Business case for $662m Adelaide Riverbank Arena released

The state government has revealed its business case – and some famous endorsements – for the proposed venue it says will bring hundreds of jobs and floods of tourists.

The $662.3m Adelaide Riverbank Arena would attract 825,000 visitors annually, create more than 4500 jobs during construction and add more than $1bn to the state economy, its summary business case forecasts.

The centrepiece of Premier Steven Marshall’s re-election pitch, the 15,000-seat, multipurpose arena, when operational from 2028, annually would generate more than 640 jobs and inject $69m to the state economy, the business case finds.

Nine letters of support for the project are highlighted, from backers including Netball SA, Tennis SA, the Adelaide Convention Bureau and event promoters Michael Chugg and the late Michael Gudinski.

The summary business case, which has been supplied exclusively to The Advertiser, details a schedule showing early site works starting in March, 2023, construction of a tunnel under Morphett St starting that October and the building finishing in March, 2028.

The Advertiser in March revealed Mr Marshall’s plans for a 15,000-seat, multipurpose indoor arena for sport, entertainment and conventions, built between Adelaide’s railyards and the River Torrens – with major construction not starting until 2025.

The arena viewed from the River Torrens. Picture: Supplied

The arena viewed from the River Torrens

The business case says the arena will include 550 on-site carparking spaces to complement the adjacent Adelaide Convention Centre’s 1100 spaces.

The arena would be connected to the convention centre via an enclosed 10m-wide, airconditioned pedestrian tunnel beneath the Morphett St bridge. A 30m wide underpass beneath the Morphett St bridge would lead to the arena’s main entrance.

Six “world-class” spaces for rowing clubs would be included on the arena complex’s western side to replace those removed as part of the redevelopment.

In a crucial measure for infrastructure projects, the benefit cost ratio is forecast to be 1.23, meaning for every $1 invested into the project, a return of $1.23 is achieved.

The government’s case for the arena also has been buoyed by a strong endorsement from leading promoter Tony Cochrane, the founding chairman of V8 Supercars who has produced global concert tours including The Rolling Stones and Grease – The Arena Spectacular.

An aerial view showing the arena and Adelaide Oval

In a letter to Mr Marshall supplied to The Advertiser, Mr Cochrane says every major city in the world is building these facilities because demand is growing rapidly.

“This project will ensure that more concerts, business events and entertainment projects will be attracted to Adelaide, due to the capacity and risk associated with outdoor events,” he says.

“ … With a new venue of this nature now confirmed for Brisbane, that only leaves Adelaide without a state-of-the-art venue on this scale. And scale is critical.

“.. The existing Adelaide Entertainment Centre is really at too low a capacity to be a strong, viable proposition looking forward and its tired appearance is a let-down for both performers and consumers alike.”

Labor in June vowed to scuttle the arena, which it has branded a “basketball stadium”, and divert at least $100m into country health.

But Treasurer Rob Lucas then pointed out that Labor would free up only $10m over the next two years by scrapping the arena – construction would not start until 2025.