John Key: Government won't be paying for Auckland waterfront stadium

John Key is against putting public money into a waterfront stadium for Auckland.

Prime Minister John Key says he would support the likes of rich-lister Eric Watson investing in a new stadium for downtown Auckland but says the Government won't be paying a cent.

Watson revealed to the Herald on Sunday he had already approached other potential investors to help fund a stadium project, saying "I believe in the benefits for Auckland".

Key said this morning that it wasn't a priority for Auckland.

"[I] Don't think we've got a great appetite to put money into that. We put a couple of hundred million into Eden Park, as I've been saying it's [Eden Park] not really in the right place, it doesn't have great consents, all of those sorts of things, but at a time when Auckland needs other infrastructure, turning around saying 'the waterfront stadium is a priority' would look a bit weird I think to Aucklanders and the rest of the country.

Key said he wouldn't stop anyone else investing in the project and thinks a waterfront stadium would be good for the city.

"We don't stand in the way of people wanting to make investments, so if they do want to make an investment and they can get the consents then why would we stop that process?" he told Paul Henry.

"But if you really think it through, who knows how much it's going to cost? We've seen estimates of a billion, we've seen some around $300 million. You've got to get the codes to actually agree. You've got to get the land down there.

"I personally think a waterfront stadium's a great thing. It works really well in Wellington. As I said Eden Park is in the wrong place, the problem is they put $190 million, the previous government, it sunk costs and realistically it just feels really difficult at the moment."

Listen: Eric Watson talks to Newstalk ZB's Mike Hosking

Watson said it was too early to say how much he was prepared to put in, but he would be an investor.

"The conversations ... have very much been around the concept and a number of people I've spoken to believe it is a great idea and are very enthusiastic to learn more. Hopefully that will translate into financial support.

"I am very enthusiastic and interested in seeing a downtown stadium for Auckland, assuming the plan is solid both for the build, its location, appropriate seating capacity and for its economic viability, I will assist with my networks where possible."

Watson is urging Auckland to "make it happen", calling for a new 35,000-seat downtown venue in a Herald on Sunday column.

The Herald on Sunday revealed yesterday the Auckland Council was approached last year by former America's Cup boss Stephen Barclay over private cash to build a new downtown stadium.

Barclay, a New Zealander who was director and chief executive of the 2013 America's Cup in San Francisco, spent 18 months "deeply involved" in a private investigation of Auckland's venues.

He dropped the project six months ago over a lack of "political interest" in a waterfront development. Barclay said he had had interest from two English Premier League clubs and a major American sports team in potential investment in the project.

He said Warriors owner Watson is shaping as a key player now because any concept hinges on a private investor - or a consortium backed by them - willing to stump up at least $100 million on a potential $300m 25,000-seat stadium.

The 2015 NBR Rich List estimated Watson's wealth at $500m.

"The catalyst is an investor, not the council, and the investor is always a sports team owner because they have access to resource and create the brand," Barclay said. "The Warriors are the obvious one. They want a new home and ... a potential new A-League team in Auckland would be looked upon favourably because it creates a local derby with the Wellington Phoenix. This is not a council-led thing, it's a private investment-led thing that the city decides whether to be part of.

"If Watson or potential A-League owners in Auckland want to sit at the centre of this and throw money at it, then from there it's very simple."

Minister of Sport Jonathan Coleman this week said a new venue could cost more than $1 billion. But Barclay says his 18-month probe produced much smaller costs.

"The numbers I heard, and I have no reason to believe these aren't correct, were about $300m for a 25,000-seat stadium and about $500-600m for 35,000 capacity," he said. "The successful formula is world proven, evenly split three ways across the investor, the deal for the land - usually the local council - and the rest is debt."

Brett O'Riley, chief of council entity Auckland Tourism, Events and Economic Development (Ateed), was aware of Barclay and Watson's interest in the issue.

O'Riley said Barclay's model appeared financially sound and while no private business cases have been pitched, he said Ateed would welcome a backer with open arms. He was not surprised to learn of Watson's interest.

More than 16,000 readers took part in an online Herald poll, with 82 per cent of respondents in favour of a new stadium.

- Simon Plumb and Neil Reid