The business case, completed by Coffey Commercial Advisory, reports Tasmanian Government funding will be vital for the A-league team and provides a number of different options for Government funding.
The key findings of the business case include:
- a successful bid will need $8-10 million in start-up funding and cash reserves
- Tasmanian Government support will be vital to the success of any Tasmanian bid
- Bellerive and Aurora Stadium show favourable stadium economics
- Tasmanian businesses have shown interest in sponsoring a Tasmanian team
- based on market research, home games are expected to attract an average attendance of 13,460 across the season, and 13,825 members are likely to join
- a Tasmanian side is likely to make operating losses until its fifth year.
The announcement was made by Mr Wightman in a media statement issued on 20 April 2011 by the Tasmanian Government.
In the announcement, Mr Wightman said the business case made a substantial contribution towards the A-League goal.
“The Tasmania United business case is a landmark document towards the creation of a Tasmanian A-League team.
“This report sets out the fundamentals of a Tasmanian A-League side – including financial and organisational modelling and our competitive advantages and disadvantages.”
“The Tasmania United taskforce have driven the A-League campaign to this point and their hard work has been crucial in the development of the business case.
This includes the potential to underwrite the team, provide a large annual grant or a naming rights sponsorship arrangement. The business case suggests this would require a large Government investment of around $7.5 – 10 million over the team’s first five years.”
The business case also provides a situational analysis, taking the view that the A-League is in a period of consolidation rather than expansion.
Mr Wightman said that a combination of these factors meant that in his view, a team is still some years away.
“The A-League is in a period of consolidation. Growing interest in the round-ball game in Australia and our region guarantees that the A-League will grow but it is unlikely the A-League would admit a Tasmanian side in its current phase,” he said.
“The Tasmanian Government’s Sport and Recreation funding priority will remain funding grassroots sport and recreation, where most Tasmanians see the dividends.”
Mr Wightman said he was proud of the Government’s investment in football, totalling more than $1 million over the past three years. This includes investment in TIS football programs, facility upgrades across the state and sport development funding to FFT.
Mr Wightman said the next step on the road to an A-League side was working with FFT on a longer-term plan culminating in a Tasmanian A-League side.
“In my view, any A-League side should be built in a similar way to the Cricket Tasmania model, in which the state sporting organisation manages the game from the grassroots right through to elite state teams,” he said.
“As a Government we will look at those possibilities within our financial constraints.”
The business case is available at www.development.tas.gov.au/sportrec.
Media contact
Angela James, Manager, External Communications, Coffey International Limited
P: (+61) (2) 8404 4415; M: (+61) 42 8 905 573; E: angela_james@coffey.com
