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For lulz, can someone calculate how long this will take to pay off? I assume they borrowed for this too
Westpac Repayment Calculator wrote:Your loan repayment profile
You have selected our Rocket Investment Loan product with the Premier Advantage package for $485000000 with an interest rate of 6.56% for a term of 30 years.
Your repayments:
Proposed monthly repayment: $3084693 or
Proposed fortnightly repayment: $1423036 or
Proposed weekly repayment: $711375
This brings a new meaning to the term, "laughing all the way to the bank."
So $5m return. Some of that will need to be retained for maintenance etc. Still a $30m shortfall per year to meet the repayments, but maybe the repayments are cheaper because it will be paid off over a longer period than 30 years.
Couple of million a year naming rights will surely help. Government bonds certainly mean less interest then just taking 485 million out over 30 years with Westpac.
LOL the funds have already been allocated to the budget. Its like when they paid off the Perth - Mandurah Railway in one state budget, so they paid off all the debt from that infrastructure.
The only criticism you can make is that it was poorly planned, designed, was started during a period of severe skills shortages that pushed the cost up dramatically. Spending the amount they did on underground carpark was also an issue.
But after many years of having no major Indoor Stadium because of the mothballing of the PEC, there was a need to build an equivalent entertainment centre. Sure it may be too fancy, too costly. But the facility was needed.
Egan wrote:LOL the funds have already been allocated to the budget. Its like when they paid off the Perth - Mandurah Railway in one state budget, so they paid off all the debt from that infrastructure.
Are we adding finance to the list of things Egan doesn't understand.
Please research and review the concept of opportunity cost and marginal cost. I suggest you begin with yob's comment about self-pleasure below.
The manager of Venue West has the same viewpoint as me, it is public infrastructure, you don't build them just to get a financial return from it.
5 million dollars a year is great, the infrastructure to build the facility entrenches the state's biggest international sporting event and provides us finally with a worldclass indoor stadium in the centre of the city.
The costs are way too much, but the argument is that the facility had to be built,even if it was a drab square box in the centre of the city.
For lulz, can someone calculate how long this will take to pay off? I assume they borrowed for this too
Westpac Repayment Calculator wrote:Your loan repayment profile
You have selected our Rocket Investment Loan product with the Premier Advantage package for $485000000 with an interest rate of 6.56% for a term of 30 years.
Your repayments:
Proposed monthly repayment: $3084693 or
Proposed fortnightly repayment: $1423036 or
Proposed weekly repayment: $711375
This brings a new meaning to the term, "laughing all the way to the bank."
So $5m return. Some of that will need to be retained for maintenance etc. Still a $30m shortfall per year to meet the repayments, but maybe the repayments are cheaper because it will be paid off over a longer period than 30 years.
I think this is where yob steps in.
It amazes me that after 10 years slumming it on a stadium forum I'm no closer to knowing the inner workings of a stadium's financials. At a guess I imagine they're capital intensive, produce shitty cashflow and experience high rates of depreciation with an end of EUL far below their structural life. Do any of the government managed stadiums have a financial report available?
I wouldn't preclude such a project ever getting finance from a bank on that basis, because there's still some models for valuing companies with no actual profitability and high depreciation, i.e. discounted cashflow and the like. But the only business model I see fitting to stadiums and theaters is the mall/cinema model where the value of the business is determined by the impact it has on cashflows/rents/value uplift of the mall's retail space. But I don't see Westfield building stadiums that's for sure.
You know the funny thing is, I spent the better part of a year trying to find a model to build a theater company. The only possible way I saw it working was to build a transportable, lightweight, collapsable theater and towing it around the country, relying on WOM/viral marketing and aimed at an incredibly small but firm niche that provides repeat business and buys high margin complimentary goods (beer). And for some stupid reason I'm still planning it. But one thing's for sure - I own the risk for financing it, and the shitty financial but high personal reward is mine too.
Egan wrote:The only criticism you can make is that it was poorly planned, designed, was started during a period of severe skills shortages that pushed the cost up dramatically. Spending the amount they did on underground carpark was also an issue.
For an only criticism you've raised four - and they're pretty major.
Reminds me of the English journo who said there were only two things wrong with their cricket team - "they can't bowl and they can't bat."
^ Jeffles add that it was also controlled by the Department of Housing and Works, rather than the Department of Planning and Infrastructure or Department of Sports and Recreation.
