"RFA regards the NZ Warriors as both a partner and an important long-term tenant at Mt Smart. Regardless of the fact that your current licence arrangements expire in about six years' time, RFA is committed to retaining the Warriors at Mt Smart going forward. We regard Mt Smart as the Warriors' home, training and playing base."
Given this assurance and the knowledge that if it was not viable we could remain at Mt Smart, we supported the proposed RFA Stadium Strategy by fully trialling Eden Park.
However, in my opinion, Mr Domm's swansong press releases and interviews have left public opinion (and councillors) misinformed in the interim. It is our belief that Mr Domm is misleading the public by giving the impression that the $73.4 million proposal for Mt Smart is what the Warriors are demanding the council to spend on Mt Smart in order to remain there. This couldn't be further from the truth and there needs to be complete transparency on this publicly.
Sports stadium shuffle
Mt Smart upgrade never pursued
Hard ball talk over Mt Smart
Warriors' wishlist costs $73m
David Skipwith: Mt Smart a gem compared to NRL dives
Where do councillors stand?
Warriors told: Leave Mt Smart and to go to Shore
What is factually correct is that in 2012, at the request of the RFA, we submitted a number of options for our future and were invited to describe what a fully upgraded Mt Smart could look like.
Option one was for enhancements and refurbishment of a number of items in poor condition because of (by Mr Domm's admission) insufficient council investment.
It would see Mt Smart upgraded to an international-standard 30,000-seat stadium with a fully refurbished western stand and permanent north and south stand facilities. The east stand would be completed, with new entrances, upgraded sound and audio systems, sealed car parks and a master entrance.
We believed a refurbishment of this nature would firmly establish Mt Smart as the home of rugby league in New Zealand, including for NRL finals and test matches. It would also enhance the venue for other financially lucrative events such as concerts and other football codes.
After providing this document we met RFA on November 8, 2012, where they advised a refurbishment of this nature was estimated to cost $60 million (excluding a multi-level car park proposed solely by RFA).
Read the NRL's letter to RFA here:
As discussed and confirmed in the meeting notes the Warriors advised:
"The $60 million estimate was not prepared or proposed by the NZW [New Zealand Warriors] but was based on what we described as the ideal Mt Smart stadium eg 30,000 premium seats, etc. RFA to provide the concept plan and detailed budget this was based on. NZW will assess the "utopia" Mt Smart upgrade and provide some feedback on what changes to occur to make it more viable eg reduce capacity with finals at Eden Park, etc."
We met RFA again on November 19 2012 and in a follow-up email to Mr Domm that day noted among other items from the meeting:
"Due to investment in Eden Park and other council priorities there is little potential for a full upgrade of Mt Smart main arena to the 30,000 international standard option put forward by the Warriors in July. RFA estimate this would require $60 million and is unlikely to be feasible or supported by council.
"Presently there is $15 million confirmed by council for Mt Smart over the next 10 years.
Whilst this is predominantly earmarked for the main arena the end result will mainly only be long overdue maintenance items achieved, all health and safety issues resolved and some minor improvements. No major capital improvements (eg new end stands will be achieved) as part of the $15 million spend.
"However subject to council sign off there is potential for an approx. $10 million investment from council to be added to the $15 million and for this investment to be prioritised and brought forward (potentially next three years). This would enable a more substantial upgrade of Mt Smart to occur based on a capacity of approx. 20,000 permanent seats but does not guarantee any further development of Mt Smart beyond that."
The following day (November 20, 2012) we again wrote to Mr Domm stating:
"As agreed at the meeting (which predominantly focused on the Warrior future playing strategy), we have agreed to "keep alive" and assess the two most likely options at this point:
1. Mt Smart $25 million investment with most Auckland regular season games played there but finals and blockbuster games at Eden Park and;
2. Eden Park for all Auckland regular season games and all Warriors finals matches.
"For the club to be able to reach a decision we will need to fully evaluate both options, and consider a proposed heads of agreement on both options. I appreciate preparing the information may take longer than had hoped for yesterday so if we need to work through into early next year then we have to do this. This is not a decision that we can be expected to reach without full and detailed consideration. We also understand the council commitment to public consultation."
Read Eric Watson's email to Sir Don McKinnon here:
In November 2012 we also received from RFA a concept for an excellent upgrade option including enhancements for increased concert activity for Mt Smart stadium to 20,000 permanent seats, which included a new north stand featuring 4000 covered seats. This would certainly cost far less than $70 million (probably close to the $25 million already earmarked), and I wonder why, until the October 7 2014 Herald article, Mr Domm and RFA conveniently forgot to mention this option to the public?
I repeat, the Warriors have never insisted on $73.4 million being spent on Mt Smart in order for the club to remain here.
We firmly believe refurbishment around the existing capacity and in the region of the $25 million already outlined by RFA would enhance Mt Smart as a boutique football and entertainment venue; that when operated properly would be very financially viable.
Ironically in September this year the Herald reported that Auckland Council was considering removing the $3.7 million three-year-old Te Wero bridge linking the Viaduct Harbour with Wynyard Quarter and building a $25 million replacement bridge. It seems a huge expense of taxpayers' money but it's a great example of where there is a will, they find the money.
But back to stadium issues.
Eden Park has a capacity of 46,000, it's built in a residential precinct, with virtually no parking making it uneconomic for most events, which may be a blessing given under an agreement with residents the number of annual uses is actually limited. It is unusually expensive to operate because of its size, transport requirements due to no parking, and security staffing in surrounding residential streets. The NRL confirmed this in an independent study of stadiums and advised the RFA in writing.
Warriors' home crowds average about 18,000, but in order for using Eden Park to stack up economically, it needs a blockbuster crowd of more than 25,000.
Consequently the RFA need cricket to get out of Eden Park given its test match crowds average around 4000 to 5000 and see Mt Smart as the only option for speedway, hence their desire to get the Warriors out of Mt Smart, regardless of the consequences to us and others.
So under the new plan cricket goes to Western Springs at a cost of $12 million. Speedway draws crowds of 10,000 to 12,000 and the plan is to house them at Mt Smart at a cost of a $5 million upgrade, leaving the Warriors to shift to Albany for most of their home games because, at an initial cost of $12 million to upgrade QBE Stadium. (They have not mentioned the cost of the future roof.)
Surely the same issues with previous poor maintenance and inadequate capital improvement investment by the RFA, and previously the Auckland Regional Council, still exist whether it is for the Warriors, other football codes, concerts or for speedway?
Let's make it very clear. We understand rationalising of facilities and making each one top quality makes sense. The Warriors have never said that we want Mt Smart solely to ourselves. We would be very happy to share the facilities with other codes such as football, rugby union and its ITM Cup, or other suitable candidates that fit into a rectangular facility of this size.
Mr Domm has raised the fact that Warriors has private ownership, however so do the Blues, the Phoenix, the Breakers and the majority of concert promoters; all of whom are customers like us who hire venues like Mt Smart at commercial rates. Are they all being asked to financially contribute to the capital and maintenance costs of the venues of Auckland or should it be the obligation of RFA to ensure these venues are properly maintained, commercially viable, economically positive for the city, well managed; and available for the people of Auckland (and visitors) to enjoy?
Mr Domm now says via the Herald that the Warriors didn't get back to RFA after initial discussions on the $25 million upgrade plan but again he is simply not correct.
Warriors' co-owner, Eric Watson emailed RFA Chairman Sir Don McKinnon on July 6 2014 to progress the $25 million upgrade. He again reminded RFA of the option to invest $25 million into Mt Smart as one of two options agreed in November 2012 to be progressed; and that as advised by Mr Domm on November 20 2012, RFA was to complete a heads of agreement so that this could be properly advanced. As with a number of other things I believe have been mismanaged by RFA, the agreement was never completed.
Among other items our notes (which were sent to RFA) from the November 19 2012 meeting recorded:
"Following our meeting today we agreed to progress further detail and assess the following two options:
1. The $25 million investment into Mt Smart as a 20,000 approx permanent capacity venue, with all finals and any 'blockbuster' regular season games played at Eden Park. The Warriors would also remain based at Mt Smart (either in existing facilities or in a new high performance and admin centre).
2. The Warriors playing all Auckland regular season games and all finals at Eden Park but remaining based at Mt Smart in a new high performance training and admin base (existing facilities likely to not be practical if speedway located on main arena).
"For both of these options to be assessed we will need to determine key elements of a new agreement, venue terms, term of contract, operational costs of venues, settlement if moving to Eden Park, tenancy for admin/training base, council support of high performance concept, council (RFA, Ateed, Auckland Transport) support of games at Eden Park, etc."
Throughout this whole process the Warriors have been trying to work with the RFA to achieve a result that suits all parties. Unfortunately though, as pointed out in Mr Watson's note to Sir Don on July 6, 2014, I believe the RFA have been consistently poor in their communication and management of the stadium project. This has frustrated many involved.
But this is not our only problem with the RFA led by Mr Domm. In our opinion they have been trying to force the Warriors out of Mt Smart for some time by not honouring the existing lease to 2018.
Normal maintenance has been minimised and a number of contractual clauses breached.
This came to a head earlier this year when they leased out two blocked-off regular football season nights for two Eagles concerts in contravention of the lease. The RFA then tried to cleanse this breach by writing to the NRL, who are not a party to the lease.
Read the Regional Facilities Auckland letter to the NRL here:
Logically the NRL referred them back to the Warriors, in writing.
We are of the strong opinion that the RFA cynically breached the lease (as opposed to not having been aware of the terms) on the grounds that any damages awarded by any subsequent court case would be dwarfed by the multi-million-dollar Eagles income.
However a principle of common law is that one cannot benefit from a breach and thus a court case or judicial review is likely.
The Warriors acknowledge that the tone of recent discussions with the council and Ateed have been constructive, and the tone of the mayor conciliatory. They are happy to look to a more measured planning process and a more transparent approach over the coming years.
In our view, for whatever reason, Mr Domm is not providing the facts, and as chairman of the Warriors I have written this in such detail to set the record straight, especially for the benefit of our loyal members and, importantly, so the wider public and councillors have the facts. We encourage our members and fans to seek support from their councillors as we move toward the next elections.
