A $70 million funding gap threatens to delay Melbourne’s ambitious plan for a new home at Caulfield racecourse.
The Demons’ proposed development will cost $100 million and while the club announced a “successful” feasibility study about their plans in September, the funding model is unclear.
An artist’s impression of the proposed Melbourne training and administration facility at Caulfield Racecourse.
The new training and administration centre is being championed by Melbourne chief executive Gary Pert, who has driven the quest to build a centrally located base since taking on the job in 2018.
The Demons were one of the few Victorian clubs that did not receive significant state funding during the stadium boom over the past decade.
But the bid to raise $70 million for Caulfield comes as state and federal governments rein in spending, and as the Allan government in Victoria faces a debt crisis that has stalled some infrastructure projects.
Two industry sources with knowledge of the project’s scope, who wanted to remain anonymous because it was still in the planning phase, put the cost at $100 million.
The Demons have close to $8 million in cash reserves which they expect to increase via operational profits to $15 million in coming years. They will also launch a fundraising campaign with supporters, which they hope will raise close to a further $15 million.
The club will need a further $70 million from sources that could include governments, the AFL, the MCC and private investors or benefactors.
The Demons are in a good financial position but have quarantined a future fund set up from proceeds from the sale of the Bentleigh Club when the club moved out of gaming. That money can’t be invested in facilities.
Two club sources expressed optimism that the project would attract the required funding, and the AFL is cautiously supportive. However, it’s expected to be at least another six months before a business case can be considered by government.
The Demons split their training between Casey Fields in the south-eastern suburbs, where the AFLW team trains and plays, and Gosch’s Paddock in the Olympic Park precinct. But they believe a centrally located training and administration base, within striking distance of the MCG where the men’s team plays home games, would make them a more attractive destination for players.
The Caulfield proposal includes two football ovals, two rectangular ovals and walking tracks.
The Demons have told stakeholders they would require access to the ovals for 17 hours per week during the football season, with the administration centre to be located outside the track.
The Caulfield Racecourse Reserve Trust were satisfied the development would be a genuine community asset with trust chairman Sam Almaliki said telling this masthead the Demons had: “a clear vision for the reserve as a place for everyone.
“We will continue to work with all stakeholders including the MFC to ensure any future development delivers great community outcomes,” Almaliki said.
Melbourne Racing Club’s new chair John Kanga has also expressed cautious support for the project. The racing club is the key tenant, although it has no decision-making authority on Melbourne’s project.
Melbourne’s search for a central, purpose-built home base dates back 20 years. Two sources said the club’s inability to settle on a site until the Caulfield proposal had impacted their capacity to attract government funds.
The Demons did receive $7.5 million from governments to develop the Thurin High Performance Centre at Casey.
Clayton Oliver in action at Casey Fields last February.Credit: Getty Images
The Demons broke their premiership drought in the men’s competition in 2021 but have been embroiled in off-field controversy for much of the past 18 months.
The club is in the midst of two reviews with external governance expert Megan Dwyer conducting a board review while Pert nears the completion of the football department review with new president Brad Green and leadership consultant Darren Shand.
The club expects to share key findings of the review in early November.
Melbourne were contacted for comment.
Melbourne’s AFLW team at Casey Fields.Credit: AFL Photos
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