Waratahs eye bid from ANZ Stadium managers
ANZ Stadium has launched a late bid to secure the licence to operate Super Rugby champions the NSW Waratahs, which would see the team relocate from Allianz Stadium to Homebush.
A source in the stadium industry told
The Australian that the company that manages ANZ Stadium, Stadium Australia Operations, began discussions with the ARU and the Waratahs several weeks ago.
A spokesman for ANZ Stadium would not comment on the Waratahs’ licence, but confirmed they were in discussions about extending their hiring arrangement with NSW beyond next year.
The Waratahs’ main venue is the 44,000-seat Allianz Stadium in Sydney’s inner-city Moore Park, but they have one year left on a 10-year agreement to play a regular season game and the final at the 83,500-seat ANZ Stadium.
It is understood the proposal to buy the Waratahs’ Super Rugby licence was linked to the renegotiation of the hiring agreement, which puts $1 million a year into the coffers.
The bid gained momentum when the Waratahs attracted a record 61,823 crowd for their 33-32 win against the Crusaders in the Super Rugby final at ANZ Stadium two weeks ago.
The Waratahs are seeking private equity to inject fresh capital into the game, which has struggled financially in recent years.
They are expected to make about $1m profit this year after their maiden title.
The ARU and NSWRU set up a committee including ARU director Cameron Clyne, Ross Grant and Paul Timmins to assess the bids and make a recommendation on the successful bidder.
There were three main bidders — a consortium led by former Wallabies coach Bob Dwyer, a group led by Pet Resorts (a Waratahs sponsor) founder David Levy and another by Randwick identity Jon Collins.
The Pet Resorts bid appeared to be the frontrunner after Dwyer’s group was told it was out of the race and Collins pulled out, but the Stadium Australia Operations’ bid for the Waratahs’ licence has added competitiveness to the process.
Allianz Stadium has been the spiritual home of the Waratahs since Super Rugby began in 1996. They have created a fortress mentality at the ground.
It is situated close to Sydney rugby’s heartland in the affluent eastern suburbs and north shore. A move to Homebush could potentially alienate fans, who have started to return to support the team only this year.
Yet the cost of hiring the venue, along with player salaries, is the Waratahs’ biggest expense.
Playing at ANZ Stadium with the venue’s managers as a private equity partner would potentially cut the Waratahs’ costs.
Cutting those costs, however, could well come at the expense of losing rusted-on fans from the eastern and northern suburbs, which could adversely affect revenue.
Before the final, the Crusaders claimed that the Waratahs had sacrificed their home-ground advantage by playing at ANZ Stadium, but they showed they could win the biggest game of all at Homebush.
It could also be argued that playing at ANZ Stadium, only 6km east of Parramatta, the geographic centre of the Sydney basin, would help to attract new fans, particularly in the western suburbs.
In professional sports in the US, the linkage between sporting teams and grounds has been a critical factor in the commercial success of franchises.
The ARU is expected to finalise the successful bid for the Waratahs within the next month, but it is understood it has not committed to a timetable for a decision.