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Hobart AFL stadium deal reveals penalties for late build, inability to host games by 2028

A concept image of the proposed Hobart stadium. Designs have not be finalised. (Supplied: AFL)
  • In short: The deal stipulates a number of conditions, including a penalty of $4.5 million if the stadium construction is not 50 per cent completed by October 2027 and another $4.5 million sting if the arena is not ready to host games by 2028
  • What's next?: The deal is likely to come under intense scrutiny with parliament resuming this week and the state budget handed down on Thursday

Tasmania's AFL licence contract has been released, giving further detail about the Macquarie Point stadium build, the state government's financial risk, and the rights of the AFL over the club's future.

On Sunday, the Tasmanian government released the 134-page deal it signed with the AFL for a Tasmanian AFL and AFLW team and stadium at Hobart's Macquarie Point.

Premier Jeremy Rockliff had promised to release the deal "as soon as possible", following political pressure over what commitments were made to the AFL, and the resignation of two backbenchers.

The contract confirms that the Tasmanian government will be solely responsible for all stadium cost overruns, must pay the club an additional $4.5 million if the build won't be over 50 per cent complete by October 2027, and another $4.5 million if it cannot host matches in 2028.

Jeremy Rockliff and Gillon McLachlan sign the deal between the AFL and the Tasmanian government, May 3, 2023. (Facebook: Jeremy Rockliff)

The government has promised $12 million per year over 12 years in start-up costs, but if the club is not considered financially sustainable at the end of this period, negotiations must restart into further funding.

If the government does not agree to provide further funding, the AFL has the right to either move the club, or terminate the contract.

Mr Rockliff said the contract was released due to the cooling-off period finishing, and confirms the stadium is a clear requirement of the AFL club.

"We committed to releasing the agreement with as much detail as possible, and that's exactly what we've done," he said.

Requirements for facilities laid out

The contract also provides specific requirements for the stadium and associated facilities.

The stadium will feature a "fixed, translucent roof" with capacity for 23,000 spectators, with all to have "uninterrupted views of playing surface and video boards".

The playing surface for the oval must be "at least 159.5m by 128.5m (boundary line)" with the stadium available for a range of events "including AFL, soccer, cricket, rugby union/league, concerts, and cultural, convention and business events".

Training facilities must include a 1,400-square-metre indoor area, room for a 500sqm "strength and conditioning" space, as well as "gender neutral (female friendly) change rooms".

The amount of area needed for the stadium has previously resulted in questions over how it would fit on the Macquarie Point site, with the Commonwealth also requiring housing.

The site for the proposed Macquarie Point stadium, in Hobart's CBD. (ABC News: Maren Preuss)

The RSL and Aboriginal community must also be consulted as part of the process. The RSL has raised concerns about the impact on the Hobart cenotaph, and the Aboriginal community has long envisioned a reconciliation park.

The Commonwealth will also have a representative on the stadium's planning coordination group, as well as representatives from the Macquarie Point Development Corporation, AFL, Stadiums Tasmania and Department of State Growth.

Upper house vote looms

The government has promised to designate the stadium a project of state significance, which requires approval by both houses of parliament before the process can start.

If approved, it will be assessed by the Tasmanian Planning Commission (TPC), with public submissions and potentially public hearings.

The TPC then makes final recommendations and reports for the premier, which cannot be appealed in the courts.

If the premier accepts this report as-is, then it does not require a second vote in parliament and the project can proceed.

If the premier wants to amend the report, then it will need another vote.

The government could have a challenging time in getting the first vote through the upper house, requiring seven out of 14 votes.

Labor commands three votes on the floor, with at least four – and at most six – independents likely to be against, or sceptical of, the stadium.

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