Melbourne Park revamp: Tennis Australia in $1 billion bid

A SECRET report has revealed Tennis Australia’s bid to make Melbourne Park active year-round, with hospitality, entertainment and community uses part of its $1 billion bid.

MELBOURNE’S sports and entertainment precinct would be revamped, opened to the public and activated like never before under a $1 billion plan to breathe new life into the hub.

Tennis Australia wants to take over management of Melbourne’s sporting heartland, running Rod Laver Arena, HiSense Arena, Margaret Court Arena and the surrounding precinct.

Organisers of the hugely successful Australian Open have made a formal submission to the state government, calling for more events, better use of Melbourne Park and a fairer deal for taxpayers.

TA is seeking a 21-year lease and is willing to pay more than $33 million annually to take over management from the Melbourne and Olympic Parks Trust.

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A revamped Melbourne Park precinct, which would host more events if the plans were approved.

In a deal that would extend the long-term future of the Australian Open in Victoria, it wants a lease from next year until 2040 focused on year-round activation through hospitality, entertainment and community use.

New riverside restaurants, retail outlets, an outdoor cinema, AFL match day activations and events have been earmarked to better use a precinct often a ghost town on non-event days. More than $1.1 billion would be returned to the state government through lease and maintenance payments under proposed terms of the deal and more than $50 million invested in community programs.

A secret report obtained by the Herald Sun reveals TA wants to “use its global event management expertise to activate Melbourne Park year-round while delivering new capacity to attract, retain and expand sporting and cultural events”.

TA has pledged to increase arena earnings by at least 20 per cent and Melbourne Park Function Centre profit by 30 per cent on event days within five years under the proposal.

“Tennis Australia will realise the full potential of the Melbourne Park precinct and the long-stated vision of Victorian governments to see this unique community asset fully active year-round,’’ the submission to the Andrews Government said.

As further incentive, TA has offered to change HiSense Arena’s name to Melbourne Arena for the first 10 years of the deal, at an estimated value of $15 million.

The deal would also extend the long-term future of the Australian Open in Victoria. Picture: Vince Caligiuri/Getty Images

It is also willing to foot an estimated $7.4 million annual maintenance and repair bill and oversee a permanent infrastructure upgrade as it targets “year-round activation” under a “tenant-manager model”.

TA spokesman Darren Pearce confirmed the organisation was “engaged in some meaningful discussions with the Victorian government”.

The plan caters to Melbourne’s food fascination with an opportunity to set up a space similar to Hobart’s Salamanca Market.

The deal could see AFL Grand Final and blockbuster match celebrations spill into the tennis precinct, making the most of access to public transport and the CBD.

AFL, soccer, basketball, rugby union, netball and rugby league teams would be encouraged to stage pre and post-match events there. Melbourne Park would also be used for major events such as White Night, Melbourne Fashion Week and the Melbourne International Comedy Festival.

TA would receive revenue from Melbourne Park’s arenas, function centres and car parks under the deal and reinvest returns into the precinct for the benefit of all tenants.

Tenant clubs such as NBL champions Melbourne United and netball’s Melbourne Vixens have already been briefed on the plan, with Collingwood and the Melbourne Demons, Storm, Rebels and Victory also sounded out, which could one day see AAMI Park management included.

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GRAND SLAM PLAN

— Tennis Australia to pay state government more than $33 million a year

— Melbourne Park brought to life in 21-year lease

— Australian Open extended in Melbourne until 2040

— HiSense Arena to be renamed Melbourne Arena

— Market, restaurants, shops and more events planned

— Community access opened to sports precinct

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