Report reveals planned new Hobart Stadium will incur $171 million maintenance costs over 30 years

January 8, 2025

Nigel Benton

New details about the costs of Hobart’s proposed AFL stadium have revealed that the venue will incur costs - in addition to its construction cost - of $171 million over 30 years for maintenance and upkeep.

The information follows the release last week of a Tasmanian Government-commissioned independent report that suggested that the new venue will likely cost more than $1 billion to build, a significant rise on the project’s projected price tag of $775 million.

Obtained by the ABC, the report from Macquarie Point Development Corporation (MPDC) shows the cost of construction delays, the amount being spent on consultants and how much the venue’s experimental translucent roof will cost.

With MPDC having previously only publicly released an abridged four-page estimate, the full document runs to 106 pages and includes until-now unreleased costs.

The maintenance costs includes $62 million in upkeep for the experimental roof, $21 million for facade costs, $19 million market loading for non-local trades, and $10 million for electrical and IT.

The document - completed by quantity surveyor WT Partnership in July - also estimates that a 12-month delay in construction would see the stadium costs increase by $82 million to $857 million.

It shows MPDC will spend at least $65 million on consultant fees, including for architects, building surveyors and construction advisers, which is included in the total stadium cost.

The cost estimates have a lengthy list of new items not yet accounted for, including pitch equipment, financing and legal costs, control room fit-outs and Stadiums Tasmania offices.

The AFL's contract with the Tasmanian Government includes a requirement for a fixed ethylene tetrafluoroethylene roof, and stipulates that the Tasmanian Government is responsible for the management of cost overruns.

A spokesperson for MPDC told the ABC that the lifecycle cost were only an early estimate, stating “the lifecycle costs developed to date are estimates only at this early stage, and were compiled to inform the economic modelling and analysis required for the Project of State Significance application.

"The actual approach to maintenance and management of the multipurpose stadium will be further assessed and considered to support efficient management by the owner and operator of the facility, and will be offset by any revenue generated."

The previously released business case for the venue, by KPMG, estimated that it would have a $2.14 million operating deficit, excluding lifecycle costs.

The Tasmanian Government is believed to be pursuing a "design, build, finance and maintain" model, similar to how Optus Stadium in Perth was financed and constructed.

The private consortium would have responsibility for financing, management and maintenance of the precinct, with the government to make payments to it over the life of the deal, likely to be 25 or 30 years.

Tasmanian Premier Jeremy Rockliff has repeatedly promised the state will not spend any more than $375 million on the stadium.

When complete, the venue will be owned and operated by Stadiums Tasmania.

Image: The ABC has obtained a detailed cost estimate document for the proposed Hobart Stadium from the MPDC under right to information laws. Credit: MPDC.

About the author

Nigel Benton

Co-founder/Publisher, Australasian Leisure Management

Born in the English county of Dorset, Nigel Benton is the co-founder and Publisher of Australasian Leisure Management, Australia, New Zealand and the Asia-Pacific’s only magazine for professionals in all areas of the leisure industry and the www.ausleisure.com.au website - the go to news resource for industry leaders and professionals.

With a long-term commitment to communicating all that is best about the leisure industry (aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues) his career has been defined by an ability to develop and implement industry communications.

Starting his career working in heritage visitor attractions and then adventure travel in Africa and the Middle East, an interest in writing about his experiences led to his change of career into magazine journalism and publishing.

In addition to publishing, Nigel speaks on marketing communications at a range of industry events.

He was made a Life Member of the World Leisure and Recreation Association in 2006 and is a Fellow of the Royal Geographical Society (London).

In 2020, he launched the new Asian Leisure Business website.

As of October 2024, he was inducted into the Australian Fitness Awards Roll of Honour at the 2024 AUSactive National Awards.

Among a range of published works and features, his comments on a Blog (blogspot) from 2007 to 2011, when this website went live in its current form, may be interesting to reflect back on.

His philosophy on life is to be kind to all and to indulge those that you love.

His passions include family, Newcastle United and motorcycles (especially British ones) as well, until February 2025 when she left us, caring a little pug named Stella.

Click here to connect with him via LinkedIn.