LA Galaxy loss

19 February 2009

 Mt Smart Stadium’s loss on events associated with the LA Galaxy visit to Auckland is $1.79 million, ARC Chief Executive Peter Winder said today. 

“This is a very disappointing outcome and it has been a disaster for the Auckland Regional Council (ARC). 

“Total revenue was less than half what was needed to break even.  At the end of the day, we simply did not sell enough tickets.  That reflects ticket prices that were too high, marketing that did not achieve cut through, an Oceania All Stars team that the public did not rate, and significant competition from other events. 

“The LA Galaxy event was pursued with the best of intentions.  A key objective was to bring a successful international event to Auckland.  However, it has been a commercial failure.  I am determined that this will not happen again.” 

Mt Smart Stadium is a business unit of the ARC and the loss will be ring-fenced as a trading loss. 

“The ARC is determined this loss will not have any impact on rates or ratepayers.  Immediate steps have been taken to review expenditure at Mt Smart and we are exploring all opportunities for savings,” said Mr Winder. 

ARC Chairman Mike Lee wrote to the Auditor General last December requesting that his office review the event, saying the high level of public interest in the event necessitated the need for an independent assessment so the public could have confidence in the result. 

Mr Winder said that his internal review of the event had highlighted a number of serious concerns about management decision making and performance.

“However, I can say nothing further at this stage because this is an employment matter. 

“What I can do is assure the public that poor performance is not acceptable, and the problems identified in the management of the event are being dealt with.  Further comment will need to await the outcome of the Auditor General’s inquiry, which will be made public.” 

Despite the commercially disappointing result, there were a number of major benefits to Auckland from hosting the LA Galaxy: 

·         Nearly 6,500 children from 130 schools visited Mt Smart Stadium to see the LA Galaxy, David Beckham and the Oceanic All Stars. 

·         The game itself was broadcast to people across the Pacific and the West Coast of the USA.

·         The visit by David Beckham also prompted a host of international media attention including his arrival at Auckland International Airport and the paparazzi photograph of David Beckham jumping off the Auckland Harbour Bridge.

·         Those images were splashed across the British tabloids at the same time as a $7 million Tourism New Zealand campaign publicising New Zealand in the United Kingdom. 

Ends

© Scoop Media