City Council

Development, Environment and Leisure

Report to the Culture, Economy & Sustainability Scrutiny Board DATE: 30/09/08 ITEM Report of the Director of Culture

Subject: SHEFFIELD INTERNATIONAL VENUES SUMMARY

To report on the activities and performance of Sheffield International Venues for the period 1 April 2007 to 31 March 2008.

RECOMMENDATIONS: The Board is recommended to note the report and agree to a further report on SCT/SIV performance in twelve months time.

FINANCIAL IMPLICATIONS NO PARAGRAPHS CLEARED BY EQUALITY IMPACT ASSESSMENT CARRIED OUT? PARAGRAPHS YES/NO CLEARED BY BACKGROUND PAPERS

CONTACT POINT FOR ACCESS David Macpherson TEL NO. 2053149 AREA(S) AFFECTED

CATEGORY OF REPORT

OPEN

CLOSED Paragraph (s) REPORT TO CULTURE, ECONOMY & SUSTAINABILITY SCRUTINY AND POLICY DEVELOPMENT BOARD

30th September 2008

SHEFFIELD CITY TRUST AND SHEFFIELD INTERNATIONAL VENUES (SCT, SIV)

1. PURPOSE OF THE REPORT

1.1 To review the recent past performance of and Sheffield International Venues and to outline the challenges faced in the near future.

1.2 This report does not cover the performance of which is considered in another report to be presented at the meeting..

2. BACKGROUND

2.1 Sheffield City Trust is a charitable company which operates the following venues via its trading arm Sheffield International Venues:-

International Sports Centre  and Woodbourn Athletics Centre  Hillsborough Leisure Centre  Concord Sports Centre  Beauchief Golf Course  Golf Course  Tinsley Park Golf Course  IceSheffield  Sheffield City Hall  The English Institute of Sport – under contract with and funded by Sport

In addition, SIV sub-contracts the management of the to a company called Live Nation.

SCT also has a grant giving role in support of community sports and arts projects in the city.

2.2 Sheffield City Trust is governed by a Board of twelve non-executive trustees, six of whom are nominated by Members of Parliament representing constituencies situated within or partly within the boundaries of the City of Sheffield, and six of whom are nominated by the Sheffield Chamber of Commerce and Industry.

2.3 The City Council has long-term funding and management agreements with SCT and SIV. As a result, an officer of the City Council is invited to attend as an observer at both the SCT and SIV Boards. In addition, the City Council has a nominee director on both the SCT and SIV Boards.

2.4 It is important to note that SCT/SIV play a major part in both the city’s physical activity strategy – aiming to get more people, more active – as well as the city’s sporting agenda in terms of sporting excellence, events and income generation. Sports facilities – particularly swimming pools – are key settings whereby the city is striving to increase activity levels. They rank alongside parks, schools and foot/cycle ways in their importance.

3. FINANCIAL OVERVIEW

3.1 SCT/SIV has three main income sources – customer income (mainly driven by the Fitness Unlimited membership scheme); profit share from the Sheffield Arena and annual grant support from the City Council.

3.2 The level of grant support from the City Council in 2008/9 is in the order of £5.022m – including support for Sheffield City Hall. Following the recent review of funding that arrived at this figure, the City Council gave SCT/SIV permission to set up SIV Enterprises Limited (SEL), with the remit to obtain contracts elsewhere in Britain and covenanting the profits from these contracts back to support the facilities and operations in Sheffield.

4. VISIT NUMBERS

4.1 The table below summarises the total visit numbers to SIV facilities in recent years, including the target set for visit levels in 2008/09. The figures include all types of visitor from sports participation, events and commercial usage such as seminars and functions.

4.2 The key points to note within the figures are as follows:- a) The dip in expected visits to Concord is a direct result of a planned closure to refurbish the swimming pool in 2008/09. b) The high point for Don Valley in 2006/07 was created by hosting two large pop concerts, the target for 2008/09 does not include any such concerts but reflects the use of the stadium by United. c) The last report to Scrutiny indicated that the reduction in numbers at Ponds Forge was a result of the need to improve the fitness facilities to compete with other providers. This project has now been completed, opening on the 7th June and the target begins to reflect the improvement. Early results from the new gym are promising, however the market remains very competitive and with the credit crunch beginning to bite the target has been set conservatively. d) Hillsborough LC continues to perform well and indeed was awarded the FLAME award again this year for the third time, a reflection of the service that it provides. e) EISS continues to show significant increases from both elite sport and community clubs. f) Ice Sheffield appears to have reached a plateau at present at around the 380k visits per year. However, the trend figures show a dramatic increase in visit levels since the venue opened. g) There has been an overall growth in rounds played on the three golf courses of 6.6% since 2002/03 and early indications to the end of July this year are indicating that the targets set will be exceeded at all three courses again. A significant factor in driving up visit levels has been the investment in the courses by SIV since they took over management from the City Council. h) Sheffield Arena – 2007/08 saw a very good year in terms of attendances for the Arena, almost matching its best year of 2003/04. The target for the current year however reflects the product (tours, shows, events) available to bring to Sheffield and the expectations are not as high.

4.3 Overall the combined target visit levels to the venues in 08/09 is expected to be around 1% lower than the levels achieved in 07/08 (3.5010m as opposed to 3.543m) however early indications would suggest that performance might exceed target. A great deal will depend on the timing of any closure at Concord, the performance of the new gym at Ponds Forge and the overall performance of the Arena.

VENUE YEAR TOTAL VISITS Concord SC 08/09 Target 426,332 07/08 490,326 06/07 441,423 05/06 442,253 04/05 298,782 03/04 312,433 02/03 317,526

Don Valley/Woodbourn Stadiums 08/09 Target 195,780 07/08 181,745 06/07 256,945 05/06 209,327 04/05 125,612 03/04 214,702 02/03 228,708

Ponds Forge ISC 08/09 Target 781,931 07/08 758,551 06/07 896,518 05/06 970,940 04/05 942,754 03/04 1,031,241 02/03 1,101,373

Hillsborough LC 08/09 Target 723,230 07/08 705,624 06/07 647,737 05/06 679,597 04/05 585,449 03/04 656,591 02/03 505,569

EISS 08/09 Target 217,355 07/08 215,472 06/07 196,034 05/06 179,682

Ice Sheffield 08/09 Target 379,699 07/08 382,262 06/07 381,899 05/06 336,333 04/5 275,744

Beauchief Golf Course 08/09 Target 35,476 07/08 38,738 06/07 31,787 05/6 35528 04/5 35615 03/4 39736 02/3 35878

Birley Golf Course 08/09 Target 37,811 07/08 36,699 06/07 34,765 05/6 35409 04/5 35921 03/4 38903 02/3 34592

Tinsley Golf Course 08/09 Target 42,027 07/08 40,092 06/07 38,146 05/6 40357 04/5 40064 03/4 43377 02/3 37668

Sheffield Arena 08/09 Target 670,000 07/08 693,966 06/07 642,569 05/06 548,775 04/05 596,473 03/04 711,817

5. OTHER PERFORMANCE MEASURES

5.1 The City Council benchmarks the performance of SIV venues against similar venues across the country, the 07/08 results are due out in November 08. The comments below are based on the 06/07 results. SIV performance is assessed against a wide range of indicators, however, there are three key indicators which give a representative measure of wider performance:- a) operational recovery – this measures the percentage contribution of income to total expenditure (excluding debt charges). In the case of SIV, its facilities are above average with a number in the top 25% when compared with other facilities b) customer spend per head – this measures the level of spend by customers. SIV facilities are above average on this indicator with a number in the top 25% when compared with other facilities. This reflects a combination of prices which are relatively high compared to some local authorities (though less expensive than commercial providers); the importance of ‘high spend’ commercial activities such as corporate functions and the company’s success in generating secondary spend from customers on catering etc c) usage per opening hour – this measures occupancy levels. Again SIV scores well, with Ponds Forge in particular scoring amongst the highest against other similar facilities

5.2 The performance of SIV in terms of its ability to attract low income and socially disadvantaged groups is also measured and compared with other facilities. The general picture shows the venues are relatively successful in attracting female users, older people, black and ethnic minorities and people with disabilities. The main focus of activity around the low income groups is from Concord Sports Centre where Slice Card is promoted and there are additional discounted sessions and a strong link with the health agenda through the GP referral process. 5.3 The city also has a measure of overall resident satisfaction with sports facilities – of which SIV venues are a major part. The latest satisfaction score is almost 73%, which is higher than the national and regional average.

6. RECENT SUCCESSES

6.1 Over the previous year, SCT/SIV has enjoyed a number of notable successes including:- a) The strong performance of the Arena with several head line artists appearing in 07/08 and the very successful Strictly Come Dancing and Disney on Ice shows. b) The completion and opening of the new £3m Fitness gym at Ponds Forge which brings the city centre location back into the forefront of fitness provision in the city with 130 stations, air conditioning and high specification equipment. c) Three SIV managed facilities were awarded “Highly Commended” scores under Quest with Ponds Forge, EISS and Hillsborough LC being awarded the “Excellent” score, only 5 facilities in total across the country have been awarded this score. Hillsborough has also been awarded the Fitness industries “Flame” award for the third time. d) As a company the income target set for 07/08 was exceeded and the overall income rose to a record high of £21.5m with attendance across the group exceeding 4million visits. e) The hosting of major events, in partnership with the City Council’s Major Sports Events Team, raises the profile of the city and the company including Olympic swimming trials, multi-nations boxing competitions, British University National Finals and indoor athletics; in total over 200 events. f) The launch of the Athletics Academy at Don Valley and EISS. g) The establishment of SIV Enterprise Limited (SEL) and the gaining of its first two contracts at Tapton Golf Course and Stavely Healthy Living centre, combined with early successes in securing consultancy contracts.

7. CHALLENGES AHEAD

7.1 SCT/SIV faces the same challenges as many other public sector or publicly funded sports and leisure operators. These include:- a) increasing costs – many of which are difficult to control such as energy and insurance b) a growing need for reinvestment in the facility stock c) ever-rising expectations of customers for quality and value for money d) expanding competition from other swim and fitness providers in the city e) the need to generate greater business at off-peak times such as Monday-Friday day time and weekend afternoons f) seek greater usage from those groups which are currently the least active in sport and physical activity. For example, people from low income families g) continue to balance the competing programming needs of events with regular community activity programmes; this is particularly the case at Ponds Forge h) To obtain and operate profitably additional contracts through SEL

7.2 In response to these challenges, the company and the City Council are working together to identify options for both greater efficiency and business growth. The most prominent of which are:- a) analysis of complementary business development at Don Valley Stadium b) an on-going review of all operating and staffing efficiencies c) working with the City Council to exploit business opportunities arising out of the 2012 Games in terms of new events, training/holding games and relocation of sports governing bodies d) the maximisation of profit from SEL from contracts elsewhere in the UK.

8. FINANCIAL IMPLICATIONS

8.1 There are no direct financial implications arising from this report.

9. EQUAL OPPORTUNITIES IMPLICATIONS

9.1 The City Council works closely with SCT/SIV to ensure that access and take up is maximised by traditionally low participation groups. The core purpose of SCT is provide healthy recreational and sporting activity to a wide cross-section of the population. This is reflected in the company’s core mission ‘excellence for all’ and in the ‘budget’ level membership scheme, together with the operation of the city’s Slice Card discount scheme.

10. HUMAN RIGHTS IMPLICATIONS

10.1 There are no Human Rights implications arising from this report.

11. ENVIRONMENTAL SUSTAINABILITY

11.1 SIV takes the environmental effect of its activities very seriously and has reduced energy consumption levels at all venues with a series of energy action plans. Actions in the plans range from simple staff awareness campaigns to significant investment in plant to increase efficiency. Examples of this include £11k at Ponds Forge to introduce sub-metering, commissioning a report from Ove Arup to look at the feasibility of installing a combined heat and power plant at Ponds Forge and the introduction of heat exchangers which will significantly reduce energy consumption at IceSheffield. SIV has also started the process of qualifying for ISO 14001 by introducing new waste management procedures. 12. COMMUNITY SAFETY IMPLICATIONS

12.1 There are no Community Safety implications from this report.

13. AREA PANEL IMPLICATIONS

13.1 There are no Area Panel implications from this report.

14. CONCLUSIONS

14.1 The City Trust and SIV continue to perform well in an increasingly competitive and challenging environment. Whilst the financial performance of the company is paramount, it is also important to recognise the major contribution the facilities play in increasing levels of physical activity, supporting the development of sporting excellence, hosting major events and improving the city’s overall image and economic performance.

There are, however, significant financial and market challenges ahead. The City Council will continue to work closely with SCT/SIV in preparing for these and in ensuring that in the run up to the 2012 Olympics the opportunities to capitalise on training camps and on the higher profile that sport will have, is grasped.

15. RECOMMENDATION

15.1 The Board is recommended to note the report and agree to a further report on SCT/SIV performance in twelve months time.

Paul Billington Director of Culture Development, Environment & Leisure September 2008