WHY BIG NEW STADIUMS DON’T PRODUCE A SOCIAL BENEFIT – A TALE OF TWO CITIES
In December, our parliament will vote on whether to proceed with a proposed new stadium in Hobart. This roofed stadium as demanded by the AFL will cost well over $1 billion. But we are told that it will make money because of the large number of sporting events, conferences and performances that it will attract. Despite the massive debt being accrued by the state government and the enormous cost of this new stadium, there has been very little discussion in the public arena to test the assertions of stadium supporters.
It might then be instructive to look at the experience of Dunedin in New Zealand and then look at research studies of similar large stadiums built in other countries.
Dunedin is a city of approximately 133,000 people on the east coast of the South Island of New Zealand. It is the second largest city on the South Island and the capital of the Otago region.
The most popular sport in NZ is rugby union, and the Otago Highlanders has a long and proud history. In 2006, the club decided that its existing stadium at Carisbrook was not a suitable venue for the upcoming 2011 Rugby World Cup, and they formed the Carisbrook Stadium Trust to build a new venue.