Earlier this month, Auckland FC’s owners withdrew their proposal to build a new stadium at Western Springs citing “unique challenges” with delivering the project on public land and frustration with “extended timelines and complexities”.
A source at Auckland Council told me last week that the process had become particularly complicated by the actions of 4 or 5 councillors including John Watson and Wayne Walker.
In May, Watson had questioned whether the Auckland FC proposal meant that Western Springs was essentially being privatised.
In a Facebook post last week, he went further, writing: “This time around speedway’s eviction was engineered in advance amidst accusations of impropriety which have led to judicial review proceedings. The same fate awaited Ponsonby rugby, one of the country’s largest and most famous rugby clubs. In their place a private sporting franchise barely in existence for a year was to be gifted Western Springs Stadium for the next 100 years in order to build a 15,000 seat capacity stadium inside a natural amphitheatre for a football team that had regularly attracted crowds of 25,000 plus at Mt Smart in their first year in the A-League.”
In November last year, Wayne Walker alleged that the process that saw the speedway leave Western Springs Stadium was potentially fraudulent.
“The budget has been fudged. The consultation has been fudged and some of it arguably has been fraudulent,” Walker said.
The hostilities have led to the Western Springs Speedway Association (WSSA) launching a judicial review process aimed at overturning the Council’s consultation process and returning to square one.
In a letter to the Council in April, the lawyer acting for WSSA, Bronwyn Carruthers KC, said: “It is clear the only prudent approach at this time is the third option (not progressing further with the expression of interest process) until the judicial review proceedings have been determined.”
The proposed new home for Auckland FC was backed by the owners of the franchise - entrepreneur Anna Mowbray, her husband and former All Black Ali Williams, American billionaire Bill Foley and New Zealand NBA star Steven Adams.
It was one of three proposals that went out for public consultation, alongside a second proposal backed by Ponsonby Rugby Club and concert promoters CRS Record and Eccles Entertainment. The third option was the status quo.
No clear favourite emerged from the one month consultation process but how much weight should be placed on that feedback and what are the financial implications of each proposal?
In May, Watson had questioned whether the Auckland FC proposal meant that Western Springs was essentially being privatised.
In a Facebook post last week, he went further, writing: “This time around speedway’s eviction was engineered in advance amidst accusations of impropriety which have led to judicial review proceedings. The same fate awaited Ponsonby rugby, one of the country’s largest and most famous rugby clubs. In their place a private sporting franchise barely in existence for a year was to be gifted Western Springs Stadium for the next 100 years in order to build a 15,000 seat capacity stadium inside a natural amphitheatre for a football team that had regularly attracted crowds of 25,000 plus at Mt Smart in their first year in the A-League.”
In November last year, Wayne Walker alleged that the process that saw the speedway leave Western Springs Stadium was potentially fraudulent.
“The budget has been fudged. The consultation has been fudged and some of it arguably has been fraudulent,” Walker said.
The hostilities have led to the Western Springs Speedway Association (WSSA) launching a judicial review process aimed at overturning the Council’s consultation process and returning to square one.
In a letter to the Council in April, the lawyer acting for WSSA, Bronwyn Carruthers KC, said: “It is clear the only prudent approach at this time is the third option (not progressing further with the expression of interest process) until the judicial review proceedings have been determined.”
The proposed new home for Auckland FC was backed by the owners of the franchise - entrepreneur Anna Mowbray, her husband and former All Black Ali Williams, American billionaire Bill Foley and New Zealand NBA star Steven Adams.
It was one of three proposals that went out for public consultation, alongside a second proposal backed by Ponsonby Rugby Club and concert promoters CRS Record and Eccles Entertainment. The third option was the status quo.
No clear favourite emerged from the one month consultation process but how much weight should be placed on that feedback and what are the financial implications of each proposal?
Auckland Arena
The Auckland FC proposal was a bespoke 12,500 to 15,000 capacity stadium with a health centre, football pitches, and basketball and padel courts for community use.
Auckland Arena, the proposed home of Auckland FC at Western Springs
The $200 to $300 million facility was fully underwritten by its backers and there would be no ongoing cost required from ratepayers according to the Council’s consultation document.
In their proposal, the backers cited their “proven track record delivering complex, world-class venues in partnership with cities around the world, like the BMO stadium in Los Angeles”.
The Council estimated that there would be $18.1 million of savings to public cost over the next 50 years compared to the existing arrangements.
Auckland FC would have a 50 year lease with two rights of renewal for 25 years each.
Western Springs Bowl
This proposal combines a community sports facility and a 5,000 to 8,000 boutique stadium for Ponsonby Rugby Club with a permanent music and festival venue with a 50,000 capacity using the natural amphitheatre.
The proposal is backed by Campbell Smith (CRS Records) and Brett Eccles (Eccles Entertainment) and Ponsonby Rugby Club.
An initial assessment by Tātaki Auckland Unlimited suggested the project would need $30 million in private sector investment for the new concert facilities, combined with $18-$20m in ratepayer funding for community clubrooms and continued stadium operation and maintenance.
The Council estimated that there would be $106.7 million of additional public cost over 50 years compared to the existing arrangements.
The backers would received a 30 year lease with two rights of renewal for 10 years each.
It’s unclear how much, if anything, CRS Records and Eccles Entertainment would contribute to the costs associated with the project, or whether the $30 million of private sector investment (or any part of it) is currently underwritten.
Neither option
The third option is to maintain the status quo as a concert venue and home of Ponsonby Rugby Club, or to consider other ideas.
The Council estimates that the current arrangements have an estimated public cost of $31.1 million over 50 years if a new 30 year lease is signed with Ponsonby Rugby Club.
Auckland Council’s debt burden
When comparing the two main options, it’s worth considering Auckland Council’s debt burden - as at the end of last year, net debt had increased to $13.2 billion, from $12.3 billion in June 2024.
Driven primarily by the need to upgrade the city’s water and transport infrastructure, net debt is forecast to increase by 70% over the next seven years to $22.5 billion in 2032.
The Council’s long term plan includes forecast rate rises of 6.8% in 2024/25, 5.8% in 2025/26 and 7.9% in 2026/27, as well as ambitious increases in revenue from services which should, over time, reduce the dependency of debt as a funding source. But for the moment, “elevated debt” is a risk flagged by the rating agencies.
Given Auckland Council’s fiscal constraints, there are valid questions to be asked about the viability of the Western Springs Bowl proposal. The reliance on $18-20 million in ratepayer funding, combined with the lack of confirmed financial commitments from CRS Records or Eccles Entertainment, suggests the proposal may amount to no more than an audacious spoiling tactic to Auckland FC’s plan rather than a fully funded, deliverable project.
What’s next?
Given the strength of commitment and backing from the owners of Auckland FC, it’s likely that their withdrawal from the current process won’t mark the end of their efforts to build the Auckland Arena.
Whether that involves purchasing private land elsewhere, or re-entering the Western Springs process, possibly after the local council elections in October, remains to be seen.
Lawyer and writer Philip Crump explores political, legal and cultural issues facing New Zealand. Sometimes known as Thomas Cranmer. This article was published HERE
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