Cost could be sticking point in stadium naming rights

Forsyth Barr managing director Neil Paviour-Smith. PHOTO: SUPPLIED
Forsyth Barr managing director Neil Paviour-Smith. PHOTO: SUPPLIED
The naming rights for Forsyth Barr Stadium are on the table as the Dunedin investment firm looks to come back on board as key sponsor of the indoor events arena.

The stumbling block could be the price, says Forsyth Barr managing director Neil Paviour-Smith. In an interview, Mr Paviour-Smith confirmed that the company had recently entered negotiations with stadium management in the hopes of rolling over its naming rights from mid-2021.

The company paid a rumoured $5million for rights to the first 10 years, contracted to mid-2021.

Dunedin City Council-owned stadium manager Dunedin Venues Management (DVML) last year reported total contracted revenues of $10.8million.

Built at a cost of $224million, the stadium was finished in 2011. It has capacity for more than 28,000 people for a sports match and up to 36,000 for a concert, at both pitch level and across three stands.

Last year its major events helped contribute more than $77million to the city’s economy.

Mr Paviour-Smith said the company was proud of its association with the stadium and the benefits it had brought to the city and the region.

"It is almost synonymous with our company, but our involvement won’t be at any cost, so we are going to work through that process," he said.

While he would not be drawn on the likely sponsorship value, he indicated that would be a "material part of the discussion".

A DVML spokeswoman said it was "too early" to comment on potential outcomes, but confirmed negotiations had commenced with Forsyth Barr and other stadium partners, which also included Scenic Hotel Group, Otago Community Trust, Speight’s and the Otago Daily Times.

Allied Press and Otago Daily Times chief executive officer Grant McKenzie said the company had had early discussion with stadium management and was keen to continue its commercial relationship.

The DVML spokeswoman said the process could take between three and six months to conclude.

Comments

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How about 'Trump Stadium?' It kinda fits if you compare the two of them and their financial transparency.

I'll give you a dollar if I can name it 'Farrys Folly'...

Quite right Fitzroy, people seem to have forgotten about that.

Haha Love the fact there are a few anti stadium folk still around (well 2 anyway!). I bet they still have the ban the stadium stickers on their car. A great fun name for the Stadium is actually “Dunedin’s Diamond in the crown of the city”. The $$ the Stadium has brought into the city is stunning but the publicity it has given the Dunedin and positive vibe is well worth thanking all those who said Yes. Well done

Love the fact that there are still some folk who don't look at the costs of this thing, if the 'stadium' is bringing in millions then why is it not paid off yet?, why are the ratepayers still paying for it?.

FB's enthusiasm for being associated with a money pit is very puzzling behaviour for an investment banker. Rather gives the impression they don't know the difference between good and bad investments.

Will we ever be told of the true costs of this 'multi purpose' edifice?, I highly doubt it.

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