The AFL and Melbourne Stadiums Ltd (MSL), the owner of Etihad Stadium, are pleased to announce they have reached an agreement in regards to ongoing arrangements for AFL matches played at the stadium over and above the current base contract.
The new agreement, finalised this week, will provide a major financial boost to Victorian AFL clubs playing home matches at Etihad Stadium.
MSL has agreed to provide AFL clubs an additional $5.5 million per year from 2010 until the expiration of the lease period in March 2025.
The payment is in addition to existing revenue streams including match returns, AFL arena advertising and other benefits already provided to clubs under existing arrangements.
In return, the AFL has agreed that the minimum number of contracted ‘home and away’ games scheduled at Etihad Stadium will increase by at least 130.
The agreement also provides Etihad Stadium with greater flexibility in the AFL draw when requested by the stadium, to hold additional major entertainment and sports events during the AFL season, including the 2010 AC/DC concerts.
Further, the new arrangement clarifies that Etihad Stadium will retain all pourage and supply rights, the AFL’s consent to stadium naming rights arrangements and the elimination of current competitive terms clauses.
Both parties have agreed to continue working co-operatively in an endeavour to further increase benefits to Etihad Stadium and its constituent AFL clubs.
Stadium CEO, Ian Collins AM said the agreement reflected the need to recognise the serious commitment to the stadium by its investors, representing more than 2-million Australian superannuants. Unlike most stadia in Australia, Etihad Stadium is privately owned and, as such, needs to provide a return to the superannuants through its investors.
Mr Collins said this was a balanced outcome for all parties concerned.
AFL CEO, Andrew Demetriou said the resolution of the new agreement provided financial certainty for clubs playing at Etihad Stadium.
“This is a great result for Victorian-based AFL clubs playing home matches at Etihad Stadium and it is recognition of the impact of our clubs and their supporters on the stadium economy,” Mr Demetriou said.
“This is one of the great stadiums in the world for players and for spectators and I want to thank Ian Collins and the Etihad Stadium Directors for their support of AFL clubs. I also want to pay tribute to our club Presidents, led by David Smorgon, for their whole hearted support of the AFL in finding a successful resolution.
Mr Demetriou said that the resolution of both the Etihad Stadium agreement and the MCG agreement meant that AFL clubs had greater financial certainty going into the 2010 season.
“This is great news in grand final week and great news for our clubs and supporters in planning for 2010.”