By Sean Nicholls
November 24, 2004
http://www.smh.com.au/news/Business/Pac ... click=true
The future of the Sydney Entertainment Centre is under a cloud after the State Government announced yesterday that it had approved the sale of the Sydney SuperDome lease to Kerry Packer's Publishing and Broadcasting Ltd.
The sale to PBL, announced by the Minister for Tourism, Sandra Nori, followed a surprise $23 million bid for the lease by the former Sydney Harbour Foreshore Authority chairman Gerry Gleeson in May that was quickly snuffed out by the Premier, Bob Carr.
Documents obtained by the Herald relating to the proposed bid show that Mr Gleeson and the foreshore authority, which owns the centre, had feared for the centre's future if the SuperDome fell into commercial hands.
In a memo to the Planning Minister, Craig Knowles, copied to the Treasurer, Michael Egan, in April, Mr Gleeson had submitted that a private owner "would again renew the pressure on the Government to abolish the SEC in the city".
A briefing note prepared by a NSW Treasury analyst in May said that the foreshore authority feared that "the sale of the SuperDome to a private investor would impact on the viability of the SEC".
It has been reported that Mr Gleeson's bid caused PBL to almost double its original bid to about $26 million.
The sale has prompted industry speculation about how PBL could use its media and entertainment interests to boost the number of events going to the SuperDome, which has struggled to compete with the Entertainment Centre since the Olympics in 2000. PBL's interests include the Nine Network, the internet portal ninemsn, Ticketek, Australian Consolidated Press, part of Foxtel, Burswood Casino in Perth and Crown Casino in Melbourne.
While the purchase is viewed by some as primarily aimed at protecting Ticketek's existing SuperDome ticketing rights, there is an expectation that PBL's ability to provide saturation media coverage for events will be very attractive to promoters. It would also be well placed to encourage events booked for its casinos to include the SuperDome in any Sydney leg of a tour.
The chief executive of the Sydney Harbour Foreshore Authority, Robert Lang, said in a statement yesterday that the authority expected "active competition" for the Entertainment Centre from SuperDome and interstate venues.
But the general manager of the Entertainment Centre, Tim Worton, rejected suggestions that the sale might spell the end of the city venue. He said the Arena Management company held the rights for another four years, with two options to renew, each for a further five years.
"We've been competing with the SuperDome since it opened in 1999," he said. "Just because you own a TV network, I'm not sure it's going to make the difference. There may be opportunities to cross promote [but] that certainly does not ring alarm bells".
In July the Herald revealed that the SuperDome's previous lessee, Millennium Partnership, had not paid rent to the Sydney Olympic Park Authority since 2001 and owed $2.3 million. The company had argued it could not pay the levies until its financial situation improved.
I certainly hope this doesn't spell the end of the Entertainment Centre. Whilst I love the Superdome as a venue (eg: electronic scoreboard, comfy seating, fantastic facilities), there really is nothing out at Olympic Park once events conclude. Add to that the difficulty of getting to the venue when major events at Telstra Stadium or the Showgrounds are not on. Trying to get there for Sydney Kings used to be a real hassle with public transport as there were no direct trains from the city and one had to change at Strathfield for buses.
At least with the Ent. Centre once an event concludes you have the whole city on its doorstep with clubs, pubs, restaurants, Chinatown, cinemas, Paddys Markets, Darling Harbour etc all within a short walking distance.
I always wondered why Mr Packer's Ticketek was replaced by Tickemaster at the Ent. Centre. I guess it all is clear now.
One thing is certain, the loss of the Ent. Centre would not be good for the Sydney Kings franchise who have already tried and failed at the Superdome.
