‘Hard to think of a more wasteful project’: Economist slams ‘bloody-minded’ AFL over stadium

The economist behind an independent review of Hobart’s proposed Macquarie Point stadium has accused the Tasmanian government of misleading taxpayers over the project’s cost and described the AFL’s insistence on a new, roofed venue as “bloody-minded”.

Speaking ahead of a crucial gathering of all 18 AFL club presidents in Melbourne before Tuesday night’s Australian Football Hall of Fame dinner, Dr Nicholas Gruen said the cost of the stadium would far outweigh the benefits.

The presidents are set to discuss progress on the stadium, which remains a central condition of the Devils’ entry into the league in 2028.

“This is not just bloody-mindedness from the AFL,” Gruen told this masthead.

“It’s the worst combination of bloody-mindedness and self-harm you can imagine.”

The Tasmanian government appointed Gruen to assess the project early in 2025 as part of a political deal with the Jacqui Lambie Network.

Now he has completed an update of that review, commissioned by the anti-stadium Macquarie Point Vision Ltd, and concluded the project would impose a net cost on Tasmania of more than $1 billion and deliver less than 40 cents of economic benefit for every dollar invested.

The report estimates the stadium would increase state debt by $2.3 billion by 2040 and warns that figure could be substantially higher if major project cost blowouts occur.

The latest government estimate put total capital costs of the stadium at $1.13 billion. Gruen’s latest report has that figure at $1.5 billion, with more pessimistic modelling putting the cost at $1.75 billion.

The Tasmanian government promised $375 million for the stadium, the federal committed $240 million to the precinct and AFL has promised $15 million. The funding gap would be covered by state borrowings.

Asked whether the Rockliff government had misled Tasmanians about the cost of the project, Gruen said: “I think the only honest answer to that question is yes.”

Gruen asserted his independence from the anti-stadium lobby and rejected suggestions his opposition to the stadium stemmed from a desire to stop Tasmania obtaining an AFL team.

The Our Place group, which is part of Macquarie Point Vision Ltd, has sent a letter to the 18 club presidents calling on them to give up their power of veto, which allows them to withdraw their support for the team if there is no roofed stadium.

“There are lots of people in Tasmania who support the stadium, who say it’s going to be an economic boon for Tasmania, and that’s complete rubbish,” Gruen said.

“It will cost Tasmania about a billion dollars to have this stadium.

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