Hindmarsh Stadium will realise its potential as a multi-purpose sport and entertainment venue under a deal brokered to transfer management of the facility from the State Government to the operators of the Adelaide Entertainment Centre.
Recreation and Sport Minister Tom Kenyon said the agreement guaranteed all existing sport and community uses of Hindmarsh will continue, while opening up the venue to new events and commercial opportunities.
"Hindmarsh Stadium has been managed for a number of years by the Office for Recreation and Sport with limited resources to explore new business opportunities and undertake improvements," Mr Kenyon said.
"The Government has been incurring an operating loss of around $500,000 per annum managing the stadium
"The deal releases the shackles by relieving the burden on South Australian taxpayers of rising operating costs and leveraging the Adelaide Entertainment Centre's expertise and event networks to get maximum use out of the facility."
The terms of the deal with Adealide Entertainment Centre (AEC) - operators of the Adelaide Entertaiment Centre - will see operational responsiblility for Hindmarsh Stadium transferred from the State Government's Office for Recreation and Sport on July 1 2013 and will continue to provide support to major tenant, Adelaide United Football Club.
As part of the Hindmarsh Stadium transfer, the State Government will also relinquish its tenancy of the corporate suite at the stadium.
"The deal follows a wide-ranging review of management options undertaken by KPMG designed to enhance the financial performance of the stadium, while ensuring community access is maintained," Mr Kenyon said.
"AEC currently operates and maintains the Adelaide Entertainment Centre without recurrent government funding - a model it will apply to Hindmarsh Stadium," Mr Kenyon said.
Adelaide Entertainment Centre Chairman, Bob Foord said he was looking forward to working with Adelaide United Football Club and other tenants to further improve the match day experience for fans and expanding the commercial and community use of Hindmarsh Stadium.
"The Stadium is a valuable South Australian asset and we are enthusiastic about its future," Mr Foord said.