World Cup bid hinges on Eden Park upgrade

An Eden Park upgrade costing up to $130 million is pivotal to yesterday's announcement that New Zealand will bid to host the 2011 Rugby World Cup.

Any revamp of the park is also expected to take into account facilities needed for a future bid for an Auckland-hosted Commonwealth Games.

South Africa and Japan are also competing to host the cup, and are expected to argue they have greater revenue-generating capacity than New Zealand - with the rugby tournament the International Rugby Board's biggest cash cow.

Both New Zealand's rivals will also have far larger stadiums by 2011, even if Eden Park's capacity is increased.

A range of proposals to increase the number of people who can get into Eden Park have been developed in the past five weeks, since the joint Government-New Zealand Rugby Football Union proposal kicked off in earnest.

Union chairman Jock Hobbs said the proposal's baseline financial model depends on Eden Park's capacity increasing to 55,000, up from 47,500.

That would be achieved through temporary seating above the current western stand, similar to the wing structures used in Australia during the Olympics and the last Rugby World Cup. It would cost about $20 million and would be recovered through ticket prices.

But a larger upgrade, to provide seating of around 60,000, would require a stadium revamp and the bill for that could reach $130 million, said Eden Park Trust Board chief executive John Alexander.

"Before looking for funds, we would look to what we would do overselves [out of reserves] and then it's a question of how to raise the balance.

"We would need to talk to New Zealand Cricket and New Zealand Rugby and say to them, 'What events can you give the park that gives us the ability to drive and create reserves for development?'

"The only way we can generate funds is through additional fixtures. [But] there will be a shortfall."

The Herald understands any plans for a super stadium, with a capacity exceeding 75,000, have been shelved as too expensive.

The redevelopment possibilities include bulldozing all but the northern ASB Bank Stand, and rebuilding the rest of the venue, or rebuilding the western and eastern ends of the park.

Auckland Mayor Dick Hubbard has thrown his weight behind the city being the main host for a Rugby World Cup, but said the council had not yet considered any ratepayers' contribution.

However, he said it was likely Auckland City Council would argue the event provided a regional and national benefit, and costs should be shared.

Sports Minister Trevor Mallard said the initial taxpayer contribution, of $20 million to help pay for any bid's administration costs, might not be the last.

However, he said there were significant benefits to New Zealand in hosting a cup, including the opportunity to showcase the country.

It is unlikely the Government or the NZRFU would contribute financially to bolstering Eden Park's capacity.

The successful bidder for the 2011 cup will be announced by the IRB in November.

World Cup bids - then and now

Last time

* New Zealand lost the right to co-host the 2003 Rugby World Cup in a commercial row.

* It was unable to provide stadiums clean of domestic advertising deals.

* That had to happen because international rugby controls all cup sponsorship revenue.

* It cost eventual hosts the Australian Rugby Union $43 million to get its stadiums clean.

This time

* The latest bid is a joint Government and NZRFU proposal.

* If the bid wins, a company will be formed to organise the event.

* Taxpayers are contributing $20 million for that, and the NZRFU $10 million.

* Eden Park will also be upgraded, costing up to $130 million.

* Some of the bill may settle on ratepayers.