PERTH Glory chairman Nick Tana has agreed to personally guarantee a multi-million dollar loan by the Town of Vincent as a bargaining chip in negotiations over the $11.5 million redevelopment of Perth Oval.
PERTH Glory chairman Nick Tana has agreed to personally guarantee a multi-million dollar loan by the Town of Vincent as a bargaining chip in negotiations over the $11.5 million redevelopment of Perth Oval.
“The guarantee is on the basis that we will be there for a certain number of years,” Mr Tana said.
“We need to finalise the commercial terms of occupancy. We have got to be satisfied in what we pay.”
Mr Tana’s comments add a new dimension to the simmering controversy over the proposed $4.5 million loan guarantee, that will be provided by Mr Tana and his business partner David Rodwell.
The Town of Vincent will be negotiating Perth Glory’s anchor tenancy at the oval, while at the same time seeking a personal guarantee from the owners of the soccer club.
Town of Vincent Mayor Nick Catania said he did not see any conflict in this position.
“Our processes will be open and transparent,” he said.
Mr Catania said the council’s borrowings were not dependent on the proposed guarantee, which provided added assurance.
“At the end of the day when we sell our concessions, we will have our loan guaranteed,” he said.
The concessions include naming rights, catering rights, venue management rights and sponsorship rights.
The terms of Perth Glory’s tenancy could affect the amount of money the council raises from the sale of these concessions. Public tenders are due to be called next month.
The Perth Glory tenancy may also affect the level of access that other sports have to the venue.
Mr Tana said key aspects of the tenancy would include rental levels, access arrangements – including after hours, access – and the process for hosting special games.
The $10.5 million redevelopment will create a multi-purpose stadium with seating for 9,000 people.
The funding will be shared between the Western Australian Government ($6 million) and the Town of Vincent ($4.5 million).
The State soccer league and other sports such as lacrosse, rugby union and rugby league are also interested in using the venue.
The proposed personal guarantee of the council’s borrowings arose from a request by the Town of Vincent.
Mr Tana has verbally advised the Town of Vincent that he and Mr Rodwell were prepared to offer the personal guarantee.
“It is available if that is what’s needed,” he said.
Mr Tana, who chairs Australia Fast Foods, the owner of Chicken Treat and Red Rooster, played down the prospect of bidding for the catering rights.
“It is not our core business and we have never been involved in it. As chairman I would have to advise against it.”
He said he was interested in looking at the management rights, however, this would depend on the restrictions that were applied.
