Contents
Staying on top of our game
1
A regional partnership
2
In the beginning
3
A record of success
5
Grass roots community involvement
5
A proven record of financial stability
stadium would inject new life into the city and the region.
6
What are they saying about us in 2011?
Within six years the funding was in place and the stadium was planned, built and opened. It
6
The challenges ahead
ignited a remarkable transformation in the region. Since opening, its economic benefit to the
6
Staying on top of our game in 2012
8
Westpac Stadium – built to a tight budget
9
Since we built
A regional partnership
In 1994 a group led by then Mayor Fran Wilde believed that building a modern, multi purpose
region has exceeded $300 million – more than double what was projected.
Westpac Stadium brings people to the capital from far and wide. When there is a major event, such
as the Sevens tournament, as many as 50 or 60% of those attending are likely to be from outside
the region. Between us we have been to a Westpac Stadium event over six million times.
10 Our competitive advantage
Westpac Stadium has helped Wellington create an international reputation as the Events Capital of
10 Development strategies
New Zealand. It is more than a venue. It is a major force within its community, within its region.
12 What we wanted Populous to take into consideration
14 Focus areas for our forward planning
15 The master plan
18 How can we pay for this?
18 Towards the future
Published by
Wellington Regional Stadium Trust
July 2012
PO Box 2080 Wellington 6140
New Zealand
P 04 473 3881
F 04 473 3882
W westpacstadium.co.nz
1
In the beginning
A record of success
The environment for Stadium projects in 1994 was not promising.
When the Stadium was in the early
development stage the project was subject
to a number of rigorous feasibility studies.
No one could afford for it to fail.
The only other major stadium project in New Zealand, North Harbour Stadium, had suffered from
incomplete funding and a weak event schedule that had resulted in a continuous series of financial
crises since opening its doors.
At the time the proposal was approved in
1996 the original Westpac Stadium Project
plan assumed the opposite event schedule.
Not only that, but the Sesqui in Wellington in 1990 was still a vivid memory for Councils and
ratepayers. It had been described as “a spectacular, commercial and administrative failure”, and
closed after two weeks with a loss of $6.4 million.
The Berl report in 1996, estimating the
impact of the yet to be built Stadium on the
Wellington Region, indicated that events
were likely to generate direct spending of
$15 million; employment of 270 fulltime
equivalents (FTEs) and total value added
of $11.6 million per annum. These figures
supported the local and regional council’s
decisions to fund the Stadium.
Both Councils were divided on the stadium project and the major fear was a shortfall in capital costs
and ongoing operational costs that would have fallen back on to the Wellington City Council.
This however, was set against the fact that:
• .With falling attendances, Athletic Park had deteriorated to the extent that it was barely operational
and the New Zealand Rugby Union had threatened to remove Test matches from the City if it was
not improved
• .The Basin Reserve was facing massive maintenance costs
• .No outdoor concerts had come to Wellington in recent years because of the lack of a venue.
Another Berl report in 2004, showed
that after just five years of operation the
Stadium had already doubled its expected
financial impact from the 1996 report and
audience levels were 50% higher than the
levels projected in 1996.
This dramatic increase occurred for a
number of reasons:
•The number of events (including
high profile international events like
the Sevens) were much greater than
originally estimated
By 1994 Athletic Park had
deteriorated to the extent that it
was barely operational.
2
•The average number of spectators per
event has been well above the estimates
of 1996
Westpac Stadium Event Schedule 1996
Expected average number
of events per year
Expected average
attendance per year
Test
1
34,000
Super 12
3 (2 every second year)
20,000
NPC
4
10,500
Test
1
16,500
ODI
1 (2 every second year)
25,000
Shell Cup
1 every second year
10,000
1 every third year
20,000
4
25,000
Event
Rugby
Cricket
Rugby League
Test
Concerts
3
The Wellington Region
1996 per
annum
Actual 10 year
average
Difference
Direct spending by
spectators ($m)
15
54.2
172%
Employment
generated FTEs
270
755
179%
Total Value added
(GDP $m)
11.6
36.7
138%
Event Attendance Feasibility Study v Reality
Total attendance at
events at the Stadium
•A regular concert/non sporting event
schedule has been established,
ranging from the Edinburgh Military
Tattoo and Opera, to AC/DC and the
Rolling Stones.
In just 10 years, Westpac Stadium has
helped transform the sporting and
cultural landscape of our region. Before
the Stadium, there had not been a Sevens
tournament, no big concerts for 11 years,
only two or three Super 12 games and no
A-League Football.
1996 report
estimate
2004 BERL Report
actual average
2010
% increase
over 1996
405,410
544,300
550,000
50%
Now Wellington is the envy of other cities,
with a smorgasbord of rugby, rugby
league, football, cricket, concerts and
exhibitions.
Promoters, who had never previously
considered the capital city a destination,
now have a world-class facility for
international events and know this city will
support the events as well if not better,
than other Australasian cities.
Number of event days
per annum
4
•The financial impact of an event with
large visitor numbers such as the Sevens
has provided substantial benefits to the
region
40–50
Super 12/13
2.5
3.8
6.0
120%
NPC
4.0
5.0
5.0
25%
Sevens
–
2.0
2.0
Not prev held
Rugby test matches
1.0
1.0
2.0
100%
League games
0.6
1.4
1.0
66%
Football
–
–
13
Not prev held
Concerts
4.0
1.6
3.0
-25%
Grass roots community involvement
A proven record of financial stability
The impact of the Stadium has reached further than the extra dollars
it has pumped into the Wellington regional economy. Benefits to the
community at large have come in a number of ways.
The strength and depth of the Westpac Stadium event schedule
together with other complimentary non-event revenue streams
has enabled the Wellington Regional Stadium Trust to consistently
generate annual operating surpluses, meet its debt repayment
obligations, while continuing to enhance the facility.
The Trust has a commitment to hold community events wherever
possible at the Stadium.
Much of the revenue generated by the major sporting events at
Westpac Stadium is reinvested by the sporting codes in sport at all
levels of the community: $2 million by the Wellington Rugby Football
Union alone. Grass roots rugby in the wider Hurricanes region has also
benefited from the higher returns that the Stadium generates.
The profitability of the Stadium is now $2.5 to $3 million per annum.
The Trust’s initial commercial loan was $34 million and it has, over
the past 10 years, been able to substantially reduce that loan to its
current level of $7.5 million.
The Stadium has also provided the opportunity for young and
emerging players to play in a world class facility via club games and
curtain raisers.
Furthermore, the Stadium helps community groups fundraise for their
own projects by staffing bars, selling programmes or picking
up rubbish.
Men, women and children all enjoy and
feel at home at Westpac Stadium: it is a
safe and family-friendly venue.
5
What are they saying about us in
2010/2011?
Staying on top of our game: 2011
•The Wellington City Council 2011 survey of ratepayers’ shows that
87% of ratepayers find the Stadium “good to very good”
One of the original key strategies adopted by the Trustees and
included in our Statement of Intent was to maintain the Stadium in
accordance with international best practice.
•It was rated the best stadium in New Zealand by a Nielsen
Company Brand Advantage survey in 2010
To date the Trust has spent $11 million on improvements ranging
from escalators, an additional lift, a second replay screen and
re-carpeting the entire Stadium. In 2007 the trustees recognised that the
2011 Rugby World Cup will produce new or improved stadia all built with
bigger budgets and to better specifications than were possible with the
Westpac Stadium.
•77% of New Zealanders rated the Stadium “very good to excellent”
in the Nielsen survey 2011
However, the most compelling piece of research is the Regional
Resident Survey on Regional Amenities by Colmar Brunton released
on 9 March, 2011. The research was undertaken to gain an
understanding of the residents’ view of the importance of the regional
amenities to the quality of life, economy and attractiveness to the
residents. It also measured the level of support for regional funding.
In terms of regional support Westpac Stadium ranked 75% just behind
the Ambulance Services at 87% and ahead of Te Papa at 69%. We
also ranked just behind both these very important regional assets in
terms of benefiting the most people in the region.
The challenges ahead
Having set the benchmark for stadia in this country, the Wellington
Regional Stadium Trust has some very testing times ahead. These
challenges take the form of:
•The much higher specifications of Eden Park
•The newly completed Dunedin indoor stadium
The new Dunedin Stadium built
•AMI Stadium will either be repaired or a new venue developed
with bigger budgets and to better
•The above competitors lining up for the Phoenix, the Sevens, and
concerts
specifications than were possible
with the Westpac Stadium.
•The higher returns for Test rugby that can be offered at the
substantially larger Eden Park.
6
7
Westpac Stadium – built to a
tight budget
Since we built
Subsequent to completion some changes have taken place in the
marketplace.
The Westpac Stadium was designed in 1996–1997 to standards
that existed at the time and to budgets that focused on minimising
the price, as the total cost was the ultimate barrier to the project
proceeding.
A significant number of corporate head offices have left Wellington
and many of our members have moved closer to, if not at,
retirement.
The outcome was the best stadium in New Zealand and new
benchmarks for comfort, entertainment, and technology to enhance
a stadium experience. But that was then.
Since we are no longer selling a vision, we are no longer able to
promote the importance of building the stadium for Wellington.
Consequently boxes and memberships will need to be sold on their
perceived value relative to the excellence of the patron experience
and the scheduled event offering.
The final funding was:
Wellington Regional and Wellington City Council $40m
Private Sector
$56m
Commercial borrowing $34m
The Trustees have recognised that they need to plan to improve the
facilities in order to enhance the experience for all our patrons and
hirers; especially to:
•Retain the Sevens long-term and create new features in the
Stadium ensuring that the patrons enjoy the event over two days
and that we compare favourably with other New Zealand venues
Total:$130m
All funding sources were stretched to the absolute limit.
If we look at the budgets of other stadium, and other stadium
refurbishments you can see just how tightly those funds were
The lesser specifications of the Westpac Stadium are starting to
show in the appearance, the increased maintenance requirements,
and in the comparatively less desirable patron experience in our
stadium.
stretched:
•Retain the current event schedule at the present high level
and continue to successfully bid for major events, especially
concerts, international sporting events and World Cups
Our competitors’ specifications:
•Maintain the value of our naming rights sponsorship.
The Stadium was limited by design constraints and choice of
materials to achieve budgets.
AMI Stadium – Deans Stand
$60m
Eden Park RWC refurbishment
$230m
Dunedin Stadium
$206m
Each of the above can now offer five star hotel quality facilities for
their memberships; lighter brighter and better served concourses;
less concrete and more designer finishes using all that modern
technology has to offer; and in Dunedin, a roof.
8
9
Our competitive advantage
It is worthwhile as the Trust looks to planning for the next phase to
restate the compelling advantages of Westpac Stadium.
These include:
• Strong cash flow
• High level of profitability
•The reduction of the commercial loan, creating a significant
borrowing capacity
•Rated the best stadium in New Zealand (Nielsen 2010)
•High utilisation with 40-50 event days a year – the best in
New Zealand
•Very high success rate in attracting events in a competitive
market
•A successful member and box renewal will generate significant
new capital in 2014/2015 which can be used to secure our
premier position in New Zealand.
The Trustees and the Councils have a responsibility to ensure that
the Stadium does maintain its premier place on the New Zealand
events scene and continues to attract major events to Wellington for
the enjoyment of the city, region and our visitors.
10
Development strategies
– staying on top of our game
Our future planning needs to focus on five key outcomes:
• Enhancing the public experience
• Ensuring the best possible outcome for members and box
renewals
• Retaining a premier event schedule
• Maintaining and enhancing attendance
• Retaining a quality facility that reflects the pride of its
stakeholders.
To this end the Trustees employed Populous, an international
architectural firm, to assist us develop our Master Plan. Populous
operate a global practice specialising in stadium architecture.
They were the original designers of Westpac Stadium, but have
also designed Wembley Stadium, London Olympic Stadium, Etihad
Stadium Melbourne, ANZ Stadium Sydney, Suncorp Stadium Brisbane,
Eden Park, Dunedin Stadium, the new Christchurch Stadium, and are
now part of the team employed to redesign central Christchurch.
11
What we wanted Populous to take into consideration
Our brief to Populous noted that our location adjacent to the CBD
and major transport hub was ideal and we did not need to increase
seating capacity. What we wanted to do was invest in the future to
provide an enhanced experience for our patrons to the standard of
world’s best practice.
Populous also noted that:
•The Stadium bookends the key central city waterfront attractions
and the linkages with the city are important
•The Stadium, the only waterfront stadium in New Zealand, has
outstanding views to the harbour and the Tinakori hills that
should be featured from the public concourse.
Outstanding views to the harbour and the Tinakori hills.
The first step was to consult with key stakeholders, Wellington City
Council, Greater Wellington Regional Council, Positively Wellington
Tourism, city and regional planners, venue hirers, members and
corporate users, service providers such as caterers and neighbours.
They told us to:
•Improve the entry plaza
•Cover the walkway
•Install a roof
•Build a 1000 seat dining room
•Add an indoor concert arena
•Reinstate the Thorndon overbridge
•Enhance the patron concourse experience
•Enhance the members lounge experience
•Consider the environment
•Improve media areas
•Upgrade the home team changing room
•Enhance the vehicle and traffic management
•Upgrade the technology
•Replace the external cladding.
In addition to the consultation process, Populous and the
management and Trustees of the Stadium have pursued these and
other concepts, reviewed stadiums and other entertainment venues,
and patron experiences throughout Australasia and internationally.
Our Master Plan developments have been benchmarked against
world’s best practice.
12
13
The Master Plan
Focus areas for our forward planning
Against each of these the task has been to marry what is possible
with what is affordable and still meet our objectives for both today
and the future.
There is nothing pie in the sky about the concepts now on the table
– the next step has been to work through the priorities and where
appropriate the final concepts.
Before we begin on outlining our immediate and future plans it is
worth looking at what was not achievable:
•Installing a roof
•Building a 1000 seat dining room
The particular challenges are:
•The Stadium is built of light weight concrete and cannot support
any additional structures, therefore either additional foundation
work would have to be done, or a separate structure built to
support a roof
•There is a height restriction in the Thorndon area. The Stadium
has a resource consent that permits us to build to only 26
metres. There would be many resource consent issues and
potential problems with the neighbours in building a structure
covering the Stadium
The Master Plan is a series of distinct projects that will be phased in
over time in keeping with priorities involving:
•Event requirements
•Cashflows
•Planning and design requirements.
Each phase will also be implemented to fit in with the different
requirements of the Stadium event schedule and timed to match
our cash flows.
There is no ongoing commitment to construction or expenditure
beyond each distinct phase.
Stage one of this phase covers the 2012/2013 year and detailed
planning and programming is already underway.
•Reinstating the Thorndon overbridge
•The existing light towers need to be at the current height
mainly due to cricket requirements
•Attaching an indoor concert arena.
•Any roof would need to be above the light towers
This year includes the:
Without going into too much detail it is worth outlining the results
of our exploration of adding a roof, given this has received a great
deal of comment.
•Any roof construction needs to provide airflow within the
Stadium so grass can grow
•Upgrade of the Deloitte Club Lounge on level 3
B12 Roof
Pic some high level assessments into costs,
The +
Trust
has Options
undertaken
feasibility and benefits of putting a roof on the Stadium.
•Upgrade of the main changing rooms and construction of
additional changing rooms
•It is likely that there would be serious wind loadings on a roof
that would create major additional costs to resolve
•Construction of match offices
Some high level estimates for costs, from our consultants, have
varied between $60 and $80 million for construction of the roof.
•Construction of media facilities.
The estimated cost for this work is $5.0 million.
This is beyond the financial resources of the Wellington Regional
Stadium Trust and the local councils would need to assist in the
funding of such a project.
Its timing ensures both our readiness for the two upcoming World
Cups, the 2015 Cricket World Cup and the 2015 Under 20 FIFA
World Cup, and our ability to conduct any significant alterations to
the Stadium before and during these events.
Nothing in the Master Plan prevents the addition of a roof at some
time in the future.
Nothing in the
Master Plan prevents
the addition of a roof
in the future.
14
Phase 1 – 2012–2016
It is the opinion of the Trust that at a cost of $60 – $80 million there
would need to be a debate on whether that money would be better
spent on funding a purpose built indoor arena. A covered Stadium
would not attract the smaller 10,000 –12,000 seated concerts,
which are the majority of concerts that are currently touring and
bypassing Wellington.
Stage one of Phase One also helps us in our readiness in advance of
the renewals of the Sevens contract and our memberships.
Above: Upgrade of Deloitte Club Lounge on level 3.
The Trust is determined to provide additional significant upgrades
for both members and the public prior to 2015.
Right: Standing room bars at the back of the seat bleachers.
Other stages of Phase 1 include:
15
2013 /14
2015/ 16
•Construction of the mezzanine lounge bar on the public concourse,
western side providing a space that not only provides a meeting
place for before and after the event but also views and light.
•Construction of a mezzanine lounge on the public concourse,
eastern side.
The estimated cost of this work is $2.0 million although no detailed
plans are available yet.
•Consequential upgrade of the surrounding public concourse.
•Upgrade of the Deloitte Gallery, level 4.
•Technology upgrade.
2014 /15
The estimated cost of this work is $7.5 million.
•Standing room at the back of the bleachers where people can
watch the game with friends around bar leaners.
•Upgrade of the Deloitte Lounge, level 4.
The provisional estimated cost of this work is $2.0 million.
+ B1.3 Concourse Study fp-01 Pic
+ B1.1 Concourse Mezzanine Study fp-01 Pic
+ B1.3 Concourse Study fp-01 Pic
+ Standing Bars at back of bleaches (HMA
Pic)
+ Deloitte Club Lounge (HMA pic)
A mezzanine bar on the
public concourse, western
side providing a space with
views and light.
16
17
How can we pay for this?
Towards the future
This project does not require any financial support or funding from
either the City or Regional Councils. It can be fully funded from the
Trust’s own cash resources and by utilising its borrowing capacity.
Beyond 2016 are phases 2 and 3, where concepts
and ideas have been explored but by no means finalised.
80% of the project cost over the next three to five years can be
funded out of the Stadium’s profits and free cash flows, with
the balance coming from a small increase in our current level of
borrowing to the level of our current credit lines. This compares
with $34 million of borrowing we had in 2001.
The Trust believes the debt can be serviced out of projected profits.
These include:
Phase 2 – 2016 plus
Covering of the entrance gate and shelter on the walkway.
Phase 3 – 2016 plus
Replacement of the exterior cladding.
Modern developments in stadium design and
construction technology allow the Trust a number of
options for the replacement of the exterior cladding.
18
19
The next four years will be very
exciting for the Stadium, its
stakeholders, and users as we
ensure the future-proofing of our
region’s most important public
venue.
Doing nothing is not an option both from a maintenance
perspective and from a competitive environment perspective.
We want your support for the further development and staged
implementation of the Master Plan. This will ensure that not
only the Stadium continues to set the benchmark, but also that
future Trustees understand the concepts and make decisions
about capital expenditure fully understanding potential
impacts on the future.
This does not mean that future Trustees are constrained by the
Master Plan, only that they will have the benefit of some longterm planning, when they make their decisions.
We would like the City Council, in their long term plans, to
continue to embrace not only our signature events, but also to
embrace the concept of improving the linkage between the city
and the Fran Wilde Walk.
Together we need to stay on top of our game.
Paul Collins
on behalf of the Trustees,
Wellington Regional Stadium Trust
20
21
Wellington Regional Stadium Trust
PO Box 2080
Wellington
www.westpacstadium.co.nz