The size of the financial hole occupied by Dunedin Venues Management Ltd - the company tasked with running the Forsyth Barr Stadium - has been confirmed.
Figures released at a media conference this afternoon showed the company had lost $1.9 million in the first six months of the 2011-12 financial year.
Projected full-year results were yet to be released, but were expected to be worse.
Losses were now also expected for the following two financial years, and are expected to be confirmed when DVML releases an updated statement of intent later today.
The media briefing was fronted by Dunedin Mayor Dave Cull, Dunedin City Council chief executive Paul Orders and DVML chief executive David Davies.
Mr Davies told media "really challenging" trading conditions were to blame, in particular a failure to attract another major musical act to rival Sir Elton John or an All Blacks test match in the current financial year.
That meant lower-than-expected revenue from stadium rent, tickets, food and beverage sales and merchandising, he said.
Mr Cull said the cost of operating the new venue was now becoming clear, but a review was needed to examine the operating model underpinning the stadium and how to maximise the venue's value in future.