Yachting: San Franciscans get what Auckland didn't

A stadium was once proposed for Auckland's waterfront.

It might be the Team New Zealand base now but, when the 34th America's Cup is done, the spot they occupy will become a US$1 billion ($1.26 billion) waterfront stadium. Privately funded.

Yes, eat your heart out, Auckland. The stadium once proposed to host the 2011 Rugby World Cup back in 2006 is instead rising out of San Francisco Bay. It will be a 17,000 to 19,000-seat stadium and entertainment complex on Piers 30-32 (which is actually one pier), currently also hosting Luna Rossa's cup base.

The plans and artist's rendering for the stadium look uncannily similar to those trotted out for "Stadium New Zealand" - although that plan was for a 60,000-seat stadium on Marsden Wharf, supposedly costing $500 million.

Quite how the Americans need US$1 billion for a stadium for fewer than 20,000 people and we thought we could get away with half a billion for a 60,000-seater is not clear, although back in 2006 there were strangled noises coming from our Ports people that the waterfront stadium would cost way more than $500 million. San Francisco is aware that just getting the pier adequately stable to support such a stadium would be US$100 million alone.

The stadium would be the new home for the basketball team the Golden State Warriors who are currently quartered in a old facility in Oakland.

First, San Francisco, in spite of its acknowledged beauty and home to arts, entertainment and sport, does not have a stadium capable of hosting sports and entertainment acts from circuses to rock stars. Also, the city is losing its beloved San Francisco 49ers American football team who are moving down to Santa Clara; getting the Warriors back would be a fillip.

And here's the punch line - the Warriors' stadium will be entirely privately funded. No Government money, federal or state. Again, eat your heart out Auckland.

The Warriors are owned by venture capitalist Joe Lacob and Peter Gruber, the film producer, chairman and chief executive of Mandalay Entertainment and also owner of the Dodgers baseball franchise. They are leasing the land off the City and have undertaken to jazz up what was a badly fading part of the waterfront.

It's not a home run yet. Some San Franciscan residents are putting up a fight against the development which may delay it - but most are picking the Warriors will be in their new stadium close to the tight five years they want it to take.

If so, that will be a highly soothing balm to the aches caused by the America's Cup and specifically the financial shortfall caused by hosting the Cup - and by the volte-face from Oracle billionaire Larry Ellison and the grand designs to develop the waterfront around the cup.

Ellison was also going to develop Piers 30-32, with condominiums and the like, before pulling back from such commitments when it became clear the Cup wasn't reaching the heights once anticipated.

This caused a bitter stir in San Francisco. The over-inflated financial benefits of hosting the Cup were paraded in front of the city: It would generate US$1.4 billion, attract 2.7 million spectators and provide work for 8800 locals. That was later downgraded to US$900m in economic activity, 2 million fans and 6500 jobs. Even that seems hopeful. The America's Cup Organising Committee, a city body set up to raise money for the extra operating costs for the event, has about a US$20 million ($25 million) shortfall - to be paid out of city coffers.

Mayor Ed Lee yesterday opened the Brannan Street Wharf project - part of a waterfront upgrade that he says has been accelerated by the America's Cup.

The new park had taken 15 years and spanned three mayoralties but is finished now instead of 2020. Asked what advice he would give Auckland if it hosted another America's Cup, Lee said: "Well, I hope it comes back here. Mr Ellison has said that if Oracle wins it, the Cup will be held in San Francisco and I think we can learn from what has happened this time round."