Adelaide Oval review desperately needs to be resolved

AS the Adelaide Oval financial model review enters its 160th day, the focus shifts on Premier Jay Weatherill to help deliver Christmas cheer for the state’s AFL clubs.

AFL - SHOWDOWN XXXVI - Port Adelaide v Adelaide Crows at the first game held at Adelaide OvaL. Travis Boak wins the toss for Port while Rory Sloane looks on. PIC SARAH REED.

As the Adelaide Oval financial model review enters its 160th day, the focus shifts on Premier Jay Weatherill to help deliver Christmas cheer for the state’s AFL clubs.

What started as a two-month review of the revenue split between the SANFL, Crows and Power at Adelaide Oval was supposed to be resolved by Christmas.

“I will not hesitate in protecting the success of the Adelaide Oval - I will not have the Oval’s reputation tarnished by an unseemly dispute,” said Premier Weatherill last month.

The current Stadium deal has already been labelled ‘fundamentally wrong” by former Department of Infrastructure boss Rod Hook. The 2014 arrival of AFL in the city saw the SANFL take $14.9 million, Crows $12.86m and Port $9.75m.

Record attendances at Adelaide Oval did not bolster the bottom line of the Power - still posting a significant 2014 loss - or the Crows who banked a negligible profit.

Having spent $550 million on Adelaide Oval the state government is still faced with two AFL clubs battling to post a profit.

There will have to be fast and furious accord between all stakeholders to table a report on negotiations between the SANFL, AFL, Crows and Power that Mr Weatherill desired by Christmas.

Crows chief executive Andrew Fagan this month said the ($3m) uplift should have been ‘more significant” from the move to Adelaide Oval.

A report obtained by The Advertiser titled - The Impact of the Adelaide Oval Redevelopment on Business Activity in the Adelaide CBD – underlines the importance of the review outcome and monitoring by government.

The paper by academic Barry Burgan outlines the heavy lifting by Adelaide and Port Adelaide for South Australia’s challenged economy.

In 2014 there were 465 jobs created in the CBD. There was $77.4 million of new revenue being generated in the CBD that would not otherwise occur, directly associated with attendance AFL games. This included $51.7 million at the ground, and $25.7 million in other businesses.

The report notes estimates - supported by South Australian Tourism Commission and government analysis – that show Crows home game nights result in utilisation of an extra 1,558 hotel rooms and 1,174 for Power fixtures. This translates to a projected $4.5 million boon for hotels across an AFL season.

AFL games at Adelaide Oval attracting over 1,000,000 attendances into the CBD facilitated an increase of 334,000 attendances over the crowds at AAMI stadium in 2013 of 665,000.

The outcome of the Adelaide Oval financial model review may force the Crows and Power to examine massive game day investment that delivered incredible attendance increases and income to city businesses but no cash bonanza to their coffers.

The majority of opening, security and road closure costs are worn by the clubs on game day. It’s understood the SANFL retains revenue from food and beverage.

Having negotiated a remarkable switch of allegiance by former Liberal leader Martin Hamilton-Smith, Mr Weatherill may yet be compelled to seal a new football deal at the Oval.

Originally published as Adelaide Oval review desperately needs to be resolved