Member Update: WA Basketball Centre – Cost of Court Hire
This update is provided to our Basketball Community on the cost imposed on us by the Government to remain at the WA Basketball Centre. When we moved from Perry Lakes it was on the understanding that we were relinquishing our home to the Government and there would be No Disadvantage in doing so. We fully expected to pay more for a World class facility, but the time is rapidly approaching when the sheer cost and loss of revenue will mean that the future viability of our sport is being placed in jeopardy.
Basketball WA now has to pay a fee to hire the courts from Venues West. Courts are then ‘on sold’ to basketball users. The net revenue is applied toward growth and development programs throughout the State, as we did before moving. Income has reduced dramatically from when BWA operated the Perry Lakes Stadium as a result of having to pay for court hire, and administration offices. In addition we lost all the revenue from the canteen, bar, function hire, venue sponsorship and use of the centre for anything other than basketball. All of that income now goes directly to Venues West, our landlord. No Disadvantage?
We always expected some reasonable increases and we have been paying over $ 180,000 annually since moving into the Centre. However, as of 1 July 2012, the Minister for Sport and Recreation has determined that an increase of approximately $100,000per annum would be paid by BWA for court hire. We reluctantly accepted this huge impost but by necessity, BWA has been forced to pass it on to you the basketball community. In addition, courts used for BWA camps, clinics, development programmes and the like have become more expensive. This has resulted in less money available for investing in growth and development programmes that secure the future of our sport, a pathway for our youth and build social capital.
Basketball WA is negotiating to have the current court hire rate indexed to CPI for a 5 year period to limit potential increases to all basketball users.
Neither the Minister nor Venues West will agree to this. Venues West’s position is that a further increase of approximately $100,000 should be levied on 1 July 2013.And thereafter rates will be set annually based on their calculation of a “Commercial Rate”. No business in Western Australia would agree to enter into such an open ended lease that could potentially bankrupt them.
Basketball WA and basketball users simply cannot afford yet another $100,000 increase next year and potentially every year after that if we were to agree to this formula. Furthermore it would mean that our Metropolitan and Country development programmes will be decimated. It will mean having to:
- cut our growth and development programmes, particularly those in country areas that have ever increasing travel requirements,
- cut virtually all junior development programs and
- pass on the full amount of the increase to all basketball users.
Your Board has written to the Minister asking that he intervene.We are awaiting the Ministers response.