Invercargill councillors have moved to support the future of Teretonga Park after the circuit’s governing club revealed ongoing financial pressure and declining reserves.
The Southland Sports Car Club, which has operated at the historic venue for decades, approached Invercargill City Council seeking relief from rising lease costs as it works to secure a more sustainable future for the circuit.
At a council committee meeting this week, councillors agreed to waive the club’s rent until 2031, although the decision still requires final approval from the full council.
Teretonga Park — widely recognised as New Zealand’s oldest permanent motor racing circuit — hosts a range of events each year and attracts competitors from across the country and overseas. However, the club behind the venue has been struggling to balance the books in recent years.
Financial information presented to councillors showed the organisation has recorded losses in most years since 2016. During that period, its cash reserves have dropped significantly, sitting at about $360,988.
Club representative Boyd Wilson told councillors the current model was no longer sustainable, with the organisation losing roughly $60,000 annually.
“It’s not dire by any means, but it’s time to recognise that change needs to happen,” Wilson said while addressing the committee.
The club had initially requested that the council reduce or temporarily suspend its lease payments while both parties worked toward a longer-term solution. A recent rent review proposed increasing the annual lease from $17,825 to $21,250 plus GST, following an independent valuation.
Wilson explained that such costs were difficult for a volunteer-driven organisation that also carries responsibility for maintaining the facility.
Despite the Southland Sports Car Club using the circuit for only around 20 per cent of the time, it employs two full-time staff to manage and maintain the grounds. The venue is frequently hired by other organisations for activities such as motorcycle racing, driver training, triathlons, and events linked to the Burt Munro Festival.
Maintaining the ageing circuit also requires significant investment. Wilson said the club recently spent about $90,000 on track improvements, while further rehabilitation work, estimated at roughly $3 million, would eventually be required.
He also noted that sponsorship opportunities in motorsport had declined compared with previous decades, adding further financial pressure.
Council staff acknowledged the challenges facing the club and highlighted the wider value Teretonga brings to the region.
Group manager for community spaces and places, Rex Capil, told councillors the relationship between the council and the club would be critical to ensuring the venue remained viable.
He said future discussions would also explore ways to increase revenue from the many groups that use the circuit.
Mayor Tom Campbell supported providing relief for the club, noting that other major sports facilities in the city receive significant financial backing from community funding.
“Teretonga, we actually take money from them,” Campbell said, contrasting the circuit with venues such as ILT Stadium, Splash Palace, Surrey Park and Rugby Park.
Several councillors also emphasised the broader economic impact of motorsport events hosted at the track, which attract visitors and competitors to the region.
Ultimately, the committee supported pausing the club’s rent payments for the coming years, acknowledging that the roughly $21,000 annual revenue loss was small compared with the potential regional benefits.
Councillors also backed the concept of developing a partnership proposal between the council, the Southland Sports Car Club and other stakeholders to map out a long-term development plan for Teretonga Park.
The club has been associated with the reserve for around 70 years and has funded many improvements and infrastructure upgrades during that time.
Header Image: Dave Louden
