MCG Redevelopment Settlement Agreed

Austadiums • Monday 24th July 2006

The Melbourne Cricket Club (MCC) has announced that agreement has been reached with Grocon on a final financial settlement for works on the MCG Redevelopment project.

The settlement covers all works relating to the new grandstand and the associated track and arena infrastructure that was necessary for the hosting of the Commonwealth Games.

The settlement involves the MCC paying Grocon $15m above the $450m project limit that was previously established by the MCC, MCG Trust and the State Government of Victoria.

"The revenue streams generated from the MCG will comfortably cover this additional commitment by the club and the ground and MCC members will not be asked to contribute any more than was agreed to before the project was given the green light" said MCC chief executive Stephen Gough.

"Our financial position is well ahead of the initial financial model. Operational revenues are much stronger and interest on the borrowed funds is lower than predicted."

The redevelopment of the ground was an extremely complex project with tight deadlines centred on completing work in time for the Commonwealth Games in March 2006.

In the meantime, capacity milestones for the 2003, 2004 and 2005 Grand Finals and Boxing Day Tests were all met. Furthermore, the ground was returned nearly three weeks ahead of the original schedule to host the AFL's Anzac Day match attended by more than 91,000 spectators.

Mr Gough said the project was somewhat complicated by Grocon's involvement with the Commonwealth Games.

"There were acceleration work requirements to meet important deadlines and a range of other factors that simply were not contemplated when the project commenced," he said.

"In the end, for the MCG to pay an additional $15 million over the agreed cap to settle our contract with the builder is a fair and equitable outcome."

MCG

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The Melbourne Cricket Club (MCC) has announced that agreement has been reached with Grocon on a final financial settlement for works on the MCG Redevelopment project.
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