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The Bidding Process for the 2018 Ryder Cup Aims

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The Bidding Process for The 2018 Ryder Cup Aims • Why we did it • How we did it • When we did it • What we asked for • Who won and why • The Ryder Cup Legacy European Tour Board of Directors 12 Elected Tournament Committee PROMOTERS Tour Members (15 players) OF ET EVENTS SEASON & TOURNAMENTS THE PRODUCT PROPERTIES CONTENT & DESTINATIONS, COURSES TV PRODUCTIONS & HOSTS THE EUROPEAN TOUR Celebrating Golf. Worldwide. The Game’s Global Tour Since its inception in 1971, The European Tour has expanded to become widely recognized as the game’s Global Tour. This is evident by the countries visited on our schedule, the rich diversity of our Members and the global reach of our broadcast partners. Lee Westwood (Eng) : European Tour Member 2009 Race to Dubai Champion World No. 3 A Global Footprint 50 events per year… …Across 30 countries. More than any other Professional Tour Global Reach Europe: 71,972,000 North America: Asia & Oceania: 69,500,000 293,541,000 Africa & Middle East: 5,800,000 Cumulative Global Household Reach now exceeds 440 million Source: Extrapolated from 2011 Repucom International European Tour Event Evaluation Reports A Unique Set of Assets in our Control A unique opportunity With the assets we have available, we can develop individual solutions to any stakeholder objective. 3 Tours We can deliver global solutions or local ones, and anywhere in between. Our own TV Production World Class Venue Network Golf Course Design Tour Events & Graeme McDowell (N. Ire) : The Ryder Cup European Tour Member 2010 US Open Champion World No. 14 A Unique Set of Assets in our Control Encompassing The Race to Dubai with 50 events across 29 Destinations The Senior Tour: +50 Age Group 20 events per year across 15 countries with unique access to the true Legends of the game The Challenge Tour 25 events per year across 18 countries with unique access to the European Tour A Unique Set of Assets in our Control European Tour Productions Largest producer of golf programming in the world Unique control over programme content A Network of World Class golf venues Located in key strategic golf markets Providing access to businesses and golf consumers in market A Joint Venture Company with IMG Delivering world class golf courses around the world With unique access to European Tour “signature” designers A Unique Set of Assets in our Control European Tour Productions Largest producer of golf programming in the world Unique control over programme content A Network of World Class golf venues Located in key strategic golf markets Providing access to businesses and golf consumers in market A Joint Venture Company with IMG Delivering world class golf courses around the world With unique access to European Tour “signature” designers A Unique Set of Assets in our Control European Tour Productions Largest producer of golf programming in the world Unique control over programme content A Network of World Class golf venues Located in key strategic golf markets Providing access to businesses and golf consumers in market A Joint Venture Company with IMG Delivering world class golf courses around the world With unique access to European Tour “signature” designers A Unique Set of Assets in our Control European Tour Productions Largest producer of golf programming in the world Unique control over programme content A Network of World Class golf venues Located in key strategic golf markets Providing access to businesses and golf consumers in market A Joint Venture Company with IMG Delivering world class golf courses around the world With unique access to European Tour “signature” designers EUROPEAN TOUR WEBSITE – One of the World’s Most Visited Golf Websites Visited by an average close to 1 Million unique users each month in 2010, europeantour.com is the most trafficked golf website in Europe and it continues to increase its traffic numbers as illustrated on the graph. More info: • Only source of Live Scoring data for all European Tour events • Can reach up to 1.7 million unique users in a month • Up to 30 million page views per month A Foundation for Success World No 1 World No 2 World No 3 World No 4 Luke Donald Rory McIlroy Lee Westwood Martin Kaymer The Top 4 in the Official World Rankings are European Tour Members As are 20 of the Top 50… Spanning 8 nationalities Official World Golf Ranking – as of 1st March 2012 Powerful Title Sponsors CURRENT PORTFOLIO – MARCH 2012: . European Tour Destinations: London Golf Club Belek Golf Club Le Golf National Terre Blanche The Dutch . European Tour Courses: Quinta do Lago PGA Golf de Catalunya Kungsangen Fleesensee Estonian G&CC Linna Golf Estonian Golf and Country Club Terre Blanche PGA Catalunya Resort THE RYDER CUP TODAY • The Ryder Cup is one of the top ten sporting events in the world, matching soccer’s World Cup, American Football’s Super Bowl, Wimbledon tennis and the Ashes Tests in cricket • Attendance - 300,000 spectators and guests. • Media Coverage – 2,000 journalists, photographers • Television Coverage – Coverage available to 495 million homes across 180 countries, through 44 broadcasters. • Internet - 2 million people logged onto the official Ryder Cup website - www.rydercup.com – during the week of the 2006 Event. • Economic Impact - €240 million of impact on the Irish Economy (2006 Ryder Cup - source: Deloitte). Shareholder Roles • PGA European Tour – Managing Partner – 60% • PGA of GB & I – Founding Partner – 20% • PGAs of Europe – Manager of Ryder Cup Development Trust – 20% SELECTION OF VENUE ‘The parties agree that the venue for the Ryder Cup Matches played in Europe shall be proposed by the Managing Partner (European Tour) in consultation with the other Members. The Managing Partner agrees to act in good faith and in the interests of the LLP when determining each venue for the Ryder Cup Matches’ Source: Members Agreement 2004 SIX CANDIATES PROJECT ‘LEVEL PLAYING FIELD’ H O S T C A N D I D A T E S Step One – The Bid Briefing Document – November 2008 The Launch: Step Two - The London Symposium – January 2010 • All six Bidding Nations in a single room…. • Key ET Executives: Sales and Marketing, Media, Operations etc • Partner representatives: PGA, PGAEs etc • Three external Advisors: – Michael Payne - International Olympic Committee – Jaime Byrom – FIFA – Nick Bitel – London Marathon THE FIVE KEY BID CRITERIA The Balanced Scorecard 1. Commitment to the development of a world-class golf facility (new or existing) to host The 2018 Ryder Cup 2. Provision of ancillary facilities, suitable access and infrastructure commensurate with the staging of an international sporting event 3. Demonstrable Government, Golfing Community and Private Sector support 4. Commercial opportunities available to The Ryder Cup 5. Contribution of the Bid Country to the development of golf Step Three - The Rules of Engagement Documents – March 2010 • Bid Format Requirements – 400 detailed questions to be answered – Building on original five Criteria – To enable Bids to be evaluated fairly • Bidding Rules – Probity – Ethics – Gifts – Hospitality – Dos and Donts Step Four – Submission of the Bids – 30 April 2010 Step Five – Presentation of the Bids - June 2010 Step Six – Bid Evaluation and Bid Review – August 2010 • Bids reviewed against detailed Bid Format Requirement questions: – Golf course – Infrastructure – Commercial – Government and private sector support – Legacy • Meeting with Bidding Nations to feedback on Bid and identify areas to re-assess: – Bids can’t be altered other than in respects identified by RCE 2018 Ryder Cup Bid process • Step Seven: February 2011: EACH Bidding nation signs a conditional RC 2018 Contract: – Crucial! – Based on the Atlanta Olympics 1984 example – Incur legal costs now rather than post announcement – All five countries remain in the process – Ultimate decision based on Contracts, incorporating original Bids – Contract of successful Bidder is activated in May 2011 2018 Ryder Cup Bid process • Step Eight: Recommendation to key stakeholders: March 2011 – European Tour Board – Players’ Committee – Partners: PGA, PGAE – Ryder Cup Board • Step Nine: Announcement of 2018 Ryder Cup Host Nation: April 2011 – Wentworth – World-Cup/Olympics style announcement Bidding Nations - France • Existing Venue – Golf National • Close to Versailles and Paris • All French golfers to pay a Ryder Cup levy over 13 years Bidding Nations - Germany • Green-field Site • Neuburg, close to Munich • Bid President Bernhard Langer Bidding Nations - Holland • Venue under construction, close to Rotterdam • Course designed by Colin Montgomerie • Bid co-ordinated on behalf of Federation by Made in Scotland The Bidders - Holland Bidding Nations - Portugal • Green-field site, between Lisbon and Algarve • Course to be designed by Tom Fazio and EGD • Extensive real-estate development Bidding Nations - Spain • Green-field site, close to Madrid • A city-sponsored Bid • Involvement of Seve and other Spanish Players The Keys • A Level Playing Field • Support from external Experts • Each Country to benefit from being a Bidder • We need to ensure good relationships with all Five Bidders beyond the process THE GOAL To make the correct Sporting and Commercial decision THE FIVE KEY BID CRITERIA The Balanced Scorecard 1. Commitment to the development of a world-class golf facility (new or existing) to host The 2018 Ryder Cup 2. Provision of ancillary facilities, suitable access and infrastructure commensurate with the staging of an international sporting event 3. Demonstrable Government, Golfing Community and Private Sector support 4. Commercial
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