Adelaide Oval hotel inquiry: Port Adelaide delivers scathing assessment in its submission

Port Adelaide has raised concerns about the proposed hotel at the Adelaide Oval, saying it believes the $42 million project has the potential to increase operating cost for the club on game day.

Adelaide Oval will become the first stadium in Australia to feature an integrated hotel under plans by the Stadium Management Authority

• SMA reveals they turned down CBA bank loan as it was too risky

Port Adelaide has raised concerns about the proposed Adelaide Oval hotel, saying the $42 million project has the potential to increase its operating costs on game days.

Power chief executive Keith Thomas has also questioned claims by the oval’s Stadium Management Authority (SMA) and SANFL that revenue from the hotel is needed to help fund grassroots footy.

In Port’s submission to a parliamentary inquiry into the proposal, Mr Thomas said the SANFL had told the club it would “lose access to commercial space that we are contracted to use during games”.

He said that was unacceptable to the club.

Power chief executive Keith Thomas.

“PAFC is concerned that the addition of the hotel has the potential to increase oval operating costs on game day, which are traditionally passed on to PAFC without negotiation or justification from (the) SMA,” he said in the submission.

“PAFC is one of the primary income generators for the oval … despite this, the most frustrating, contentious and business-critical issue we face is the lack of transparency around, and input into, how this valuable asset will be used and developed into the future.”

Mr Thomas said the club asked the SMA to provide more information about the hotel’s operational and financial model so it could evaluate the “knock-on” effects.

But he said the SMA had “declined the opportunity”, which made it hard for the club to form a strong view on the proposal.

The State Government has agreed to loan the SMA $42 million to build the hotel.

SANFL chief executive Jake Parkinson last month said the hotel would help the non-for profit organisation invest significantly in football at all levels across the state.

But Mr Thomas, pictured, said the sale of Football Park meant the SANFL already had the money to do that.

“We do not believe that the development of the hotel should be justified on the basis of the SANFL generating more income to support the development of junior football,” Mr Thomas said.

Port has also backed calls for it and the Crows to each be given a seat on the SMA board, at the expense of two SANFL members.

SMA commercial manager Darren Chandler said it was the first time the organisation had been made aware of Port’s concerns and “we’re naturally keen to understand more”.

“We work extremely hard to maximise opportunities and outcomes for everyone who hires the stadium, and that standard absolutely applies to Port Adelaide,” he said.