Tasmanian Government releases detail of deal with AFL for Hobart Stadium

May 22, 2023

Finance / Government / Sport / Venues /

The Tasmanian Government has released the 134-page document detailing the agreement it reached with the AFL for Tasmanian AFL and AFLW teams and a stadium at Hobart's Macquarie Point - with the deal confirming that the new venue is a clear requirement for the AFL’s 19^th club licence.

The document stipulates the financial risk for the Tasmanian Government detailing conditions, including a penalty of $4.5 million if the stadium construction is not 50% completed by October 2027 and another $4.5 million payment if the venue is not ready to host games by 2028.

With Tasmanian Premier Jeremy Rockliff having promised to release the deal "as soon as possible", following political pressure over what commitments were made to the AFL, the agreement was released yesterday.

Coinciding with the release, a statement from Premier Rockcliff advised that the document was “in line with our commitment to be open and transparent through this process.”

He added “we fully understand the strong community interest in this issue and with the cooling-off period now ended, we are able to release the agreement, as we said we would.

“The agreement clearly stipulates that a Tasmanian AFL licence is conditional on building a new stadium that is fit for purpose and will ensure a Tasmanian team is viable.”

The contract confirms the Tasmanian Government’s commitment to provide $12 million per year over 12 years in start-up costs, with a provision that if it is not considered financially sustainable at the end of this period, negotiations will restart into further funding.

If the Tasmanian Government does not agree to provide further funding at this stage, the AFL has the right to either move the club, or terminate the contract.

Requirement for the new stadium are that it has capacity for 23,000 spectators, with all to have "uninterrupted views of playing surface and video boards" and will feature a "fixed, translucent roof".

In addition, the playing surface for the oval must be "at least 159.5m by 128.5m (boundary line)" with the stadium available for a range of events "including AFL, soccer, cricket, rugby union/league, concerts, and cultural, convention and business events".

The document confirms the Tasmanian Government’s financial commitment of:

$60 million to assist in the establishment of the new team’s operations and to construct a high-performance centre for use by the team;
Operational funding of $12 million a year for 12 years (with CPI capped at 2.5% or CPI, whichever is lesser) from the team’s entry into the AFL and AFLW competitions.

The AFL will also invest $358 million into Tasmanian football as part of the deal, which will flow throughout communities and clubs with:

$15 million into the stadium;
$10 million into the club’s training and administration;
$90 million in game development;
$33 million into development of young male and female talent; and,
$210 million in distributions to the new club over the first 10 years

The agreement can be found here: www.stategrowth.tas.gov.au/news/tasmanian_club_funding_and_development_agreement

Images: Concept for the proposed Hobart stadium (top, credit: AFL) and Tasmanian Premier Jeremy Rockliff and AFL Chief Executive Gillon McLachlan sign the expansion agreement (below, Facebook: Jeremy Rockliff).

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22nd April 2023 - NBL exploring sale of Tasmania JackJumpers

23rd February 2023 - AFL makes $360 million commitment for Tasmanian team funding contingent on new Hobart stadium

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20th January 2023 - Cost-benefit analysis says proposed Hobart Stadium would deliver $306 million deficit over 20 years

23rd December 2022 - Tasmania Government presents business case for new Hobart stadium

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