Eden Park is in big financial trouble and could run up losses of $80 million over the next decade, says a report commissioned by Auckland Council.
Eden Park is in big financial trouble and could run up losses of $80 million over the next decade, says a report commissioned by Auckland Council.
The report, by consultants EY, says Eden Park will struggle to pay the interest cost this year on loans of about $50m, according toa report by Stuff.
The council is looking at the future of Eden Park behind closed doors, including a financial bailout of the city's major stadium for rugby and one-day and T20 cricket.
Last October, it was revealed that Eden Park had asked Auckland Council for $1.5m to replace its playing surface, which is at the end of its useful life and at risk of failure.
At the time, Mayor Phil Goff told the Herald the request had led to broader discussions on financial matters related to the park, which are ongoing.
Eden Park turf manager Blair Christiansen looks over the ageing turf which he finds harder to maintain due to its age. Photo / Dean Purcell.
The council has guaranteed a $40m loan from the ASB Bank, taken out to complete the upgrade of Eden Park for the Rugby World Cup after the Government drew the line at pouring $190m into the upgrade. Council also guarantees a long-term loan of about $6m.
The EY report said Eden Park's deficit is forecast to deepen this year to $8.2m from $6.8m and did not see any improvement in the future, Stuff reported.
The report said the biggest impact in the immediate future would come from a big hit in major sporting events at Eden Park, including one All Black test this year instead of two due to the Rugby World Cup in Japan, costing it an estimated loss of $1.4m in revenue.
