Getting ripped off on your stadium deal? No problem, just build your own!

[adz]

Billionaire Gold Coast United owner Clive Palmer is examining the possibility of building a brand new stadium to escape the clutches of their current deal at Skilled Park.

Built in 2008, the Robina ground has been United's current home since the club's foundation but it has also been the source of many a financial headache for Palmer.

A combination of prohibitive rental costs and the lowest average crowds in the A-League have hammered the club's bottom line - to the point where Palmer was prompted to introduce a notorious 'crowd cap' of 5000 in their first season.

In reality, the 'crowd cap' is an arrangement that sees all attendees gathered on the broadcast side of the stadium, with further areas opened section-by-section if the crowd goes over 5000 people.

It has only amplified the already eerily quiet atmosphere at home games but its financial benefits cannot be ignored, saving the club around $150,000 for each match.

But the club may not be there much longer.

Asked if he sees Skilled Park as a long-term home for Gold Coast United, Palmer said curtly: "No."

"The price is too exorbitant. We're stuck with it for next year but maybe after that we'll look at developing our own stadium."

In addition to his latest purchase, the swanky Hyatt Regency Coolum - which was confirmed on Wednesday as United's new front-of-shirt major sponsor - Palmer also owns the former Avica Resort at Merrimac, just around the corner from Skilled Park.

Currently United's administrative headquarters, Avica has been earmarked as a potential site for a new home ground and Sportal understands that formative designs exist for a new stadium there.

In an interview with the Sydney Morning Herald two weeks ago, Palmer also mentioned the possibility of upgrading an athletics warm-up venue at Carrara that will be built if Gold Coast's 2018 Commonwealth Games bid is successful.

"We've got land near Skilled Park; 500 acres that my company (Queensland Nickel) own that we'd be able to lease, and there's a number of stadiums on the Coast that could be upgraded," Palmer told Sportal.

Gold Coast United are also yet to confirm where they will play their designated regional match for the upcoming A-League season.

Palmer suggested that United were keen to build a relationship with the Sunshine Coast area, which boasts an impressive, boutique stadium of its own in the Sunshine Coast Stadium.

But broadcasting demands are likely to force them to look elsewhere.

"That's what we're hoping for but of course, you've got to look at broadcasting problems. The stadium here, the lights aren't quite up to standard," he said.

"But anything could happen and it probably will. We should be talking about that sort of thing (a partnership with the Sunshine Coast region) than shutting the club down."

"I started the club, I don't want to see it closed. Plus, I can afford it. I've got plenty of money to run the football team. We don't lose any money, really. I'm staying at the club for as long as I can."

http://www.sportal.com.au/football-news-display/new-stadium-for-gcu-133431


Interesting stuff! That stadium is in a shit location, they would be better off moving to somewhere that has parking and pubs nearby (within stumbling distance) for pre/post match shennanigans.

 

[Muppet]

Love him or loathe him you have to say he has the kahuna's to do something like this. Good on him. All the noises that he is making about sticking in for the long haul are positive. I think that people will slowly come around to his way of thinking in relation to the pricing models for hiring stadiums etc.

 

[FFC Mariner]

wonder if he is trying to blackmail the Qld Govt into getting a better deal?

 

[MrCelery]

wonder if he is trying to blackmail the Qld Govt into getting a better deal?

That's my reading of it. But should he not get a better deal, I agreed that he's got the balls to go elsewhere.

 

[midfielder]

That is brillant news and I hope he does it ...

 

[adz]

Accusations of blackmail are a bit harsh .... extortion, on the other hand...

 

[FFC Mariner]

Isnt he a nailed on Liberal supporter?

Maybe if their Govt changes he can be rewarded by a cheaper deal

 

[midfielder]

I don't think he is bluffing .... a 15, 000 seat stadium were you all the rights is brings in heaps more than a 30, 000 stadium were you don't have rights.

Also the cost to build small stadiums is far cheaper per seat than larger ... I have seen quotes for small no frills stadiums up to 12 K at just over $ 1, 100 per seat... they are pre frab and made in a factory ... have a good look at Bluie similar in many ways... at roughly 450 seats per row... a 15 K stadium needs 33 to 34 rows ... only one level... steep construction so less roof costs and less lego bits costs...

Also put a golf course in a motel and you have something of a business...

 

[dibo]

On roof costs - they have less to do with steepness than row depth. A steeper stand with the same row depth requires the same roof span (and the roof is more exposed to wind blowing upwards on the underside).

450 seats means 2 sides and our ground has 22 rows ber bay so 33 to 34 rows ain't small. You're talking about something the size of Concord Oval.

Much of your money is made in corporate hospitality and in-stadium sales too, so losing some of that (no frills = less facilities, right?) will cost, assuming the club reaps any of the reward from that. You'd also be covering all maintenance, development and upkeep which at present is managed by the stadium managers.

Aside from all that, financing that won't be cheap. Even at 0% interest over 10 years (for simplicity's sake) you've got to cover $1.5m per year or more than $100k a game. If we were ahead after that, I'd be very surprised if it was more than a marginal difference.

And remember, 10 years ago we didn't exist and our ground was home to a RL club that no longer exists after being built for another RL club that never played there, before hosting a rugby club that played one season before the comp folded. So there is significant risk there. I'd be wanting major, major savings to take on that sort of risk.

 

[midfielder]

No frills does not mean no corporate hospitality .. just limited ..

A 20 million stadium ... guessing somewhere between 12 & 14 K .... at 10% thats 2 million plus upkeep another 500, 000 ... all up 2.5 million per year ...

Cheap in terms of imagine to Asian buyers of mining .... and as I said add a golf course, pool motel... currently loosing 150, 000 * 15 games is 2, 250, 000 not much of a difference... and he get the catering rights meaning its more profitable to build...

Not saying its not without risk ... but for someone like Palmer its falls within his budget... and he could do it... or as some are saying like Tony Sage is doing in Perth - leveraging for a better deal by creating another option. Sage is threatening to move Glory to the Perth Hockey Stadium unless rent at Nib Stadium is reduced.

All good stuff tho...

 

[style_cafe]

I don't think he is bluffing .... a 15, 000 seat stadium were you all the rights is brings in heaps more than a 30, 000 stadium were you don't have rights.

Also the cost to build small stadiums is far cheaper per seat than larger ... I have seen quotes for small no frills stadiums up to 12 K at just over $ 1, 100 per seat... they are pre frab and made in a factory ... have a good look at Bluie similar in many ways... at roughly 450 seats per row... a 15 K stadium needs 33 to 34 rows ... only one level... steep construction so less roof costs and less lego bits costs...

Also put a golf course in a motel and you have something of a business...

That would be a big motel!