Forsyth Barr Stadium under construction in June. Photo / Getty Images
Dunedin's new indoor Forsyth Barr Stadium, racing to be completed in time for the Rugby World Cup, is set to lose $400,000 when it hosts three Rugby World Cup pool matches in September.
Dunedin City Council-owned stadium operator Dunedin Venues Ltd (DVL) will host the games rent-free, and Rugby World
Cup 2011 will receive the revenue.
Estimates prepared nearly three years ago suggested a loss of no more than $50,000, DVL chief executive David Davies told the Otago Daily Times.
However, that was prepared before the world cup contracts were released and were based on hosting the games at the city's former main rugby ground, Carisbrook.
DVL has warned city councillors to expect a $400,000 loss from the cup.
The contract was the same as other stadiums, but the nature of the contract meant costs could not easily be clawed back, he said.
"The vast majority of the costs are picked up by the stadium," he said.
Rugby World Cup 2011 would get the ticket money, proceeds from merchandise sale and whatever was spent at the stadium's lounges and bars.
"It will make a loss and that is the way it is for these sort of events, as it is for Fifa (international soccer) events or IAAF (international athletics) events, who see it as a privilege to have a world-class event."
The $200 million stadium faced massive opposition from groups concerned about the rising cost of the Carisbrook replacement project. Following legal challenges the Court of Appeal eventually ruled in favour of the council.
Carisbrook Stadium Trust chairman Malcolm Farry said it was widely telegraphed that the stadium would not make money from the cup.
"Events such as these are never windfalls for stadia and, in the case of the Forsyth Barr Stadium... the spinoff will be in the number of tourists that come for the event."
- NZPA
