Incoming Demons CEO Paul Guerra faces a $100m fundraising hurdle, security concerns and a potential conflict of interest when he picks up Melbourne Football Club’s push to build a new training base at Caulfield Racecourse.
The priority for Guerra when he puts his feet under the desk on September 8 will be establishing how Melbourne pays for a permanent Caulfield base alongside Melbourne Racing Club and the proposed Mount Scopus College mega campus.
An artist’s impression of the Demons’ proposed home.
The Demons’ long-awaited business case, expected to outline the funding model, has been delayed until Guerra joins the club. It was originally expected to be tabled by the middle of this year.
Melbourne is expected to provide $15 million from cash reserves and $15 million in a fundraising drive.
They will not dip into their future fund, but hope to convince the state and federal governments and the AFL to contribute $70 million.
Caulfield Racecourse Reserve Trust chairman Sam Almaliki said once Melbourne “secure funding and are prepared to actually deliver the project”, they would need to enter into a lease agreement with the trust, who manage the precinct.
“Their biggest sticking point isn’t about what is happening with the school or anybody – their biggest sticking point is that they haven’t been able to raise the funding needed to deliver this project,” Almaliki said.
“The trust’s major interest in this project, whether it is Melbourne Football Club or anybody, is to see funding that improves facilities and community access to those facilities, including the two football ovals that would go in – because they would be made available for community use as well as the football club. That’s our interest in this.
“Paul Guerra could be the guy that seals the deal and gets Melbourne home at Caulfield.”
The highly regarded Guerra, who declined to comment when contacted by this masthead, has strong government and business contacts through his current role as Victorian Chamber of Commerce and Industry chief executive.
Paul Guerra is the new Melbourne Football Club CEO.Credit: Jason South
Heightened security expected to be associated with the Mount Scopus campus has all but ruled out a wedge of Crown land that the Demons originally earmarked to build their base.
The wedge would be “landlocked” between the school and the racetrack, making all-hours access all but impossible.
But the football club is in discussion to use a separate section of Crown land currently being leased by the MRC to store its grounds keeping equipment.
MRC chairman John Kanga was contacted for comment.
Melbourne Football Club would plan to use two ovals inside Caulfield Racecourse.Credit: Nine News
Mount Scopus College remains open to the prospect of becoming future neighbours with the Demons.
“Having just appointed the architect for the master planning and design phase, we would welcome any development that helps to create broader benefit for the local community, especially in terms of facilities,” Scopus Foundation president David Gold said.
“From our perspective, we hope to work with everyone there to achieve an outcome that is good for residents.”
The state government has indicated its involvement will be dependent on the business model, being driven by interim Demons CEO David Chippindall and the Melbourne board.
Melbourne’s former CEO Gary Pert remains a consultant on the Caulfield project.
Guerra’s other challenge is to navigate a potential conflict of interest, due to his seat on the Racing Victoria board – a body that provides prizemoney and allocates race dates to the MRC.
RV chairman Tim Eddy said he was comfortable with the board’s conflict of interest policies and processes.
The board has already had several preliminary discussions with Guerra about how any potential, or perceived, conflicts would be managed.
Another site that had been raised as a potential home for Melbourne was the former Port Melbourne post office warehouse building, a site next door to Port Melbourne Football Club’s oval that was bought by Port Phillip Council in December 2023.
But Port Phillip Council Mayor Louise Crawford told this masthead that hosting an AFL club or an elite sporting club was not part of the council’s plans for the site.
“All buildings on the Australia Post site will be demolished to support its intended use as public space,” Crawford said.
“Council used significant funds to acquire the site to support public space and community sport and recreation for our growing community.
“We plan to continue to support Port Melbourne Cricket Club and Port Melbourne Football Club who utilise North Port Oval next to the site.”
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