Eden Park finances make venue’s future shaky

AUCKLAND: Eden Park is facing an uncertain future as mounting financial pressures risk its ability to host All Black tests and other major events.

The situation is so bad a senior Auckland Council source said the Auckland venue is referred to internally as being ‘‘bankrupt’’.

A report by consultant EY paints a bleak financial outlook for the stadium, saying revenue is falling and there is no money for new turf, floodlights and big video screens needed for big occasions.

This year’s Rugby World Cup in Japan, resulting in the loss of one of two lucrative All Black tests, only two of the usual four cricket internationals and other revenue challenges mean the park’s guardians will not have enough money to pay interest costs of about $1.5 million this year, the consultants said.

EY said Eden Park’s cash flow was not expected to improve over the two following years to meet interest payments on loans of about $47 million to ASB Bank.

Other problems plaguing the park have been the poor performance of the Blues rugby franchise, falling membership numbers, corporate boxes not being renewed and restrictions on evening events and concerts at Eden Park, the report said.

Auckland mayor Phil Goff said Eden Park was an important sporting venue, ‘‘but I don’t think ratepayers will want council to hand over millions and millions of ratepayer dollars to Eden Park without resolving the underlying issues’’.

‘‘Eden Park is not owned by Auckland Council.

‘‘It is owned by the Eden Park Trust whose directors are appointed by the Government, Auckland Cricket and Auckland Rugby — the latter two also being the beneficiaries of the trust,’’ Mr Goff said.

It is understood there is an impasse between the council and the trust board, as the board seeks a bailout from the council or the Government, and the council seeks changes to the current model.

An Eden Park spokeswoman said trust chairman Doug McKay and chief executive Nick Sautner were not available for comment.