Devils in the detail: an economist argues the case for a Tasmanian AFL team – and new stadium

• 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 Tasmanian government wants the stadium, which it will own, to anchor a new “arts and sports” precinct.
• 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.
• 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.

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.
• 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

• 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.
• It’s about more than just the bottom line.
• The entry of the Tassie Devils into the AFL can be justified on economic, social and (most of all) footy grounds.