Dwindling Mariners crowds leaves Central Coast Stadium haemorrhaging
A new report on Central Coast Stadium has found dwindling crowds at Mariners games has the “under-utilised” asset haemorrhaging cash. Read how much it is costing ratepayers.
Central Coast
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Central Coast Council will consider seeking expressions of interest for the management and naming rights for the region’s premier stadium after a new report found the under-utilised asset was losing money and may never `break even’.
It comes after Mariners CEO Shaun Mielekamp emailed councillors with the club’s unsolicited proposal for management rights for 30 years and concept plans to activate the southern side seven days a week with cafes, licensed restaurants, shops and a catering school.
The council is expected to put its own draft Central Coast Stadium Strategy on public exhibition after its meeting on Monday.
The strategy reveals for the first time how much the iconic venue, with breathtaking views of Brisbane Water, is costing ratepayers.
“Modest returns have been generated from Mariners’ games, driven mostly by recent lower attendances,” the strategy states.
“With around half of all events provided by Central Coast Mariners, the success of the stadium is related to the team’s ability to attract crowds.”
The strategy states “in summary” the challenging financial performance reflects a “relatively common theme for regional venues with a single tenant”.
“The stadium has not been able to achieve `break even’ financial performance since its return to council management in 2014,” the strategy states.
“Currently the stadium represents a net financial cost to council, with annual operating losses between $841,000 to $1.4 million. Ongoing capital expenditure requirements are estimated in excess of $1 million per annum on average.”
The strategy states the 13 Mariners games in 2017-18 increased gross regional product (GRP) by around $2.1 million, or about $161,538 per game.
However the three NRL games held at the stadium that season delivered increased GRP of about $287,300 per event for a total of about $861,900.
The strategy reveals total attendance at Mariners games fell from 174,310 in 2017-18 to 101,215 in 2018-19, a drop of nearly 42 per cent.
“The stadium is under-utilised with a relatively limited event calendar both in quantity and diversity of events,” the strategy states.
The strategy found the stadium’s food and beverage facilities were limited and it needed a large function centre to host up to 400 people, which could be improved by an onsite commercial kitchen.
It could also use a “BBQ deck” for general admission.
The strategy found it needed to replace the existing static signage with LED signage, provide Wi-Fi or mobile apps for event days, video walls, electronic menu boards and a merchandise shop.
The plan also calls for council to develop complimentary opportunities such as hotels, gyms, pools, retail and training facilities to “further activate the stadium precinct and generate economic returns”.
A report to councillors about the strategy document states: “The stadium is reliant on a single tenant hirer and finds it difficult to compete as a stand-alone venue in attracting content to the Central Coast”.
The strategy outlines several priorities for the stadium including expanding the event calendar, activating the precinct on both event and non-event days and increase revenues.
“The strategic elements, once implemented, will improve the financial impact of the stadium to council by improving revenue streams, reducing operational costs and mitigating risk,” the report to council states.
“However, it is unlikely that the stadium will ever be a profit generating asset for council. This is common across Tier 2 venues in NSW and stadiums generally.”
The strategy also calls for council to establish a defined budget so the stadium can attract more high profile events such as NRL games
Opened in 2000, the strategy reveals council was going to host 20-year anniversary activities but this has been placed on ice because of COVID-19 and instead plans to hold 21st birthday celebrations next year.