Stadium impasse may risk revenue

[travelling_gerry]

Stadium impasse may risk revenue

GARETH PARKER, The West Australian July 12, 2010, 2:30 am



The new $82.5 million eastern stand at Perth's rectangular stadium may be built without corporate boxes, limiting the capacity of the cash-strapped Western Force rugby team to maximise revenue.


The State Government is mired in protracted negotiations with the Town of Vincent over a long-term lease for nib Stadium in East Perth, with price and management structure the sticking points.


It is understood the council is seeking at least $200,000 from the Government in return for handing over control of the venue.


Negotiations have been complicated by Vincent having contracted the day-to-day management of nib Stadium to Nick Tana's company, Allia Venue Management. That deal has 13 years to run. The West Australian understands the Department of Sport and Recreation would prefer the venue to come under the umbrella of VenuesWest, which manages State sporting facilities, including Kwinana Motorplex, Challenge Stadium and the new athletics and basketball stadiums in Mt Claremont.


The Government included $82.5 million in the May Budget to build the eastern stand but it wants to control the process, including the design.


Vincent mayor Nick Catania has claimed the council, which already has detailed redevelopment plans drawn up by renowned sporting architects Peter Hunt, could build a stand including corporate boxes for $75 million.


Sport Minister Terry Waldron said yesterday the Government had not decided if corporate boxes would be included in the final design but there was room in the budget to do so. Despite the drawn-out negotiations, they were "in good shape", according to the Minister.


nib Stadium's major tenants, Perth Glory and the Force, have been invited to submit a wish list to the department. It is believed extra corporate facilities are a priority for the Western Force, which spent $3 million on temporary improvements to the ground after deciding to switch home matches from Subiaco Oval last season.


Yesterday, Force chief Vern Reid said the club was "very pleased to be part of the planning process".


Glory owner Tony Sage said he was quite happy with the existing level of corporate facilities and was more concerned about getting covered seating for fans.


Mr Tana said the Government had not contacted Allia about management of the venue, including the issue of a possible buyout of its contract. "As far as we're concerned it's business as usual," he said.

Mr Catania said he hoped the council could reach an agreement with the Government.

http://au.news.yahoo.com/thewest/a/-...-risk-revenue/

[GIGS20]

Soooo, let's get this straight, they're prepared to commit 82.5 million to a project which they could get done for 75 and then want to quibble over 200 grand?

lunacy!

ps if they don't build corporate facilities they will lose their major tenant and the venture will be unprofitable.

[blueandblack]

Maybe some of the corporates might help out with the 200 grand in exchange for signage or some form of public recognition.

GET ON WITH IT!

[hertryk]

Is the Western Force "cash strapped".....there was plenty of revenue raising at the Awards Night...they received a packet outa me.. but then I can't help myself.. ...All in a good cause...!!!!

[normie]

Didn't know the EWF was 'cash strapped'.... gotta love the suggestion from the punter in the comments section.....