Latest News

Back to Latest News back

 

Report suggests grim financial future for Auckland’s Eden Park

Report suggests grim financial future for Auckland’s Eden Park
January 11, 2019

New Zealand's largest stadium, Eden Park, could run up losses of nearly $80 million and be unable to afford an estimated $62 million of maintenance and upgrades in the next decade according to media reports.

An assessment by consultants Ernst and Young, obtained by Stuff, said the Eden Park Trust board probably wouldn't be able to pay even the interest bill on its almost $50 million of loans in 2019 and the future hosting of major events could be at risk.

The assessment was commissioned by Auckland Council, which runs rival venue and which has apparently been considering whether to bail out the venue that hosted the 2011 Rugby World Cup final.

The Council guarantees the repayment of Eden Park's $40 million loan from ASB Bank, which is due to expire in October and which the Trust apparently has no means to pay.

The report suggests a series of factors will impact Eden Park in the immediate future with a big cut in major sporting events being held at the venue.

In 2019, the stadium will host only one All Blacks test instead of two due to the Rugby World Cup in Japan, losing an estimated $1.4 million in revenue, while only two cricket internationals are being hosted instead of the usual four, and there will be one fewer Super Rugby match.

The report also suggests that the venue is facing a decline in revenue from other sources.

The report said Eden Park management thought up to eight of 18 corporate suites may not be renewed after leases expired last October, with revenue forecast to fall to $3.6 million in 2019 from $4.3 million two years ago.

Membership numbers are also predicted to see a fall in revenue of $1.2 million over two years.

The cumulative effect is the stadium's revenue falling 14.7% next year to $14.1 million – 62% lower than two years earlier.

The reduced cash flow is expected to impact maintenance such as replacing the turf at Eden Park, floodlighting and big video screens.

The Ernst and Young assessment advised “should major capital expenditure projects remain unfunded, it may result in an inability for Eden Park to host major events.”

Floodlighting at the venue failed during testing prior to a day/night cricket match last March, and Ernst and Young said management believed failure could recur without replacement, costing $5.6 million.

Ernst and Young also said that the 15-year-old turf should be replaced every seven years, with an estimated bill of $1.5 million.

Eden Park management has been increasingly entrepreneurial over recent years with a range of initiatives including a nine-hole golf tournament, haka experience tour and a growing program of non-sporting events. However, plans for concerts, including a charity concert originally scheduled for this year have been prevented by planning delays and opposition from some local residents.

The stadium is owned by a Trust board with five of its nine members appointed by the New Zealand Government, with others appointed by the Auckland Rugby Union and Auckland Cricket Association.

Click here to view the original report in Stuff.

Related Articles

4th December 2018 - Eden Park to host extravaganza for sport lovers

16th November 2018 - New Zealand secures 2021 Women’s Rugby World Cup hosting

13th November 2018 - Eden Park converts to a nine-hole golf course to amazing reviews

6th November 2018 - Eden Park to launch Haka Experience tour

24th October 2018 - Eden Park team retains Australasian Leisure Management communication and marketing award

16th October 2018 - Eden Park to host 2018 EVANZ Annual Conference

24th September 2018 - Board appointments to Eden Park Trust and Drug Free Sport New Zealand

21st September 2018 - Organisers report high demand for Rugby World Cup 2019 travel and hospitality packages

11th September 2018 - Eden Park merchandise wins at Australasian Promotional Product Association awards

30th August 2018 - Eden Park gets lighting makeover

3rd August 2018 - Eden Park looks to welcome Nitro Circus

22nd July 2018 - Massive backing for planned 2019 charity concert at Auckland’s Eden Park


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

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

 
 

Pico Play

Pico is a global leader in Total Brand Activation. We specialise in engaging people, creating experiences and activating brands. Leveraging a track record in experience design that spans half a…

read more

Attractions / Consultants / Design / Recreation / Venues

 
 

Aflex Inflatables

Aflex Inflatables are the leaders for obstacle courses, pool toys, waterparks and land-based watersides and fitness runs. They are industry leaders offering the widest range of pool, lake and beach…

read more

Aquatics / Play / Waterparks

 
 

Clubware

Clubware’s online gym software is not your run of the mill management system. It has been carefully designed to incorporate all the elements that a fitness club would need. How did we do that?…

read more

Access / Billing / Fitness / Recreation

 
 

Aussie Strength

We are Aussie Strength. The ultimate supplier for Commercial Gym Equipment that's built to deliver in the toughest environments. From USA-Built hardcore weight training equipment from Arsenal…

read more

Fitness / Technology / Wellness

 
 

Digonex

Digonex is a leading provider of customised dynamic pricing solutions to clients in arts and entertainment, sport, attractions, cultural institutions and retail sectors. Digonex’s technology is…

read more

Attractions / Entertainment / Sport / Technology / Ticketing

 
 

Australian Innovative Systems

Australian Innovative Systems (AISystems) is a multi-award winning, Australian owned leader in the design, production and supply of commercial and residential chlorine generators and water…

read more

Aquatics / Safety / Technology

 
 

Sportybots

We are the leading providers of kids fun multi-sports programs for Sport and Recreation Centres. Programs cover twelve common sports as well as Gross Motor Skill Development and suit children from as…

read more

Fitness / Play / Recreation / Sport / Wellness

 
 
 
 

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