The Australian Football League has bought Etihad Stadium for A$200M ($152M) "nine years early to deliver the biggest boost to tenant clubs struggling under onerous deals to play at the roofed venue," according to Michael Gleeson of THE AGE.
The "long-anticipated buyout, which will see the free-hold and the management rights transfer to the AFL, was confirmed on Friday after state government sign-off." The handover "will take effect within weeks." The stadium, originally called Colonial Stadium then Telstra Dome, "will retain the name Etihad Stadium at least until the end of the current naming rights contract with Etihad Airlines until 2019."
The deal "is likely to result in major upgrades to the 54,000-capacity ground, which opened in 2000." The tenant clubs' financially punishing stadium agreements -- which "can mean clubs pay to play in low drawing matches" -- will now be "revisited by the AFL as the new owner." AFL CEO Gill McLachlan: "I believe this is a great deal for the AFL and our clubs." The AFL "will undertake a facelift of the 16-year-old stadium and seek to open the venue up to the Docklands precinct" (THE AGE, 10/7).
BAD DEALS FOR CLUBS: In Melbourne, Patrick Smith reported the deal "has been driven" by McLachlan and, of late, "steered by the league’s financial heavyweight Ray Gunston." When McLachlan "took over as league chief from Andrew Demetriou he brought on Gunston in the role of general manager, Finance, Corporate and Major Projects." It is believed Gunston "has pushed the sale over the line."
Frugal ground arrangements with tenant St. Kilda, North Melbourne, and this year’s premiers the Western Bulldogs "are a major reason for driving the AFL’s acquisition of the roofed arena." The sale "should prove a windfall for the present tenant clubs and will be a major plank in the new equalisation formula." It will also give the AFL "great scope to develop another potentially rich money stream other than broadcast rights." The AFL "will take over sponsorship rights, signage, and will negotiate directly with ticket selling firms" (THE AUSTRALIAN, 10/7).
The league intends to continue running the stadium as a multi-purpose venue hosting other sports and concerts when not in AFL mode.
McLachlan: "Owning Etihad Stadium enables the AFL to continue to strengthen the financial health of several of our Victorian clubs, develop an asset for our whole industry, and commit to being a serious stakeholder in the future of the Docklands precinct. Stadiums are a vital piece of community and public infrastructure that bring city precincts alive" (AFL).
