Saturday, 17 March 2012

Dunedin aftermath

Given that Dunedin chose to burden itself with a ridiculous stadium investment, it then became optimal for Dunedin Council to bail out the local rugby team - it cost less than Council would have lost in rental revenues from the stadium if the Otago Rugby Union went bankrupt.

Here's Dunedin Mayor Dave Cull (who was on Council but wasn't mayor when Council decided to build the stadium; he had voted against the stadium):
The ORFU was bailed out because "the financial model around the so-called private sector funding component of building the stadium is dependent on revenues from the games that professional rugby play there.
"I'd have to say, before it was being built and right up until now, that was the most imprudent, risk-laden way of financing anything. It was basically pretty stupid, but we've got it, and we have to find a way of maintaining the revenue stream for that, or it falls back on the ratepayer. This deal has avoided that,'' he told Radio Sport.
The NZ Rugby Union had previously said the new stadium would be key for the Otago team's viability; I doubt they expected it to be key in ensuring a Council (and NZRU) bailout.

Meanwhile, there's an investigation into what the stadium actually did cost the city.



  1. We are supposed to get a temporary stadium for $20M, with 11M coming from national government and the rest from the city and the NZRU. Tiny cost compared to Dunedin's, but still most of the expense is coming from taxes and rates.

  2. And the bill for the temporary stadium just keeps rising... (a further $5m plus for quake strengthening confirmed last week). Who foots the bill? I can only assume Chch ratepayers...