News

The Forsyth Barr stadium is running at a loss of nearly $2 million with the Dunedin City Council considering whether to step in and help foot the bill.

Dunedin Venues Management Ltd (DVML), the company running the stadium, revealed a loss of $1.9 million for the first six months of the 2011-12 financial year. The forecast of the loss for the full financial year is at $2.4 million, followed by $1.2 million, $1.1 million and $1 million for the following three years.

DVML chief executive David Davies said that the loss was due to “really challenging” trading conditions and the difficulty of getting more events such as the Elton John concert.

DVML has changed its tune since last year when its forecasts predicted a profit of $91,000 in 2011-12, with profits continuing for the following two financial years.

Dunedin Mayor David Cull said in a press conference on Wednesday May 9, “the financial funding and operating model of the stadium was put in place to convince people to build it,” he said. “Clearly, it was optimistic.”

Cull, along with many other Dunedin residents, staunchly opposed the building of stadium when it was proposed in 2009. Cull said that a comprehensive review of the stadium’s operating model was needed, as well as a scrutiny of DVML’s budget.

Councillors are expected to consider how the Council can help DVML overcome its current deficit at the next finance, strategy and development committee meeting on June 13. “Clearly the facility is owned by the ratepayer, and if there’s a loss it falls to the ratepayer ultimately,” Cull said. Local vanilla rap crew Posse In Effect are planning to immortalise the stadium’s financial difficulties in their upcoming single, “Homies Ain’t Got No Financially Viable Venue (Makes Them I-rate(payers))”.