Newly released documents show Premier Rockliff upped his AFL bid after threat

Newly-released documents reveal fraught negotiations over the state’s bid for a 19th team in the AFL competition. DETAILS >>

Gill McLachlan with Tasmanian Premier Jeremy Rockliff. AFL CEO Gill McLachlan in Hobart ahead of a decision for Tasmania's own AFL team. Picture: Nikki Davis-Jones

Premier Jeremy Rockliff threatened to walk away from Tasmania’s bid for an AFL team in July last year — before sweetening the government's offer with a further $54m of taxpayers’ money.

Letters from the Premier to AFL chief Gillon McLachlan have been released under right to information laws.

They reveal the government regarded its original $150m offer of support for a new team as generous.

In a letter to AFL club presidents dated June 7 last year it was described as “at the very top of the range recommended in the independent Carter report”.

“The offer includes funding of $10m per annum for ten years, plus $50m on top of the Carter report for establishment costs, which is a fair and reasonable offer that is well above what has been acceptable to the AFL for new teams in the recent past and I believe this to be a very responsible offer on behalf of my state.”

Tasmanian Premier Jeremy Rockliff and AFL CEO Gillon McLachlan during the TICT luncheon at Hobart. Picture Chris Kidd

The government has also offered to spend $375m towards a new AFL stadium on the Hobart waterfront and will spend $65m on upgrades to UTas Stadium in Launceston

A letter from Mr Rockliff to Mr McLachlan in July last year describes the government’s offer as “a massive amount”.

“No expansion club has ever come near to replicating an offer like this … I will be clear that our government will withdraw its offer if the AFL doesn’t respect its magnitude,” he wrote.

After a further exchange of letters, Mr Rockliff wrote again late in August, saying the AFL’s demands were getting a bit much.

“I am concerned that the latest AFL requirements compromise current community expectations, sound economic governance and ultimately the sustainability of the club,” he wrote.

“Achieving our common objective to see a Tasmanian team brought to reality will require further substantive engagement between out respective teams to reach an outcome that is both socially responsible and mutually beneficial.”

Despite his concerns, Mr Rockliff again wrote to Mr McLachlan on September 14 and upped the government’s offer to $10m a year for 15 years — taking the original $150m of government support to $200m

On September 19, the government announced the bid had been increased to $12m a year over 12 years plus $60m for a high-performance and team administration complex — a total of $204m.

He said the state economy was doing better than expected and described the offer as “a responsible and beneficial outcome for the AFL and all Tasmanians”.

On Wednesday, Sports Minister Nic Street described the negotiations as “robust”

“We’ve never shied away from the fact this is a massive proposal for Tasmania to enter the AFL competition and with any proposal the size of what we’re talking about, there are going to be robust negotiations,” he said.

Minister for local Government Nic Street at Hobart. Picture: Chris Kidd

“The Tasmanian government in particular is negotiating on behalf of the Tasmanian people. We think we’ve come up with a package that is good for the AFL but is also good for the Tasmanian people in terms of value for money

“The AFL’s job is to negotiate on behalf of the competition they run and the 18 clubs that are already involved.”

Labor’s spokesman on sport Josh Willie said Mr Rockliff had “capitulated to the AFL at every step”.

“Mr Rockliff hasn’t ever been open and honest with the Tasmanian people about the stadium bid and now it’s been revealed that he capitulated to Mr McLachlan after saying to him there would be no more money from the state government,” he said.