If national dough is needed, well, did I mention the word “populist”? This is just the sort of project which our new three-pronged Government – Baldy, Wrinkles and Twerker – might also want to wrap their arms around, particularly Winston Peters who might be looking for something to do apart from barking at journalists (it’s a vote-getter, mate, but we’ve had the election… give it a break; heard of “statesmanlike”?) and helping to repeal the smoke-free legislation.
The last proposal, back in 2018, was for a $1.8 billion 50,000-65,000 seater stadium to be sunken off the end of Bledisloe Wharf, a mystifying concept I never understood. Surely, in a stadium right on the water, there should be some sort of ocean vista in play. But, in an enclosed stadium, we all look at each other. Once seated, we could be anywhere. It’s also just as well the Sunken Stadium was never built as, with climate change and global warming, we’d all have to take our gumboots and have lifejackets under the seat, just in case.
Far better to have an “always-on” development that embraces the seaside aspect but also ensures life thrives there, independent of sports events and concerts, which is more what Billionaire Bill is proposing. The 2018 version depended on no cost to ratepayers or taxpayers (ha!) by selling off Eden Park and other parts of the wharf for housing.
With plans for a 20,000-seater, Foley is sidestepping the excruciating debate of whether Eden Park is the national stadium or not. This plan leaves Eden Park where it now stands – able to house big events effectively but that’s about it. Foley’s plans will have sphincters tightening out there in Sandringham but it’s better than a power struggle involving the Eden Park Trust Board, legislation, the iwi and God knows how many other roadblocks.
The key, of course, is having a billionaire like Foley involved who knows a bit about developing sports franchises and stadia; he is also the owner of Bournemouth FC in the English Premier League.
His stadium-entertainment precinct sounds less sunken and more aspirational – like the Chase Centre, the stadium built for NBA basketball team, the Golden State Warriors, who left Oakland four years ago for San Francisco’s more gentrified surroundings and a new stadium costing about US$1.5 billion for an 18,000-seater, bankrolled by the billionaire owners.
The Chase Centre is not just a stadium. It has 580,000 sq ft of office and laboratory space, 100,000 sq ft of retail space, and three acres of outdoor space, including a 35,000 sq ft public plaza. The money generated from that is a big part of the payback mechanism. It generates revenue non-stop, seven days a week from concerts, events and even real estate deals linked to its facilities. The Warriors are already the team that generates the most in non-basketball activities, some US$474 million in 2021. In total, their revenue was at US$700m annually after just three years in their new home; they claim they are only “starting to scratch the surface.”
Of course, Auckland ain’t San Francisco and no one is saying those kind of revenues are relevant here. Ticket prices are much higher; for this week’s game against the Sacramento Kings, Warriors fans were paying from US$71-$110 for “lowest price” and US$220-$5000 for “best seats”.
But the concept can still work here, albeit with different numbers. The Golden State Warriors brought in extra money from naming rights and corporate suites, plus something like US$300m from Personal Seat Licences – a one-off payment for season ticket holders, made to guarantee their ability to buy a season ticket, separate from the cost of the season ticket itself.
The average price of the PSLs was about US$15,000 – too rich for our blood – but the Warriors have pledged to return the money to buyers after 30 years, so it is effectively a tax-free, interest-free loan by the fans.
Interesting concept, even if it needs to be downscaled here – and that is the kind of thinking Foley will bring with him, generating the feeling Auckland might finally be in line for a realistic waterfront stadium.
Paul Lewis has been a journalist since the last ice age. Sport has been a lifetime pleasure and part of a professional career during which he has written four books, and covered Rugby World Cups, America’s Cups, Olympic and Commonwealth Games and more.
