Creating a Sustainable Future For WA Cricket - WACA
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Creating a Sustainable Future For WA Cricket
FOREWORD
Dear Members
Some 14 months ago, the WACA Board appointed a Future Development Strategy Committee chaired by
leading businessman Mr Michael Smith, to explore and make recommendations on securing a sustainable
future for cricket in Western Australia.
The Committee, along with the Board, has conducted a very thorough and extensive process to shape
the future of cricket in Western Australia and the iconic WACA Ground.
This has been an extraordinarily comprehensive process that has equipped the WACA Board and
executive with a clear and exciting vision for the future of cricket in this State.
I would like to thank Mr Michael Smith and the Committee members for their dedication and hard work
throughout this process and extend my thanks to my fellow Board members for their ongoing contribution.
It is with great pride and pleasure that I present the recommendations and findings of the Committee
which have been endorsed by the Board.
Sam Gannon
PAGE 1
CONTENTS
EXECUTIVE SUMMARY 3
RECOMMENDATIONS 7
CONTEXT 9
PROCESS 10
CURRENT STATE 11
THE CHANGING STADIA LANDSCAPE IN WESTERN AUSTRALIA 14
THE DEVELOPMENT OPTIONS: EY BUSINESS CASE 18
THE RECOMMENDED DEVELOPMENT OPTION: OPTION 3B 25
MEMBER AND PATRON VIEWS (WACA GROUND VS PERTH STADIUM) 26
NEGOTIATIONS REGARDING FUTURE CRICKET CONTENT AT PERTH STADIUM 28
THE WACA BUSINESS AND GOVERNANCE MODEL 30
POTENTIAL SOURCES OF FUNDING 29
NEXT STEPS 31
ATTACHMENT A. EY DESCRIPTION OF THE ATTRIBUTES OF THE LIST OF OPTIONS 32
ACKNOWLEDGEMENTS The Future Development Strategy Committee gratefully acknowledges the funding
support and assistance provided to the committee by both the Western Australian Department of Sport and
Recreation and Cricket Australia.
PAGE 2
EXECUTIVE SUMMARY
The Western Australian Cricket Association (WACA) is faced with making a number of interdependent
decisions that will determine the future of cricket in Western Australia and the future of the WACA Ground.
The changing stadia context in Western Australia and the deteriorated condition of the Ground, means
that without a significant investment of capital funding the future of the WACA Ground is bleak:
§ The already deteriorated Ground will continue to deteriorate as it ages without significant capital
investment;
§ Due to the poor state of the Ground and its facilities, Cricket Australia will allocate less premium
international content to Western Australia;
§ The already declining satisfaction rates of Members will worsen and membership numbers will decrease;
§ The financial impact of less premium content and declining membership and attendance on the
WACA’s profitability will be significant;
§ All of these factors will be compounded and accelerated once Perth Stadium opens in 2018;
§ In this context, cricket in Western Australia faces a future as the poor cousin in the elite sports industry.
Perth Stadium opens
Deteriorating
Less premium Declining
Ground and
international Member Declining
facilities
content and patron membership
satisfaction and attendance
numbers
An
increasingly
financially
unviable WACA
Without a significant change in strategy, the future of the WACA is precarious at best and the tipping
point will come soon after the opening of Perth Stadium.
The WACA Ground is an iconic cricket ground revered for its fast bouncy wicket and traditional heritage
style by players and spectators all over the world. There is great depth of affection for the Ground and
a deep emotional connection for many cricket lovers around the world. It is strongly identified as the
‘home of cricket’ in Western Australia. For these reasons, there is a strong argument to retain the WACA
Ground and invest in its development to return it to a Ground with facilities and amenities to improve
spectator appeal and create improved facilities for elite cricket.
The WACA itself has limited capacity to fund any significant development of the Ground and will be reliant
on presenting a case to the State and Federal Governments (as the most likely sources of potential funds)
to provide the capital funding required to deliver the level of amenity expected of a contemporary elite
training facility and spectator venue.
PAGE 3
From the WACA’s perspective, the FDSC has developed a set of essential criteria against which to assess
the potential development options as follows:
§ Provides for improved amenity for all spectators (seating, shade, concessions and toilets).
§ Retains the ability to host international cricket of all types at the WACA.
§ Includes a new high performance centre.
§ Includes new administrative facilities.
§ Enables Western Australian Football Commission (WAFC) co-location.
§ Maintains cricket initiatives/promotion of cricket.
§ Ongoing financial sustainability.
§ Provides for significant Member capacity (growth in membership numbers).
§ Consistency with WACA, Cricket Australia (CA) and State Government objectives.
The Future Development Strategy Committee’s (FDSC) view is that there is a compelling case for
significant development of the WACA Ground and is confident this will be supported by State and Federal
Government funding.
This view has been developed during the course of negotiations and discussions with the State Government
and is supported by public comments made by the Premier in recent times.
“I don’t think there’s much future for Subiaco, so I would urge local football, the WAFL, the Football
Commission and cricket to get together and co-locate at the WACA ground, and then we can look at how
that ground can be remodelled in the future,” (The Hon. Colin Barnett, ABC Radio, 16 June 2015)
There are several factors at play that will influence the likelihood of potential funds being contributed by
the State Government towards development.
The fact is that the State Government has invested $1.2 billion in the construction of Perth Stadium (with
a capacity for 60,000 spectators 55,000 in cricket mode) and associated transport infrastructure. The
Premier has been very clear that any State Government consideration of funding for development of the
WACA Ground would only be on the following basis:
§ The proposed development must be consistent with the State Sporting Facilities Plan Framework 2013;
§ The WACA Ground would be a complementary stadium to the new Perth Stadium rather than a
competitor with a permanent spectator capacity of between 10,000 and 15,000;
§ Co-location of the WAFC at the WACA enabling the State Government to demolish and redevelop
the current Subiaco Domain Oval site;
§ A commitment of premium cricket content for Perth Stadium;
§ The financial ask of the State Government must be reasonable given the already substantial investment
in Perth Stadium (with the ability to stage the infrastructure development over a number of years);
§ The ability of the WACA to leverage other funding sources to contribute to the development costs
(including but not limited to its own).
PAGE 4
It should be noted that no firm commitment of funding has been made by the State Government and
the WACA will have to apply for funds through a rigorous submission process.
The FDSC has been cognisant of the State Government’s policy objectives and the need for any development
proposal to align with those objectives in order to place the WACA in the best possible position to access
State Government capital funding. These imperatives, along with the FDSC criteria outlined above, have
informed the selection of the recommended development option for the WACA Ground.
The financial modelling undertaken by EY and by the WACA/CA has been instrumental in assessing the
various development options and their impact on the financial sustainability of the WACA.
The Committee has arrived at a recommended development option known as Option 3B. At a total
nominal cost of $199 million, the development can be undertaken in six separate stages commencing
with the construction of new high performance and administration facilities to accommodate both the
WACA and WAFC.
This development, in a traditional cricket ground style, includes provision for:
§ Significant additional shade
§ Tiered membership options
§ Additional food and beverage outlets
§ Additional toilets
§ New high performance facilities
§ New administration facilities
§ WAFC co-location
With temporary seating, the redeveloped Ground could potentially accommodate up to 18,000 spectators,
if required.
This preferred option also provides the potential for the sale or development of some WACA land as a
means of raising a capital contribution towards the cost of the development while providing the WACA
Board with the flexibility to retain the Lillee Marsh Stand for as long as it continues to be functional or
until such time as the land may need to be released for sale or development.
Under this development option, the content arrangements for the WACA Ground and Perth Stadium
would be as follows:
§ All tier 1 and tier 2 international content (Test Matches and limited-overs matches involving England,
South Africa and India) would be played at Perth Stadium
§ All BBL matches would be played at Perth Stadium
§ All Sheffield Shield, domestic limited-overs matches and women’s matches would be played at the
WACA Ground;
§ All tier 3 international content (all touring countries except England, South Africa and India) including
Test Matches and limited-overs matches would continue to be played at the WACA Ground.
PAGE 5
FDSCRECOMMENDATIONS
PAGE 6
RECOMMENDATIONS
The Future Development Strategy Committee (FDSC) recommends that the WACA Board:
1. Note and endorse the FDSC’s view that, as an iconic, heritage cricket venue of international renown,
the WACA Board should pursue a substantial development of the Ground and its facilities as a
complementary stadium to the new Perth Stadium (Perth Stadium) within the context of:
a. The State Government’s Sporting Facilities Plan Framework 2013;
b. The recommended development option – known as option 3B in terms of delivering the
minimum requirements for the WACA at an estimated cost of $199 million but noting that
design development is still required;
c. Maintaining the WACA Ground as ICC compliant to enable the retention of international
cricket content; and
d. Co-location of the Western Australian Football Commission at the WACA Ground.
2. Approve in principle a 10 year Memorandum of Agreement between the WACA, CA and VenuesWest
which is currently being finalised and which:
a. Is based on the financial modelling by both WACA/CA and EY;
b. Commits the WACA to schedule the following content at Perth Stadium from the 2018/19
cricket season:
A. Big Bash League (BBL) matches;
B. International limited-overs matches where the touring teams are England, South Africa
and India; and
C. Test Matches where the touring teams are England, South Africa and India.
c. The Memorandum of Agreement will in due course be expanded into a more detailed
agreement with Perth Stadium Operator.
3. As a result, the following cricket content will continue to be played at the WACA Ground during the
period of the agreement for Perth Stadium:
a. Sheffield Shield matches and domestic limited-overs matches;
b. Women’s international and domestic cricket matches;
c. International limited-overs matches where the touring teams are not England, South Africa
and India; and
d. International Test Matches where the touring teams are not England, South Africa and India.
4. Extend the term of the FDSC for a further 12 months and determine the appropriate membership
and project management arrangements for the Committee at the October Board meeting (noting
that the existing FDSC will be required to continue to progress its activities under the current
arrangements until that time).
PAGE 7
5. Approve and allocate a budget to support the ongoing work of the FDSC including, but not limited to:
a. The development of alternative design and detailed architectural drawings and cost planning
for the design and staging of development (including further analysis of potential land for sale
or development) for consideration by the WACA Board;
b. The preparation of funding submissions to source the required funding for the development
to the Federal, State and Local Governments and Cricket Australia;
c. Ongoing work to develop a formal long-form legal agreement for Perth Stadium to be
negotiated as soon as possible after the stadium operator has been appointed;
d. Ongoing negotiation with WAFC over co-location arrangements through the development
of an acceptable Memorandum of Understanding which will require to be discussed and
approved by the Board when there is a final draft available; and
e. The development of a new business model and organisational structure for the WACA to
position the organisation to take full advantage of the opportunities presented by Perth
Stadium which will require WACA Board approval prior to implementation.
6. Note that the Cricket Australia Board last week agreed to endorse Tier Three content at the WACA
and the execution of the Memorandum of Agreement with the State Government.
7. Note that there will be communication to Members and media to be undertaken in the first week of
September.
PAGE 8
CONTEXT
The WACA Ground is an iconic international cricket venue and has provided the stage for many historical
sporting moments. It was last redeveloped in 2002.
The Ground’s infrastructure has aged while stadium and high performance facility standards have evolved
significantly during the past decade, as a result of increased fan, community and athlete expectations.
The WACA Board has identified a clear need for improved facilities and amenity to ensure the ongoing
viability of the WACA Ground and cricket in Western Australia.
The WACA Board has a specific constitutional responsibility to the WACA Ground that is clearly articulated
in the Objects of the Association:
To control, manage, improve and promote, to the greatest extent possible, the use of the Ground to provide
facilities for cricket and sports of all other descriptions for the benefit of Members and the public at large.
To this end, the Board appointed a sub-committee, the Future Development Strategy Committee (FDSC),
with independent Chair, Michael Smith, to examine the options for redevelopment of the WACA Ground.
FUTURE DEVELOPMENT STRATEGY COMMITTEE OBJECTIVES
The FDSC was charged with responsibility to develop a business plan which makes recommendations
consistent with the Objects of the Association relating to:
A. Providing options for the redevelopment and/or construction of infrastructure at the WACA Ground
to provide facilities for cricket and other sports as may be appropriate; for the benefit of Members
and the Western Australian and Australian public at large.
B. Identification of any other opportunities for the association that will benefit cricket and that may
be external to the Ground, but which, if pursued, can assist in achieving future funding for the
redevelopment and construction of infrastructure at the Ground.
MEMBERSHIP
The membership of the FDSC comprises:
§ Mr Michael Smith (independent chair; Principal, Black House)
§ Dr Lachlan Henderson (WACA deputy chair)
§ Mr Stephen Hauville (WACA Board member)
§ Mr Tom Percy QC (WACA Board member)
§ Mr Alan Rule (independent member nominated by the WACA Board)
§ Ms Christina Matthews (CEO, WACA)
The Hon. Christian Porter, MP resigned as a Committee and WACA Board member in December 2014.
Project management for the Committee was provided by Ms Siobhan Mulvey, Partner, Black House.
PAGE 9PROCESS
The FDSC adopted a comprehensive, evidence based, multi-factorial methodology to underpin its findings
and recommendations in order to enable the WACA Board to confidently decide on the future strategy
for the WACA Ground.
This process is outlined below:
Detailed financial modelling undertaken
with Cricket Australia to inform Perth
Stadium content negotiations with the
State Government
EY financial modelling, Market research of
business case and WACA Members and
business plan patrons
FDSC
Architectural Report Ongoing engagement with
schematics and to the the WACA Board, Members
costings for a range of and other stakeholders
development options WACA
Board
Remaining Useful Life Negotiations with WAFC
Assessment of the around co-location
WACA’s infrastructure opportunities
PAGE 10CURRENT STATE
THE WACA BRAND AND REPUTATION
There is no question that the WACA Ground, which was officially opened in 1893, is widely viewed
internationally as an iconic cricket ground with a unique and exciting playing surface and a long history
of heritage and tradition - particularly as a venue for Test cricket.
The WACA Ground’s brand and reputation as the home of cricket is undisputed and some examples of
the strength of this branding with the wider public appear in the form of statements made in the course
of the WACA’s wider engagement program.
“The WACA Ground is strongly associated with ‘home of cricket’…” along with “fast/bouncy wicket,” ”tradition/
heritage” (Patron Satisfaction Survey 2014); and
“Cricket is synonymous with the ‘WACA’, with 49% of Western Australians identifying the WACA as “the home
of cricket in Western Australia” (Brand Health Audit 2014).
Furthermore, the WACA, as an association, is uniquely placed as the sole owner and operator of the
Ground, to determine the future for the direction of the Ground.
In short, the Committee’s strong view is that the WACA Ground is a famous, iconic, heritage ground with
strong brand recognition that should be preserved as the home of cricket in Western Australia.
THE SPECTATOR AND MEMBER EXPERIENCE AT THE WACA
While noting the strength of the WACA brand, well-documented feedback shows that current standards of
amenity at the WACA Ground are inadequate. This is borne out in recent satisfaction surveys of Members
and patrons which found:
§ Member satisfaction has reached a tracking low – 46 per cent satisfied.
§ Renewal intention has reached a tracking low – 69 per cent likely.
§ Likelihood to recommend declined significantly – 37 per cent.
The more recent market research undertaken as part of the work of the FDSC found that Member
satisfaction has dropped slightly to 45.3 per cent, while the willingness of Members to renew at last
renewal time was much lower at 62 per cent. This suggests a concerning trend of declining likelihood to
renew membership that will continue to worsen if there is no improvement to WACA membership facilities
and offerings. It should be noted that the loss of the Test Match during the 2014/15 season has probably
contributed to the dissatisfaction levels in the most recent survey.
Overall patron satisfaction with the event found:
§ BBL satisfaction rate - 66 per cent.
§ Test satisfaction rate - 37 per cent.
§ ODI satisfaction rate - 44 per cent.
PAGE 11Member and patron dissatisfaction relate to issues such as:
§ Lack of shade at the ground.
§ Uncomfortable seats.
§ Poor food and beverage offerings.
§ Unacceptably long queues to purchase tickets and food/beverages.
§ Inadequate toilet facilities.
This perception is also shared by Cricket Australia and was reflected in the Cox and Gemba WACA
Ground Master Plan Study (May 2014), which states:
The Stadium is now considered by Cricket Australia as the worst international cricket venue in the country
and other major cricket venues are currently undergoing significant upgrades including the SCG and
Adelaide Oval resulting in a larger gap in standard.
This view has been further reinforced in a letter to the FDSC Chair from Cricket Australia CEO, James
Sutherland, who wrote:
Unless there is a more compelling commercial proposition, the WACA Ground will continue to be allocated
a share of matches in line with the CA Board policy, however, without a compelling case for premium
international teams and additional content, matches scheduled for Perth are likely to be less in number and
less in spectator appeal.
In summary, without significant improvements to spectator amenities, the WACA faces a future of declining
membership, less premium international content and a shrinking revenue base.
HIGH PERFORMANCE AND ADMINISTRATION FACILITIES
It is not only the spectator amenities at the WACA Ground that are in critical need of improvement but
also the high performance and administration facilities. Significant development of these facilities has been
highlighted as a priority by the WACA Board.
The WACA Master Plan Study found that:
Other states have developed or are in the process of developing new cricket high performance centres. Other
sports (specifically the AFL) are much further advanced in the provision of high performance infrastructure
and the development of a modern training and administration facility is considered a high priority.
Equally, the administration facilities for staff are scattered around the ground and are generally in poor
condition. Significant improvements are required to bring the accommodation to an acceptable level and
there would be substantial advantages in having WACA staff all located in the same building.
PAGE 12REMAINING USEFUL LIFE ASSESSMENT
A remaining useful life (RUL) assessment of the WACA’s infrastructure was undertaken on behalf of the
FDSC by engineering consultants, GHD. A summary of their findings is presented in the table below:
The buildings throughout were in good condition with only minor defects identified that should they be
fully addressed would increase the remaining useful life of the structures even further.
STRUCTURE OVERALL YEAR MINIMUM
CONDITION CONSTRUCTED REMAINING USEFUL
LIFE (YEARS)
Prindiville Stand Good 1984 20
Inverarity Stand Good 1970 15
South West Members Pavilion Good 2002 20
Lillee Marsh Stand Good 1988 20
Players Pavilion Good 2002 20
Light Towers Fair 1986 20
Podium Stand Fair 2002 20
The GHD report made a number of recommendations in relation to addressing the infrastructure
issues identified in their assessment. These recommendations were provided to both Cox Architects
and quantity surveyors, Rider Levett Bucknall, who quantified the costs associated with each of the
development options. The cost of addressing the basic maintenance requirements is estimated
at $48.2 million.
The positive aspect of the RUL assessment findings is that there are no immediate risks in the infrastructure.
This provides the WACA with a level of flexibility in the timing and scheduling of any planned development
over a period of time, as well as timing of associated land sales should they proceed.
PAGE 13THE CHANGING STADIA LANDSCAPE IN WESTERN
AUSTRALIA
STATE SPORTING FACILITIES PLAN FRAMEWORK 2013
The Department of Sport and Recreation’s State Sporting Facilities Plan Framework 2013 outlines the State
Government’s policy in relation to funding of sporting facilities in Western Australia.
The framework outlines the principles for planning for sporting facilities as follows:
§ The inclusive consideration of a broad range of stakeholders.
§ Preference for joint provision and shared use.
§ Commitment to probity and transparency process.
§ Equity and fairness in overall resource allocation.
§ Pursuit of best practice.
Of particular note, is the stadium hierarchy model outlined in the framework against which funding
submissions for stadium infrastructure will be assessed. The recommended capacity for the WACA in
the stadium hierarchy is 10,000 to 15,000. The WACA Ground is identified as a key priority for State
Government consideration with the comment that “the future of the WACA Ground needs a clear plan
and rationale”.
RECENT STADIUM DEVELOPMENTS
The recently constructed Perth Arena as the premium basketball venue and the redeveloped nib Stadium
as a soccer and rugby venue have both raised the bar for the spectator experience in Western Australia
and highlighted the inadequacy of the facilities at the WACA Ground.
THE NEW PERTH STADIUM
The advent of the state of the art new Perth Stadium with a capacity of 60,000 people due to open in
early 2018 will indelibly change the sporting stadia landscape in Western Australia and raise consumer
expectations to a new level.
Perth Stadium will be a world-class multi-purpose venue capable of hosting a range of events including
all forms of cricket with seating for at least 55,000 fans in cricket mode. It will have:
§ Four drop-in wickets, which are being designed to replicate the characteristics of the WACA pitch;
§ Two giant video screens visible from the stands and more than 1,000 TV screens around the facility;
§ More than 70 food and beverage outlets;
§ Shade and shelter for most of the seating;
§ Multiple entry points; and
§ A variety of public transport options, including rail, pedestrian and bus, to and from the venue.
PAGE 14Perth Stadium presents both risks and opportunities for the WACA Ground.
There is a risk to the WACA that in the absence of significantly improved facilities, the superior facilities of
Perth Stadium will serve to further heighten Member and patron dissatisfaction with the WACA.
The opportunities presented by Perth Stadium are;
§ A substantially enhanced spectator experience.
§ A greater range of membership options.
§ Improved sponsorship opportunities.
§ The removal of Member and spectator capacity constraints – particularly in the context of BBL matches
which already regularly sell out at the WACA – BBL is also the fastest growing cricket format in WA and
across the country.
The State Government is, as a priority, pursuing a policy of maximising premium content for Perth Stadium
including both AFL and international and domestic cricket.
The WACA Board is required to make decisions regarding what, if any, cricket content would be best
played at Perth Stadium. Those decisions must be informed by the associated financial and other
implications.
DROP-IN WICKETS AT PERTH STADIUM
One of the key concerns expressed by WACA Members and past players in the Committee’s engagement
process has been around the likely quality of the drop-in wickets at Perth Stadium compared to the wicket at
the WACA Ground.
The drop-in wickets are being developed by Westadium in partnership with the WACA and CA. The original
technical brief for the development of the wickets was produced by the WACA Curator almost three years ago.
Prototypes of the drop-ins are being developed with the same soil, clay and grass profile as the existing
wickets at the WACA Ground.
The prototype wickets will be placed in the ground at the centre of Gloucester Park and the WACA turf team
will be responsible for developing them. In addition, at the appropriate time in the maturation process, Warriors
players will bowl and bat on them to provide player feedback before the actual wickets are developed.
To assist with the development of the wickets CA has engaged the former curator at the MCG who is the
most experienced in the country in drop-in wicket technology.
PAGE 15NEEDS INCLUDE:
§ Financial sustainability
§ Maintain cricket initiatives /
promotion of cricket
§ Maintain the Ground
§ Upgrade amenity
§ Upgrade high performance
training facilities and administration
§ Maintain membership
WACA
FUTURE
DEVELOPMENT
STRATEGY
§ Perth Stadium – financial § Perth Stadium –
upside and management competition for content
opportunity
§ Stadium hierarchy
§ Increase membership (DSR/State Government)
§ WAFC – increased utilisation § Funding challenges
of the Ground
§ Land sale/development
§ Shared use
OPPORTUNITIES INCLUDE: THREATS INCLUDE:
PAGE 16WESTERN AUSTRALIAN FOOTBALL COMMISSION
The Western Australian Football Commission is currently housed at Domain Oval on lease arrangement
for a further 77 years.
With AFL matches moving to Perth Stadium from 2018, both the West Coast Eagles and the Fremantle
Football Club have moved to secure new club and training facilities at Lathlain and Cockburn respectively.
The WAFC is now considering alternative accommodation for its administration and training facilities for
its elite junior football and umpires.
Co-location at a developed WACA Ground is one of the WAFC’s preferred relocation options and
presents some real benefits for the WACA in terms of sharing the ongoing maintenance and operational
costs of the WACA Ground, potential cost efficiencies associated with shared services and maximising the
utilisation of the ground. The WAFC also has a preference for a venue that is capable of hosting WAFL
match of the round and finals matches.
From a State Government perspective, any such relocation would be consistent with the principles of the
State Sporting Facilities Plan Framework. It also provides a strong argument for capital investment in the
WACA Ground as it would release the Domain Oval site for commercial and residential development.
The FDSC has been pursuing negotiations with WAFC to develop a draft memorandum of understanding
(MOU) to guide an ongoing negotiation process.
OTHER SPORTING ASSOCIATIONS
The WACA already provides accommodation for the Sports Education Development Association and the
Special Olympics Western Australia. Several other sporting associations, have approached the WACA
regarding potential co-location opportunities.
PAGE 17THE DEVELOPMENT OPTIONS: EY BUSINESS CASE
The FDSC, working closely with EY and Cox, has thoroughly explored a range of potential options for
the future of the WACA Ground, all of which were subjected to rigorous financial modelling. The process
utilised involved critical decision points to allow for shortlisting and prioritisation of the options.
All of the options explored have implications for the content that might be played at the WACA Ground
and the content that might move to Perth Stadium.
The options explored by the FDSC and their implications for content are presented over the page.
EY has prepared a Business Plan for the future development strategy for the WACA (2015-2030). Through
the development of the Business Plan the WACA is looking to consider the future role of the Ground
to ensure that the Ground can continue to provide modern cricket facilities to meet match day, high
performance and administration requirements and continue to maintain the Association’s vital role as the
custodian of cricket in WA.
The range of issues considered within this Business Plan is illustrated below, setting out a combination of
needs, opportunities and threats to the WACA and the Ground itself. These have been considered in
developing future development options and the financial and qualitative analysis used to determine a
preferred option.
OPTIONS EVALUATED
A range of options was developed considering combinations of refurbishment, new build assets and
varying development of the sizes for the WACA Ground, summarised as follows:
§ Option 0 (do nothing) – no development of the existing facilities with 21,519 capacity
§ Option 1 (do minimum) – refurbishment of the existing facilities with 21,519 capacity
§ Option 1A – refurbishment of all the facilities at the WACA Ground
§ Option 1B – new build of the high performance centre, administration and museum, refurbishment
of the remaining facilities and the extension of the oval
§ Option 2 (small venue) – new build for a capacity of 10,000
§ Option 3 (medium venue) – new build for a permanent capacity of 15,000
§ Option 3A – all cricket (international, BBL and community) remains at the WACA Ground
§ Option 3B – cricket is shared between the WACA Ground and Perth Stadium, with BBL matches,
tiers 1 and 2 limited-over matches, and tiers 1 and 2 Test Matches transferring to Perth Stadium and
the remainder of the content remaining at the WACA Ground (tier 3 limited-over matches, tier 3
Test Matches and community cricket)
§ Option 3C – all cricket (BBL and international) except community cricket is transferred to Perth Stadium
§ Option 4 (large venue) – new build to provide the WACA Ground with 23,000 capacity
§ Option 4A – all cricket (international, BBL and community) remains at the WACA Ground
§ Option 4B – cricket is shared between the WACA Ground and Perth Stadium, with BBL matches, tiers
1 and 2 limited-over matches, and tiers 1 and 2 Test Matches transferring to Perth Stadium and the
remainder of the content remaining at the WACA (tier 3 limited-over matches, tier 3 Test Matches and
community cricket)
§ Option 4C – all cricket (BBL and international) except community cricket is transferred to Perth Stadium
Attachment A provides a more detailed description of the options including the allocation of content
between the WACA Ground and Perth Stadium.
PAGE 18EVALUATION PROCESS
The evaluation process supporting the Business Plan conclusions involved both financial and qualitative analysis:
§ Financial analysis – the financial impact of the options was assessed by identifying and forecasting
investment specific cash flows (revenues and costs over 16 years), which are expected to occur over
the period from 2015 to 2030 for a particular option. A financial model was developed to evaluate
each option based on a series of agreed inputs and assumptions, consistent with forecasts conducted
by the WACA and CA.
§ Qualitative analysis – the options were qualitatively assessed, applying a methodology known as
“even swaps” which involved the following steps:
1. Elimination of those options which did not meet the minimum requirements
2. Elimination of the options that are dominated or practically dominated by another option, i.e. options
that offer only disadvantages and no advantages relative to the another option (dominated) or
where one has only one advantage relative to another option and it is determined that this small
advantage does not outweigh the aggregate disadvantages (practically dominated)
3. For the remaining options undertake a series of trade-off adjustments between the evaluation
criteria to determine the preferred option(s)
The minimum criteria utilised in the even swaps process are as follows:
§ Provides for improved amenity for all spectators (seating, shade, concessions and toilets).
§ Retains the ability to host international cricket of all types at the WACA.
§ Includes a new high performance centre.
§ Includes new administrative facilities.
§ Enables Western Australian Football Commission (WAFC) co-location.
§ Maintains cricket initiatives/promotion of cricket.
§ Ongoing financial sustainability.
§ Provides for significant Member capacity (growth in membership numbers).
§ Consistency with WACA, Cricket Australia (CA) and State Government objectives.
PAGE 19FINANCIAL ANALYSIS RESULTS
The financial analysis focused on operating revenues and costs of the WACA under each of the options
with the following table summarising total operating revenues, total operating expenses and earnings
before interest, tax depreciation and amortisation (EBITDA) over the 16 year modelled period.
The results indicate that the WACA’s financial performance is likely to be unsustainable for options 1A, 3A
and 4A and marginal for options 1B (small negative EBITDA), 2, 3B, 3C, 4B and 4C (all positive EBITDA)
The FDSC, however, notes that a number of opportunities exist to refine the forecasts in a number of
areas and potentially improve financial forecasts including providing the WACA with the flexibility to
control its costs – the review of the WACA business and governance model presents the opportunity to
consider this in greater detail.
At the same time, the financial model assumes a contribution from the WAFC to the operating and capital
maintenance costs of the WACA Ground commensurate with its proportional usage of the WACA Ground.
PAGE 20SUMMARY FINANCIAL ANALYSIS
Total nominal figures for 16 Base case Do minimum Do minimum Small venue Medium venue Medium venue Medium venue Large venue Large venue Large venue
years from 2015-2030 ($’000s) (0) (1A) (1B) (2) (3A) (3B) (3C) (4A) (4B) (4C)
Total operating revenues 587,508 587,508 575,635 587,508 509,176 587,902 587,508 517,365 587,508 587,508
Total operating expenses (571,518) (593,279) (577,750) (582,190) (527,579) (584,103) (583,012) (532,540) (587,697) (588,688)
EBITDA (nominal) 15,990 (5,771) (2,115) 5,318 (18,403) 3,799 4,496 (15,175) (189) (1,180)
800,00 20,000
15,990
600,00 15,000
400,00 10,000
5,318 4,496
3,799
200,00 5,000
‘000s
0 0
(109) (1,180)
(200,000) (5,000)
(2,115)
(400,000) (5,771) (20.000)
(600,000) (15,000)
(15,175)
(800,000) (20,000)
(18,413)
Base Do Do Small Medium Medium Medium Large Large Large
case (0) Minimum (1a) Minimum (1b) venue (2) venue (3a) venue (3b) venue (3c) venue (4a) venue (4b) venue (4c)
Total operating revenues Total operating expenses Net operating income (EBITDA)
PAGE 21 PAGE 22QUALITATIVE ANALYSIS RESULTS
The qualitative “even swaps” analysis results are summarised below, with Option 3B selected as the
preferred option and Option 1B coming second noting, however, that it currently has a negative EBITDA
and would require further work to be viable. The FDSC has agreed that the WACA should seek to
progress Option 3B. However, if only limited funding can be obtained then the WACA should seek to
further explore the viability of Option 1B. These options are described below:
OPTION 3B This option provides the WACA Ground with an approximate permanent capacity of
(PREFERRED OPTION) 15,000 with a combination of new construction and refurbishment of the Prindiville,
Lillee Marsh and Inverarity Stands. A high performance centre and administration
is included. The oval is also to be re-shaped to enable co-location with the WAFC.
Option 3B is the preferred option if capital funding can be obtained.
OPTION 1B This option comprises minor superficial refurbishment of the facilities at the Ground
(SECOND BEST OPTION) with the exception of the construction of a new world-class high performance
centre, administration building and museum. This maintains the current capacity for
spectators. The oval is also to be re-shaped to enable co-location with the WAFC. If
limited funding is available, this may be a viable option.
The following table summarises the rationale for the selection of the preferred options.
PAGE 23OPTION SUMMARY PREFERRED
Base Case
(0) Eliminated as it failed to deliver on the minimum requirements (no
international content at the WACA Ground, no new high performance
X
and administration facilities, doesn’t enable WAFC co-location and no
improvement to spectator amenity)
Do Minimum
1A Eliminated as it failed to deliver on the minimum requirements (no
international content at the WACA Ground, no new high performance
X
and administration facilities, doesn’t enable WAFC co-location and
poor financial performance)
1B Selected as the second best option (practically dominated by Option
ü
3B)
Small Venue
(2) Eliminated as it failed to deliver on the minimum requirements (no
international content at the WACA Ground, small ground capacity, X
insufficient WACA Member capacity, comparatively high capital costs)
Medium Venue
3A
Eliminated as it failed to deliver on the minimum requirements (very
X
poor financial performance)
3B Selected as the preferred option ü
3C Eliminated as it failed to deliver on the minimum requirements (no
international content at the WACA Ground and comparatively high X
capital costs)
Large Venue
4A Eliminated as it failed to deliver on the minimum requirements (very
X
poor financial performance)
4B Eliminated as it is practically dominated by Option 3B (the advantages
and disadvantages of the option are determined to not outweigh the X
advantages and disadvantages of Option 3B)
4C Eliminated as it failed to deliver on the minimum requirements (no
international content at the WACA Ground and comparatively high
capital costs) and it is practically dominated by Option 4B (the X
advantages and disadvantages of the option are determined to not
outweigh the advantages and disadvantages of Option 4B)
PAGE 24THE RECOMMENDED DEVELOPMENT OPTION:
OPTION 3B
The recommended option, Option 3B, provides for the following infrastructure and facilities:
It should be noted that Option 3B in its current form is at the very conceptual stages of design only.
There is still significant work to be undertaken to further develop this option and the design details,
including the development timetable. This will be a major focus of the on-going work of the FDSC and
will require a significant budget allocation.
This development, in a traditional cricket ground style, will includes provision for:
§ Significant additional shade
§ Tiered membership options
§ Additional food and beverage concessions
§ Additional toilets
§ WAFC co-location
§ The option to retain and refurbish the Lillee Marsh, Players and Members stands which would increase
both Member and spectator capacity if desired.
§ Optional additional administrative floor to accommodate other sports
§ Optional boarding facilities to accommodate regional and indigenous players.
The optional facilities identified will depend on the availability of funding and the finalisation of a firmer
budget for the development.
With temporary seating, the developed Ground could accommodate up to 18,000 spectators.
At this stage, the notional timeline for development spans the period from 2016 to 2021, however, this will be
dependent on the outcomes of more detailed design work, cost planning and the availability of funding.
It is proposed that the WACA Board may wish to consider the naming conventions for existing stands
be retained for the developed Ground. For example, the Lillee Marsh Stand if/when demolished would
become the Lillee Marsh Terrace, in order to honour the heritage of the Ground as a stage for many
historic sporting moments and great players.
PAGE 25MEMBER AND PATRON VIEWS (WACA GROUND VS PERTH
STADIUM)
An important consideration for the FDSC was to get a solid understanding of the views of the WACA and
Scorchers Members and the general public about cricket at the WACA Ground and at Perth Stadium.
It was important to ascertain whether allocation of content to a particular venue would impact on the
likelihood of people to attend matches.
In order to do this, Research Solutions, a Perth-based company, was engaged to undertake this market
research. The approach included online surveys of all WACA and Scorchers Members, recent WACA
patrons and a telephone survey of the general public.
The response rate to the survey was very high with 2,370 WACA Members, 415 Scorchers Members, 914
BBL attendees and 698 international match attendees responding to the survey. A further 400 members
of the general public were surveyed by telephone. The sample provides a solid research base upon
which to draw conclusions about views and likely behaviours.
VENUE PREFERENCE
The research found that many survey participants do not have a venue preference with half of Scorchers
Members and paying attendees and 40 per cent of WACA Members having no venue preference.
Of those that did have a venue preference:
§ WACA Members would prefer Perth Stadium as a venue for cricket – 31 per cent (Perth Stadium) to 26 per cent
(WACA Ground).
§ Scorchers Members are evenly split between the two venues.
§ Paying attendees would prefer Perth Stadium – 29 per cent (Perth Stadium) to 21 per cent (WACA
Ground).
MEMBERS’ VIEWS ABOUT THE WACA GROUND
Members were asked questions regarding their thoughts about the future of the WACA Ground. The
research found that Members have a huge level of affection for the WACA Ground and would be sad
to see cricket leave the Ground entirely:
§ 72 per cent of WACA and Scorchers Members would be sad to see cricket leave the WACA Ground
entirely – 32 per cent would be very sad.
§ 74 per cent believe the WACA Ground should remain the home of Sheffield Shield – 40 per cent
strongly support this.
§ 78 per cent believe the pitch and location are the WACA Ground’s key strengths – 40 per cent strongly
believe this.
PAGE 26However, there is a level of pragmatism among Members with 56 per cent believing that major cricket
matches in WA have outgrown the WACA Ground – 29 per cent strongly believe this.
In summary, the research suggests that the allocation of cricket content to one venue rather than another is
unlikely to have any significant impact on match attendance levels. However, this needs to be considered
within the context of the capacity constraints of the existing WACA Ground and the ability of Perth Stadium to
accommodate much greater crowd sizes for those matches that are sell-outs at the WACA Ground.
On the other hand, the depth of affection expressed by WACA and Scorchers Members for the WACA
Ground serves to reinforce the FDSC’s view that the WACA Ground has an ongoing and central role to
play in the future of cricket in Western Australia.
PAGE 27NEGOTIATIONS REGARDING FUTURE CRICKET CONTENT
AT PERTH STADIUM
THE RESPECTIVE ROLES AND RESPONSIBILITIES OF THE WACA AND CA
Cricket Australia is the national cricket body with responsibility for the allocation of cricket content to
States and Territories. State/Territory cricket associations, such as the WACA, have responsibility for the
allocation of content to venues within their jurisdiction.
Cricket Australia retains the commercial rights to international cricket content whereas State/Territory
associations retain the commercial rights to BBL content.
It is Cricket Australia’s standard approach that venue hire agreements are tripartite in nature involving CA,
the respective State/Territory association and the venue operator. Negotiations with the State Government
around potential content for Perth Stadium have been undertaken on this basis.
THE NEGOTIATION PROCESS
Formal negotiations between the State Government and the cricket parties commenced in late 2014.
The State Government is represented by a State negotiating team (which is also negotiating with the AFL
for content at Perth Stadium) while the cricket parties are represented by WACA and CA representatives.
The State negotiating team is bound by Perth Stadium Commercial Principles agreed to by State Cabinet
which have guided the negotiation process.
All parties in the cricket content negotiations have approached the negotiation process on the basis of
minimising risk for all parties and maximising the potential shared benefit for all parties.
The cricket parties both recognise that without some premium content remaining at the WACA Ground,
there is unlikely to be a compelling case for the State Government to invest the capital funds required to
support the preferred development option.
PAGE 28WACA/CRICKET AUSTRALIA FINANCIAL MODEL
The WACA and Cricket Australia have worked together to develop a viable financial model that would
provide financial sustainability and flexibility for both parties, in addition to meeting the operating costs
sought by the State Government. This involves significant content played at Perth Stadium, as well as
meeting the required venue hire costs sought by the State.
The model is based on a range of assumptions around likely attendance and catering and beverage
spend at Perth Stadium, as well as the benefits of a new tiered membership model.
The commercial model for membership outlines how the WACA will build a new membership business
based on the movement of matches to Perth Stadium. Increases in the value of annual subscriptions
are primarily driven through the introduction of tiered membership products offered to both WACA and
Scorchers Members.
WACA Members will have a dedicated membership area at the Northern side of Perth Stadium, while
Scorchers Members will have a dedicated membership area on the Southern side of Perth Stadium.
The tiered membership schemes offer Members a range of entitlements based on facilities and amenity
available within Perth Stadium venue.
PAGE 29THE WACA BUSINESS AND GOVERNANCE MODEL
BUSINESS MODEL
The implications for the WACA’s existing business model of the recommended content to be played at
Perth Stadium, as well as the co-location of WAFC at the Ground, are significant:
§ The WACA will become a venue hirer as well as a venue operator – this will demand a greater level
of business efficiency than has been required of the WACA in the past.
§ The model shifts the revenue base for the WACA from attendance numbers to membership growth,
specifically premium membership growth, and will require a much greater emphasis on strategic
marketing than has been the case.
§ Stakeholder management will become an increasingly important focus for the WACA.
This will necessitate a significant transformation of the organisational structure and systems and an
associated investment in the capacity of the WACA leadership and its people in the period prior to Perth
Stadium becoming operational. The extent of the changes will require a considerable lead-time.
GOVERNANCE
Concurrently with the work of the FDSC, the WACA Board has undertaken a review of its current
governance arrangements through the establishment of a Governance Review Committee.
The Committee has made a number of recommendations to the WACA Board and a suggested timeline
for implementation of those recommendations.
If the WACA is to enter into a co-location arrangement with WAFC at the WACA Ground, it will be
necessary to separate out the cricket development functions from those relating to the operation and
management of the WACA Ground. The WACA-WAFC Memorandum of Understanding envisages that
the management and operations of the WACA Ground would be shared between the two organisations.
Recommendation 3 of the recommendations from the Governance Review Committee proposes the following:
Recommendation 3 (WACA’s constitutional objects)
WACA should review its constitutional and strategic objects to clarify prioritisation of its primary focus
between the promotion, development and co-ordination of cricket on the one hand and the control,
management, improvement and promotion of the WACA Ground on the other hand.
This recommendation is supported by the FDSC and the WACA Board may need to consider the timing for
implementation of this particular recommendation to enable the proposed co-location to proceed in 2018.
PAGE 30POTENTIAL SOURCES OF FUNDING
The FDSC has identified a range of potential sources of funding for the development as follows:
§ Potential WACA Ground land sales
§ WACA philanthropy fund
§ Cricket Australia
§ City of Perth
§ Federal Government funding
§ State Government
It should be noted that under the WACA Constitution, the sale or development of land requires Member approval.
NEXT STEPS
There is still a large body of work to be undertaken to progress the work of the FDSC including, but not
limited to:
§ Redesign of Option 3B including detailed architectural drawings, costings and cost planning;
§ Progressing the commercial agreement and terms for Perth Stadium;
§ Progressing the negotiations with WAFC for co-location at the WACA Ground;
§ Preparation and submission of a number of submissions for capital infrastructure funding; and
§ Development and implementation of a new business and organisational model for the WACA.
The WACA Board should consider extending the term of the FDSC for a further 12 months to oversee the
future work required and determine the appropriate membership and project management arrangements.
In the first instance, timely and managed communication to Members and the general public regarding
the decisions of the Board is of paramount importance.
PAGE 31ATTACHMENT
PAGE 32ATTACHMENT A: DESCRIPTION OF THE ATTRIBUTES OF THE LIST OF OPTIONS (source FDSC) Note: nPS is Perth Stadium
OPTION Option 0: Option 1: Do Minimum Option 2: Small Venue17 Option 3: Medium Venue11 Option 4: Large Venue11
Base Case
Option 1A Option 1B Option 22 Option 3A14 Option 3B15 Option 3C16 Option 4A14 Option 4B15 Option 4C16
Configuration (capacity):
Permanent seating 13,666 13,666 4,000 10,000 15,000
Grass bank/other standing 4,594 4,594 6,000 5,000 5,000
Temporary seats + 3,259 + 3,259 + 0 + 3,000 + 3,000
Nominal maximum capacity = 21,5191 = 21,5191 = 10,0002 = 18,0002 = 23,000
Configuration (offering):
Public 13,896 13,896 9,00010 12,000 11,500
Corporate 1,435 1,435 - 1,000 1,500
Members - 6,188 - 6,188 - 1,00010 - 5,000 - 10,000
Nominal maximum capacity = 21,5191 = 21,5191 = 10,0002 = 18,000 = 23,000
Facilities Existing facilities Existing Existing § At least one permanent structure for: § Two or more permanent structures for: § Two or more permanent structures for:
to remain with facilities to facilities to § Members amenity including § Members amenity including Members’ bar, seating, and § Members amenity including Members’ bar, seating, and
refurbishment remain with remain with designated Members’ bar, food and beverage areas food and beverage areas
to improve the refurbishment refurbishment seating, and food and § Corporate facilities with function and dining space to § Corporate facilities with function and dining space to
standard of to improve to improve beverage areas support events support events
amenity the standard the standard § Competitor amenity including § Competitor amenity including changing rooms3 § Competitor amenity including changing rooms3
of amenity of amenity changing rooms3 § Media and broadcast amenity3 § Media and broadcast amenity3
except new: § Media and broadcast amenity3 § Spectator amenity with significantly improved shade § Spectator amenity with significantly improved shade
§ High § Spectator amenity with solutions in all sections of the ground and access to solutions in all sections of the ground and access to
performance improved shade opportunities toilets toilets
centre
§ Concession facilities for § Concession facilities for Members and general admission § Concession facilities for Members and general admission
§ Administration Members and general
building § Museum § Museum
admission § High performance centre § High performance centre
§ Extension of § Museum
the oval § Administration building § Administration building
§ High performance centre § Extension of the oval § Extension of the oval
§ Museum
§ Administration building § Retention of score board § Retention of score board
§ Extension of the oval § Development more traditional heritage/ village style (than § Development more traditional heritage/ village style (than
§ Retention of score board say the new Perth Stadium) say the new Perth Stadium)
§ Heritage style development
Likely Event Schedule (January Options 1A Options 1B Option 22 Option 3A14 Option 3B15 Option 3C16 Option 4A14 Option 4B15 Option 4C16
2018 onwards) WACA nPS
WACA nPS WACA nPS WACA nPS WACA nPS WACA nPS WACA nPS WACA nPS WACA nPS WACA nPS
Big Bash league ü ü ü ü ü ü ü ü ü ü
Limited Overs Tier 14 ü ü ü ü ü ü ü ü ü ü
(Men’s) Tier 25 ü ü ü ü ü ü ü ü ü ü
Tier 36 ü ü ü ü ü ü ü ü ü ü
Test Matches Tier 1 7
ü ü ü ü ü ü ü ü ü ü
(Men’s) Tier 2 8
ü ü ü ü ü ü ü ü ü ü
Tier 3 9
ü ü ü ü ü ü ü ü ü ü
Community Cricket 13
ü ü ü ü ü ü ü ü ü ü
Implications for Members Existing facilities with Existing facilities with capacity Separated space within multi-purpose Separated space within multi-purpose grandstand Separate grandstand (with potential other
capacity of circa 7,000 of approximately 7,000 pavilion. Capacity of 500 – 1,00010 Capacity of 3,000 – 5,00010 purposes) Capacity of 7,500 – 10,00010
Land Development Opportunity Constrained Constrained Constrained Maximised Partially constrained Constrained
Co-location with the WAFC 12
No No Potential Potential Potential Potential
1 Permanent seating figure recognises an average ‘seat kill’ for staging cricket of 1,500 seats so actual permanent seats are: 15,166 – 1,500 = 13,666 11 It is suggested these options require a commitment of the WACA Board (and potentially CA) to stage one or more international cricket events at
(with overall capacity of 21,519). Assumes seat kill of 1,500 is split 50:50 between public and members the Ground for an extended period of time (say, 10 years) to ensure hallmark content is available at the venue
2 Grass bank areas (and potentially others) are assumed to allow for the accommodation of temporary seating as and when required 12 Where opportunity for co-location with the WAFC exists, access to Trinity and Gloucester Park likely to be required
3 Amenity to be commensurate with the level of cricket and other sports to be played at the Ground as dictated by relevant guidelines 13 Community Cricket includes domestic limited overs, Sheffield Shield, WNCL and WT20
4 Tier 1 opponents for Limited Overs Matches include England 14 Sub-option A indicates all content: domestic and international, remains at the Ground
5 Tier 2 opponents for Limited Overs Matches include South Africa and India 15 Sub-option B indicates some international content (Test Matches, ODIs and T20s) and BBL transfer to Perth Stadium (determined by ‘fit’ to the venue)
6 Tier 3 opponents for Limited Overs Matches include remaining ICC nations 16 Sub-option C indicates all content: domestic and international, transfers to Perth Stadium
7 Tier 1 opponents for Test Matches include England 17 The capacity of the Ground under this option is unlikely to support events of this type and size, hence content transferred to Perth Stadium
8 Tier 2 opponents for Test Matches include South Africa and India
9 Tier 3 opponents for Test Matches include remaining ICC nations
10 Indicative onlyYou can also read
