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Planning for a Sustainable Future

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Planning for a Sustainable Future SPORT ADVISORY SERVICES Planning for a Sustainable Future The legacy of sporting venues following major events kpmg.com Cover photo: Péter Szalmás Planning for a Sustainable Future 3 Contents 1. Introduction ...................................................................................................................................... 6 2. Appraising recent events ...................................................................................................................8 3. The growing importance of legacy for the International Olympic Committee ���������������������������������11 4. Formulating the most appropriate venue legacy plan – factors and challenges at play ..................12 5. Creative solutions at London 2012 .................................................................................................16 6. The International Swimming Federation (FINA) is taking the initiative �������������������������������������������� 17 7. The case for temporary venues – technical and financial considerations ....................................... 18 8. Emerging themes and conclusion ...................................................................................................22 © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 4 Planning for a Sustainable Future Dear Reader, When properly planned and executed, a major sporting event provides a host country or city with the opportunity to promote themselves on a global stage, enhance their economic profile and transform their urban and sporting infrastructure. It is undeniable that the complexities surrounding the hosting of a sport event have increased exponentially in recent years. The sheer volume and needs of the athletes, the demands of the media, the expectations of the spectators, and the technical guidelines and criteria set out by the international federations, governing bodies and rights holders have all contributed to placing a greater burden on the host, be that an individual city or country. Andrea Sartori Global Head of Sport The increased size and scale of sporting events has also inevitably had a direct E: [email protected] effect on the amount of preparation and the monetary investment required in order to stage an event that meets the requirements of all the parties involved. With the level of investment that is needed to stage major sports events, questions regarding the return on investment and the cost-benefit of hosting the event are increasing. Whilst the impact can be seen during the event, the actual length of the event is relatively small, with the focus quickly shifting to the long term return. All events will leave an impact on a host city or country, but all too often this has been negative with the event becoming a burden on the host due to a lack of foresight and planning. There is growing evidence that the learning points from previous major sporting events, both positive and negative, are being embraced by event bidders and organisers. To prove that hosting an event can have a positive lasting long-term net benefit, the term legacy is often used when James Stewart referring to the rationale for hosting a sports event. Chairman of Global Infrastructure E: [email protected] Legacy can take many forms and have numerous types of impact across many areas of society in a host city or country such as social, economic and cultural legacies. Whereas the topic of legacy is wide ranging and complex, the focus of this document is on the most tangible aspects of legacy – the long term impact that major events have on the venues used during the event. © 2015 KPMG2015 International© Cooperative (“KPMG International”), Swissentity.a Member the firmsKPMG of network independent of firms are affiliated with International.KPMG InternationalKPMG providesno client services. No member authority firm any has obligate to bind KPMGor International other memberany or firm vis-à-vis third parties, doesnor KPMG International such authority any have obligate to member any bind or firm. All rights reserved. Photo: Marcus Bredt Planning for a Sustainable Future Andrea Sartori and James Stewart sincerely, Yours competencies inthe sports industry, please contact us. If opinions and insights, based on their previous experience. thank all parties to would like We who contributed this document to providing by events. stakeholders all to inthe bidding, involved and hosting processes major of sports We legacy the venue into insight planning associated with major sporting events. Sports Advisory practice publishes thought this leadership which offer aims to After having studied recent sporting both successful events, and less KPMG’s so, long positive term impact hosting of amajor sporting event. thorough design and planning briefs, paramount is of importance the ensure to sporting based venues, on an understanding trends and market post of event private is limited. sector In such acontext, investment aclear legacy strategy for often This be justify. hard is to especially true when the possibility attracting of construction astadium, of arena, velodrome, aquatic or centre race track can and connectivity, bidding and for hosting amajor sporting requiring the event challenging scrutiny made the investments of In an era intense public by of bodies, when discussing the pros and cons hosting of major sporting events. without them, the legacy is one the from venues most of heavily debated topics Due their tangible to and the nature, fact that asports cannot place take event you hope would you economic like find to this discuss and document fiscal the findings environments, informative of this and Planning for a Sustainable Future Sustainable a for Planning study and that unprecedented or our better insights understand prove media valuable visibility our 5 © 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. 6 Planning for a Sustainable Future have International KPMG KPMG does 1. Introduction International. nor KPMG parties, with third 1.1 Placing legacy at the forefront of the sporting venue planning process affiliated vis-à-vis are firm Whilst the development of any sports Numerous parties are involved in the venue post-event, are crucial steps to firms venue – be that a football stadium, multi- development of a project as intricate understanding the long term economic member purpose arena or aquatic centre – is a as newly-built or reconstructed sustainability of a project. Quality other independent complex process, key project phases, sporting infrastructure. Due to the high work done in the preliminary stage of any or from initial vision to the grand opening complexity and the breadth of technical should maximise the chances of a network of the facility and subsequent operation, skills required, it is of paramount concept being successfully developed can be identified. Progressing from one importance to engage specialist and and transferred into the design, KPMG International phase to another may only be possible experienced personnel and consultants construction and operation phases. the of KPMG if previous phases have concluded during the various phases of a One interesting element that is firms bind with positive results, and commitment project. This will support the timely or unique to major event related sports on behalf of all stakeholders has been implementation of the process phases Member infrastructure is the timing aspect. obligate made to go forward. within budget and according to set to The start date for a major sports event entity. standards and project objectives. Depending on the complexity of the is fixed and usually non-negotiable. Swiss authority a reserved. project, its size, and the legal and In the context of the development This may impact on the speed at which any rights administrative framework within which process of new venues for major the development process moves and has All firm the project is taking place, the entire sports events, the planning, feasibility the decisions that need to be made. firm. International”), development process can span several and the legacy strategy phase is It may also necessitate the shortening member years. Strict planning of the interlinked crucial to guarantee the long term of the development process which member No (“KPMG any activities is required in order to make sustainability and success of the highlights the importance of doing as bind the development efficient and effective, proposed project. much research and analysis up-front as services. or Cooperative and to ensure maximisation of the possible to ensure risk is minimised in client Research to understand the market in no obligate opportunities is achieved. This process the subsequent phases. to which the venue will operate and the depends
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