unloaded here, reloaded after the event, sent back to the mainland and decanted back into trucking containers.

On top of the cost of airfreight, which you rightly point out is extortionate, it's all just more time and money that needs to be spent, when they can just play an extra date somewhere on the mainland.
As someone who worked with a festival that railfreighted around Aus and shipped to Auckland, I thing you are making too much of this.

Population is a big issue for gigs though, I’ll admit that.
 
As someone who worked with a festival that railfreighted around Aus and shipped to Auckland, I thing you are making too much of this.

Population is a big issue for gigs though, I’ll admit that.

I was replying to someone who suggested airfreight to get around the shipping time turnaround to come here and felt you made some good points, and yes population is the real killer. Even Newcastle has the same as Tasmania, without the north/south divide or freight on-costs. A bespoke stadium can't fix that.
 

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Hobart stadium business case

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