PERTH Glory owner Tony Sage says his club can only become profitable under plans to redevelop ME Bank Stadium if the state government wrests control of the East Perth venue from the Town of Vincent.
The ageing rugby and soccer stadium, which is managed by Allia Venue Management, a company linked to former Perth Glory owner Nick Tana, will be built to 25,000-seat capacity under a $160 million state government proposal.
Despite reports the WA government was demanding control of the existing stadium before proceeding with any expansion, a spokesperson for Sports Minister Terry Waldron this week said no offer had been made to the council and that the government was “negotiating a range of different approaches”.
Rugby WA chief executive Vern Reid said the code’s governing body had leased temporary seating and equipment on a state government assurance that the existing venue would be redeveloped in the next three years.
“We have every confidence of that going ahead because the premier has given us assurance that it’s going to happen,” Mr Reid recently told WA Business News.
Mr Sage said he would back any state government move to take control of Australia’s “most expensive” and “dilapidated” stadium, as any expansion under the current 20-year Allia lease would increase the cost of hosting games by 30 per cent.
“We’re not happy unless we can be guaranteed that the price won’t go up much more than what it is now, because this year our crowds will not get to 25,000 unless we’re in a grand final,” he said.
“But if they spend the money and increase it to 25,000 seats, the cost of playing will go up because they’ll need to recoup the refurbishment cost, so that means we’ll need 16,000 to a game, but we’re only getting 9,000 to 10,000.
“The refurbishment won’t help the Perth Glory or the Western Force unless you get rid of the intermediary (Allia), and the state government runs it.”
Mr Sage said if an independent not-for-profit body ran the ground on behalf of rugby and soccer, Perth Glory could become profitable.
It has generated a $5 million loss over the past two years.
Town of Vincent chief executive John Giorgi told WA Business News the stadium would be best managed under the current private agreement with Allia and that the council intended on retaining control of the stadium.
Mr Tana could not be reached for comment before WA Business News went to press.
