An independent report from economist Nicholas Gruen has warned that a project to deliver a new 23,000-seat Australian Football League (AFL) stadium in Tasmania could end up costing more than A$1bn (£499m/€601m/$625m).
In September, the Macquarie Point Development Corporation (MPDC) submitted its application to develop the stadium in Hobart, as the project’s price tag rose to A$775m.
The submission marked the start of the assessment through the Project of State Significance process, but Gruen has predicted that the cost of building the stadium will increase even further.
The Tasmanian Government has previously stated its contribution would remain capped at A$375m, with the federal government committing A$240m and the AFL adding a further A$15m. The extra funding required to meet the A$775m budget would have to come from the private sector.
Gruen believes the cost of the project has been “significantly underestimated”, while the cost-benefit has been overestimated. He also questions the timeframe for the project, which is expected to be delivered in time for the 2029 AFL season.
“It can’t be done on time, it can’t be done on budget,” Gruen said, according to Australian broadcaster ABC. “We need a reset, and I’d be disappointed and almost surprised if the AFL wouldn’t show some degree of leniency, given how angry I think Tasmanians are entitled to be with the way this process has gone.”
Gruen suggests that a more realistic timescale for the construction of the stadium would be five to seven years. Tasmania’s AFL team is lined up to enter the competition in 2028 and it could play elsewhere in Hobart or in Launceston until the new stadium is ready.
Gruen’s report added that the project has shown the “hallmarks of mismanagement” and questioned the location of the proposed venue.
In July, new concept designs were released for the proposed venue, which is set to become the world’s largest timber-roofed stadium. The facility is being designed by Cox Architecture, which was appointed in May by the MPDC.
A design concept had previously been released for the stadium, but Cox director Alistair Richardson said this gave the firm “some clues of what we don’t want to do”.
Cox has implemented a woven-style façade in the design, inspired by the shape of the roundhouse structure that used to be part of the Hobart Rail Yard at Macquarie Point. The transparent roof will be supported by an internal steel and timber frame.
Cox has designed several leading venues in Australia, including the Adelaide Oval, Perth’s Optus Stadium, and Allianz Stadium in Sydney.
