Modern Australian
The Times

an economist argues the case for a Tasmanian AFL team – and new stadium

  • Written by Tim Harcourt, Industry Professor and Chief Economist, University of Technology Sydney
Google Trends result for 'AFL', 12 months to April 2023.

The Australian Football League’s announcement of a Tasmanian football club – likely to be called the Tassie Devils – is now a formality, after the federal goverment’s pledge of A$240 million to a new stadium and precinct in Hobart.

A new stadium is the last of 11 AFL requirements for a Tasmanian club to become the league’s 19th team, joining ten Victorian clubs and two each from the other four states.

The view was that UTAS stadium in Launceston could be upgraded but that upgrading Hobart’s Bellerive Oval (known as Blundstone Arena) made less sense than a new facility in Hobart’s CBD, on Macquarie Point, north of Hobart’s Constitution Dock.

The Tasmanian government wants the stadium, which it will own, to anchor a new “arts and sports” precinct. It will contribute $375 million of the estimated cost of $715 million. Another $85 million will come from loans against future land sales and leases in the revitalised area. The AFL will contribute the final $15 million. There will also be $10 million to build a headquarters for the new club.

This is part of $360 million the AFL will spend on AFL in Tasmania over the next ten years, with $209 million to subsidise the new club and $120 million to support grassroots participation and the development of talented players.

Compared with the $3.4 billion the federal government has committed to buildings for the 2032 Brisbane Olympics, its contribution to the Hobart arena is relatively minor.

But critics say the stadiums in Hobart and Launceston are adequate, and that the money would be better spent on public housing – with rents having risen 45% in the past five years. As novelist Richard Flanagan put it:

Tasmania doesn’t have a stadium problem. It has a housing and homelessness problem.

Locals protest the proposed stadium during Anthony Albanese' press conference in Hobart on Saturday April 29, 2023 to announce $240 million for the harbourside development.
Locals protest the proposed stadium during Anthony Albanese’ press conference in Hobart on Saturday April 29, 2023 to announce $240 million for the harbourside development. Loic Le Guilly/AAP

The problem with this argument is that economies are dynamic, not static. Was it also wrong to have built the Sydney Opera House because of housing issues in the late 1960s?

Without an AFL team and new stadium, Tasmania is likely to still have a homeless problem. In fact, the problem may even be worse without economic activity the new team and stadium will bring.

Economic rationale

The rationale for the federal and state governments is that a new stadium is a precondition for a Tasmanian AFL, and that both together will generate $2.2 billion in economic activity over 25 years according to Tasmanian government.

Governments favour infrastructure projects because construction has a high “multiplier effect” – generating flow-on benefits. The Tasmanian government estimates construction will generate $300 million in economic activity and 4,200 jobs. It expects the stadium when operational to sustain 950 jobs and generate $85 million in economic activity a year.

This will depend on hosting major events along with AFL fixtures. The Tasmanian government’s business case anticipates the venue hosting at least 44 events a year, attracting 123,500 overseas and interstate visitors.

These expectations will be buoyed by the success of the AFL’s “Gather Round” in mid-April, in which all AFL games were played in South Australia. A reported $15 million state government contribution generated an estimated $85 million in economic benefit from 60,000 interstate fans.

The case for a Tassie team

In assessing this decision, we can’t just consider the business case for the stadium. It’s about the case for a Tasmanian AFL club.

Tasmania may only have a total population of 558,000 (with 247,000 in Hobart) but its claim to have an AFL is a good as the Gold Coast (home of the Suns, population 640,000) or even Geelong (home of the Cats, population about 280,000). Townsville, where the North Queensland Cowboys play in the NRL, has 235,000 people.

Read more: Loud, obnoxious and at times racist: the sordid history of AFL barracking

According to James Coventry’s 2018 book Footballistics: How the Data Analytics Revolution is Uncovering Footy’s Hidden Truths, no other state has a higher percentage of AFL fans. In WA it’s 62.3%, in South Australia 75.7%. In Victoria, 70.2%. In Tasmania it’s 79%.

Google Trends result for 'AFL', 12 months to April 2023.
Google Trends result for ‘AFL’, 12 months to April 2023. CC BY

Aussie Rules is really the only game in town on the Apple Isle, writes Hunter Fujak his 2021 book Code Wars, which explores the nation’s “Barassi Line” split between AFL and National Rugby League. The percentage of Tasmanians that only follow the AFL is 35%, compared to the national average of 19%.

Read more: The Barassi Line: a globally unique divider splitting Australia's footy fans

More than the bottom line

Yes, the AFL is a multimillion-dollar business, but it’s also a community organisation, managing a public good. As the Richmond president Peggy O’Neal put it in Coventry’s book:

It’s sort of a blend of strict financial business and not for profit […] If we wanted just to make money, our model would be quite different.

This explain the AFL’s preparedness to commit $345 million over the next decade to support the new club, as well as grassroots football across Tasmania, to ensure local community footy doesn’t lose out from the resources and energy being put into the AFL team. This will include building 70 new ovals across the state, and funding football academies in Hobart, Launceston and Penguin (west of Devonport on the north coast).

The AFL has subsidised the AFLW for similar reasons. It’s about more than just the bottom line.

Tasmania has waited far too long for a team of its own. The entry of the Tassie Devils into the AFL can be justified on economic, social and (most of all) footy grounds.

Authors: Tim Harcourt, Industry Professor and Chief Economist, University of Technology Sydney

Read more https://theconversation.com/devils-in-the-detail-an-economist-argues-the-case-for-a-tasmanian-afl-team-and-new-stadium-204678

Road Signs: Understanding Their Role in Clear and Effective Signage

Effective signage and display hardware can help businesses communicate information, promote products and organise customer or visitor movement. Road...

Bottle Label Printing: Key Factors to Consider Before Your Next Packaging Run

Effective packaging begins with understanding the product, bottle material, artwork and production requirements when planning bottle label printing. H...

Planning a Long-Distance Move With Interstate Movers Melbourne

Moving between states involves more planning than a typical local relocation. Along with packing and transporting household belongings, you need to...

Understanding the Role of an I/O Controller in Industrial Automation

Modern industrial systems depend on accurate communication between sensors, machines and control systems. An I/O controller can help manage this commu...

How the Right Mining Hose Supports Demanding Operations

Mining environments place considerable demands on equipment used for material transfer, water management and processing. Hoses operating in these co...

Simple Ideas for Making Social Gatherings More Memorable

We have all been to those parties where everyone just stands around the kitchen island, staring at their phones, waiting for someone else to make a mo...

Outdoor Wall Lights: Improving Exterior Lighting Around Your Home

Lighting can influence how a room looks, feels and functions, so the right fitting should be selected according to both appearance and practical req...

Commercial Office Cleaning: Combining Routine Office Cleaning With Melbourne Service

Keeping a workplace clean requires a service that can accommodate everyday tasks as well as the particular needs of the business. Professional comme...

Caravan Sales in Queensland: How to Find the Right Caravan for Sale QLD

Caravan ownership is about more than having somewhere to sleep while travelling. For many Queenslanders, it is one of the best ways to explore regio...

What Sir Walter Buffalo Turf Actually Costs in 2026 (And Why Quotes Vary So Much)

Two quotes landed on a Hills District homeowner's kitchen table last spring for the exact same 80-square-metre backyard. One said $12 a metre. The o...

Nearly 1,300 NSW Hospital Beds Are Occupied By People Who Are Ready To Go Home

1,276 people in NSW hospitals have been medically cleared for discharge but remain in hospital because they're still waiting for NDIS or aged care sup...

National Survey Launched to Measure Operational Impacts of Federal NDIS Policy Reforms

The effects of recent NDIS reforms are beginning to move beyond policy papers and into day to day service delivery. A new national survey is asking ...

Beyond the Nappy Cake: Baby Shower Gifts That Get Used

What new Australian parents unwrap, keep, and quietly thank you for months later. Six weeks after my daughter was born, I did an audit of the baby sh...

Parent-Advocates Are Reshaping Frontline Disability Service Delivery

Parents have always been part of the disability sector. They advocate, coordinate services, challenge decisions and often become the person holding ev...

Vista Cruises Enters "Two-Flagship Era" as Vista Aurora Completes Inaugural Voyage

Vista Aurora Sets Sail along the Yangtze. (Photo courtesy of the company)YICHANG, China — August 5, 2026 — Vista Aurora, a high-end interprovinc...

A Digital Preparation Checklist For International Medical Conferences

An international medical conference compresses many responsibilities into a few days. A delegate may need to present research, move between venues, ...

The Growing Popularity of Lab Grown Diamonds in Sydney and Hong Kong

The diamond industry has changed significantly in recent years as more buyers seek ethical, affordable, and sustainable alternatives to mined diamon...

Modern AI SEO Agency vs Traditional SEO: What’s the Difference

Search engine optimisation has changed dramatically over the past few years. Search engines have become smarter, user behaviour has evolved, and bus...