Latest News

Back to Latest News back

 

Planned new Townsville Stadium not financially viable

Planned new Townsville Stadium not financially viable
May 21, 2016

With calls for the next Federal Government to back the development of a new Townsville Stadium having emerged as a key election issue in the marginal constituency, a benefit cost ratio (BCR) analysis has suggested that the venue is not financially viable and will cost taxpayers half a billion dollars in its first 30 years in operation.

While Labor leader Bill Shorten has promised $100 million for a new Townsville Stadium - to match the state Queensland Government's $100 million pledge - the Australian Financial Review has reported that the project wil not deliver a positive BCR.

A positive BCR - where the benefits outweigh the costs - is required to receive any funding from Infrastructure Australia.

The new 25,000 seat stadium in Townsville - which would only have an estimated 13 event days a year for home games for the North Queensland Cowboys - received a rating of 0.214 in the Queensland Government's business case to Infrastructure Australia, obtained by the Australian Financial Review.

The business case prepared by the Queensland Department of State Development - which has never been publicly released - has led critics to suggest that Shorten's support for the stadium, which would replace the current 1300Smiles Stadium, as a ‘stunt’ aimed at attracting votes.

The business case, which was signed off by the Queensland Government in November, found the capital cost of a new stadium was likely to be $250 million (other estimates have been $380 million, ed), but the full cost of the stadium over 30 years would top $530 million in 2015 dollars.

A stadium with an integrated 5,800-seat entertainment centre, as preferred by the Townsville City Council, would cost $380 million to build, but cost $785.3 million over the same timeframe.

The sensitivity analysis found the net benefit of the Stadium - the difference between the present value of the total benefits and the costs - was a $170 million loss.

However, the report argued that the economic position would improve if the stadium had multiple tenants.

The business case noted public stadiums struggled to deliver a financial return to state or local governments, but there would be wider economic and social benefits for the city.

It explained “notwithstanding the low BCR, the business case noted that the best-practice regional stadium offers significant potential for the catalytic development in Townsville, providing activation of the surrounding area and favourable community benefit uplift.”

The document said despite the stadium not being financially viable there were a number of social and community benefits, including "increased levels of social cohesion and well-being in the community".

Backing calls for funding, the North Queensland Cowboys have warned they may be forced to leave Townsville within five years if the stadium is not built.

Image shows an artist's impression of the planned venue.

2nd May 2016 - TOWNSVILLE STADIUM BACKERS DEMAND MORE GOVERNMENT FUNDING

14th March 2016 - TOWNSVILLE NORTH QUEENSLAND EVENTS HUB AIMS TO BOOST BUSINESS

18th December 2015 - MOMENTUM GROWS FOR NEW TOWNSVILLE STADIUM

5th October 2015 - HISTORIC WIN GIVES IMPETUS TO PLANS FOR NEW TOWNSVILLE STADIUM

 


Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

DEBITSUCCESS

Over the past 10 years Debitsuccess has been providing expert billing services to businesses across Australia. Debitsuccess is now the largest full service direct debit provider in Australasia,…

read more

Billing / Finance / Fitness / Golf / Recreation

 
 

Centaman Entrance Control

Turnstile Entry Systems and Access Control Centaman Entrance Controls’ Award Winning Range of Access Control Systems includes tripod & triarm turnstiles, speedgates, full height…

read more

Access / Entertainment / Sport / Ticketing / Venues

 
 

The Pool Enclosure Company

Welcome to The Pool Enclosure Company (TPEC). We provide a large range of premium commercial and residential retractable swimming pool, spa and terrace enclosures throughout Australia, servicing…

read more

Aquatics / Design / Recreation / Venues

 
 

SLE WORLDWIDE AUSTRALIA PTY LTD

SLE Worldwide Australia is a Managing General Underwriter specialising in insuring risks in the world of Sports, Leisure and Entertainment. Be it relaxing, playing, organising or watching sports,…

read more

Insurance / Venues

 
 

REGUPOL

Regupol Australia Pty Ltd offers a comprehensive range of recycled rubber fitness and leisure flooring surfaces. Their range of products include everroll rubber flooring, Regupol elastic…

read more

Fitness / Recreation / Safety / Surfaces

 
 

PULSETEC SOLUTIONS

PulseTec Solutions is a leading provider of software systems and solutions to the health and fitness industry for more than a decade. Our key products and services include ClientConnect studio and…

read more

Access / Fitness / Marketing / Technology / Venues

 
 

Myzone

Myzone is the industry’s leading wearable technology solution. Myzone’s wearable products show and reward effort when you work out. It displays accurate real-time heart rate, calories, and…

read more

Fitness / Sport / Technology / Wellness

 
 

ELITE POOL COVERS

Since 1989 Elite Pool Covers have designed and manufactured an extensive range of high quality affordable manual,semi-automatic and fully-automatic pool cover systems for the harsh Australian…

read more

Aquatics / Environment / Technology / Venues

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business