Cheap seat fans get swanky neighbours
Chiefs’ fans in the cheap seats may soon have some highfalutin neighbours, with a proposal to build corporate boxes above them.
Chiefs Rugby will convert shipping containers into modular suites, at a cost to them of $1.7 million, to schmooze up to big money rugby sponsors.
But already it’s hit a snag with some Hamilton city councillors asking for the city to take ownership if Chiefs Rugby exits the city.
‘‘If Hamilton City Council want to assume ownership, it won’t go ahead,’’ Chiefs commercial manager Sean Austin told a council meeting. ‘‘The direction some councillors are indicating will make it very difficult for my board to sign off.’’
At a meeting yesterday, council voted unanimously to move forward on contract negotiations and resource consents for the corporate boxes.
The proposal would see 14 new container-style corporate hosting suites behind the goal line terraces at the eastern end of the stadium and above the Tristram Street footpath. Each box will host 20 people.
Chiefs Rugby will pay all building and installation costs but council, as the property owner, is being asked to pay up to $15,000 for the resource consent. Under the proposal, the containers would be shipped away if hosting at FMG Stadium Waikato ceased, though Austin said that was unlikely in the foreseeable future.
‘‘Rugby is the place where business still gets done,’’ Austin said. ‘‘Of the 450 lounge spaces behind glass, it is our highest yielding asset and of those we hinge our sponsorship revenue which is 75 per cent of total revenue in the Chiefs’ business.’’
The corporate boxes will occupy the area above the goal line terrace, the same space temporary seating was installed for the 2011 Rugby World Cup and the 2017 British and Irish Lions Tour.
A temporary stand can be built in future by removing the corporate suites or building above them but council’s director of stadium operations, Chad Hooker, said there is little demand for it.
‘‘If we want to put a temporary stand it costs in the vicinity of $300,000. It’s not a cheap exercise,’’ Hooker said.
Cr Dave Macpherson said if Chiefs Rugby want corporate boxes, it can can pay for the resource consent application, too.
‘‘When the Western Community Centre wanted to put up buildings on Elliot Park, they were required by council to pay $11,000 plus GST for their resource consents. How is this different?’’ Macpherson said.
‘‘I don’t support giving what amounts to handouts to professional sports.’’
Cr James Casson said the city runs the risk of losing Chiefs Rugby to another city. There is zero cost to ratepayers and the extra $30,000 revenue brought by the corporate boxes each year.
‘‘I can’t see why we are arguing over the small amount of $15,000 if we are getting it back in the first year,’’ Casson said. ‘‘I hope council doesn’t try to tie it up in red tape.’’
Cr Paula Southgate was confident general ticket holders would not be adversely affected and Cr Rob Pascoe said council’s partnership with Chiefs Rugby is an opportunity to increase revenue for both parties without increasing rates.