The GWS Giants and the ACT government are both unsure if the government will have to keep funding the football team should the Manuka Oval precinct redevelopment go ahead.
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The Giants have a 10-year deal with the government that expires in 2021 – they are paid $23 million to play four games a year in Canberra, including three premiership games.
A spokesman for Chief Minister Andrew Barr said part of the contract was that discussion relating to any new agreement had to start no less than 18 months from the end of the current term but there had been no talks around that yet.
GWS Giants chief operating officer Richard Griffiths could not say if the football team was to receive any kind of income stream should the Manuka proposal go ahead and therefore not rely on government funding.
"We have a 10-year agreement with the government, we're half-way through. We've put a concept to upgrade and develop Manuka Oval. Anything in terms of the 10-year agreement, we haven't brokered that or had that discussion with government at this point in time," he said.
The $800 million so-called Manuka Green proposal would see land around Manuka Oval developed for commercial and residential use by the developer Grocon, generating $80 million to $100 million to be used to bankroll the upgrade of Manuka Oval.
The proposal says no funding from the government will be required.
The spokesman for Mr Barr said it was premature to speculate whether any redevelopment would result in a reduction in payments to the Giants "as the government has not made a decision on future upgrades to the venue, whether through the Manuka Green proposal or otherwise".
"The Giants have made it clear that they wish to have a more significant and permanent presence in Canberra, and are willing to look at ways they can continue and enhance their relationship in Canberra without relying on government funding," the spokesman said.
Mr Griffiths said it was too early to say if the Giants would get a financial benefit from the redevelopment that could support it in perpetuity.
"Our concept to the government at this point in time, through our development partner Grocon, is to fund an appropriate upgrade of Manuka Oval through the development of a mixed-use precinct where the yield from that will be able to fund the upgrade in the vicinity of up to $100 million," he said.
"We haven't really delved too much into that body of work [in terms of other financial benefits]. I guess it all depends on the outcomes of government giving us the go ahead or not and determining all the costs associated with the mixed-use precinct. What's the demand? What's the supply? I guess there's a lot of variables that we haven't been able to determine at this point in time because all we've presented is a concept."
Mr Griffiths said it was also too early to say if the Giants would become a financial partner with Grocon in terms of receiving some of the profits from any mixed-use development.
"All we've got is a heads of agreement with Grocon through to the end of the process, through to when the government makes a decision one way or another. So, again, that body of work hasn't been explored," he said.
"We don't know what the supply and demand is going to be. We don't know how many units there's going to be. All we've presented is a concept so until the concept gets a decision from government, then we would be in a position to do some rigorous modelling."
