Allia holding out hope for MES redevelopment

Allia Holding CEO Peter Bauchop has claimed the figures used to state that a 35,000 seat rectangular stadium is unviable from the major stadia taskforce, does not hold weight. Allia outlines that they are still working on the agenda that Members Equity Stadium is redeveloped into a 30-35,000 seat stadium.

"Ideally we would like Members Equity to be redeveloped to meet the needs of the three rectangular codes in Western Australia. That has got to be our aim and not just for today's needs but for the foreseeable future, there is no point building something for 2009/10 that doesn't meet the needs of 2011/12"

Bauchop claims the uncertainty surrounding the major 60,000 seat stadium means that there is still a chance for the redevelopment of Members Equity Stadium.

"It depends on how the cards fall, I certainly think there is still a chance, mainly because of the uncertaintythe major issue for Western Australia relates to the major stadium first and foremost"

"There is a lot of water to go under the bridge for the new major stadium and if that water doesn't go under the bridge, I think if there is no resolution in regards to the major outdoor stadium then that could open the way for the redevelopment of Members Equity Stadium"

While Members Equity Stadium is one of only a few stadiums in the country that is operating at a profit. Bauchop dismisses the Major Stadia Taskforce report that it is presently unviable and that a 35,000 seats stadium is not viable.

"The finances are the really interesting question. That Major Stadia Taskforce report said we should be losing 1.6 million dollars a year. Last year we had an operating profit, it wasn't that big, it was a very modest operating profit. But it still allowed $450,000 to go into rent and a sinking fund. Right now, that's $2 million that is above what the taskforce believes we should be getting."

"They have produced financial modelling which I can see how they have done it. But you can't ignore our actual finances. We have got results that it is viable, as it stands it is viable. If you give me a stadium that is larger that allows more corporate seats and allows more people in, I will make it more viable. Our heads of agreements, our licensees will still get a very good deal".

You have to wonder why then the Stadia Taskforce stated that a 35,000 seat stadium was not viable because of a lack of events, when Peter Bauchop said that they are at the stage where they may have to limit the amount of events they attract, because of issues with the management of the turf.

"We have limitations, depends on the redevelopment. But also we have to consider our own sustainability. This is where the one stadium fits all approach is bordering on ridiculous. We have 12-13 events when we started. This year we are looking at the mid 30's and could easily crack the 40's. Now that's starting to get to the limit of what we can offer in terms of managing the turf, look we can returf the field for $300-400,000. I don't think Perth Glory, Rugby League or the Western Force will say they'll help to fund it. It's something we have to manage. Then you have to look at the turnover stage, the tighter it is the more money it costs. Fees go up, Rugby to Football, it is more expensive for all sports. And that is why I don't believe that one stadium fits all".

Bauchop further explains why he believes that the model of a one size stadium fits all is not the best option for stadiums in Perth.

"You could have the 22,000 seats come in for the major stadium (For Rugby, Rugby League, Soccer). But you could have Football come in the next night and pay an arm and a leg for the costs. The retractable seating covers the grass and you have to turf up $30-40,000 for the grass, someone is going to cough up double cleaning rates for overnight cleaning, overnight marking, green outs. If you asked all the sports, who wants to double their costs?"

It then comes to the issue of funding for venues. Over the last decades, funding for stadiums across the state has been below the national level. Peter Bauchop agrees that it is time for the state to spend the budget surplus on fixing up these venues.

"Its blatantly obvious that it's not what it should be (stadium funding). The stadium report, the stadium taskforce said we are so many decades behind the eight ball. You look at Sydney, how many rectangular stadiums do they have over 20,000? I couldn't count. You go to Melbourne with the number of AFL venues they have over there. And you come to Perth and the only all seated venue you have is Subiaco".

"Perth is the growing market, it is the place people are moving to"

He says that although other funding is important, the need for money to be spent on venues such as Members Equity is crucial for the development of culture, tourism and to be recognised globally.

"I think so, education is critically important, so is police so is roads, so is infrastructure. But it has to be balanced. Because stadiums have been left of the list for so long, there needs to be a higher proportion of the budget spent on them. If Perth is to be seen as an international city, which it absolutely is. We need to provide the facilities. What they have to realise, is the ongoing potential of tourism and events and a city that has a vibe and a culture and a life. You can't put a value on that. Without a stadium it is a lot harder to achieve".

One of the key resurgence in all three major outdoor venues has been the adaptability of attracting concerts to their venues, which has resulted in a good relationship between Allia and the other venues in the state.

"We have a really good relationship with the WACA and Subiaco Oval, we have recently opened up discussions with the WACA. Even to the point to closely working with the WACA on what we do well and vice versa. And my underlying issue is to bring the product to Perth, so we have got more to share around. And while there is healthy competition, every venue has got its limitations. Every event has to come to Perth whether it comes to MES or the WACA".

Bauchop admits that the finish of the 14,000 Indoor Arena will impact the bottom line when it is completed in 2010.

"Obviously it will, we haven't had many concerts in Perth in the last year. It is only in the last 12 months that we have really been getting more then 1-2 concerts, if you talk to promoters it is the hottest corporate market. It hasn't historically been a revenue boom for the stadiums, you look at Subiaco they only have a small window of opportunity to service their concerts."

Peter Bauchop then outlines that the errors that Allia had in the past, of issues of conflict of interest have been addressed and that all rectangular codes have signed agreements to play at Members Equity.

"I can understand the other sports concerns, we have been working in the last 18 months to be as equitable as possible. We have removed anything that favourites the Glory over any other code"

"I think you have to talk generically, if anyone got favourably treated in one area and they are not getting it any more it is natural to feel hard done by, but lets not make it a bigger issue then what it is. For example Perth Glory got a better cleaning deal then the other codes, what we wanted to do was make sure that everybody got equitable treatment and any issue that was more favourable over another code was completely wiped clear"

"We are really happy with getting 3+3 year contracts with Football, 3+3 with League and 3 years with Rugby Union to play at Members Equity Stadium".

As Austadiums.com has revealed before, the FFA has partnered other codes in bidding for the redevelopment of Members Equity Stadium. Bauchop stated that there was clear issues the FFA had when they where owners that had impacted on a longer agreement being signed.

"They wanted increased lighting, more merchandise area, all reasonable requests, and what we would support, but we are not the owners of the facility. It is not our lighting to upgrade.

With the state government and Major Stadia Taskforce stating that Members Equity Stadium will not be redeveloped, Allia said all avenues will be looked at to provide a premium rectangular stadium if they can not convince the state government to fund a 35,000 seat venue.

"I don't know whether the town would look at funding as part of it. I think they will be very supportive of an upgrade. More a total upgrade, rather then a piece meal approach. I understand that is council position, that it wouldn't want to trade of getting funding for a 30-35,000 seat stadium, for a contribution of 20-30 million dollars."

The Private field will also be looked at, which is currently happening in regards to the WACA and Rushton Park redevelopments.

"Absolutely, if a solution to the state government was given to them, this will cost you nothing. Then I think you have to go and look at that. Then the thing is, I was in London and Wembley funded most of their stadium by selling the third tier seats called Club Wembley for $500 million pounds."

Our market is not that strong, but there could be an option to do that. But then that would impact on the licensees' ability to generate their own corporate income. All things are open, but a trade off would occur.