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The Tasmania Government has released its business case for its planned new Hobart stadium, seeking $240 million from the Federal Government towards the new roofed venue that would be the cornerstone in delivering an AFL team to the state.

The strategic business case for details how the Tasmania Government proposes to fund the $715 million stadium at Macquarie Point in Hobart, the timeline for construction and how it would integrate into the city.

Tasmania’s Government and the AFL last month reached an in-principle agreement for the creation of a new team in the state, contingent on the building of the new stadium. At the time, AFL Chief Executive Gillon McLachlan and Tasmanian Premier Jeremy Rockliff described the agreement as a “great step forward” in the state’s long held desire for an AFL franchise.

Released today, business case presented to the Federal Government states the new venue will cost $715 million (less than the $750 million cost agreed with the AFL), with the requirement for Federal funding dropping from around half the total cost to $240 million - around one-third of the total.

The Tasmanian Government has committed $375 million, the vast majority in the years from 2026 to 2028, while asking the Commonwealth to provide $50 million in 2026/27, $175 million in 2027/28 and $15 million in 2028/29.

The business case, which cites supportive comments from UK entertainer Robbie Williams and others, argues that the stadium would generate $85 million in direct economic activity per year, and 950 ongoing jobs, in addition to 4200 construction jobs.

With the AFL committing $15 million, the Tasmanian Government’s argues that the remaining $85 million will come from borrowings against land sales and/or leases for commercial uses.

The business case states that "all that remains" is the Commonwealth contribution - which would allow the project to progress to planning and construction.

The business case also provides more details on the vision for the roofed stadium, referencing Christchurch’s planned ‘Te Kaha’ multi-use arena. Hobart's stadium would have a similar roof structure, with a north-facing clear roof, and a solid component at the southern end, but with a smaller capacity of 23,000.

Described as "boutique” the stadium will include corporate and events spaces, with potential for 1,500-person hotel accommodation.

In the forward to the business case, Premier Rockliff advised “we have a once in a generational opportunity to deliver a transformational infrastructure project that will unlock economic activity and invigorate a sense of community and pride, delivering flow on benefits right across Tasmania.

“Macquarie Point as an arts, entertainment and sporting precinct, featuring a roofed stadium would become a global destination for events based on location and experience. It will enable Tasmania to compete for events, concerts, conferences, exhibitions and sporting fixtures, whose organisers currently don’t consider Tasmania as an option, due to the lack of world class venue facilities and capacity constraints.

“All of these will bring jobs, economic activity and visitors to Tasmania and allow us to build the image of our state as a clean, sustainable destination that is leading the way in Australia.

“This is an infrastructure project that levels the playing field with other states and allows us to compete - really compete - on an international level for major concerts, sporting events, conferences and cultural exhibitions that Tasmanians normally need to jump on a plane and fly out of the state to have the opportunity to experience. Or in the worst case, move interstate to experience.

“It will also deliver and underpin the success of a Tasmanian AFL and AFLW team - a team that unites Tasmanians, provides benefits that flow to the north, north-west and south of the state and gives Tasmanians the opportunity to represent their state in a national competition that allows us to promote the best Tasmania has to offer - to the mainland and to the world.”

Projections are for the planning phase to be completed by late 2024, a contractor appointed in early 2025 and construction complete by mid-2028. However, the project has failed to gain universal backing locally, with both the state Labor opposition and the Greens being vocal opponents.

A Labor-commissioned poll showed 67% of Tasmanians oppose the project while Tasmania's federal Liberals have also voiced opposition, including Bass MP Bridget Archer, Braddon MP Gavin Pearce, and senators Jonathon Duniam, Wendy Askew and Claire Chandler.

By contrast, former Federal Sports Minister, Senator Richard Colbeck has spoken of his support.

Asked about the project this afternoon, Prime Minister Anthony Albanese said the Federal Government would "examine the detail" of the proposal, commenting that the project would be viewed through the lens of finally transforming and utilising Macquarie Point, which he described as a "beautiful part of Hobart".

Images: The AFL's latest concepts for the proposed Hobart stadium (top and below, credit: AFL) and the new venue would be modelled on Christchurch’s planned ‘Te Kaha’ stadium (middle, credit: Christchurch City Council).

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