HOW COUNCIL SEES EDEN PARK

Eden Park is facing an uncertain future as mounting financial pressures put at risk its ability to host All Blacks tests and other major events.

The situation is so bad a senior Auckland Council source told the Herald that Eden Park is referred to internally as being “bankrupt”.

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

This year's Rugby World Cup in Japan, resulting in the loss of one of two lucrative All Blacks 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, said the consultants.

What's more, EY said Eden Park's cashflow is not expected to improve over the two following years to meet interest payments on loans of about $47m to ASB Bank. Other problems plaguing the park have been the poor performance of the Blues rugby franchise, falling membership, corporate boxes not being renewed and restrictions on evening events and concerts at Eden Park.

The report into the Eden Park Trust's financial position was commissioned by Auckland Council last September and delivered a month later. Councillors were provided with a copy at a confidential meeting in December.

Mayor Phil Goff said yesterday the financial position of Eden Park is serious. For several years, it had kept its head above water by being able to repay interest on loans. But not being able to put any money aside for future work — known as depreciation costs — had led to deficits of between $4.5m and $8m.

EY said this meant a 10-year, $62.8m maintenance plan has no funding for things like new floodlights ($5.6m), turf ($3.5m), north, west and south stand maintenance ($12.2m) and superscreens ($6m).

Over the next decade, the park could run up further losses of $80m, EY said.

Goff said this financial year Eden Park will have a deficit of about $6.8m. On top of interest costs, the trust cannot repay a $6.5m debt to council or a $40m bank loan used to complete the upgrade for the 2011 Rugby World Cup, which the council guaranteed, he said.

The mayor said the trust board has been invited to appear before councillors early this year to see what, if anything, the council can do. But he suggested further financial help was not guaranteed.

“Eden Park is an important sporting venue in Auckland 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,” Goff said. “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,” Goff said.

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

Asked if Eden Park’s financial woes would bring forward plans for a downtown stadium, Goff said no.

Whether and where a national stadium is built will depend on the availability of funding and, at present, council investment is focused on transport and housing, he said.

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

Grant Robertson, who holds the finance and sport portfolios, could not be reached for comment.

But he is understood to be wary about spending taxpayers’ money on stadiums.