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Home / New Zealand

$1.88m Beckham match 'wrong event, wrong time'

NZ Herald
19 Jan, 2010 11:42 PM2 mins to read

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David Beckham training at Mt Smart. Photo / Richard Robinson

David Beckham training at Mt Smart. Photo / Richard Robinson

A sporting disaster involving football superstar David Beckham but which lost nearly $2 million was the wrong event at the wrong time and for the wrong price, a review has found.

The English star turned out with his American club, the LA Galaxy, at Auckland's Mount Smart Stadium at an exhibition match against the Oceania All Stars in December 2008, but the event was a flop and it cost host Auckland Regional Council $1.88m.

The council asked the Auditor-General's office to review the event and the findings were released today.

Phillippa Smith, the deputy controller and Auditor-General, said ticket sales were well below what was expected.

"We conclude that, despite the efforts of the council officers involved, the loss occurred because the LA Galaxy/Oceania 'All Stars' match was in essence the wrong event, at the wrong time, for the wrong price," she said.

"The council has come to largely the same conclusion."

The council's lacked systems for monitoring and overseeing such events and the Mt Smart operation "is something of an orphan in the council structure".

"It does not fit well with the council's other functions and operations, and the council had not, at the time, considered or agreed on suitable governance and business models for it."

The council wanted Mt Smart Stadium to operate commercially but the decision to promote the LA Galaxy event was made without a formal business strategy or a clear policy about the level of commercial risk that the council was willing to assume, Ms Smith said.

"We are satisfied that the council has correctly identified the problems with its governance and management of Mount Smart Stadium, and that it is taking appropriate steps to address those problems. Therefore, we have not made any specific recommendations for the council. However, we trust that this report will provide some useful guidance for all public entities - especially those with commercial operations," she said

- NZPA

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