1 A regional partnership

2 In the beginning

3 A record of success

5 Grass roots community involvement

5 A proven record of financial stability

6 What are they saying about us in 2011?

6 The challenges ahead

6 Staying on top of our game in 2012

8 Westpac Stadium – built to a tight budget

9 Since we built

10 Our competitive advantage

10 Development strategies

12 What we wanted Populous to take into consideration

14 Focus areas for our forward planning

15 The master plan

18 How can we pay for this?

18 Towards the future

A regional partnership

In 1994 a group led by then Mayor Fran Wilde believed that building a modern, multi purpose

stadium would inject new life into the city and the region.

Within six years the funding was in place and the stadium was planned, built and opened. It

ignited a remarkable transformation in the region. Since opening, its economic benefit to the

region has exceeded $300 million – more than double what was projected.

Westpac Stadium brings people to the capital from far and wide. When there is a major event, such

as the Sevens tournament, as many as 50 or 60% of those attending are likely to be from outside

the region. Between us we have been to a Westpac Stadium event over six million times.

Westpac Stadium has helped Wellington create an international reputation as the Events Capital of

New Zealand. It is more than a venue. It is a major force within its community, within its region.

Staying on top of our gameContents

Published by Wellington Regional Stadium Trust July 2012

PO Box 2080 Wellington 6140 New Zealand

P 04 473 3881 F 04 473 3882 W westpacstadium.co.nz

1

In the beginningThe environment for Stadium projects in 1994 was not promising.

The only other major stadium project in New Zealand, North Harbour Stadium, had suffered from

incomplete funding and a weak event schedule that had resulted in a continuous series of financial

crises since opening its doors.

Not only that, but the Sesqui in Wellington in 1990 was still a vivid memory for Councils and

ratepayers. It had been described as “a spectacular, commercial and administrative failure”, and

closed after two weeks with a loss of $6.4 million.

Both Councils were divided on the stadium project and the major fear was a shortfall in capital costs

and ongoing operational costs that would have fallen back on to the Wellington City Council.

This however, was set against the fact that:

• With falling attendances, Athletic Park had deteriorated to the extent that it was barely operational

and the New Zealand Rugby Union had threatened to remove Test matches from the City if it was

not improved

• The Basin Reserve was facing massive maintenance costs

• No outdoor concerts had come to Wellington in recent years because of the lack of a venue.

A record of successWhen the Stadium was in the early

development stage the project was subject

to a number of rigorous feasibility studies.

No one could afford for it to fail.

At the time the proposal was approved in

1996 the original Westpac Stadium Project

plan assumed the opposite event schedule.

The Berl report in 1996, estimating the

impact of the yet to be built Stadium on the

Wellington Region, indicated that events

were likely to generate direct spending of

$15 million; employment of 270 fulltime

equivalents (FTEs) and total value added

of $11.6 million per annum. These figures

supported the local and regional council’s

decisions to fund the Stadium.

Another Berl report in 2004, showed

that after just five years of operation the

Stadium had already doubled its expected

financial impact from the 1996 report and

audience levels were 50% higher than the

levels projected in 1996.

This dramatic increase occurred for a

number of reasons:

• The number of events (including

high profile international events like

the Sevens) were much greater than

originally estimated

• The average number of spectators per

event has been well above the estimates

of 1996

Event Expected average number of events per year

Expected average attendance per year

Rugby

Test

Super 12

NPC

1

3 (2 every second year)

4

34,000

20,000

10,500

Cricket

Test

ODI

Shell Cup

1

1 (2 every second year)

1 every second year

16,500

25,000

10,000

Rugby League

Test 1 every third year 20,000

Concerts4 25,000

Westpac Stadium Event Schedule 1996

By 1994 Athletic Park had

deteriorated to the extent that it

was barely operational.

32

12

1996 report estimate

2004 BERL Report actual average

2010 % increase over 1996

Total attendance at events at the Stadium

405,410 544,300 550,000 50%

Number of event days per annum

40–50

Super 12/13 2.5 3.8 6.0 120%

NPC 4.0 5.0 5.0 25%

Sevens – 2.0 2.0 Not prev held

Rugby test matches 1.0 1.0 2.0 100%

League games 0.6 1.4 1.0 66%

Football – – 13 Not prev held

Concerts 4.0 1.6 3.0 -25%

Event Attendance Feasibility Study v Reality

• The financial impact of an event with

large visitor numbers such as the Sevens

has provided substantial benefits to the

region

• A regular concert/non sporting event

schedule has been established,

ranging from the Edinburgh Military

Tattoo and Opera, to AC/DC and the

Rolling Stones.

In just 10 years, Westpac Stadium has

helped transform the sporting and

cultural landscape of our region. Before

the Stadium, there had not been a Sevens

tournament, no big concerts for 11 years,

only two or three Super 12 games and no

A-League Football.

Now Wellington is the envy of other cities,

with a smorgasbord of rugby, rugby

league, football, cricket, concerts and

exhibitions.

Promoters, who had never previously

considered the capital city a destination,

now have a world-class facility for

international events and know this city will

support the events as well if not better,

than other Australasian cities.

Men, women and children all enjoy and

feel at home at Westpac Stadium: it is a

safe and family-friendly venue.

1996 per annum

Actual 10 year average Difference

Direct spending by spectators ($m)

15 54.2 172%

Employment generated FTEs

270 755 179%

Total Value added (GDP $m)

11.6 36.7 138%

The Wellington Region Grass roots community involvementThe impact of the Stadium has reached further than the extra dollars

it has pumped into the Wellington regional economy. Benefits to the

community at large have come in a number of ways.

The Trust has a commitment to hold community events wherever

possible at the Stadium.

Much of the revenue generated by the major sporting events at

Westpac Stadium is reinvested by the sporting codes in sport at all

levels of the community: $2 million by the Wellington Rugby Football

Union alone. Grass roots rugby in the wider Hurricanes region has also

benefited from the higher returns that the Stadium generates.

The Stadium has also provided the opportunity for young and

emerging players to play in a world class facility via club games and

curtain raisers.

Furthermore, the Stadium helps community groups fundraise for their

own projects by staffing bars, selling programmes or picking

up rubbish.

A proven record of financial stabilityThe strength and depth of the Westpac Stadium event schedule

together with other complimentary non-event revenue streams

has enabled the Wellington Regional Stadium Trust to consistently

generate annual operating surpluses, meet its debt repayment

obligations, while continuing to enhance the facility.

The profitability of the Stadium is now $2.5 to $3 million per annum.

The Trust’s initial commercial loan was $34 million and it has, over

the past 10 years, been able to substantially reduce that loan to its

current level of $7.5 million.

54

What are they saying about us in 2010/2011?• The Wellington City Council 2011 survey of ratepayers’ shows that

87% of ratepayers find the Stadium “good to very good”

• It was rated the best stadium in New Zealand by a Nielsen

Company Brand Advantage survey in 2010

• 77% of New Zealanders rated the Stadium “very good to excellent”

in the Nielsen survey 2011

However, the most compelling piece of research is the Regional

Resident Survey on Regional Amenities by Colmar Brunton released

on 9 March, 2011. The research was undertaken to gain an

understanding of the residents’ view of the importance of the regional

amenities to the quality of life, economy and attractiveness to the

residents. It also measured the level of support for regional funding.

In terms of regional support Westpac Stadium ranked 75% just behind

the Ambulance Services at 87% and ahead of Te Papa at 69%. We

also ranked just behind both these very important regional assets in

terms of benefiting the most people in the region.

The challenges aheadHaving set the benchmark for stadia in this country, the Wellington

Regional Stadium Trust has some very testing times ahead. These

challenges take the form of:

• The much higher specifications of Eden Park

• The newly completed Dunedin indoor stadium

• AMI Stadium will either be repaired or a new venue developed

• The above competitors lining up for the Phoenix, the Sevens, and

concerts

• The higher returns for Test rugby that can be offered at the

substantially larger Eden Park.

Staying on top of our game: 2011One of the original key strategies adopted by the Trustees and

included in our Statement of Intent was to maintain the Stadium in

accordance with international best practice.

To date the Trust has spent $11 million on improvements ranging

from escalators, an additional lift, a second replay screen and

re-carpeting the entire Stadium. In 2007 the trustees recognised that the

2011 Rugby World Cup will produce new or improved stadia all built with

bigger budgets and to better specifications than were possible with the

Westpac Stadium.

The new Dunedin Stadium built

with bigger budgets and to better

specifications than were possible

with the Westpac Stadium.

76

Westpac Stadium – built to a tight budgetThe Westpac Stadium was designed in 1996–1997 to standards

that existed at the time and to budgets that focused on minimising

the price, as the total cost was the ultimate barrier to the project

proceeding.

The outcome was the best stadium in New Zealand and new

benchmarks for comfort, entertainment, and technology to enhance

a stadium experience. But that was then.

Wellington Regional and Wellington City Council $40m

Private Sector $56m

Commercial borrowing $34m

Total: $130m

All funding sources were stretched to the absolute limit.

The lesser specifications of the Westpac Stadium are starting to

show in the appearance, the increased maintenance requirements,

and in the comparatively less desirable patron experience in our

stadium.

The Stadium was limited by design constraints and choice of

materials to achieve budgets.

If we look at the budgets of other stadium, and other stadium

refurbishments you can see just how tightly those funds were

stretched:

Our competitors’ specifications:

AMI Stadium – Deans Stand $60m

Eden Park RWC refurbishment $230m

Dunedin Stadium $206m

Each of the above can now offer five star hotel quality facilities for

their memberships; lighter brighter and better served concourses;

less concrete and more designer finishes using all that modern

technology has to offer; and in Dunedin, a roof.

The final funding was:

Since we builtSubsequent to completion some changes have taken place in the

marketplace.

A significant number of corporate head offices have left Wellington

and many of our members have moved closer to, if not at,

retirement.

Since we are no longer selling a vision, we are no longer able to

promote the importance of building the stadium for Wellington.

Consequently boxes and memberships will need to be sold on their

perceived value relative to the excellence of the patron experience

and the scheduled event offering.

The Trustees have recognised that they need to plan to improve the

facilities in order to enhance the experience for all our patrons and

hirers; especially to:

• Retain the Sevens long-term and create new features in the

Stadium ensuring that the patrons enjoy the event over two days

and that we compare favourably with other New Zealand venues

• Retain the current event schedule at the present high level

and continue to successfully bid for major events, especially

concerts, international sporting events and World Cups

• Maintain the value of our naming rights sponsorship.

98

Our competitive advantageIt is worthwhile as the Trust looks to planning for the next phase to

restate the compelling advantages of Westpac Stadium.

These include:

• Strong cash flow

• High level of profitability

• The reduction of the commercial loan, creating a significant

borrowing capacity

• Rated the best stadium in New Zealand (Nielsen 2010)

• High utilisation with 40-50 event days a year – the best in

New Zealand

• Very high success rate in attracting events in a competitive

market

• A successful member and box renewal will generate significant

new capital in 2014/2015 which can be used to secure our

premier position in New Zealand.

The Trustees and the Councils have a responsibility to ensure that

the Stadium does maintain its premier place on the New Zealand

events scene and continues to attract major events to Wellington for

the enjoyment of the city, region and our visitors.

Development strategies – staying on top of our game

Our future planning needs to focus on five key outcomes:

• Enhancing the public experience

• Ensuring the best possible outcome for members and box

renewals

• Retaining a premier event schedule

• Maintaining and enhancing attendance

• Retaining a quality facility that reflects the pride of its

stakeholders.

To this end the Trustees employed Populous, an international

architectural firm, to assist us develop our Master Plan. Populous

operate a global practice specialising in stadium architecture.

They were the original designers of Westpac Stadium, but have

also designed Wembley Stadium, London Olympic Stadium, Etihad

Stadium Melbourne, ANZ Stadium Sydney, Suncorp Stadium Brisbane,

Eden Park, Dunedin Stadium, the new Christchurch Stadium, and are

now part of the team employed to redesign central Christchurch.

+ Seven’s Crowd Pic

1110

What we wanted Populous to take into consideration

Our brief to Populous noted that our location adjacent to the CBD

and major transport hub was ideal and we did not need to increase

seating capacity. What we wanted to do was invest in the future to

provide an enhanced experience for our patrons to the standard of

world’s best practice.

Populous also noted that:

• The Stadium bookends the key central city waterfront attractions

and the linkages with the city are important

• The Stadium, the only waterfront stadium in New Zealand, has

outstanding views to the harbour and the Tinakori hills that

should be featured from the public concourse.

The first step was to consult with key stakeholders, Wellington City

Council, Greater Wellington Regional Council, Positively Wellington

Tourism, city and regional planners, venue hirers, members and

corporate users, service providers such as caterers and neighbours.

They told us to:

• Improve the entry plaza

• Cover the walkway

• Install a roof

• Build a 1000 seat dining room

• Add an indoor concert arena

• Reinstate the Thorndon overbridge

• Enhance the patron concourse experience

• Enhance the members lounge experience

• Consider the environment

• Improve media areas

• Upgrade the home team changing room

• Enhance the vehicle and traffic management

• Upgrade the technology

• Replace the external cladding.

In addition to the consultation process, Populous and the

management and Trustees of the Stadium have pursued these and

other concepts, reviewed stadiums and other entertainment venues,

and patron experiences throughout Australasia and internationally.

Our Master Plan developments have been benchmarked against

world’s best practice.

outstanding views to the harbour and the Tinakori hills outstanding views to the harbour and the Tinakori hills

Outstanding views to the harbour and the Tinakori hills.

1312

+ B12 Roof Options Pic

The Master PlanThe Master Plan is a series of distinct projects that will be phased in

over time in keeping with priorities involving:

• Event requirements

• Cashflows

• Planning and design requirements.

Each phase will also be implemented to fit in with the different

requirements of the Stadium event schedule and timed to match

our cash flows.

There is no ongoing commitment to construction or expenditure

beyond each distinct phase.

PhASE 1 – 2012–2016

Stage one of this phase covers the 2012/2013 year and detailed

planning and programming is already underway.

This year includes the:

• Upgrade of the Deloitte Club Lounge on level 3

• Upgrade of the main changing rooms and construction of

additional changing rooms

• Construction of match offices

• Construction of media facilities.

The estimated cost for this work is $5.0 million.

Its timing ensures both our readiness for the two upcoming World

Cups, the 2015 Cricket World Cup and the 2015 Under 20 FIFA

World Cup, and our ability to conduct any significant alterations to

the Stadium before and during these events.

Stage one of Phase One also helps us in our readiness in advance of

the renewals of the Sevens contract and our memberships.

The Trust is determined to provide additional significant upgrades

for both members and the public prior to 2015.

Other stages of Phase 1 include:

Focus areas for our forward planning

Against each of these the task has been to marry what is possible

with what is affordable and still meet our objectives for both today

and the future.

There is nothing pie in the sky about the concepts now on the table

– the next step has been to work through the priorities and where

appropriate the final concepts.

Before we begin on outlining our immediate and future plans it is

worth looking at what was not achievable:

• Installing a roof

• Building a 1000 seat dining room

• Reinstating the Thorndon overbridge

• Attaching an indoor concert arena.

Without going into too much detail it is worth outlining the results

of our exploration of adding a roof, given this has received a great

deal of comment.

The Trust has undertaken some high level assessments into costs,

feasibility and benefits of putting a roof on the Stadium.

The particular challenges are:

• The Stadium is built of light weight concrete and cannot support

any additional structures, therefore either additional foundation

work would have to be done, or a separate structure built to

support a roof

• There is a height restriction in the Thorndon area. The Stadium

has a resource consent that permits us to build to only 26

metres. There would be many resource consent issues and

potential problems with the neighbours in building a structure

covering the Stadium

• The existing light towers need to be at the current height

mainly due to cricket requirements

• Any roof would need to be above the light towers

• Any roof construction needs to provide airflow within the

Stadium so grass can grow

• It is likely that there would be serious wind loadings on a roof

that would create major additional costs to resolve

Some high level estimates for costs, from our consultants, have

varied between $60 and $80 million for construction of the roof.

This is beyond the financial resources of the Wellington Regional

Stadium Trust and the local councils would need to assist in the

funding of such a project.

Nothing in the Master Plan prevents the addition of a roof at some

time in the future.

It is the opinion of the Trust that at a cost of $60 –$80 million there

would need to be a debate on whether that money would be better

spent on funding a purpose built indoor arena. A covered Stadium

would not attract the smaller 10,000 –12,000 seated concerts,

which are the majority of concerts that are currently touring and

bypassing Wellington.

Nothing in the

Master Plan prevents

the addition of a roof

in the future.

Above: Upgrade of Deloitte Club Lounge on level 3.

Right: Standing room bars at the back of the seat bleachers.

1514

+ B1.3 Concourse Study fp-01 Pic

+ B1.1 Concourse Mezzanine Study fp-01 Pic

+ B1.3 Concourse Study fp-01 Pic

+ Standing Bars at back of bleaches (HMA Pic)

+ Deloitte Club Lounge (HMA pic)

2013/14

• Construction of the mezzanine lounge bar on the public concourse,

western side providing a space that not only provides a meeting

place for before and after the event but also views and light.

The estimated cost of this work is $2.0 million although no detailed

plans are available yet.

2014 /15

• Standing room at the back of the bleachers where people can

watch the game with friends around bar leaners.

• Upgrade of the Deloitte Lounge, level 4.

The provisional estimated cost of this work is $2.0 million.

2015/16

• Construction of a mezzanine lounge on the public concourse,

eastern side.

• Consequential upgrade of the surrounding public concourse.

• Upgrade of the Deloitte Gallery, level 4.

• Technology upgrade.

The estimated cost of this work is $7.5 million.

A mezzanine bar on the

public concourse, western

side providing a space with

views and light.

1716

How can we pay for this?This project does not require any financial support or funding from

either the City or Regional Councils. It can be fully funded from the

Trust’s own cash resources and by utilising its borrowing capacity.

80% of the project cost over the next three to five years can be

funded out of the Stadium’s profits and free cash flows, with

the balance coming from a small increase in our current level of

borrowing to the level of our current credit lines. This compares

with $34 million of borrowing we had in 2001.

The Trust believes the debt can be serviced out of projected profits.

Towards the futureBeyond 2016 are phases 2 and 3, where concepts

and ideas have been explored but by no means finalised.

These include:

PhASE 2 – 2016 plus

Covering of the entrance gate and shelter on the walkway.

PhASE 3 – 2016 plus

Replacement of the exterior cladding.

Modern developments in stadium design and

construction technology allow the Trust a number of

options for the replacement of the exterior cladding.

1918

The next four years will be very exciting for the Stadium, its stakeholders, and users as we ensure the future-proofing of our region’s most important public venue.

Doing nothing is not an option both from a maintenance

perspective and from a competitive environment perspective.

We want your support for the further development and staged

implementation of the Master Plan. This will ensure that not

only the Stadium continues to set the benchmark, but also that

future Trustees understand the concepts and make decisions

about capital expenditure fully understanding potential

impacts on the future.

This does not mean that future Trustees are constrained by the

Master Plan, only that they will have the benefit of some long-

term planning, when they make their decisions.

We would like the City Council, in their long term plans, to

continue to embrace not only our signature events, but also to

embrace the concept of improving the linkage between the city

and the Fran Wilde Walk.

Together we need to stay on top of our game.

Paul Collins

on behalf of the Trustees,

Wellington Regional Stadium Trust

2120

13

Wellington Regional Stadium Trust

PO Box 2080

Wellington

www.westpacstadium.co.nz