Jason Jones is a representative of Western Springs Speedway Association formed 5 months ago.
Auckland council has invited feedback on the future of Western Springs Stadium via their AKhaveyoursay site. Western Springs Stadium | AK Have Your Say
The process has been extremely controversial, and legal action is before the high court awaiting a trial date.
Let’s examine what these options mean for ratepayers and cut through the smoke.
Option 1 -Auckland Arena (AFC)
A 12,000 -15000 capacity boutique stadium. This is councils preferred option and will cost around $50 million for ratepayers to relocate speedway, Ponsonby Rugby Club, Upgrades to Stadium Lane and establishment of transit services.
It removes the flexibility of use for Western Springs Stadium and reduces capacity for concerts by half, in a growing city. Private ownership is locked in for a minimum 50 years with the option to extend to 75 or 100 years. This is presumed to be on a peppercorn lease.
The facility will be constructed in a flood zone with council also pushing on, despite the process being before the high court for judicial review.
Income from Mt Smart is removed and the earning potential for the club is reduced by relocating to a smaller capacity stadium. This also shifts and reduces the return to the local economy via the hospitality sector.
All Auckland Stadiums run at a loss, and it is widely reported that only two A League Teams operate regularly at a profit (Sydney FC and Melbourne Victory). Two ways to profit from Football Club ownership are club appreciation and sale, or stadium development. The later generates return on investment via appreciation and sale and or rental income.
In a volatile environment where income via sponsorship etc is dependent on performance, this investment provides security for the club and a sound return on investment upon sale.
Ratepayers would be paying about $50million to hand over a stadium for private use which investors will make a profit from, by either on selling the lease for the appreciated facilities or selling the package back to the council.
Upfront costs, plus the increased costs of facility maintenance via a council buy back could occur under several scenarios. The venue could also continue to pass through private ownership for up to 100years via sale of the club, should it exist.
Option 2-Western Springs Bowl
This option will cost ratepayers around $20 million for a concert and rugby facility as the venue has always been (but without speedway) with private investment of $30 million for a permanent stage and boutique stadium.
It will remain in TAU’s ownership and require $48-107milion to maintain over 50 years. TAU’S stated (1.2 million opportunity cost for having concerts) which was the stated reason for relocating speedway doesn’t add up.
This option leaves rate payers no better off, and possibly in a worse position as the concert business is unpredictable and provides an inconsistent income stream.
Bottom line, speedway has brought consistent income into the stadium since 1929. TAU wishes to consolidate two different speedways at Waikaraka Park (which will not work) and forfeit all income.
None of these decisions have an overall benefit to the Auckland ratepayers who will ultimately end up paying money we didn’t need to, only to incur an even greater loss in the future.
A sensible decision is to have your say and vote for option 3b to put this back on the table and try to force some sensible and practical decision making that follows the local Government Act and truly does benefit the ratepayers of Auckland.
Jason Jones
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