Queensland’s race for secret deal on $2.5bn Olympic venue
The Palaszczuk government is trying to lock in a secret deal on Brisbane Arena, potentially preventing the federal government from contracting the development rights.
The Queensland government is seeking to lock in a secret deal on the future of a key $2.5bn Brisbane Olympics venue, potentially preventing the federal government from contracting the development rights to a cashed-up private consortium.
Live Nation Entertainment, the international promoter of blockbuster acts such as Harry Styles and U2, is leading a bid to build the 17,000-seat Brisbane Arena in a deal with the federal government that could save taxpayers hundreds of millions of dollars.
The Olympic swimming in 2032 would be staged there in a drop-in pool.
But the state government is considering extending a so-called “operator engagement deed” issued to Brisbane businessman Harvey Lister in a move that could knock the Live Nation-led consortium out of contention.
It might also contravene federal procurement rules, a source familiar with the behind-the-scenes machinations said.
The turf war between the Live Nation group and Mr Lister’s ASM Global – operator of premier venues including Brisbane’s Suncorp rugby league stadium, the Sydney SuperDome and Optus Stadium in Perth – will test how the cost of readying the Queensland capital to host the world’s biggest sports event can be spread to the private sector.
New figures project that the tab for required transport infrastructure will top $10bn, in addition to the $7bn for venues committed last month in a funding deal between Anthony Albanese and Premier Annastacia Palaszczuk.
This provides for Canberra to take over the Brisbane Arena project – above a busy inner-city railway station – while the state runs the $2.7bn rebuilding of the Gabba cricket and AFL stadium for Olympic athletics and the opening and closing ceremonies, at $2.7bn.
Fresh off the road with Styles during a sold-out tour of Australia and New Zealand this week, Live Nation Asia-Pacific president Roger Field said: “Because we bring our own capital, we know our consortium can deliver affordability. We do not expect taxpayers to fund the construction of Brisbane Arena.”
But Mr Lister hit back, accusing Live Nation of trying to steal his intellectual property.
“As with any good idea there’s always a Johnny-come-lately who tries to jump on board at the last minute to see if they can disrupt someone else’s solution for their own benefit,” said ASM Global’s Asia Pacific chair and CEO. “We’re not at all surprised … that’s just part of life.”
A legend of the live entertainment scene in Australia for four decades, Mr Lister has been working on the project for 15 years and has the head start of being brought on as a consultant by the state government to devise a design and business plan.
The Weekend Australian understands his intellectual property was recognised about five years ago by Brisbane’s Cross River Rail Authority, the state instrumentality developing a $6.8bn subway system converging on the inner-city site of the proposed Brisbane Live precinct, capped by the multi-purpose auditorium.
The subsequent deed contracted the Queensland government to invite a commercial offer from ASM Global for the potential operation of Brisbane Arena during a defined term of exclusivity, now affected by the rollover of responsibility for the project to the federal government.
“Based on public commitments, including past public announcements, ASM Global has the right to submit a proposal for the potential operations of the Brisbane Arena,” a state government spokesman said on Friday. The office of federal Infrastructure Minister Catherine King was approached.
Live Nation has told the federal government it has the cash, expertise and history in developing indoor arenas worldwide to deliver the project as a public-private partnership, backed by Los Angeles-based investor Oak View Group and international asset manager Plenary Group.
It is understood the consortium will offer to build the hall structure while the federal government tackles the challenging engineering works to create the elevated pad on which it sits – all while the trains continue to run through Roma St station.
The group has not finalised its proposal, but the outlay is expected to run to hundreds of millions. Industry sources say the cost of constructing an auditorium of Brisbane Arena’s size would be $800m-$1.2bn on a regulation greenfield site.
In return, Live Nation would acquire the management rights for a period of at least 30 years. “Our combined expertise limits the prospects of cost blowouts and future inefficiencies because we would be working from day one to design and deliver a fit-for-purpose venue, one that is built with the advice from promoters of the world’s biggest acts and the collected experience of the managers of some of the best and biggest venues and stadiums in the world,” Mr Field said.
Mr Lister referred questions on the Brisbane Arena deed to the state government, saying: “I would get you to speak them and let them tell you what arrangements they have entered into.”
The list of required transport projects for the Games cited by Infrastructure Partnerships Australia takes in the Beerburrum to Nambour rail upgrade on the Sunshine Coast ($550m), Beerwah to Maroochydore rail extension ($3.2bn), Brisbane metro transit system ($1.7bn), Coomera Connector motorway, stage 1 ($2.1bn) and Logan to Gold Coast Faster Rail, Kuraby to Beenleigh upgrade ($2.6bn).
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