New grandstand costs ARC $1 million in losses

Auckland Regional Council is facing potential losses of nearly $1 million after only selling half the corporate seats for Ericsson Stadium's new grandstand.

Despite an extensive marketing campaign, just 50 per cent of the 1000 corporate seats at the council-owned East Stand at Ericsson have been sold for the 2005 Warriors season.

The stand cost about $23 million to build, with the loan to be paid back from sponsorships, stadium use fees and ticket sales.

Business director Jaine Lovell-Gadd said the poor corporate sales were a reflection of the Warriors' poor on-field performance last season and because most league supporters were not from a corporate environment.

While the council was not prepared to release exact figures, it did admit just over half of the 320 season seats priced at $2200 had been sold, half of the 564 seats at $1800 had sold and none of the $1600 seats near both ends of the stadium had sold. That equated to potential loss of almost $1 million.

However, the council is confident it can turn the figures around, claiming many league supporters were adopting a wait-and-see attitude toward the Warriors. Ms Lovell-Gadd said the council was not yet worried about the lack of income affecting loan repayments because while revenue was expected to be down as a result of lower seat sales, savings in interest expenses and depreciation would help offset that.

- Herald on Sunday