I write to update you regarding the Club’s position on the Adelaide Oval redevelopment.
First though, we are very conscious that we have not formally corresponded since late last year on this issue. I can assure you however that there has been an enormous amount of work going on to ensure a positive outcome for you and for our Club.
As far back as November 2009, when Adelaide Oval was first mooted as an option for AFL games, we always said that we would approach the exercise with a positive attitude.
We also said that we would only correspond with members, and the public generally, when we had reliable and factual information to deliver.
To provide some context, much of the delay (until now) in corresponding has been due to the fact that we have needed to not only work through the Adelaide Oval proposition; but also our possible future tenure at AAMI Stadium. And while it has taken considerable time, we now have enough reliable information to present a position on it to all of our members.
Our Board has said, again right from the beginning, that we will only endorse a move of AFL games to Adelaide Oval if, as a Club, we are significantly better off.
We now have enough detail bedded down for us to endorse the project, and to conclude that we will indeed be significantly better off as a Club.
In reaching this conclusion, there have been several critical issues for our Board that needed fulfilment - or a clear resolution - before we would commit on behalf of all Club stakeholders (some of which have only been settled in recent days). In no particular order, those critical issues (and outcomes) are as follows:
1. The stadium itself
SACA and the SMA have previously published plans of the new stadium. In summary, your Club considers those plans (in terms of design, fitment, technology, access, appeal etc) to be outstanding. Through our daily involvement and input we have ended up with all of our needs being met.
2. Seating
At just over 50,000 seats and over 3,000 standing capacity, we can assure all ticketed members who hold a ticket in the year prior to a move - that they will have a seat.
With over 75% of seats undercover (vs 45% at AAMI), we have an improved situation for members and other patrons. There is also more centrally located undercover seating. Our experience and research indicates that putting more people undercover is vital for future growth.
The design of the stadium, in particular the south and eastern stands, ensures that patrons are closer to the field of action, and therefore will have a better match day experience.
3. Membership
Without detailing the membership packages, the Club is satisfied with what is a simple, sensible structure of membership options; from ‘Club only’ to full stadium membership.
There are several models of membership pricing which are yet to be completely settled, but in our view (and with market research), it looks very affordable for a new stadium.
4. Access
Central to football’s support (as a code) was the exclusive access for a defined period (nearly 7 months), which has now been assured.
As a Club, we also have appropriate access to the ground for training, and year round access to new change rooms which have been purpose designed for our Club. There will be improved coaches boxes and associated technology.
5. Car Parking (and traffic management)
This issue has clearly emerged as one of the most important to many of our members.
The overall number of car parks within a 750m radius of Adelaide Oval is slightly more than we have within 750m of AAMI.
Of considerable interest though to many of our members, is the access to the car parking which is suitable for tailgate parties/BBQ’s - akin to the existing situation and culture at AAMI.
It’s our view that with direct management of our current tailgaters, there will be enough spaces available in the Northern car park, Adelaide Oval No 2 and Pinky Flat to accommodate all our current tailgate party goers.
Many have also been concerned with the general congestion around the precinct on event days - given the difficulties recently experienced at various events.
We believe this is a valid concern, and are encouraged by the work that is (still) going in to solve this issue - such that access/egress is significantly improved.
6. Pre-post match facility
A cornerstone of the Club’s culture, and a means of including members with the team, has been the Club’s Shed facility (more recently) within the Westpac Centre.
We would not expect members to travel back to West Lakes after a game, and have therefore insisted (as a core non-negotiable) that a facility akin to the Shed is reproduced at Adelaide Oval.
Whilst not as expansive - and not exclusively ours - we have secured such a space immediately adjacent to the ground. Its fitout will be as Gold Members have come to expect and enjoy for the past ten years.
7. Corporate Facilities
The range and quality of corporate facilities is clearly excellent. They are far superior to the current product at AAMI. On the back of considerable market research, and our own knowledge and needs in this area, the mix of corporate product, the quality of fitment and the increase in capacity will all create critical growth in this area of our business.
There will also be more corporate product in the hands of the Club (ie) as direct customers of the Club.
8. Overall financial benefit
Succinctly, we are set to be significantly better off financially, based on:
a) The projected growth in business at a new Adelaide Oval stadium; and
b) A new agreement with our owners, the SANFL.
We have reliably modelled a financial benefit from the above of more than $3.5m net per annum.
Importantly too, we have resolved to work with the SANFL to move to Adelaide Oval debt free.
9. Tenure at AAMI Stadium
It’s the Club’s intention to maintain our administration and training base at West Lakes, and to continue to operate the Westpac Centre as a multipurpose training, community and entertainment venue.
Further to point 8 above, and to underline the beneficial financial outcome for the Club, we would (for the foreseeable future) remain at AAMI on a rent free basis. The SANFL have committed to funding the maintenance of AAMI Stadium.
The 25 year Masterplan for AAMI will (by now) be familiar to most members, given recent publicity. It shows of course the grandstands eventually (or potentially) coming down as the precinct is rezoned for residential and retail redevelopment. Again, it should be stressed that this takes in a 25 year horizon, and its our expectation that AAMI Stadium will continue to be used for many years to come as a second (major) stadium for our City - and indeed as our training ground!
(In fact it’s worth noting that your Club still strongly advocates two major stadia in Adelaide - and will continue to do so).
A summary
Your Club has worked up and negotiated a situation where we do genuinely believe we will be significantly better off if AFL games are moved to a new $500m+ Adelaide Oval.
To be blunt, however, this also needs to be considered in the context of ‘the alternative’.
We have said two things right from day one. One is our need to be significantly better off. Second, is that to stay at AAMI - and do nothing to AAMI - is not an alternative. Declining attendances and a changing market are two key indicators that staying at AAMI and spending nothing on it - is not an option.
The stadium suffers unreasonably today from poor PR, but at the same time, it needs much work to keep patrons coming back in future years.
Members are reminded too that there is no Government funding for AAMI. That has been made very clear to us. And as you probably know, football itself cannot generate enough capital to redevelop AAMI in its own right.
We have a very clear understanding that this issue (AAMI v Adelaide Oval) has been divisive with our supporters. We have 6,000+ names on a petition wanting to stay at AAMI, and yet many more (from reliable research) are either supportive or wishing to join us at a new, city stadium.
This has been why we have worked so hard to get a positive outcome for all stakeholders, if the redevelopment goes ahead.
As most will know, there are still a couple of key issues - outside of our control - that need resolution (eg. SACA vote).
Notwithstanding the above, our Board is convinced that moving games to Adelaide Oval provides the best opportunity for you to be a part of a sustainably successful football club.
Kind regards
ADELAIDE FOOTBALL CLUB LTD
Steven Trigg
CHIEF EXECUTIVE OFFICER
