No preferential treatment in Oval hotel loan, says Stadium boss

Stadium Management Authority chief Andrew Daniels insists there was no preferential treatment in a $42 million loan for the proposed Adelaide Oval hotel as scrutiny intenses on SANFL finances.

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Stadium Management Authority chief Andrew Daniels insists there was no preferential treatment in a $42 million loan for the proposed Adelaide Oval hotel as scrutiny intenses on SANFL finances.

The state government is providing a loan to the SMA joint partners - SANFL and SACA - to build a 128-room, upmarket hotel on the Oval’s eastern side starting next June.

SACA finances reveal a healthy $25 million balance sheet that could potentially have met grounds for a commercial loan without government backing.

Mr Daniels noted while SACA benefitted from a membership model, SANFL had been working hard to retire debt. The SMA pursuing a bank loan would have been ‘exceptionally difficult’ with the equity required for a commercial loan ‘outside the realms that would make it work’.

“Because we are effectively proposing to enhance a facility that is owned by the State Government, a loan from the South Australian Funding Authority removes those additional layers of complexity while ensuring the South Australian taxpayer will own the asset at the end of the lease,” Mr Daniels told The Advertiser.

Adelaide Oval will become the first stadium in Australia to feature an integrated hotel under a plan released by the Stadium Management Authority last month. Picture: Artists impression

The State Opposition is pushing to establish a select committee that investigates the governance of the SMA including whether correct probity procedures were put in place to ensure conflicts - potential or perceived - were handled appropriately.

“The Opposition is concerned about the process leading to the decision to provide a $42m loan to the Stadium Management Authority, as well as the merits of the decision itself,” said opposition Treasurer Stephen Mulligan.

Mr Daniels, Minister for Infrastructure Stefan Knoll, and SANFL chief Jake Parkinson said the $42m loan to the SMA met all legal requirements and would return a dividend to taxpayers.

“We refute any suggestion of undue influence. The negotiations of the terms of the loan have been done by myself and our CFO,” said Mr Daniels.

“If there is an upper house inquiry we will participate and be happy to respond.”

The hotel represents a vital income stream for football. The SANFL received $71 million for the sale of its West Lakes asset but Parkinson said that won’t be realised until 2027.

Adelaide Oval will become the first stadium in Australia to feature an integrated hotel under a plan released by the Stadium Management Authority last month. Picture: Artists impression

“Once we have paid debt down we will create a ($34 million) Future Fund for football,” Parkinson said.

The SANFL points to additional cricket events at Adelaide Oval costing it $450,000 in corporate revenue annually while it must compete for sponsorship income with the AFL, cricket, soccer and netball.

SACA chief Keith Bradshaw maintains due diligence will be followed before a green-light is given to the hotel project.

“There is a lot of work to be done to continue to validate the concept in terms of final costings to make sure it is appropriate to proceed and the requisite consultation occurs,” Mr Bradshaw said.

Mr Bradshaw respects the decision of SACA board member and Deloitte partner Adrian O’Dea to resign following the announcement of the hotel proposal.

“Adrian has made an enormous contribution but has a young family and very senior, national role,” said Bradshaw.