NZ Stadium Bailout

The Dunedin City Council may have to provide more funding for Dunedin Venues Management Ltd. (DVML) in New Zealand, which failed to post a predicted profit of NZ$91,000 for the first six months of the 2011-12 financial year.

Instead, it went into the red by $1.9 million, and forecast a full-year loss of $2.4 million. Further annual losses between $1 million and $1.2 million are estimated until 2015.

DVML chief executive David Davies told a media conference that the city’s Forsyth Barr Stadium, which it operates, had faced tough trading conditions.

Its failure to draw major acts such as Elton John or build up its membership base augmented the problem.

The council is embroiled in the stadium’s financial woes as it had taken out loans on behalf of DVML to build the venue.

The council will scrutinize DVML’s financials, and may have to adopt the policy of the city of Wellington’s council, which has attracted major events by helping promoters with marketing.