Project abandonment...why major sports facilities don't get off the ground
Remaining competitive at the highest level requires financial investment that most elite sporting organisations cannot support independently, yet these facilities are often essential to attract and cultivate the best athletes, coaches, support staff and even commercial partners.
So, if the facilities are so important, why don’t they get off the ground? Based on our experience, the enormity of attracting sufficient funding is the most common reason why new sports facilities and facility upgrades do not get off the ground. The critical solution to overcome this hurdle is to look beyond a singular elite vision and consider a mixed-use model that meets elite sport requirements, community needs and commercial sustainability.
The initial stage in elite sports facility development is to define the vision and the meaning of success. The second stage is to perform the sanity check, assess feasibility and understand sustainability. Naturally, all of this is ‘at risk’ money in the name of research, fact finding, vision creation and ensuring the facility is really required. In almost every case, facility construction, ongoing operational costs and future upgrade figures show that the facility vision is not something that can be justified when looking at the economics alone.
Whilst some projects are abandoned at the feasibility stage, it is more likely in an elite sports environment that project abandonment takes place during the third stage of the process after a series of failed attempts at funding partnerships. The glossy prospectus ends up buried somewhere in the office files and the project team revert to life before the dream.
Having secured over $300M in funding in the past three years, our advice to sporting organisations is that they must remain resilient during this funding stage. There will be many nay-sayers and objections, but it takes persistent advocacy and patience to broker partnerships. Sometimes, winning people over is the result of persistence and belief, more than the opportunity itself. Project fatigue or deal fatigue is natural, but as long as the client is willing, persistent and prepared to listen, securing project funding is always possible.
Achieving multi-party funding is a long game. Expect to spend two to three years finding and securing solid funding partners. To quote Franks Costa, former President of the Geelong Football Club, who has successfully secured over $200m funding for four stages of redevelopment at Simonds Stadium, “It takes many drops to fill a bucket with water”, and the same applies to this situation.
We also suggest that the investment must be shared among a common group, with common interests/goals.
When identifying and targeting communities of interest, there needs to be a strong sense of cooperation and flexibility to make a joint venture appealing to outside parties, be they government or philanthropic. All parties needs must be met within an aligned vision to achieve firm buy-in. The key is often to build the largest possible community of interest. The larger the community, the greater the chances of success.
When looking at the past, it is true that carefully planned and commercially sustainable facilities can meet elite sport requirements, whilst delivering significant community, social and economic benefit. As a result, many people and organisations of influence are willing to be involved and contribute to improving Australia’s sporting culture. You just have to know who to ask; how to position the investment; and most of all, be persistent and prepared to jump all the hurdles along the journey.
Best regards
Chris
Chris Dare - Managing Director
If your sporting organisation has a vision to build or redevelop a sports facility, Waypoint can turn that vision into a reality. Please feel welcome to arrange a preliminary discussion by submitting an online form or call Chris Dare directly on +61 411 512 333.