Stadium blast on rugby link

However, he said this was subject to Melbourne winning a fourth Australian licence for an expanded international Super 14s rugby union competition.

But both rugby league and soccer executives, whose codes would also share the ground, say the revamp should happen anyway.

Melbourne Storm chief executive Brian Waldron said his club and soccer's new A-League team Melbourne Victory would more than repay the Government's faith in the proposal without the implementation of a Super 14 side.

"The type of stadium they're talking about is a fantastic initiative," Mr Waldron said.

"But I don't think it should be lost in the picture that we actually play 12 games a year there and will bring 12 games a year to a new stadium, which will obviously mean bigger crowds and new sponsors and a showcase for rugby league down here. Whereas the union will bring six games, and I think for the critical mass we shouldn't lose sight of the importance of the Melbourne Storm."

Matt Carroll, head of operations for Australian Soccer, said the stadium would be "a good plus" for the state regardless of whether the Super 14 bid was successful: "I don't see it as essential."

Mr Bracks said he hoped the Government's support would tip the balance for Melbourne's bid.

Melbourne and Perth yesterday submitted final bids to host a fourth Australian team in the expanded rugby union competition from 2006.

Australian Rugby Union is expected to decide next month which city gets the nod.

Work on the 25,000-seat stadium would not begin until after the 2006 Commonwealth Games, and would open by 2008.

Mr Bracks said arrangements would be made to minimise effects on existing users of Olympic Park.

Sport and Recreation Minister Justin Madden said if the super 14s bid was lost, a smaller revamp of Olympic Park was still possible, subject to a feasibility study.

"We'd also expect to attract a greater number of drawcard major national and international events to Melbourne featuring our national rugby union, rugby league and soccer teams," he said.

Madden also said the new rectangular-field venue - which would have a capacity of 22,000 to 25,000 - would fill a gap in Melbourne's stadium infrastructure below the 50,000-seat Telstra Dome and the 100,000-seat MCG.

A study by Ernst and Young predicted a Melbourne-based Super 14 team would generate $14 million a year in economic activity. The exact size of the Government's contribution will be determined once it is known how much the Trust can borrow against projected earnings from rent, ticket sales, naming rights and sponsorships.

Trust chairman Alan Oxley said the redevelopment would also see the existing Olympic Park complex opened to the public for recreational use when major events and elite athlete training were not being held.

Victorian Employers Chamber of Commerce and Industry boss Neil Coulson said the new stadium would further the city's reputation as Australia's events capital.