Docklands deal a hitch for Olympic Park

A protective agreement between Telstra Dome and the Victorian Government could jeopardise the proposed $80 million redevelopment of Olympic Park.

Rugby league and soccer are heavily lobbying the Bracks Government in Victoria to upgrade Olympic Park's dilapidated facilities. The government is said to be keen to meet the demands for a rectangular stadium but a clause in its contract with Telstra Dome could jeopardise the works.

Telstra Dome was built with private money and those who backed the project were keen to ensure their investment was protected.

The Sunday Age understands the clause states that no ground with a capacity in excess of 20,000 can be built in Melbourne within 10 years of the opening of Telstra Dome, which was opened in 2000.

Telstra Dome chief executive Ian Collins confirmed the existence of a clause relating to the building of other grounds but did not go into detail.

Storm chief executive Brian Waldron said a 20,000-seat stadium would be a minimum requirement of any redevelopment and that he hoped the clause would not complicate plans to improve Olympic Park.

"We've had very fruitful discussions with the State Government," Waldron said. "We're committed to playing here and staying here. With the (A-League club) Melbourne Victory, there will be 25 to 30 games a year so the new stadium should be a no-brainer.

"A 20,000-seat stadium would be a minimum. We're aware of the Telstra Dome clause but are hopeful that it won't interfere with our plans."

The Storm and the Victory are also pushing Olympic Park as a venue for concerts and other events, which could cause concerns for Telstra Dome's management as it would put it in direct competition.

The failure of the Victorian Rugby Union to secure the Super 14 franchise has put the future of Olympic Park in doubt.

Victorian Sports Minister Justin Madden had pledged to build a $100 million stadium (of which about $65 million would be government money) if the VRU was successful. Waldron said about $80 million would be needed for a remodelled ground.

Madden's spokesman said the government hoped to make a decision on the venue by March.