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The AFL has advised that Tasmania getting a side in the League remains contingent on the delivery of a new stadium on the Hobart waterfront - despite a draft report from a Tasmanian Planning Commission panel indicating that the cost of the venue will rise a 39% from its original estimate.

Released on Monday, the draft report criticised the venue on planning and social grounds, while also suggesting that the cost of stadium would rise from its originally budgeted $715 million cost (later amended to $775 million) to $992.5 million.

With the draft report also questioning the tight timeline for the delivery of the 23,000-seat venue, it also found the stadium's benefits had been overstated.

With construction of the roofed venue a condition of the AFL granting the Tasmania Devils a licence for entry to the League in 2028, AFL Chief Executive Andrew Dillon yesterday advised that the deal endorsed by the AFL Commission was locked in.

As reported by AAP, Dillon told reporters in Adelaide on Tuesday "it's really clear the conditional licence is a 23,000-seat roofed stadium at Macquarie Point.”

Tasmanian Premier Jeremy Rockliff, who signed the contract, conceded the project timeline was challenging but said issues in the report would be worked through, telling state parliament “one indisputable fact is, if this stadium is not built there will be no team.

"We’re committed to the timeline and the deal and we have agreed to work through a number of challenges. We will meet with the AFL around those challenges."

Hearings will be held mid-year to address the report before a final September report and subsequent Tasmanian parliament vote to approve or reject the project.

AAP indicate that any legislation faces a “potentially tricky passage through parliament, with the minority Liberal government holding 14 of 35 lower house seats and four of 15 in the upper house.”

The Greens said the report was further evidence the stadium should be ditched, while the state Labor opposition said the project was "hanging by a thread".

The Tasmanian Government's deal with the AFL requires the stadium to be half built by October 2027 and ready to host games in 2029.

The Tasmanian Government has repeatedly pledged to cap its spend on the venue at $375 million, with $240 million coming from the Commonwealth and $15 million from the AFL - anticipating that the balance will come from private investment.

With costs ballooning, Australasian Leisure Management Publisher Nigel Benton believes that the AFL is likely to come under pressure to provide additional funds for the venue.

Images: A render of the proposed new Hobart Stadium (top, credit: Macquarie Point Development Corporation) and the Tasmania Devils' inaugural jumper (below, credit: AFL Photos).

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