DVML $750,000 profit from hosting rugby games

Dunedin Venues Management Ltd has revealed another healthy profit of more than $750,000 from hosting the All Blacks and Highlanders.

The company running Forsyth Barr Stadium has confirmed it made a profit of $419,639 from seven Highlanders Super 15 matches at the venue this year.

Another $353,616 was made from hosting the stadium's first All Blacks test, against the Springboks on September 15, which attracted a sell-out crowd.

That meant a combined profit of $773,255 for DVML from the top two tiers of rugby at the stadium.

Confirmation of the profit came after DVML released detailed information showing it also made a small surplus, of $36,475, from hosting six ITM Cup games, including a semifinal, this year.

A detailed breakdown of the Super 15 and All Blacks figures has not yet been released by DVML.

 

 

 

Stats speak for themselves?

Agreed 250+ is great - the stadium is there and must be used as much as possible. However I see this as a solution to a problem (the stadium drain) not evidence of Nneed. Likely all of those 250+ could have been held at our other stadium (Carisbrook), and probably 150+ of those could have been held in a large supermarket car park....(how's that for multipurpose?)

Time to spend the money on artifical turf so the millstone can be used continously 

Stats speak for themselves

250+ events, 17 games of rugby. It was alway promoted as a multi-purpose stadium and never simply a rugby stadium. If those other events even made a fraction of what rugby has it would pay for itself.
Maybe it's time to say well done, let's see if we can do better next year. Or do you not like the taste of humble pie? 

Non-reality

Max: As the PWC report tells us it was built to be a rugby stadium and has to make a living as a rugby stadium. If DVML continues to cherry pick its finances to pretend it is making a profit when really it is losing millions none of its real problems will be addressed much less solved.

So let's be realistic - it's only in some weird sports accounting world they think they made a profit. It appears they didn't include the cost of the grounds upkeep or even their own salaries, nor insurance nor maintenence. That's not a long-term sustainable business plan.[Abridged]

Multipurpose

Mike, this is not just a rugby stadium and is used more often for non-rugby events.  This article has demonstrated that rugby are paying their fair share - a $750k profit on 17 games is great. It seems to me that it is other users of the stadium who need to pay more. Rugby used the stadium 17 times this season and there were over 250 other events. If we milk rugby anymore then they will go elsewhere and we will be almost a million dollars down. 

Great news

This shows that rugby is paying its way. I've maintained all along that the stadium can be profitable. If its not rugby as the problem then what is it? The answer... the massive staffing costs. Bring these down and we are on the way to the venue paying its way.

Stadium profit

Anti stadium brigade take note!

A profit of over $780,000 from only 14 rugby games at our superb new stadium is a great result by any standard.

We would never had this result at Carisbrook. Add the profit from the many other events held at the stadium, plus the fact that many of these events would not have been held in Dunedin, if at all and ou can see the success of the stadium. Congratulations to  the team at DVML.

What about overheads?

So DVML made a profit of $750,000 on rugby but still lost millions on operations - they're obviously not following normal business practices and doing what any other sane business would do and charging their overheads against their income from customers - Mr Davies' and Mr Burden's salaries still need to be paid for before there's a profit, as does the costs of employees, insurance, rates, depreciation, publicity, electricity, grounds maintenance, taxes, removing seagull poop, and providing the ORFU with free marketing, the list goes on, and all of it costs real money that should be recovered as a part of normal operations.

In the real world business doesn't count a profit until all the bills have been paid and there's still money left over.

Let's make it very plain - DVML needs to charge rugby enough money to cover it's costs of providing the entire stadium service, that includes a reasonable portion of their fixed costs that aren't just provided on the day - otherwise their operation is not sustainable.

[Abridged]

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