‘Our mainland cousins are feeling the heat’: Tassie stadium cost makes clubs nervy

AFL clubs are increasingly nervous about a potential blowout in costs and delays to the construction of Tasmania’s controversial Macquarie Point stadium, expressing fresh concerns the Devils could become a drain on the competition.

The stadium project is out to tender, with construction giant Watpac – fresh from delivering Christchurch’s new stadium in New Zealand — and international infrastructure heavyweight Webuild among key players in the running.

Three senior industry figures – each with direct knowledge of the original Tasmania negotiations, speaking anonymously because of the sensitivity of the discussions – said they were concerned the AFL could be forced to soften its long-held position tying the Devils’ entry into the competition to the construction of the roofed stadium at Macquarie Point.

The AFL says its position is unchanged.

Uncertainty around global markets, including escalating fuel and freight costs linked to the conflict in the Middle East, has heightened concerns within the construction industry and made companies increasingly cautious about locking in long-term prices for a project expected to cost more than $1.5 billion.

These factors have fuelled anxiety about whether the ambitious waterfront project can realistically be delivered in the form the AFL club presidents agreed to.

Two club presidents said the Devils and the stadium would be on the agenda when all 18 presidents meet on June 9 before the Australian Football Hall of Fame dinner.

Originally pitched at $715 million, the price tag for the proposed stadium has since ballooned beyond the billion-dollar mark, with the latest public estimate attached to the project now sitting at $1.13 billion.

Two senior AFL sources said the league and the Tasmanian government were likely to receive a price from the construction company in September, two months before the national draft.

This masthead spoke to nine clubs (five presidents and four chief executives) and seven of them said the 19th licence was becoming increasingly unattractive because of the financial strain the club might have on the rest of the competition.

The AFL and the Tasmanian government remain adamant the Devils will enter the AFL in 2028.

“Our Tassie Devils are already having a great impact on Tasmania,” Tasmanian premier Jeremy Rockliff said.

“We know our mainland cousins are feeling the heat from the Tassie Devils storming into the VFL. There is no change to Tasmania’s entry into the AFL in 2028.”

The roofed stadium, which was a condition of the Devils securing their AFL licence, will not be ready to host matches until 2031.

But four industry and AFL sources believe the timeline attached to the Macquarie Point build is becoming increasingly difficult to satisfy.

Privately, senior figures at rival AFL clubs are also becoming nervous about the financial implications if the stadium project stalls or the cost blows out further.

In March, the boss of the National Civil Contractors Federation, Nicholas Proud, told the ABC that the increase in price for diesel caused by the conflict in the Middle East could add about $50 million to the cost.

Despite club presidents publicly backing Tasmania’s long campaign for an AFL side, there is concern the financial burden of establishing the club could ultimately fall back onto the existing 18 clubs through reduced distributions or increased league equalisation measures.

Under current arrangements, club presidents have the power to effectively veto the Tasmanian team if there is any material alteration to the agreements underpinning the licence, including significant changes to the stadium commitment, such as the roof.

The AFL refused to be drawn into questions on construction costs, diesel prices and whether it was concerned that a construction contract may not be signed until February or March next year, months before the Devils were due to start their inaugural pre-season.

“The Devils continue to make great progress, and we look forward to welcoming a team for Tasmania into the competition in 2028,” AFL spokesperson Jay Allen said.

In an interview with the AFL website this week, new AFL Commission chair Craig Drummond was asked if it was guaranteed that Tasmania would enter the league in 2028.

“That is our strong intent; that Tasmania will be in the competition in 2028. The VFL team and the support around the VFL team is a very encouraging aspect of the support the Devils are going to get.”

When pushed on whether this was a guarantee, Drummond said: “Nothing is guaranteed in life, but I have seen nothing and have heard nothing and have no reason to think that it won’t be anything but 2028.”

Clubs are watching the tender process closely as they grapple with implications of the raft of draft concessions handed to Tasmania to establish their list.

The AFL handed Tasmania a stacked hand at the 2027 national draft, with picks 1, 3, 5, 7, 9, 11 and 13.

Because clubs can trade future selections, list managers are already pricing the compromised 2027 draft into their strategy for next year’s trade period. The concessions mean a future first-round pick in 2027 does not carry its usual value.

A club expecting pick 11, for example, could find itself pushed deep into the teens once the Devils’ concessions are inserted ahead of them.

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