New Stadiums are coming to Sydney, but are they worth it?

The NRL's plans to build as many as five boutique stadiums in the greater Sydney area have already received the government's backing, but are they worth it?

NSW Deputy Premier, John Barilaro, is excited by the prospect of the “mini Bankwest Stadium’s”, which are set to hold around 20,000 spectators each. However, to the average Australian, it isn't clear how several newly erected stadiums in a city already packed with pitches will bring positive change.

With the state government's $800 million U-turn on ANZ Stadium still fresh, it's not easy to see the clarity of their strategy. But, the people in positions of power are clearly keen on the prospect. Are they right? Let's take a closer look and see whether the stadiums are actually worth the investment.

The Finances 

While $800 million to revamp ANZ Stadium sounds like a lot of money, each new boutique stadium is due to cost $200 million, totalling as much as $1 billion, if the plans are to budget. There is already confirmation of state and federal help, so the taxpayer's expense could be viewed as more hassle than it's worth.

However, over-sized stadiums are already costing states across Australia thanks to low average attendances and the 'White Elephant' effect, where arenas are used for a single event and become stagnant. Plus, lucrative sponsorship deals are still available, with Wildz pointing out that online gaming revenue is expected to hit $105 billion by 2023. As casino games and sports go hand in hand, there's the potential for sponsors to bridge the gap that the taxpayer would usually pay while reducing future fees that are synonymous with some venues.

Stadiums & Amenities 

The advantages of the proposed plans are more beneficial from an amenity's perspective. Liverpool City Council Mayor Wendy Waller has welcomed the move as she believes it will put the area on the map due to the influx of jobs it will create and the seamless link with the future Fifteenth Avenue Smart Transit (FAST) Corridor.

Although Reason believes sports stadiums are bad public investments - the upfront costs aren't recouped in either hard cash or job opportunities - the impact on public transport is one such advantage that Sydney's citizens may love. Besides the future Western Sydney International Airport, driverless electric buses and trackless trams are among the technologies that Liverpool is looking to develop for the sake of accessibility and the environment.

Fans & Atmosphere 

Fans are set to gain the most from the NRL's plans. The biggest myth in sports is that huge arenas help the game as the more fans in attendance, the better the atmosphere. In reality, ABC highlights that stadiums are being downsized around the world for the sake of the game day experience. Not only are fans less likely to ditch their sofas for a plastic seat, but some sports teams have proven that a reduction in size leads and improved facilities can lead to higher attendance.

Venues discussed for the new stadiums include Brookvale Oval (Manly), Panthers Stadium (Penrith), Jubilee Stadium (Kogarah), and a new stadium at Liverpool in Sydney’s west to host the Canterbury Bulldogs and potentially the Wests Tigers and/or South Sydney Rabbitohs.

While the upfront costs for building new boutique stadiums in Sydney are bound to draw attention, people can benefit in the short, medium, and long-term if you look beneath the surface.