Eden Park is in big financial trouble and could run up losses of $80 million over the next decade, says a report commissioned by Auckland Council.
Black Caps bowler Tim Southee is full of praise for Eden Park ahead of tomorrow's T20 match against Sri Lanka at the struggling stadium.
"We enjoy playing here ... it's always good fun to come to Eden Park," Southee told Radio Sport today.
He was commenting on a report by consultants EY that Eden Park is facing an uncertain future as mounting financial pressures put at risk its ability to host All Black tests, international cricket and other major events.
Most of the time when cricket's played here it's usually an exciting encounter
The report paints a bleak financial outlook for the city's major stadium, saying revenue is falling and there is no money for new turf, floodlights and big video screens needed for big occasions.
When asked if the trust's inability to pay for the stadium's upkeep could impact on international fixtures being allocated to Eden Park in the future, a NZ Cricket spokesman pointed out that the ground would host just two of the 43 days of international cricket held in New Zealand this summer.
Eden Park turf manager Blair Christiansen looks over the aging turf which he finds harder to maintain due to its age. Photo / Dean Purcell
Tomorrow's T20 between the Black Caps and Sri Lanka, and the second T20 clash against India on February 8, are the only international matches to be played at Eden Park this season.
The Blues Super Rugby franchise, Auckland Cricket and the Auckland Rugby Union have not responded to requests to comment on the EY report.
New Zealand Rugby chief operating officer Nicki Nicol said the organisation was "aware of the model that the stadium operates on" but hadn't seen the report.
"Eden Park is New Zealand's biggest venue and we are committed to playing at Eden Park," Nicol said.
The Eden Park Trust is not commenting on the report while a number of conversations go on, a spokeswoman said.
The trust, made up of two representatives each from Auckland Cricket and the Auckland Rugby Union and five independent trustees appointed by the Government, is responsible for the park's finances.
Mayor Phil Goff said the board has been invited to appear before councillors early this year to see what, if anything, council can do.
Sources have told the Herald there is an impasse between council and the trust board, with the board believed to be seeking a bailout from council or the Government and council seeking changes to the current model.
"This is a crux meeting," a party to the meeting said today.
One option being floated is for the council to take responsibility for $46.5m of debt hanging over Eden Park and chip in $10m for new turf and floodlights. In exchange, the council could be handed the Government's role of appointing the five independent directors and get effective control of the ground.
A source said any solution would require the backing of Auckland Cricket and the Auckland Rugby Union, who are the ultimate beneficiaries of Eden Park.
The EY report said this year's Rugby World Cup in Japan, resulting in the loss of one of two lucrative All Black tests, only two of the usual four cricket internationals and other revenue challenges mean the park's guardians will not have enough money to pay interest costs of about $1.5m this year, said the consultants.
What's more, EY said Eden Park's cash flow is not expected to improve over the two following years to meet interest payments on loans of about $47m to ASB Bank.
Other problems plaguing the park have been the poor performance of the Blues rugby franchise, falling membership numbers, corporate boxes not being renewed and restrictions on evening events and concerts at Eden Park, the report said.
The report into the Eden Park Trust 's financial position was commissioned by Auckland Council last September and delivered to council a month later.
Councillors were provided with a copy of the report at a confidential meeting in December.
Auckland Mayor Phil Goff says the financial situation at Eden Park is serious.
Goff said the financial position of Eden Park is serious.
For several years, Eden Park has kept its head above water by being able to pay interest on its loans but not being able to put any money aside for future work - known as depreciation costs - which has led to deficits of between $4.5m and $8m.
EY said this meant a 10-year, $62.8m maintenance plan has no funding for things like new floodlights ($5.6m), turf ($3.5m), north, west and south stand maintenance ($12.2m) and super screens ($6m).
Over the next decade, the park could run up further losses of $80m, EY said.
Goff said this financial year Eden Park will have a deficit of about $6.8m. On top of that, the board cannot pay back a $6.5m debt to council or a $40m bank loan used to complete the upgrade for the 2011 Rugby World Cup, which the council has guaranteed, he said.
"Eden Park is an important sporting venue in Auckland, but I don't think ratepayers will want council to hand over millions and millions of ratepayer dollars to Eden Park without resolving the underlying issues," Goff said.
Eden Park Trust chairman Doug McKay.
Asked if Eden Park's financial woes would bring forward plans for a downtown stadium, Goff said no.
Whether and where a national stadium is built will depend on the availability of funding and at present council's investment is focused, for obvious reasons, on transport and housing, he said.
Auckland Chamber of Commerce chief executive Michael Barnett said either Auckland gives Eden Park a more flexible and realistic operating framework and allows it to generate a sustainable amount of revenue, or it continues to constrain it.
"If it chooses to constrain the venue's capability to generate revenue then there is obviously a cost which the city must carry," he said.
Grant Robertson, who holds the Government's finance and sport portfolios, could not be reached for comment, but is understood to be wary about spending taxpayers' money on stadiums.
