AFL reveals in-principle agreement for Tasmania expansion team

The AFL is reported to have reached an in-principle agreement with the Tasmanian Government on the commercial terms covering the state’s bid for an expansion team.

The agreement sees the Tasmanian Government committing to paying a $12 million per annum licence fee to the AFL over 12 years, as well as spending $60 million on a high-performance and administration facility in Hobart.

However, the agreement doesn't address the AFL's expectation for a new stadium, with the Tasmanian Government to now make a case to the Federal Government to try secure $250 million in funding towards its planned new venue – set to cost a minimum of $750 million – with the balance expected to come from the AFL and private equity.

To offset costs, the Tasmanian Government claims that a new Hobart Stadium would deliver 950 full-time equivalent jobs and $85 million a year into the local economy while also suggesting that the presence of both an AFL and AFLW team would then add an extra $120 million per year into the local economy.

Australian Prime Minister Anthony Albanese has indicated he is willing to consider the proposal once a business case is submitted, although the Federal Government is placing a higher priority on venue infrastructure for the 2032 Brisbane Olympics.

Despite the Tasmanian Government’s aims, the stadium plans have not received complete support in the state, with the Labor opposition against any building of a new venue.

Speaking after the agreement was struck, AFL Chief Executive Gillon McLachlan (pictured) emphasised that an expansion team licence would be dependent on the stadium, noting “we need a stadium. The biggest sport in the country and one of the biggest sports in the world needs a stadium.”

The current 18 clubs will hold a final vote once Tasmania has finalised its case for a licence, with the support of at least 12 clubs needed for their pitch to succeed.

The Tasmanian Government recently provided financial details of its proposal to clubs and McLachlan said discussions have been “productive”.

One club president told Tamanian newspaper The Mercury that all presidents were supportive of the bid, assuming the new stadium gets built, and are “satisfied” that Tasmania can secure the funding required.

The unnamed executive said he does not believe “anyone would be against having a new stadium for a new team”.

Meanwhile, Hawthorn have agreed a new one-year deal to continue playing home games in Tasmania. They will host four regular season matches there next season, having done so regularly since 2001.