Why Tasmania’s politicians couldn’t say no to a once-in-a-century AFL opportunity
- Written by: Tim Harcourt, Industry Professor and Chief Economist, University of Technology Sydney
It is now (almost) official: Tasmania will finally take its place in the Australian Football League (AFL).
Tasmania, a foundation state of the nation’s homegrown game of Australian rules football, has trod a tortuous route, with great drama, over its plan for a 23,000-seat indoor stadium precinct at Macquarie Point on Hobart’s picturesque waterfront.
The state is now on the cusp of realising a dream many footy-loving Tasmanians[1] had long hoped for.
A political battle
To cement the club (known as the Devils, and featuring the state colours of myrtle green, primrose yellow and rose red) as the AFL’s 19th team, Tasmania needed parliament to approve the ambitious and costly project.
It passed the lower house easily[2] (25-9) with the Liberal government and Labor opposition both supporting it.
But it was no sure thing to pass the upper house, with many independents either against the project or unsure about the mooted A$1.13 billion price tag[3].
For a small state, this is a huge commitment: Tasmania will pay $375 million plus the remainder in borrowings, and costs have already blown out[4] since initial estimates.
The federal government ($240 million) and AFL ($15 million) will also chip in.
As part of the Devils’ licence, the club will receive $360 million from the AFL[5]. Much of this will be earmarked for grassroots investment – upgrades to local grounds, talent pathways and a high performance centre.
By securing the support of independents Bec Thomas, Tania Rattray, Dean Harriss and Casey Hiscutt, there are now enough votes for the stadium precinct to pass[6].
The final vote is likely to happen late on Thursday or even early on Friday morning.
The Devils will now almost certainly enter the AFL and AFLW in 2028, although the stadium won’t be ready until 2029 at the earliest (the team will play at existing AFL venues in Launceston and Hobart until then).
I analysed the economics
I addressed the state’s Legislative Council sub-committee last week on the economic and social benefits of the team and the stadium precinct.
Rattray and Thomas both asked constructive questions. The Greens, who had grilled others during this emotive debate, were absent from the chamber when I spoke.
The independents were rightly concerned about governance principles, fiscal sustainability and commitment to grass roots as well as elite sports.
The Tasmanian government has committed to all of those areas[7], enabling them to support the stadium-precinct.
During the lead-up to the vote I delved into the economics of the team and stadium precinct with many people at the heart of the issue. These included Brendon Gale (Devils CEO), Tasmanian Tourism Chair Grant O’Brien, business leader Kelly Elphinstone, Christine Finnegan (CEO of the state’s highly successful basketball team the JackJumpers) and Brad Van Wheely[8] (a sports and technology expert).
I analysed[9] not only at the up-front costs of the team but also the long-term benefits.
Gale told me:
[There will be a huge] economic, financial, social, cultural, psychological uplift […] and also an uplift that gives to the state and to our youth. You know, this gives a reason for people to stay. It gives pathways, jobs, people work productively, pay taxes.
I also drilled into the cost-behefit analysis of the project, the downstream costs and benefits, and the psychological boost of Tasmania having its own team on the national stage.
Another crucial benefit will be the impact an AFL team will have on sports participation in the state[10] and the social capital benefits across Tasmanian regional communities as well as Hobart and Launceston.
I also looked at smart stadium technology and sports innovation, benchmarking across international stadiums as well as the “JackJumper effect[11]” of Tasmania’s basketball team. This would be turbocharged by the Devils, given Tasmanians are some of the most passionate supporters of Aussie rules football.
My conclusion was this was a once-in-a-century opportunity to build a multi-purpose stadium precinct that will host multiple elite sports as well as a range of creative and cultural activities, and business events.
More hard work begins now
The triumph for the Devils and stadium supporters in the Legislative Council finally ends this long saga, and puts the Devils on a smoother path to 2028.
The AFL has long stated the Devils would not go ahead without the new stadium.
Now it has been given the green light, and the Devils can get to work in building the footy side of things ahead of becoming the AFL’s 19th team.
References
- ^ dream many footy-loving Tasmanians (www.timetoast.com)
- ^ passed the lower house easily (www.abc.net.au)
- ^ A$1.13 billion price tag (www.abc.net.au)
- ^ costs have already blown out (www.afl.com.au)
- ^ $360 million from the AFL (www.afl.com.au)
- ^ for the stadium precinct to pass (www.abc.net.au)
- ^ all of those areas (www.theage.com.au)
- ^ Brad Van Wheely (tickernews.co)
- ^ I analysed (tickernews.co)
- ^ sports participation in the state (www.themercury.com.au)
- ^ JackJumper effect (sgsep.com.au)
Authors: Tim Harcourt, Industry Professor and Chief Economist, University of Technology Sydney
