Global Opportunities for Sports Marketing and Consultancy Services to 2022

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Global opportunities for sports marketing and consultancy services to 2022

Ardi Kolah

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2 About the Author

Ardi Kolah BA. LL.M, FCIPR, FCIM A marketing and communications practitioner with substantial sports marketing, business and social media experience, he has worked with some of the world’s most successful organisations including Westminster School, BBC, Andersen Consulting (Accenture), Disney, Ford, Speedo, Shell, The Scout Association, MOBO, WPP, Proctor & Gamble, CPLG, Brand Finance, Genworth Financial, ICC, WHO, Yahoo, Reebok, Pepsi, Reliance, ESPN, Emirates, Government of Abu Dhabi, Brit Insurance, Royal Navy, Royal Air Force, Defence Academy, Cranfield University, Imperial College and Cambridge University.

He is the author of the best-selling series on sales, marketing and law for Kogan Page, published worldwide in 2013 and is a Fellow of the Chartered Institute of Marketing, a Fellow of the Chartered Institute of Public Relations, Liveryman of the Worshipful Company of Marketors and Chair of its Law and Marketing Committee.

He is a former Board Director of the CIPR and the European Sponsorship Association and holds a master’s degree in international law from King’s College and University College, London.

He can be contacted: [email protected] +44 (0)208 542 8786 +44(0)77100 77941 www.guruinabottle.com

Acknowledgements

David Chattaway and Matt Hannagan of Brand Finance who provided research, analysis and expert commentary on UK sports marketing and consultancy sector.

Rachael Church-Sanders of Zagzig Media who provided research, analysis and expert commentary on the global outlook for UK sports marketing and consultancy firms within 24 global markets.

Frank Saez of SMG-Insight/YouGov who provided guidance and advice throughout the preparation of the Report.

Christopher Hutchings for the info graphics used in the Report.

Special thanks

The author would like to express gratitude and special thanks to all those who participated in the research for this Report:

Alaa Shadid, Grant Thornton; Andrew Bacchus, UK Trade & Industry; Andrew Hodson, Icon; Andy Westlake, Fast Track; Beth Garcia, Approach; Chris Satterthwaite, Chime Communications; Dennis Mills, Major Events International; Duncan Hall, PKL; Eloy Mason, 4 global; Fiona Pelham, Sustainable Events; Gilbert van Kerckhove, Beijing Global Strategy Consulting; Jeremy Summers, Pitmans SK Sport & Entertainment; Joe O’Neill, Arena Group; Jon Sellins, Wembley Stadium Consultancy; Julie Clark, PwC; Karen Earl, European Sponsorship Association; Lesa Ukman, IEG; Madeleine Blankenstein, Grant Thornton Brazil; Matthew Wheeler, Sports Investment Partners; Mickey Charles, The Sports Network; Mike Lee, Vero; Nicholas Reynolds, Populous; Peter Schad, PKL; Rob Mason, IMG; Simon Cummins, Odgers Berndston; Simon Rines, Sponsorship Today; Steve Madincea, PRISM; Teri van Schooten, Verve Consulting; Tom Mayo, Mayo & Co; William Vitale, Vital Communications.

CONTENTS

About the Report ...... 7 Executive summary ...... 8 Section 1: Evolving capabilities of sports marketing and consultancy services in the UK .. 14 Section 1.1: Description of the UK sector ...... 14 Section 1.2: Thriving but highly fragmented sector ...... 20 Section 1.3: Content is King ...... 24 Section 1.4: London 2012 Olympic Games effect on growth of UK sector ...... 32 Section 1.5: Main growth drivers for the UK sector over next decade ...... 38 Section 1.6: Estimated level of turnover of the UK sports marketing and consultancy sector over last five years and projected growth to 2022 ...... 47 Section 1.7: Macro-economic factors ...... 49 Section 1.8: Barriers to growth of UK sector ...... 54 Section 1.9: Employment prospects within UK sector ...... 60 Section 1.10: Future developments in UK sector ...... 62 Appendix 1.1: Profile of the UK sector analysed for this Report ...... 64 Appendix 1.2: Alphabetical list of UK sports marketing and consultancy firms analysed ...... 71 Appendix 1.3: Selection of profiles of companies in UK sector ...... 75 Appendix 1.4: Research methodology ...... 82 Section 2: Opportunities in global markets for services to 2022 ...... 85 Section 2.1: Summary of global market opportunities (2013-22) ...... 85 Section 2.2: Global outlook for UK sports marketing and consultancy sector by region (2013-22) 88 Section 2.3: Top 5 countries offering biggest new business opportunities for UK sector (2013-22) ...... 101 Section 2.4: Key competitors for the UK sector in regional markets ...... 108 Section 2.5: Key strategies for overcoming barriers to market opportunities 2013-22 ...... 126 Section 2.6: Overview of Western and Northern Europe market opportunities (2013-22) ...... 133 Section 2.7: Overview of Central, Eastern and Southern Europe market opportunities (2013-22) ...... 135 Section 2.8: Overview of Middle East market opportunities (2013-22) ...... 138 Section 2.9: Overview of North America market opportunities (2013-22) ...... 141 Section 2.10: Overview of South America market opportunities (2013-22) ...... 145 Section 2.11: Overview of Africa market opportunities (2013-22) ...... 149 Section 2.12: Overview of Asia market opportunities (2013-22) ...... 152

Section 2.13: Overview of Oceania market opportunities (2013-22) ...... 155 Appendix 2.1: Current sports events, host bids and construction in Ireland 2013-22 ...... 157 Appendix 2.2: Current sports events, host bids and construction in Spain 2013-22 ...... 159 Appendix 2.3: Current sports events, host bids and construction in France 2013-22 ...... 165 Appendix 2.4: Current sports events, host bids and construction in Italy 2013-22 ...... 171 Appendix 2.5: Current sports events, host bids and construction in Sweden 2013-22 ...... 173 Appendix 2.6: Current sports events, host bids and construction in Denmark 2013-22 ...... 176 Appendix 2.7: Current sports events, host bids and construction in Germany 2013-22 ...... 179 Appendix 2.8: Current sports events, host bids and construction in Netherlands 2013-22 ...... 181 Appendix 2.9: Current sports events, host bids and construction in Hungary 2013-22 ...... 183 Appendix 2.10: Current sports events, host bids and construction in Poland 2013-22 ...... 186 Appendix 2.11: Current sports events, host bids and construction in Russia 2013-22 ...... 189 Appendix 2.12: Current sports, host bids and construction in Turkey 2013-22 ...... 199 Appendix 2.13: Current sports events, host bids and construction in Middle East 2013-22 ...... 203 Appendix 2.14: Current sports events, host bids and construction in Canada 2013-22 ...... 214 Appendix 2.15: Current sports events, host bids and construction in USA 2013-22 ...... 219 Appendix 2.16: Current sports events, host bids and construction in South America 2013-22 ..... 226 Appendix 2.17: Current sports, host bids and construction in Mexico 2013-22 ...... 235 Appendix 2.18: Current sports events, host bids and construction in Africa 2013-22 ...... 237 Appendix 2.19: Current sports events, host bids and construction in China 2013-22 ...... 243 Appendix 2.20: Current sports events, host bids and construction in India 2013-22 ...... 248 Appendix 2.21: Current sports events, host bids and construction in Japan 2013-22 ...... 251 Appendix 2.22: Current sports events, host bids and construction in South Korea 2013-22...... 255 Appendix 2.23: Current sports events, host bids and construction in Australia 2013-22 ...... 261 Appendix 2.24: Current sports events, host bids and construction in New Zealand 2013-22 ...... 268 Appendix 2.25: Research methodology ...... 271

About the Report

This Report examines in detail the scope and nature of the UK sports marketing and consultancy services sector in the wake of a phenomenally successful London 2012 Olympic and Paralympic Games and the opportunities for growth of that sector in selling its products and services around the world over the next decade.

The findings of the Report will feed into a wider strategic piece of work that is the British Government’s strategy for the professional and businesses services sector, of which UK sports marketing and consultancy firms form an important and growing part.

The Report takes a wider lens than simply looking at companies that focus on media activities associated with sport but applies a broader definition of sports marketing and consultancy services to comprise of sports marketing agencies, marketing services providers and those that provide infrastructure, technology and logistics support to games organisers, sports rights holders and brand owners on a global basis.

For the purposes of the Report the focus has been on market opportunities outside of the UK and the Report also focuses on one-off sports events that have been ranked in terms of their importance as well as the opportunity of these 55 major sports events to deliver incremental new business for the UK sector.

Regular sports events such as F1 or the Premier League already have long-term contracts and relationships in place that tends to exclude new business for the vast majority of the UK sector that is made up of small-medium size businesses. These sports events, whilst important, are not part of the analysis in this Report.

All monetary values given are in GBP, applying an exchange rate of approx. GBP 0.64 = USD 1

Executive summary This Report is in two parts: the first section deals with the description and dynamics of the UK sports marketing and consultancy services sector.

The second section examines the top 55 one-off global sports events outside of the UK that offer an opportunity for incremental new business across 24 global markets based on an assessment of current sports events, host bids and sports infrastructure construction projects in each of these markets.

Research conducted for this Report estimates the value of the UK sports marketing and consultancy sector to be worth GBP550-GBP750m a year.1 On a blended growth rate of 7% over the next decade, it is predicted that the UK sector will be worth in excess of GBP1bn.

Compound Annual Growth Rate of the UK sector* (2013-2022)

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CAGR Estimate Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) 550 589 630 674 721 771 825 883 945 1,011 7 % *Baseline is GBP550m for 2013. Blended annual growth rate of 7% used to smooth out odd/even years

Over the past decade, the expansion of the UK sector has been driven in part by the powerful way that sport can engage with desired market and customer segments on a global basis.

The phenomenal success of the London 2012 Olympic Games put a spotlight on the strength, global experience and talent of the UK sports marketing and consultancy sector in its ability to reach these global audiences.2

At the same time, the proliferation of media devices has led to a fragmentation of audiences for mass media such as network television, radio and newspapers. As a result, this has created fresh challenges for media owners, rights holders and brand owners. What is now the best way to reach desired customer segments when the media landscape is so fragmented and mass media channels are in decline?

As this Report demonstrates, at the heart of future success in engaging with desired audience and customer segments on a global basis is sports and entertainment content.3

Today’s generation of fans and consumers expect to be entertained and have more options available to them than they did even six months ago. They want to be involved in a deeper way and they also want to be kept informed, 24/7.

Sport is still the most compelling piece of entertainment content that can deliver global audiences across all media – online as well as offline. A key factor is sport’s ability to deliver emotion, excitement, engagement and loyalty in a way that many other entertainment options available to a younger generation struggle to deliver.

1 See Section 1.6 2 See Section 1.4 3 See Section 1.3

Sport is not formulaic or predictable as the outcome is not always capable of being predicted. This is what gives sport its high excitement and entertainment value par excellence.

The UK sector is part of a sports and entertainment eco-system4 where sports and entertainment content sits at the heart of that eco-system; fed by sports rights holders, sports bodies and Government; brand owners and of course sports fans and consumers from around the world.

And it is this eco-system that fuels the future success of the UK sector of sports marketing agencies and advisors; marketing services providers and infrastructure, technology and logistics companies based in the UK.

5 This Report analysed 163 diverse businesses that collectively make up the core of UK sports marketing and consultancy services sector. This was a challenging exercise in itself as the UK sector is highly fragmented and the vast majority of companies are small-medium size with a turnover of under GBP3m and so, in many cases, do not file full accounts at Companies House.6

The businesses that make up the UK sector are incredibly diverse; ranging from IMG, the world’s largest sports and entertainment marketing company; CSM Sports and Entertainment, one of the UK’s fastest growing marketing groups and Populous, an award-winning global firm of venue and stadium architects that has successfully developed a world-class brand activation and experiential marketing business on the side.

The sector also includes not-so-big companies, such as Gloucestershire-based PKL, a world leader in the supply of temporary kitchens and catering equipment for major events; 4 global, a major event and sports business consultancy with a global footprint through to Manchester-based start-up Sustainability Events that advises games’ organisers around the world on how to successfully adopt the ISO 20121 sustainability management system for events as inspired by the London 2012 Olympic Games.7

These and other remarkable businesses ‘fly the flag’ for the UK in developed and fast growing markets around the world that recognise sport as being a major factor for building enhanced global reputation, attracting inward investment and an increase in tourism that make a significant 8 contribution to the growth of these economies.

The success of the UK sector in working in these markets is a fantastic success story for ‘UK Plc’ and there is evidence that this will translate into new employment opportunities, particularly for those

4 See Section 1.1 5 See Appendix 1.2 6 See Section 1.1 7 See Appendix 1.3 8 See Section 2

9 who are looking to start a career in the sector and have strong marketing and social media skills and experience to offer.9

According to the research for this Report, global market opportunities are estimated to be worth GBP5.9bn (2013-22).10

Oceania Asia 7% Africa 21% 1% Middle East South America 3% 8%

Western and Northern Europe 32% North America 7%

Central, Eastern and Southern Europe 21%

However, the main growth drivers of the UK sector over the next decade are not necessarily in those markets with the largest number of one-off sports events but those that offer the most valuable opportunities for the UK sector. The research shows that one-off sports events in Qatar, Russia Brazil, South Korea and France are the top 5 markets for incremental new business for the UK sector over the next decade.11

Top 5 countries for new business opportunities over the next decade

Rank Country Total (GBP) 1 Qatar 1,676,623,570 2 Russia 1,375,993,214 3 Brazil 1,276,149,320 4 South Korea 481,716,789 5 France 276,244,071 Total All top 5 countries 5,086,726,964

These values for new business are likely to increase if further sports events are awarded to the countries on this list, particularly if any succeed in hosting the 2020 Summer Olympic Games12 or the 2022 Winter Olympic Games.13

9 See Section 1.9 10 Operational and infrastructure budgets for one-off global sports events are estimated to be worth £222.3bn of which £5.9bn is expected to be spent on sports marketing and consultancy services. See Section 2.1 11 See Section 2.3 12 Three cities have made a bid: Istanbul, Tokyo and Madrid. The International Olympic Committee will elect the host city on 7 September 2013 at the 125th IOC Session in Buenos Aires, Argentina

14 In 2014, Russia will host the Winter Olympic and Paralympic Games and in 2018 it will host the FIFA World Cup and has embarked on a massive building programme that includes spending GBP207m on the Rubin Stadium that is to open shortly, GBP145m on the Rostov Stadium and GBP0.99bn on the VTB Arena in Moscow.

15 In 2014, Brazil will host the FIFA World Cup and will invest in the next three years GBP347.8bn in energy, infrastructure, and housing projects on top of GBP11.9bn to stage the football tournament and cope with some challenges in meeting its deadline for the stadiums to be finished in time.

16 In 2016, France will host UEFA European Championships (EURO 2016) and will spend GBP1.7bn of which the Stade des Lumières is estimated to cost GBP270m. The UK sector is the global leader in the way that football is activated at major sports events for brand owners around the world.

17 In 2018, South Korea will host the Winter and Paralympic Games in PyeongChang where it is investing GBP4.1bn in infrastructure development with an additional GBP330.7m invested in its legacy programme. The UK has a head start over the competition as it’s the 2nd largest EU investor in South Korea in cumulative terms.

18 In 2022, Qatar will host the FIFA World Cup, the first country in the Middle East to have this honour. It is estimated that the country has so far spent GBP138bn plus around GBP107bn on stadiums and facilities; GBP31bn on transport infrastructure, GBP30bn on building air conditioned stadiums; GBP48bn on training facilities and accommodation for players and fans and GBP28bn on creating a new city called Lusail.

19 The main barriers in the way of the UK sector achieving significant new business in these markets tends to be a mixture of competing against companies with a home advantage in more saturated markets; having local presence in the desired market through a partner or subsidiary and cultural, linguistic and logistical challenges for ensuring that the opportunities for incremental new business have been properly evaluated and prioritised depending on the scale of the business and the resources available.

13 Many cities are now exploring the possibility of bidding. The bidding calendar was announced by the IOC in October 2012, with the application deadline set on 14 November 2013. The host city will be elected on 31 July 2015 at the 127th IOC Session in Kuala Lumpur 14 See Section 2.7 and Appendix 2.11 15 See Section 2.10 and Appendix 2.16 16 See Section 2.6 and Appendix 2.3 17 See Section 2.12 and Appendix 2.22 18 See Section 2.8 and Appendix 2.13 19 See Section 1.8

Key recommendations

The key strategies for overcoming barriers for business growth20 can be summarised as:

 building more face2face relationships within regional markets, where working with the support of UKTI can make a difference;  maximising the opportunities for using the London 2012 ‘host nation’ effect to help secure new business;  focusing on knowledge transfer by empowering local teams rather than attempting to build a linear transactional relationship with the client when they are looking for something much more long-term and enduring from the relationship; and  improving the flow of opportunities into the new business pipeline by engaging in trade missions with a clear set of aims and objectives before heading for the airport.

Given the enormous success of the UK sector in securing new business around the world, consideration should be given to creating a new standard industry code (SIC) for future tracking and monitoring of the sports marketing and consultancy sector given its importance to the success of the UK economy.21

20 See Section 2.5 21 See Section 1.10 and Appendix 1.1

Figure 1.0: UK Sector The Report identiﬁes 55 major global sports events taking Highlights and place over the next 9 years that provides new business Recommendations opportunities for the UK sector worth an estimated £5.9bn

Global UK sector market populated by Highlights opportunities 85% privately owned companies large Sector £5.9bn Main £10m business current value over next growth drivers small 9 years £3m business One-o global £550- sports events with large operational Sector set £750m and infrastructure to double to 7% budgets Compound annual growth rate £1.0bn by 2022

WESTERN & NORTHERN CENTRAL, EASTERN & EUROPE SOUTHERN EUROPE NORTH AMERICA

ASIA

MIDDLE EAST

AFRICA

SOUTH AMERICA Recommendations OCEANIA 1. UK sector needs to build more face2face relationships within regional markets 2. Maximise new business Top country for opportunities by using new business ‘London 2012 host nation Highlights effect’ Qatar Qatar 3. Focus on ‘knowledge £1.6bn transfer’ and not just sales £1.6bn 2022 Fifa Most global sports 4. Maintain presence in World Cup events awarded regional markets through to date partners TOP 3 GLOBAL 5. Improve new business 33% pipeline working by SPORTS EVENTS engaging with trade Russia Brazil Western & missions Northern £1.3bn £1.2bn Europe 6. New SIC Code for UK Winter 2014 sports marketing and Olympic FIFA consultancy sector Games 2014 World Cup should be created Section 1: Evolving capabilities of sports marketing and consultancy services in the UK

Section 1.1: Description of the UK sector

This Report analysed 163 diverse businesses22 that collectively make up the core of UK sports marketing and consultancy services sector as well as evaluating the best possible opportunities for new business based on one-off global sports events in both developed and developing economies globally.23

Out of the 163 businesses analysed, 85% (139 businesses) are privately owned, with 2% of the companies (3 businesses24) listed on the London Stock Exchange and the remainder 13% (21 businesses) are limited liability partnerships.25

Not all 163 UK sports marketing and consultancy firms analysed had filed full 2011/12 accounts at Companies House at the time of writing this Report (April 2013).

Many of the companies registered at Companies House were too small under UK company law to be required to provide detailed turnover figures. A further complication encountered was that many sports marketing firms are often part of larger advertising and marketing networks and as a result do not segment revenues by specific service offerings, such as sports marketing.

Taking the sample as a whole, the following conclusions were drawn from the data:

 a firm with specific sports marketing revenues of GBP10m+ is a large player in the sector;  a firm with specific sports marketing revenues between GBP3m-GBP10m is a medium size player in the sector; and  a firm with specific sports marketing revenues under GBP3m is a small player in the sector.

In the UK, the sector is made up predominately of small players (under GBP3m turnover) with a healthy tier of medium size players (GBP3m-GBP10m turnover) and a handful of large players (over GBP10m turnover).26

Size of the UK sector

The UK sports marketing and consultancy sector turnover is conservatively estimated to be worth GBP500-GBP750m per annum. The sector has been growing by about 7% per annum over the past five years27 but this growth varies year-on-year as a result of the cyclical nature of revenues in the global sports sector where big ticket events such as an Olympic Games or a FIFA World Cup tend to fall in even-years and smaller ticket events tend to fall in odd-years.

22 See Appendix 1.2 23 See Section 2 24 Perform Sports (PER: London) are the only dedicated sports marketing and consultancy services company in the UK sector that has utilised the equity markets for funding 25 See Appendix 1.2 for a full list of the businesses analysed 26 Refer to Appendix 1.2 for a full list of companies analysed 27 Research by PwC puts the figure of is figure at 3.8%, although according to Julie Clark, UK Head of Sports & Leisure Practice, PwC this figure is likely to be revised upwards

In addition, the rate of growth of sports marketing and consultancy market opportunities differs across territories globally with the result that more established markets, such as North America, do not necessarily offer the most attractive opportunities for UK sports marketing and consultancy firms compared with opportunities available in less saturated markets, such as Qatar.28

The larger players in the sector have tended to have grown as a result of the acquisition of smaller players rather than by organic growth alone and this trend is likely to continue over the next decade.29

It is estimated that 85% of the sector value is completed in the UK, although there is evidence that the balance of UK versus international sports marketing and consultancy work is beginning to shift in favour of more international work.30 On current estimates and assuming a compound annual growth rate (CAGR) of 7% over the next decade, the UK sector is predicted to be worth in excess of GBP1 billion (Table 1.1).

Table 1.1: Compound Annual Growth Rate of the UK sector* (2013-2022)

The outstanding sporting and commercial success of London 2012 Olympic Games put the global spotlight on the UK’s leadership in the global sports marketing and consultancy sector and created an environment where British firms stand a strong chance to secure a share of the lucrative work with global sports events, estimated to be worth GBP92 billion by 2015.31

London is the predominant location for the vast majority of UK sports marketing companies’ headquarters32, with the greatest concentration of secondary office locations being in mainland Europe and in Asia. More recently, some UK sports marketing and consultancy firms have opened offices in South America and the Middle East given the growth of business opportunities in those regions.33

Analysis of management credibility of sports marketing and consultancy firms in this sector was difficult to assess but the research found that the sector to be heavily male-dominated and that many companies had former sporting professionals at a senior level on their board. Since the

28 Refer to Section 2 for a full break down of opportunities globally 2013-2022 29 “What’s happening is that the smaller agencies are moving to bigger conglomerates or bigger groups because that’s the way the industry is going. Because sponsorship is so central and is a platform for all sorts of marketing activity the best exponents are able to put sponsorship in the middle and draw in expertise of everybody else expert in that particular marketing area. But you can’t deliver the whole panoply of what’s possible through sponsorship and that’s why we’ve seen this great consolidation and eating up smaller agencies,” says Karen Earl, chairman of the European Sponsorship Association. 30 See Section 1.6 31 ‘Changing the Game, Outlook for the global sports market to 2015’, PwC (2011). This only looked at sports sponsorship, licensing and merchandising, gate receipts and media rights rather than a wider range of services covered by the scope of this Report 32 Global sport and entertainment giant IMG’s biggest office is in London 33 For example, Fast Track opened an office in Qatar in March 2013

15 conclusion of the highly successful London 2012 Olympic Games, many high-profile senior managers from the Olympic Delivery Authority (ODA) and the London Organising Committee of the Olympic Games (LOCOG) have taken up prominent roles within the sector.34

About 80% of the sports marketing and consultancy work is undertaken on behalf of global brand owners (sponsors) with around 20% of work undertaken for sports rights holders and sports governing bodies. From the sample of 163 companies analysed, 75% offer a pure sports and entertainment service whereas 25% deliver sports services as part of their overall offerings. Currently there is no standard industry code (SIC) for the sector.

Despite the tough economic climate, the sector is proving to be highly resilient and is continuing its impressive upward growth trajectory. However, sentiment in the sector tends to reflect the view that growth opportunities in the UK are sluggish in comparison with the bumper year of 2012.35 That said, all interviewees for this Report were unanimous in their optimism for growth and all were of the opinion that the size of the sector would double over the next decade.36

Figure 1.1: UK sports marketing and consultancy sector

34 For example, Jackie Brock-Doyle OBE, former director of communications and public affairs, LOCOG took up an appointment as CEO of the Good Relations Group in June 2013

35 “We have a strategy now which isn’t just to focus on the big sports events because as a business if you do then you risk having a ‘boom and bust’ scenario which you need to avoid. So we chase business from domestic leads where events take place every year which allows us to grow the business and avoid the ‘boom and bust’ scenario,” says Rob Mason, MD, IMG Consultants 36 “A decade ago, the UK sports marketing and consultancy sector perhaps resembled a cottage industry but that’s no longer the case. Sport is truly global and not just because of Government money. The world is shrinking, and better transport and communications have been major drivers within the sector. In addition, London 2012 Olympics was a significant success that’s added to the power of the Premier League and how that’s developed over the last decade and with Bernie Ecclestone being British and the success of Formula One has most definitely given Britain a high reputation and quality reputation in sports marketing and consultancy – no question about that,” says Simon Cummins, managing partner, international sports practice, Odgers Berndston, headquartered in London.

Sports marketing agencies and advisors

The companies and firms within this vector vary the most and tend to deliver a mix of products and services. 37

These companies38 range from full service global agency networks (such as CSM), management consultancies that work extensively within the sports sector (such as PwC), executive recruitment and head hunters in the sector (such as Odgers), law firms in sports and entertainment (such as Pitmans SK Sport & Entertainment) brand valuation consultants (such as Brand Finance), sports market research firms (such as SMG Insight/YouGov) through to medium sized sports sponsorship and PR agencies (such as PRISM), as well as much smaller sports marketing agencies with a niche specialisation (such as 4 Global).

Marketing services providers

The companies and firms in this vector tend to deliver products.39

These vary in nature, such as hospitality providers (such as the Cavendish Group), athlete and events management (such as Paragon Sports Management), linguistic service providers (such as Pearl Linguistics), travel and ticket providers (such as RPMC) and team building and employee communication companies (such as Team Tactics).

Infrastructure, technology and logistics providers

The companies and firms in this vector tend to deliver products.40

This group has traditionally been those companies that have sourced major infrastructure projects like stadium building and include construction companies (such as Carillion), are experts in digital and social media channels (such as Digital Sports Group), ticketing systems (such as IRIS Ticketing) and architect firms (such as Populous).

Role of sports bodies

Arguably the sector could not exist without sports governing bodies overseeing national, international and global sports events on a scale that has helped to build the UK sector into one of the most successful in the world today. As the sector becomes more professionalised in the way it

37 Management consultants, PR companies, advertising companies, marketing companies, sponsorship companies, law firms, media rights advisors, accountants, tax advisors, investment advisors, financial advisors, insurance companies, brand valuation consultants, market research companies, audience research and polling companies, risk management consultants, strategic planning consultants, licensing and merchandising agents, surveyors, planners, sustainability event consultants, events management, player representation and management 38 See Appendix 1.3 39 Overlay specialists, architect firms, engineering companies, social media and digital technology specialists, hardware specialists for venue and stadium construction, logistics management companies, systems integration companies, data management companies, broadcast production, TV production, technology companies, software companies, technology product companies, lighting companies and temporary structure companies 40 Facilities management, security, catering, hospitality, linguistic services, travel and transportation, ticketing companies, team building, employee communications, photography and photo library services

17 does its business, there is more pressure to bring in more money from the private sector. The value of sports rights is the key currency for all sports bodies and one of the most successful in the world is the Premier League, owned by 20 Premier League football clubs.

Role of Government

The importance of the active participation and support of Government to the sector cannot be over emphasised and was strongly recognised by every respondent that took part in the research for this Report. The London 2012 Olympic Games underlined how crucial the UK Government is to the future well-being of the sector. Without active support from Government lobbying for more major sports events to take place on British soil, the sector would start to resemble an endangered species. All respondents had extremely high praise for the tremendous efforts by UK Trade and Industry in helping to ‘fly the flag’ for the sector internationally. Government is also a key customer segment for infrastructure, technology and logistics providers.

Role of brands

Brand owners (a segment that includes sponsors, supporters and event partners) are a highly valuable customer segment for the sector, accounting for about 80% of sales of products and services. Without the financial investment this segment makes in sport alongside the Government, the sports marketing and consultancy sector could not exist as it does today.

Role of sports fans

Sport is all about passion, competition and above all world-class entertainment. The support of fans is the oxygen of sport without which the sector would not exist. Fans provide the reason why sponsors want to get involved with sport.

In the words of Nelson Mandela, “sport unites people in a way that politics never can” and it remains one of the most potent ways to engage with a global audience that transcends all ages, all sexes, race, religion, colour, creed, nationality, ethnicity and wealth.

Figure 1.1: UK sports marketing Breakdown of UK sports and consultancy services sector marketing and consultancy sector

Sports Marketing Agencies & Advisors Consumers (Sports Rights holders fans) (Sports bodies & Government) Sports and Entertainment Content

Infrastructure, Marketing Technology Service & Logistics Providers

Sponsors (Brand owners)

Sports marketing agencies Marketing service Infrastructure, technology and advisors. providers and logistics support Management consultants Facilities management Overlay specialists PR companies Security Architect firms Advertising companies Catering Engineering companies Marketing companies Hospitality Social media and digital Sponsorship companies Linguistic services technology specialists Law firms Travel and transportation Hardware specialists for venue Media rights advisors Ticketing companies and stadium construction Accountants Team building Logistics management Tax advisors Employee communications companies Investment advisors Photography Systems integration Financial advisors Photo library companies Insurance companies Data management companies Brand valuation consultants Broadcast production Market research companies TV production Audience research and polling Technology companies companies Software companies Risk management consultants Technology product Strategic planning consultants companies Licensing and merchandising Lighting companies agents Temporary structure Surveyors companies Planners Sustainability event consultants Events management Player representation and management Section 1.2: Thriving but highly fragmented sector

Consolidation within UK sector over next decade

The UK sector is very fragmented, dominated by a mixture of privately-owned medium and small companies.41 Only 2% of these companies are publicly quoted (notably WPP, Chime and Perform Sports) that utilise the equity markets for funding. In the vast majority of cases, expansion of sports marketing and consultancy firms is self-funded through winning more sports marketing and consultancy work, joint ventures as well as mergers and acquisitions of similar size or smaller players.

There has been an increasing amount of consolidation within the sector over the past five years but equally there has also been an increase in new start-up businesses42 entering the sector.

The fragmentation of the UK sector is also a result of the low barrier to market entry as it is relatively easy and low-cost to establish a sports marketing and consultancy business.

There tends to be a lack in focus and uniformity of the services offered by the smaller sports marketing and consultancy companies, particularly as they evolve from start-up.43

A review of the handful of large players in the sector with revenues in excess of GBP10m reveals they have dedicated sports and entertainment offerings as part of their wider service offerings in non-sport sectors, such as media and entertainment.

From the total sample analysed, 75% of the companies in this sector are dedicated solely to sports marketing services, whilst the remaining 25% offer sports marketing as part of a wider range of products and services (such as construction, architectural and legal services, for example).

Very few companies have a credible presence in the US sports market, the biggest single sports market in the world. The US sector is very much a standalone market, serviced by US originated sports marketing and consultancy firms and is highly saturated compared with other less developed markets.44

According to the respondents interviewed for this Report, the outlook is further consolidation in the UK sector over the next decade. There is also a trend for senior executives of big sports marketing and consultancy firms leaving employment to set up their own niche companies, often to be sold at a later date to the same or other sports marketing and consultancy networks.

41 For example, the European Sponsorship Association (ESA) has seen a steady decline in its membership (now at 177 members) as a result of a lot of UK sponsorship agencies merging with the result that one person rather than several represents the interests of that member within ESA. The sector employs a relatively low number of full time employees and is minuscule compared with other industry sectors, such as retail 42 According to Julie Clark, UK Head of Sports & Leisure Practice, PwC, although there will be more consolidation within the sector which has the effect of creating bigger sports marketing groups, at the same time there will also be more niche companies (5 employees or less) that will be more innovative and specialised and the UK sector will have room for both types of business 43 For example, it is still a sector where 1-3 person agency can run a successful business around a few clients 44 The US sector has high barriers to entry and tends to operate with little external competition

Domestic and global balance of sports marketing and consultancy business

The phenomenal success of London 2012 Olympic Games presents a golden opportunity for UK sports marketing and consultancy firms to demonstrate their world class expertise and experience before the next Summer Olympic Games in Rio, Brazil in 2016.

From the sample of companies analysed for this Report, it appears much easier for UK sports marketing and consultancy firms to win business with brand owners (sponsors) and to work with the private sector compared with securing work with sports rights holders such as sports governing bodies or government departments.

This trend may change where games organisers and governments in emerging economies45 seek international expertise and experience that may not exist locally. This is likely to be a key driver for new business for the UK sector over the next decade and beyond.46

According to UK Trade & Investment, around 70 companies have been successful in securing business in connection with the Winter Olympic Games in Sochi, Russia 2014, which represents the largest number of contract wins of any foreign nation outside of Russia’s domestic sports marketing and consultancy sector.47

Saturated and unsaturated sports markets

A key challenge for the sector is the ability of small-medium size sports marketing and consultancy firms to invest in making trips to emerging markets that are less saturated with competitors or that require expertise and experience that is not available locally, such as India, China, Brazil, Turkey and Qatar.48

In more mature markets, such as Europe and North America, the decision making process can be much slower so sports marketing and consultancy firms need to have more business leads than they did 18 months ago in order to filter through those opportunities that offer the best return.

45 This includes Qatar, Turkey and South Korea 46 “Organising Committees like to raise the bar at each event. So this means doing things differently and it can result in an increase in the budget. We’re finding this with the Olympic Games as the raising of standards is feeding into other events and also the nature of these events is getting bigger,” observes Peter Schad, commercial director of PKL, an international provider of catering and kitchen equipment based in the UK 47 Andrew Bacchus, Head of Global Sports Projects, UK Trade & Investment (March 2013) 48 “For smaller agencies, there’s a big risk to hop on a plane and take a week or two off and pay all the expenses to go to these markets in the hope of getting some business. Understandably there’s a lot of resistance to do this. Then if you get the work, you need to have international resources to fulfil it. You may have general expertise from the work you’ve done in the UK, but when you get to India or China then the local business culture can be very different so it’s a steep learning curve,” observes Simon Rines, publisher of Sponsorship Today. Chris Satterthwaite, CEO, Chime Communications has very little sympathy with this view and argues that small companies can just as easily make the effort to explore new markets without it breaking the bank

Depending on the nature of the products and services, UK sports marketing and consultancy firms may be able to deliver these without the requirement of entering into an arrangement with a local supplier or joint venture partner.49

However, in the vast majority of cases, local knowledge and the way things are done from a cultural and linguistic perspective will largely dictate that having a local partner, joint venture partner or wholly owned subsidiary/regional office will be a necessity.50

Future opportunities for growth of UK sector over next decade

The UK sports marketing and consultancy sector will continue to achieve a growth rate between 5- 7% annually through to 2022 and will rapidly become a GBP1 billion GBP sector.51

The review of annual reports, analyst reports and investor relations presentations for the larger listed/quoted sports marketing and consultancy companies all contain a highly positive trading outlook. Where sports marketing was not the only service offering for such global networks, it frequently made the key financial highlights given the sector’s strong performance.

For example, Chime Communications anticipate an annual 7% growth in the sector which is supported by analysts’ forecasts.

Buoyed by the outlook of the sector, many sports and entertainment groups are on the acquisition trail and as a result the sector has seen a high level of merger and acquisition activity over the past five years.52

A key driver for joint venture partnerships and merger and acquisition activities has been the desire of boards of directors to rapidly build scale and resource so that their companies can provide a global client base with a ‘full service’ offering and to compete for lucrative contracts with major sports events such as the forthcoming Rugby League World Cup (UK/Ireland) 2013, FIFA World Cup

49 In the case of PKL, a leading hardware supplier of catering and kitchen equipment for major events, the company has worked on 5 Olympic Games and several FIFA World Cup tournaments. The company was selected to provide the kitchen and catering overlay for Vancouver Winter Olympic Games 2010 where there was a restricted local supply chain, although this is not always the case. “The local supplier is always going to be our competition, so there are an awful lot of events that we don’t target because we’re not going to win them as it’s going to be cheaper for the event organiser to do it locally. Although we don’t require local delivery capability as we do all of this ourselves, we do need help where we are going into a relatively closed market with a strong bias towards a local solution,” explains Duncan Hall, Operations Director, PKL 50 PRISM (part of WPP) HQ is in London and since 1993 has grown to become the biggest sports marketing network within WPP. It now has 10 offices globally, employing 150 people in the UK, Netherlands, Germany, USA, India, Thailand, Africa and Australia 51 This forecast is based on a number of factors: past performance of the sector, growth in global sports market, the London 2012 Olympic Games effect, further professionalism of the sector, developing nations demand for sports marketing the services, increased shift to sponsor funded events and digital content opportunities that sports rights holders and brand owners are looking to leverage from sports. The percentage growth assumption represents a blended rate to factor in that certain years (2014/2016) will have an accelerated growth rate due to the ‘big ticket’ sports events whilst odd years will have a correspondingly lower growth rate 52 For example, the Engine Group LLP has made a number of acquisitions and mergers within its Group including Karen Earl Sponsorship (2006), DC Interact (2007), Republic PR (2007), Liquid Communications (2008), Partners Andrew Aldridge (2008), Penrose Financial (2010), Jam (2010), CVL (2010), Deep Focus (2010), Noise (2010), Mischief (2011) and Fantastic Thinking (2011)

(Rio, Brazil) 2014, Winter Olympic Games (Sochi, Russia) 2014, Summer Olympic Games (Rio, Brazil) 2016 and the FIFA World Cup (Russia) 2018.53

The UK sports marketing and consultancy sector is one of the most sophisticated in the world, as demonstrated by some of the outstanding brand marketing and communication programmes executed by some of the sponsors involved with the recent London 2012 Olympic Games.54

A number of factors will positively impact the future growth of the sector over the next decade including:

 Super-global economies (such as Brazil, Middle East, Russia, India and China) and transition economies (such as Turkey and Indonesia) that have the ambition and resources to compete for hosting some of the biggest sports events in the world on their home soil. These economies will need to build their own infrastructure in order successfully host global sports and non-sport events.  More sophisticated consulting offers to sponsor brands that more accurately maximise the value of sponsorship and increase the return on investment. This requires dedicated investment in proprietary systems and processes that do not currently exist at present.  As a result of the forthcoming Financial Fair Play (FFP) Rules55 football clubs will be under greater scrutiny to balance the books. It is expected that future expenditure focus will shift from on-field to off-field activities and similar FFPRs may also be introduced by other sports. Taken together, this creates new opportunities for brand valuation and research companies in the sector.  Continuing to attract top flight talent as part of the on-going professionalism of the sports sector as well as a desire amongst brand owners and sports rights holders to embed more effective marketing and commercial practices within their business and organisations.56

53 See Appendix 2.1 – Appendix 2.24 for a list of key sports events around the world that offer opportunities for UK sports marketing and consultancy firms in the sector 54 BT’s campaign “Bringing Us All Together For London” recently scooped a prestigious Hollis Sponsorship Award 2013 and Lloyds TSB’s Olympic campaign was “highly commended” by the judges. Other short-listed finalists included Proctor and Gamble (GMR Marketing), Adidas, Coca-Cola (Ignition), British Airways (IMG Consulting) and Samsung 55 UEFA, in time for the 2013/14 season, has implemented a new set of financial criteria called the Financial Fair Play Rules (FFPRs) for football clubs to comply with if they wish to participate in UEFA Champions League and Europa League club competitions. Similarly, the Football Association has announced that it will adopt a version of the UEFA rules, initially for its Championship clubs. The aim of the rules is to ensure clubs in time only spend what they earn. This will generate opportunities for the UK sports marketing and consultancy sector as the details and application of the rules is likely to require expert advice and guidance 56 The sports sector in the UK is increasingly viewed as a prestigious career path for many top flight executives, according to Simon Cummins, MD, Odgers, a leading head hunter in the sector

Section 1.3: Content is King

Convergence of sport and entertainment at the heart of the sector

While the commercial dynamics of sport and entertainment may have overlapped over the past five years, today sport and entertainment has now completely converged and sits at the heart of the UK sports marketing and consultancy sector.57

Live sport is arguably the most valuable content on the media landscape. The competition off the field of play is now for the fans’ share of wallet by leveraging the value of this content.

Sports rights holders, their partners and sponsors must constantly seek new ways to enhance the sport entertainment experience through the personalisation of sport content through pay-tv services, mobile, web and social and other media channels.

At the same time, traditional broadcasters are grappling with these channels in an increasingly fragmented media landscape.

Partly as a result of open personal interaction, social media has revolutionised how sport is consumed as it allows fans to get closer to athletes and sports personalities, and provides sponsors with an opportunity for both ‘transmit’ and ‘receive’ modes of communication that enhances the sports fans’ experience.

This mirrors trends in non-sport entertainment where social networking is now a seamless element of the content offering. As viewers become used to voting for their favourite acts on TV shows like ITV’s X-Factor, sports fans increasingly also want to be involved in their chosen sports entertainment choices via social media sites.

And of course, sport is potentially more exciting than reality TV as it is totally unscripted and the outcome is not pre-determined, so the potential entertainment value is that much higher.58

Formula-e is the latest high-tech example of the convergence between sport and entertainment.

The FIA Formula-e Championships 201459 will take place in major cities around the world, providing a showcase for the car industry that is experiencing a huge transformation towards a more efficient and sustainable future built on the manufacture of electrically-powered vehicles as the planet’s natural mineral/fossil fuel resources rapidly become depleted to the point of extinction.

The organisers behind the FIA Formula-e Championships have built-in several unique entertainment features including shorter races, unique pit stops requiring the driver to change car and a higher interactivity with fans through Twitter, Facebook and YouTube.

57 PwC Report “Changing the Game – Outlook for the global sports market to 2015” (December 2011) 58 A point made by Matthew Wheeler, managing partner, Sports Investment Partners (SIP) and a former professional cricket player 59 The event organiser is Formula E Holdings, based in London. At the time of writing, the 2014 calendar of races includes London, Rome, Beijing, Putrajaya, Rio de Janeiro, Buenos Aires, Miami and Los Angeles

Broadcast rights have been defined in a way that does not limit online streaming opportunities and avoids exclusivity rights’ conflicts with other global broadcasting contracts, helping to keep traditional broadcasters on side. Potential online broadcast partners showing a high level of interest at this stage include Google TV, YouTube, Apple TV and hulu.

There are plans for live streaming through smartphone apps, unique camera angles that can be chosen by viewers including inboard, pit lane and track corners as well as app interactivity through dialogues, team radios, live chat and user participation when the race is in progress.

At the same time, sport and entertainment events are increasingly being staged together as a way to enhance the overall fans’ experience with the result that fans spend more as the entertainment opportunities help to increase revenues for sports rights holders, their partners and sponsors.

For example, after the Formula-e race has finished, the event organisers plan a music concert to entertain race day fans with sets performed by well-known DJs including David Guetta. This and other entertainment options are being considered to enhance the entertainment value of the property.

However, the trend towards blending more entertainment-style content with sport is not always welcomed by ‘purist’ sports enthusiasts.

But the vast majority of global sports governing bodies60 now recognise that the future success and growth of sport relies on engaging with the next generation of sports fans who automatically expect a higher level of entertainment value from sport. Watching a 0-0 draw between two Premier League football clubs may have satisfied a different type of sports fan in the past, but times have changed and sports rights holders are now looking for ways to build audience share rather than lose it.

Figure 1.3: Football continues to dominate as top global sports content

3% Other 8% 4% Golf 4% Tennis 43% 6% Hockey Basketball 7% F1 Baseball 12% American Football 13% Football

60 For example, the organisers of the London 2012 Olympic Games brilliantly combined the action and excitement of several sports, including basketball and beach volleyball, with live commentary, music and showbiz

With over 3.5 billion fans worldwide, football61 is the most popular sport on the planet by any measure – whether by the number of viewers, fans, participants or revenues62.

Table 1.3.1: Key football events taking place globally (2013-22)

Year Country Tournament 2013 Brazil FIFA Confederations Cup Brazil 2014 Brazil FIFA World Cup Brazil 2015 Morocco Africa Cup of Nations 2015 Canada FIFA Women’s World Cup 2016 France UEFA European Championship 2017 Libya Africa Cup of Nations 2017 Russia FIFA Confederations Cup Russia 2018 Russia FIFA World Cup Russia 2020 To be decided* UEFA European Championship 2021 Qatar FIFA Confederations Cup Qatar 2022 Qatar FIFA World Cup

*List of official candidates to be announced by UEFA on 20 September 2013

Manchester United is the world’s most popular sports team and the most valuable sports franchise on the planet.63 It has over 450m fans around the world and its estimated brand value of GBP 1.2 billion exceeds that of the Dallas Cowboys and Real Madrid.

The UK is the undisputed global leader in football. The English Premier League Season 2011/12 was outstanding, delivering huge broadcast deals centrally negotiated by the Barclays Premier League and distributed amongst the 20 Premier League clubs, helping to make it the most attractive live sports and entertainment property in the world. This has provided Premier League’s broadcasting contract negotiators with a brilliant product to sell around the world and as a result has generated more revenues for English clubs, allowing them to continue to put on a great show to sell at a higher price at the next round of rights negotiations. This upward and self-perpetuating spiral of sport and entertainment success has allowed English clubs to dominate the world of football and owes itself to a bold decision made 20 years ago. The Premier League’s decision to assign broadcasting rights to BSkyB in 1992 was a calculated risk at that time because pay-tv for sport content was untested in the UK market.

However, a combination of high quality TV coverage from Sky, the quality of football entertainment broadcast and fans’ insatiable appetite for such content helped to inflate the value of the Premier League’s TV rights to record levels. Now watched in 212 territories by a global audience of 643

61 Also known as soccer outside of Europe 62 The pie chart is the worldwide sports event market (2013) published by AT Kearney 63 Shirt sponsor Aon has enhanced its sponsorship to include branding rights to the club’s training ground and kit in a new eight-year deal that will run from 1 July 2013 and estimated to be worth £17m per year

26 million, the Premier League has been able to distribute almost GBP 1 billion to English clubs last year, which in turn generates business for those in the UK sports marketing and consultancy sector.64

For example, one of the fastest growing areas of IMG’s global sports and entertainment business is football and IMG recently signed football and fashion icon David Beckham to become the global ambassador for the Chinese Super League in March 2013.65

Multi-sports events continue to deliver global audiences for brand owners

By 2015, consumer purchasing power within the emerging and developing economies of Turkey, India and South Korea are estimated to be worth GBP 12.6bn globally. As a result, many brand owners are currently reviewing sports marketing and sponsorship opportunities in these markets and this is a potentially a rich seam of new business for the UK sports marketing and consultancy sector.66

Table 1.3.2: Key multi-sport events taking place globally (2013-20)

Year Country Tournament 2013 Turkey Mediterranean Games, Mersin 2013 South Korea Special Olympics World Games Winter 2013 Italy World Masters Games, Torino 2013 Russia and Italy Summer and Winter Universaide 2014 South Korea Asian Games 2014 Scotland Commonwealth Games 2014 USA Gay Games 2014 Russia Winter Olympic Games 2014 China Youth Summer Olympic Games 2015 Africa All Africa Games 2015 Canada Pan American Games 2015 USA Special Olympics World Games Summer 2015 South Korea and Spain Summer and Winter Universaide 2017 Japan Asian Winter Games 2017 Spain Mediterranean Games 2017 New Zealand World Masters Games 2017 Taiwan and Kazakhstan Summer and Winter Universaide

64 Brand Finance Football Brands Report 2012 (May 2012) 65 IMG have also acquired the broadcast rights to the Indian Premier League for the next 14 years and is working on the FIFA World Cup Rio 2014 and FIFA World Cup Russia 2018 as well as the UEFA Championships in 2016 and possibly 2020 66 “If the Summer Olympic Games are awarded to Turkey in 2020, that would be great opportunity for the UK sector as Turkey is an English speaking country hungry for success as a global sports and entertainment destination,” observes Lesa Ukman, co-founder and Chief Insights Officer, IEG

2018 To be decided Gay Games 2018 South Korea Winter Olympic Games 2018 To be decided Youth Summer Olympic Games 2019 Vietnam Asian Games 2020 To be decided Summer Olympic Games

Multi-sports events such as the Commonwealth Games, the Summer and Winter Olympic Games, the FIFA World Cup, the Asian Games as well as the Gay Games and Universiade draw in global audiences for brand owners, partners and sponsors and each present a strong opportunity for UK sports marketing and consultancy firms over the next decade.67

For example, the Universiade, organised by the International University Sports Federation (FISU)68, is gaining in importance in the global sports calendar and is one of the biggest international multi-sport and cultural festivals in the world, staged in odd-numbered years in a different city around the world.

The event is much more than a traditional sporting competition, incorporating educational and cultural aspects within the sports event mix. It allows university student-athletes worldwide to compete in the true spirit of friendship and sportsmanship, which makes this a highly attractive proposition for global brand owners, drawing together around 9,000 participants from 150 countries for the Summer Universaide69 and around 2,500 participants from 50 countries for the Winter Universaide.70

Increasing power of sports events rights holders in the sector

A major source of business for the UK sports marketing and consultancy sector is dependent on major sports events taking place in the UK and globally and the economic power of bodies such as the Organising Committees of the Olympic and Paralympic Games, FIA and the Fédération Internationale de Football Association (FIFA) should not be underestimated in helping to funnel sports marketing and consultancy business into the sector.

67 See Appendix 2.1 – Appendix 2.24 68 The International University Sports Federation (FISU) is responsible for the organization and governance of worldwide competitions for student-athletes 17-28 years old. It was founded in 1949 as the world governing body of national university sports organizations and currently has 163 member associations from 5 continental regions. Being the only international federation with more than 50 sports on its competition programme, FISU stages its events every two years. They include two Universiades (Winter and Summer) and 35 World University Championships. FISU permanently links the academic world with sports by hosting a number of educational events – conferences, forums and seminars. These events closely assist in promoting sport as one of the main components of the educational system 69 The Summer Universiade consists of 10 compulsory sports: athletics, aquatics (diving, swimming, water- polo), basketball, fencing, football, gymnastics (artistic and rhythmic), judo, table tennis, tennis, volleyball and up to three optional sports chosen by the host country 70 The Winter Universiade consists of 6 compulsory sports: skiing (alpine skiing, Nordic skiing, ski jumping, cross country and Nordic combined), biathlon, ice hockey (male and female), skating (short track speed skating), figure skating (individual, pairs, dancing, synchronized skating), curling, snowboarding and up to three optional sports also chosen by the host country

Sports bodies and associations are increasingly seeking to introduce new regulations in an attempt to control the cost base and levels of debt in their sports in order to create a sustainable business model for the future. 71

Emerging sports markets in territories such as Brazil, Russia, India, China, Turkey and the Middle East continue to grow apace, offering scope for the development of new commercial opportunities in these territories for both domestic and international sports events.

At the same time, organising committees of major sports events continually strive to strike a balance of increased commercial demands with the need to maintain integrity and unpredictability that goes to the root of a successful major sports event.

Over commercialisation is not in anyone’s best interests if it starts to negatively impact the enjoyment of the sports event for athletes and fans. And as brand owners make increasing investment into sports sponsorship globally, there are more intensifying pressures to achieve an adequate return on investment (ROI).72

A key challenge for the UK sector is trying to do business in those territories where the sports rights holders are calling the shots but many of the people working in these organisations may lack the appropriate skills and experience, which can be extremely frustrating and they may also be constrained by very traditional procurement contracts.73

Increasing power of sports stars in the sector

Table 1.3.3: World’s top 10 richest sports stars (2013)

Rank Sports star Sport Based on earnings and sponsorship 1 Tiger Woods Golf GBP570m 2 Michael Schumacher Motor Racing GBP519m 3 Michael Jordan Basketball GBP419m 4 Arnold Palmer Golf GBP250m 5 Kobe Bryant Basketball GBP218m 6 Roger Federer Tennis GBP208m 7= Dale Earnhardt Motor Racing GBP203m 7= Alex Rodrigues Baseball GBP203m 9 Greg Norman Golf GBP185m 10 Jack Nicklaus Golf GBP176m Source: The Sunday Times Sport Rich List (2013)

71 See FFPRs introduced by UEFA for 2013/14 Season 72 “What I’m seeing is brands need to understand social media very deeply so that the rights you negotiate and the values you assign to properties are very different today than they were even 12 months ago,” explains Lesa Ukman, co-founder and Chief Insights Officer, IEG 73 “I recently spoke to someone trying to business in Brazil. It’s a case of dealing with the political and cultural issues that can be a major stumbling block to getting business there. The rights holders are considered to be very unprofessional. For example, most of the sponsorship deals with major clubs are for 12 months, which doesn’t align with sponsorship best practice as the sponsor is unlikely to have derived any commercial benefits from the relationship over such a short period of time. They’ll do a $15m deal for a year and then cancel the sponsorship arrangement! There are opportunities but it depends on educating the market. It’s a chicken and egg situation because you can’t go there as an individual sports marketing or consultancy, educate the market and then hope to get the business. It’s a process that takes time,” says Simon Rines, publisher of Sponsorship Today

Sport has always created its own superstars to rival those in Hollywood. Arguably, it is the sports superstars that outshine the actors and actresses of the silver screen and who are adored by millions of fans around the world, making them highly attractive to brand owners seeking global sales of their products and services on the back of sponsorship, endorsement and licensing deals with sporting icons and heroes.

Sports superstars that were made during the magic of the London 2012 Olympic Games included Jessica Ennis, Mo Farah, Chris Hoy, David Weir and Victoria Pendleton who are now household names. But nowhere is the increasing power of athletes and players more vividly exemplified than in the form of 38 year-old football and fashion icon, David Beckham.74

Early 2013, he moved from MLS-winning LA Galaxy to Champions League side Paris Saint-Germain and although in the twilight of his glittering career, the power of the Beckham brand is still as strong as ever, lifting him to the top of football's rich list with annual earnings estimated to be GBP30.6m, making him one of the most marketable commodities in the world and attracting record-breaking sponsorship, endorsement and licensing deals with Adidas, Pepsi, Armani, Samsung and Sainsbury’s.75

Table 1.3.4: Football’s highest earners (2013)

Rank Player Team Estimated club and commercial earnings for 2012 1 David Beckham Paris Saint-Germain GBP30.6m 2 Lionel Messi Barcelona GBP29.8m 3 Cristiano Ronaldo Real Madrid GBP25.5m 4 Samuel Eto’o Anzhi Makhachkala GBP20.4m 5 Neymar Santos GBP17.0m 6 Sergio Aguero Manchester City GBP16.2m 7 Wayne Rooney Manchester United GBP15.3m 8 Zlatan Ibrahimovic Paris Saint-Germain GBP14.9m 9 Yaya Toure Manchester City GBP14.1m 10 Fernando Torres Chelsea GBP13.9m Source: France Football (2013)

Individual sports stars hold the popular imagination of millions of fans around the world unlike a whole league, sport, team or event can ever achieve.

For example, Beckham has proved hugely valuable whilst he played for Manchester United, collecting six Premier League titles. By the time he left Real Madrid, it had the largest commercial revenues of any club and had just clinched victory in La Liga. Beckham also transformed the fortunes of LA Galaxy turning it into a household name in the US and in doing so also helped to raise the profile of the MLS around the world.

74 He is ranked as the 11th highest paid sports star in the world (£165m) 75 Two new deals with Samsung and Sainsbury’s are collectively reported to be worth £7m a year

More recently, Beckham76 was reputedly paid GBP50m by the Chinese Super League to be its brand ambassador. The Chinese hope the Beckham magic will help establish a stronger basis for fan interest in football in the world’s most populous country.

76 “It’s important that Beckham takes what could be his last opportunity to harness the power of his brand whilst still an active player. Though his personal brand value of $41m is impressive, it could be significantly higher if he were to license his name for a greater variety of products, particularly sporting clothes and goods, for which there’s unquestionably a demand. Beckham will continue to be a major sporting personality for years to come, whether as an ambassador (such as during the Olympics and England’s World Cup bid), a team owner (he has expressed an interest in acquiring an MLS team) or perhaps as a manager. However he should grasp the nettle now while his star still shines brightly,” says Brand Finance CEO, David Haigh

Section 1.4: London 2012 Olympic Games effect on growth of UK sector

‘Host nation’ impact in Brazil, Middle East, Turkey and Russia

The phenomenal success of London 2012 Olympic Games has focussed potential clients’ interest on the UK sector.

For the next four years, the UK can bask in the success that was achieved as the host nation of the London 2012 Olympic Games in order to demonstrate its credentials for winning business in Brazil, Middle East, Turkey and Russia – some of the best prospects for the UK sports marketing and consultancy sector.77

Brazil78

The two biggest opportunities for the sector are the FIFA World Cup Rio 2014 and the Summer Olympic Games in Rio, Brazil 2016.

A study by the University of Sao Paulo estimated the infrastructure outlays in Brazil ahead of the 2014 FIFA World Cup to be approximately GBP11.9 billion, with GBP9.25 billion raised through direct taxation. The expected outlays devoted to hosting the Summer Olympic Games in Rio 2016 are an additional GBP9.92 billion, resulting in a total outlay of GBP21.8 billion for both global sport events.

UK sports marketing firms and consultants may find that working directly with the individual cities79 hosting the 2014 FIFA World Cup matches is a better route than targeting the local organising committee where relationships are harder to establish.

Many UK sports marketing and consultancy networks have already been actively exploiting opportunities for these events and several have been in Brazil at the time of writing this Report.80

Middle East81

With major infrastructure works underway in Qatar, Abu Dhabi, Saudi Arabia and Bahrain, the outlook for UK sports marketing and consultancy sector around major events in the Middle East is positive in the wake of the success of the London 2012 Olympic Games as many of the countries in the Region are already showing their willingness to embrace Western concepts and take advantage of expertise outside their own resources.

77 The UK sports marketing and consultancy sector has significant credentials in the areas of infrastructure construction and overlay, architectural services, refurbishment, facilities management, project management, operations, sports marketing, sport and event branding, legal and commercial services, insurance, inward investment, sponsorship, security advice and provision, ticketing and accreditation services, sports broadcasting and other media services, sports venue technology and systems, sporting goods licensing and merchandising, concession delivery, event planning and management services, sustainability, sport administration, sport science, sport medicine and sports administration 78 See Section 1.5, 2.10 and Appendix 2.16 79 The 12 Brazilian cities elected to host FIFA World Cup games are Belo Horizonte, Brasilia, Cuiabá, Curitiba, Fortaleza, Manaus, Natal, Porto Alegre, Recife, Rio de Janeiro, Salvador and São Paulo 80 For example, CSM is offering the skills of the HQ through its local office (CSM Brazil) in order to open up opportunities ahead of the FIFA World Cup in 2014 and Olympic Games in 2016 81 See Section 1.5, 2.8 and Appendix 2.13

Turkey82

Sport has been identified as key to securing a bright sporting, social and economic future for the next generation and Istanbul is currently bidding for the 2020 Olympic Games, the city’s fifth bid in less than 20 years.

Hosting the Olympics has been identified as a national priority and will firmly place Turkey on the global sporting stage if it wins its bid. Several UK sports marketing and consultancy firms that were involved with the London 2012 Olympic Games are currently engaged with helping the bid team in Turkey.83

Working with Olympic Games bidding cities is an ideal way for UK sports marketing and consultancy companies to form relationships with future hosts.

Russia84

This is one of the most valuable markets in the world for the UK sector with the largest number of opportunities compared with many other territories, although it is not always that easy to do business in Russia.85 Some of the larger UK agency networks have offices in Moscow and Sochi as they regard Russia as a key market opportunity for growth.86

Over the next few years87 Russia will host a plethora of major sports events such as the 2013 IRB Rugby World Cup Sevens, the 2013 IAAF World Championships in Athletics (Outdoor), the 2013 Kazan Summer Universiade, the 2014 Winter Olympics in Sochi, the 2015 FINA World Championships, the 2016 IIHF World Hockey Championships and the 2018 FIFA World Cup.

Russia knows it has a poor image globally so is already working with consultants to improve its brand and perception around the world.

The 2014 Winter Olympic Games have already become the catalyst for sports development in Sochi. The city hosts tens of different sports events every year – ranging from mass public competitions to international tournaments. Sochi has already become one of the main sports centres in Russia but will need guidance to ensure it creates a long term legacy and it is turning to the UK sector for that expertise and experience.

82 See Section 2.7 and Appendix 2.12 83 For example, Fast Track and 4 Global 84 See Section 2.3, 2.7 and Appendix 2.11 85 A point emphasised by Lesa Ukman, co-founder and Chief Insights Officer, IEG. Others, such as Rob Mason, MD, IMG Consultants was more enthusiastic 86 CSM has offices in Sochi and Moscow 87 Beyond 2020, a possible 2024 Summer Olympic Games bid could come from St Petersburg or Kazan

Export of UK sector know-how, expertise and experience across the globe

All interviewees for this Report were unanimous in their views that the London Olympic Games 2012 was a showcase of what the world used to think of and now thinks again when they think of London and the UK - a hotbed for creativity, innovation, artistry and sport. 88

Back in 2002 there was a very different perception of the UK.

The Manchester Commonwealth Games 2002 was the biggest showcase opportunity at that time for demonstrating the UK’s capability to stage an international multi-sport event.

However, despite the organisational and commercial success of the Manchester Commonwealth Games 200289, it was a struggle to get games’ organisers from around the world to come to Manchester and see what had been achieved.

A decade later, the UK is basking in the phenomenal success of the London 2012 Olympic Games as well as universal admiration from countries that have similar ambitions for them to emulate the UK’s success on the global sports events stage.

The export of UK know-how, expertise and experience across the globe is a key Government objective in order to help generate GBP11 billion of inward investment and an additional GBP2 billion in tourism revenues flowing into the UK economy.

And achieving this ambition will create an enduring legacy for the UK economy on the back of the success of the London 2012 Olympic Games. 90

Leading the Government effort in ‘flying the flag’ for the UK sector is UK Trade & Investment that is delivering a well-executed trade mission programme across global markets where the potential for infrastructure and engineering projects being awarded is extremely high, ahead of global events such as the FIFA World Cup Rio 201491, the Olympic and Paralympic Games Brazil 201692 and the FIFA World Cup Qatar 2022.93

88 An observation made by many, including Lesa Ukman, co-founder and Chief Insights Officer, IEG based in Chicago. ”Because you had the agencies doing amazing things, you had the sponsors doing amazing things and then your athletes came through, London 2012 was a renaissance for London and the UK. From the opening and closing ceremonies, which showed the world that it’s about artistry and creativity more than sheer budget, comparing say Beijing and London. It also showed that the way to people’s hearts is really through the things that they love - whether it was Coke with music or the sports side of it. And all of this could be measured, thanks to the power of social media. Conversations and big data were being gleaned and insights taken on an on-going basis that meant that sports marketing and communications could be adapted at the speed of light,” observes Ukman 89 See Manchester 2002 Post-Games Report http://www.thecgf.com/media/games/2002/volume1.pdf 90 The £11 billion UKTI target is made up of £1bn as a direct result of the 'British Business Embassy' programme of events held during Games time, £6bn new inward investment and £4bn as a result of a focus on a programme of High Value Opportunities (in the main large infrastructure projects) which includes the future sports projects (Sochi 2014, Russia 2018, Brazil 2014, Rio 2016 and Qatar 2022). The additional £2 billion difference is increased tourism to the UK 91 See Section 2.10 and Appendix 2.16 92 Ibid 93 See Section 2.8 and Appendix 2.13

The UK sector not only possesses the capability to deliver outstanding results for sports rights holders and sponsors and partners but also leads the world in genuine innovation within the sector.

An outstanding example of the UK sector know-how, expertise and experience currently being exported across the globe is the UK’s leadership in creating the world’s first Event Sustainability Management System ISO 20121.

This global standard specifies the management system elements that an organisation must have in place in delivering a sustainable event and was inspired as a direct result of the London 2012 Olympic Games which was the first to adopt and apply the ISO 20121 standard. 94

As a result, games organisers across the world, including the Local Organising Committee of the Olympic Games in Brazil 2016 are likely to seek UK sector expertise in adopting and applying the ISO 20121 and there is growing evidence that major public and private sector clients are referencing ISO 20121 in their tender documents as they work to ensure that their own sustainability policies are being implemented.

Over time, it is highly likely that compliance with ISO 20121 will become a minimum requirement for all organisations wishing to operate in the events industry as event clients, sponsors, local authorities and other key stakeholders prefer to work with organisations that have implemented the standard.95

UK sector’s efforts in ‘flying the flag’ in global markets

The general perception from within the UK sector is that there is no single point of contact for coordination of the sector’s efforts for ‘flying the flag’ in the global markets that offer excellent business opportunities for sports marketing and consultancy services.

By default this role has fallen to UK Trade & Industry with its trade missions to selected high growth opportunity territories.

Whilst this is warmly welcomed by those who have taken part in such trade missions, the general feeling is that more should be done if the ambition of creating a strong economic legacy from the

94 ISO 20121 is a management system standard that has been designed to help organisations in the events industry improve the sustainability of their event-related activities, products and services. ISO 20121 is based on the earlier British Standard BS 8901 (Specification for a Sustainability Management System for Events) which was first developed in 2007. In simple terms, ISO 20121 describes the building blocks of a management system that will help any event-related organisation to continue to be financially successful, become more socially responsible and reduce its environmental footprint. ISO 20121 applies to all types and sizes of organisation involved in the events industry – from caterers, lighting and sound engineers, security companies, stage builders and venues to independent event organisers and corporate and public sector event teams. Organisations that successfully implement the standard will be able to seek independent recognition of their achievement through a process called ‘Certification’ 95 Fiona Pelham, MD of Sustainable Events chaired the working group that created the ISO 20121 standard. The Manchester-based company is working with sports rights holders such as Manchester United as well as brand owners such as Coca-Cola. “There are already signs that funding, such as sponsorship, is increasingly being tied to sustainability potential and we are rapidly reaching the point where sponsors like Coca Cola, for whom sustainability is key to its brand will only sponsor an event that has sustainability tied in with it,” says Pelham

London 2012 Olympic Games is to be realised and that a better use of resources should be made in helping the sector achieve the potential for future growth as demonstrated by this Report.96

A key issue is that the vast majority of the UK sector is small-medium size sports marketing and consultancy firms that lack resources to be able to market themselves around the world where it is important to have a presence in a local market outside of the occasional trade mission into that territory. 97 Whilst the trade missions organised by UK Trade & Investment are highly useful, they are not in themselves sufficient in order to be able to attract and secure business.

Another factor that has only recently been resolved to the satisfaction of many London 2012 Olympic Games’ suppliers are the conditions under which a company is been permitted to be able to talk openly about its work.

The Supplier Recognition Scheme, administered by the British Olympic Association (BOA)98 is the first of its kind in Olympic history and enables suppliers to talk more openly about their involvement in the London 2012 Olympic Games.

On receipt of the free licence, eligible suppliers are able to promote their work at trade shows both in the UK and internationally, apply for industry awards for their involvement in the London 2012 Olympic Games and use their involvement in pitches and tender documentation when competing for international contracts.

Additionally, the licence will give businesses exclusive access to an Olympic Delivery Authority (ODA) image library of more than 4,000 copyright-free photographs.

In order to qualify for a licence, UK suppliers must satisfy the following criteria:

 to have supplied goods or services directly to LOCOG or the ODA pre-31st December 2012; or  to have provided goods or services to a LOCOG or ODA supplier pre-31st December 2012.

The business should have been subject to supply agreements which included “No Marketing Rights” clauses as it is these clauses which the licence specifically relaxes.

Despite the relaxation of the promotional and marketing activities that can be undertaken by those suppliers that can fall within the terms and conditions for applying for a licence, there is a long list of goods and services where the Supplier Recognition Scheme does not apply so as to protect the exclusive worldwide marketing rights (including the UK) of The Olympic Partners (TOP sponsors).

This includes the following categories goods and services:

 non-alcoholic beverages (including tea, coffee and packaged water) and beverage bases;  computer equipment (including desktop computers, servers and computer ancillaries);  information technology services and solutions, including IT consulting and managed services;  chemicals, raw materials and compounds used in the manufacture of products in the following categories of application: agriculture, food, automotive, transportation, building and construction, electronics and appliances, fibre, textiles, footwear, health and medical,

96 See the Executive summary and recommendations in this Report 97 “I’ve met quite a few people who do and they are very successful, have quite a few good contacts and they can establish a good international clientele. But on the whole, it’s very mixed in terms of the UK marketing agencies that are able to do this,” observes Simon Rines, publisher of Sponsorship Today 98 The scheme runs from 31 January 2013 - 31 December 2015

packaging and films, and paints and coatings. This category also excludes certain end products used within these specific applications;  selected industrial and commercial equipment and systems, including: energy generation and distribution systems, oil and gas equipment, kitchen and other home appliances or “white goods”, commercial, residential and industrial lighting fixtures and systems, water treatment facilities and systems, medical equipment;  retail food (including fast food) and food service operations;  watches, time pieces and timing and scoring systems;  audio, video and audio-visual equipment, recording devices, navigation equipment and cameras;  beauty and grooming products, health and well-being products, household care products and domestic computer batteries;  wireless communications equipment (including mobile phones, phone accessories, smartphones, two-way radios); and  consumer and commercial payment systems and credit/debit/prepaid cards.

In addition, suppliers within the following proscribed categories of goods and services are also automatically excluded from obtaining such a licence:  businesses that supplied products and services to Olympic sponsors, National Olympic Committees and National Paralympic Committees;  businesses whose supply to the London 2012 Olympic Games is deemed to be incidental (e.g. supply of photocopy paper to an ODA Tier 1 supplier, or the supply of grout to floor tiling in the Olympic Village). It will be for the BOA to determine at its sole discretion whether the supply was incidental based on contractual and other information provided by the suppliers through the application process; and  businesses that failed to deliver against their objectives or where legal action has been or is being taken against them by either LOCOG or the ODA or a Tier 1 supplier.

It is too early to assess whether these licence conditions are creating a barrier for suppliers from promoting their expertise, experience and capabilities in global markets, so no conclusions as to the neutral or negative effects that such conditions are having can be drawn at this stage.

However where suppliers are able to obtain a licence permitting such promotion, it is important that they are able to measurably demonstrate how they delivered quantifiable results.99

There is a knowledge and education gap that needs to be bridged if the UK sector is going to be successful in its marketing and promotional efforts in global markets.

99 “I haven’t seen any good research which really demonstrates did the corporates get what they wanted? I haven’t seen any good research to say how good the marketing was. There doesn’t seem to be much of that sort of objective evaluation,” observes Julie Clark, UK Head of Sports & Leisure Practice, PwC

Section 1.5: Main growth drivers for the UK sector over next decade

Over the next decade, the UK sports marketing and consultancy sector will continue to grow at a compound annual growth rate (CAGR) of 7% and by 2022 will have become a GBP1bn sector.100

Number of major sports events across the world over this period

This Report has identified 55 major global sports events taking place over the next decade that provide business opportunities for the UK sports marketing and consultancy sector that cumulatively are worth GBP5.9bn in value.

 Western and Northern Europe will host 33% of the major sports events awarded to date;  Asia will host 21% of the major events awarded to date;  Central, Eastern and Southern Europe will host 20% of the major events awarded to date;  North and South America will each host 7% of the major events awarded to date;  Oceania will host 6% of the major events awarded to date;  Middle East will host 4% of the major events awarded to date; and  Africa will host 1% of the major events awarded to date.

Breakdown in terms of incremental new business opportunities for UK sector (2013-2022)

 Middle East with estimated spend of GBP1.6bn  Central, Eastern and Northern Europe with estimated spend of GBP1.4bn  South America with estimated spend of GBP1.2bn  Western and Northern Europe with estimated spend of GBP634m101  Asia with estimated spend of GBP617m  North America with estimated spend of GBP234m  Oceania with estimated spend of GBP121m  Africa with estimated spend of GBP8.1m.

Operational and infrastructure budgets in Qatar, Russia, Brazil, South Korea and France over this period102

This Report estimates that Qatar, Russia, Brazil, South Korea and France collectively represent GBP5bn in incremental revenues for the UK sector or 84.7% of all budgets available to be spent on sports marketing and consultancy services over the next decade.

100 The forecast is based on past performance, outlook for the sector, growth in global sport market, goodwill created by the London 2012 Olympic Games, further professionalism of the sector, developing nations demand for sports marketing and consultancy services, increased shift to sponsor-funded events and the digital content opportunities. The percentage growth assumption represents a blended rate to factor that even-number years (such as 2014) will see greater growth due to the “big ticket” events whilst odd number years (such as 2013) will see slower growth 101 Excluding UK 102 More detailed information on a country by country basis is found in Section 2 of the Report 103 Three cities have made a bid: Istanbul, Tokyo and Madrid. The International Olympic Committee will elect the host city on 7 September 2013 at the125th IOC Session in Buenos Aires, Argentina

Emerging economies desire for higher profile on the world stage through sport and entertainment

Many countries in the developing world use sport as a catalyst for mega-inward investment and tourism. For example, the FIFA World Cup Qatar 2022 is part of a much bigger strategic plan laid out in the ‘Qatar National Vision 2030’ that aims to put the country on the global map.105

Sport is also a catalyst for change at a political level and good example of this is Baku, Azerbaijan that will be the inaugural host of the 2015 European Games.106

Attraction of sports sponsorship as a global brand marketing, communication and sales platform for brand owners

Global brand owners are increasingly looking to capture new customers in emerging markets such as India, China and Russia as a result of commoditisation and over-supply in their own domestic markets that have become saturated with goods and services. With this in mind, sports sponsorship offers a unique passion and entertainment platform for brand owners to build deeper bonds with customer segments in less saturated markets.

According to research by PwC107, the sponsorship stream of income into the global sports market is estimated to grow at an impressive 5.3% compound annual growth rate (CAGR) and is set to overtake gate revenues, media rights and licensed merchandise as the biggest revenue component for sports rights holders.108

The vast majority of clients of the UK sector tend to be global brand owners that have invested heavily in sports sponsorship and are UK-based. However, most small, medium and large sports marketing and consultancy firms expect that at least 50% of their business will come from overseas rights holders and brand owners over the next decade.109

104 Many cities are now exploring the possibility of bidding. The bidding calendar was announced by the IOC in October 2012, with the application deadline set on 14 November 2013. The host city will be elected on 31 July 2015 at the 127th IOC Session in Kuala Lumpur 105 “The investment in the FIFA World Cup 2022 is much more than hosting an event because the infrastructure investment associated with it is just enormous in comparison with a few stadiums they’re going to be putting up,” explains Julie Clark, UK Head of Sport & Leisure Practice, PwC 106 “They are bidding for everything that’s positioning Azerbaijan on the global map – not just because they want to be high profile but also they want to insure themselves against the potential risk of invasion or military wars with Russia or Armenia as well as trying to position Azerbaijan as a European country instead of as an Eastern country,” observes Simon Cummins, managing partner, international sports practice, Odgers Berndston 107 Changing the Game – Outlook for the Global Sports Market to 2015 (December 2011). Spending on sports sponsorship deals will be the fastest growing component of the sports market over the next 4 years. Revenues projected to increase from $119bn (2011) to $145bn (2015). According to Julie Clark, UK Head of Sports & Leisure Practice, PwC these figures now look conservative and will be reviewed upwards 108 According to Steve Madincea, Founder & CEO, PRISM, most global brand owners now devote anywhere between 10-50% of their marketing budgets to sports sponsorship. “That’s whether it’s Emirates Airlines, Unilever or anybody in between,” he says 109 Research of 163 sports marketing and consultancy firms for this Report showed that London was predominately the operating HQ, with mainland Europe and Asia as the main concentration of secondary office locations. Those that opened new offices recently did so in the Middle East followed by South America. Chris Sattherwaite, CEO, Chime predicts that in the future the company’s HQ could be located in Singapore and that the vast majority of its employees will be non-UK based. And IMG, the world’s largest sports marketing group, is planning to build bigger hubs for its business in the Middle East and Asia

Media rights, content creation and creativity are driving interest in sports sponsorship globally as brand owners work much harder in finding new ways to engage with increasingly distracted fans and consumers within a highly fragmented global media landscape.110

Spending on sports sponsorship has increased irrespective of the recessionary pressure in the UK economy and to some extent has weathered the instability of the global economy better than many other business sectors.

The increase in sports sponsorship growth is currently fuelling the UK sector where global and regional brand owners are increasingly turning to sport as a way to fulfil a number of their brand marketing and communication objectives.

In a fragmented media landscape, sports increasingly represents a hugely valuable marketing tool. Sponsorship is no longer a stand-alone service based on a ‘Chairman’s whim’ and instead has matured to become a key part of many global and regional brands’ marketing strategy.

The UK sports sector is well positioned to further embed the value of sports and ensure companies are making best use of the large investments being made globally within sports sponsorship. In turn, this is highly likely to expand the number of small-medium size sports marketing and consultancy services in the UK sector over the next decade given that barriers to market entry are low.111

Increasing global power of women consumers

At the World Economic Forum in Davos in February 2013, global business leaders agreed that investing in supporting women as customers, employees, leaders, future investors and partners is a key growth strategy for all business sectors given that women are already the most dynamic and fastest-growing economic force in the world today.

For example, in the USA women control or influence more than 80% cent of all purchasing decisions and globally they are responsible for GBP13 trillion in spending, a figure expected to rise to GBP18 trillion by 2014.

Women are redefining markets and creating growth by focusing their spending power on purchases such as food, healthcare, education, clothing, consumer durables and financial services. And women’s earning power is growing faster than men’s in the developing world, where their earned incomes have increased by 8.1% compared with men’s 5.8%.112

Increasingly, sports brand owners are investing in what has been termed the ‘gender dividend’. For example, adidas, Under Armour and Nike are all engaged in ramping up their efforts to attract

110 In turn, this is creating new opportunities for the UK sector. “Sponsors are seeking out people who worked on the London 2012 Olympic Games, who were successful and are looking for a demonstration from them of what they did and how it worked well,” observes Karen Earl, chairman of the European Sponsorship Association 111 More design, public relations, digital and advertising agencies are likely to enter the UK sector over the next 9 years. As sponsorship money continues to fuel the sports economy, sponsors are keen to contribute and get more from their sponsorship in terms of activation. This creates a gap between sponsors and rights holders where consultancies can bridge with their expertise and work as an enabler in this relationship 112 ‘The Gender Dividend – Making the business case for investing in women’ published by Deloitte (2011). See also http://www.deloitte.com/genderdividend

40 female consumers, building on the popularity of the London 2012 Olympic Games among this audience.

They are all making a concerted effort to create engaging content and experiences that are tailored to women from the outset, designed to reach girls in the environment they already inhabit online and provide them with increased opportunities to interact with their sports brands.

This is driving growth within the UK sports marketing and consultancy sector as brand owners like adidas and Nike increasingly use Twitter and other social media sites in order to achieve this level of engagement as well as encouraging women to advise one another in their athletic activities, whether they are part of a sports team or a tribe of friends.113

It is clear that the way in which brand owners in other sectors approach women should also reflect a wider reality and they are finally realising that women represent not just consumers but also shoppers for the rest of the family and consequently represent a far more lucrative segment than males from a volume perspective.

Importance of UK sector track record in the wake of the success of London 2012 Olympic Games

All the interviewees for this Report were unanimous in the view that the London 2012 Olympic and Paralympic Games was the most important showcase for the UK sector for a generation and hugely influential globally in establishing the credibility and reputation of the UK sector.

The challenge now – as well as the opportunity - is to leverage the global interest in the UK for sustaining the growth of the sector over the next decade and beyond.114

It is critical that relationships are built and developed with games organisers globally115 and particularly in the high growth opportunities presented by the Top 5 countries where the UK sector has the best chance of securing new business in the next decade.116

Another factor mentioned by several interviewees for this Report was that although in the UK we tend to work to very high standards, this desire needs to be shared with other games organisers and particularly those who are in less saturated markets and perhaps have limited practical experience in organising and delivering multi-sport events and as a result will be on a steep learning curve.117

113 For example, Nike’s new apparel products for women have been a great commercial success. "Our women's running business is incredibly strong and we are starting to scale that on a much faster pace," says Charles Denson, president of Nike Brand 114 Opportunities such as FIFA World Cup Rio 2014, the Winter Olympic and Paralympic Games Sochi 2014 and FIFA World Cup Russia 2018 are likely to be limited but there are many other global sports events that are still ‘active’ in terms of being new business opportunities for small-medium sized companies in the UK sector. See Section 2 115 Such as the Qatar Supreme Committee where there are already strong relationships in place with many of those interviewed for this Report 116 Research for this Report indicates these countries in order of priority are: Qatar, Russia, Brazil, South Korea and France. See Section 2.3 117 According to Nicholas Reynolds, director at Populous Activate, many clients approach them to be the architects of stadia for events such the Olympic Games and FIFA World Cups, but it is not the only service that the company provides. “We’ve done some recent pitches which are all about the space between the transport interchange and the stadium or arena and the touch points along that route. So it’s a huge value market but the application of the brand is pretty low tech in developing markets, which is why education is so important. Sports sponsorship in this regard plays a big role in re-defining the building and the financial value it can attract and the customer experience sits at the heart of this. But clients don’t always appreciate the event

One of the most important factors in staging major sports events that require significant infrastructure investment are the risk elements that need to be managed for such large projects and as a result a deep understanding of the procurement process is required.

Since January 2013, major sports events and sport business consultancy 4 global has been working closely with UK Trade & Investment (UKTI) through PA Consulting118 on a high profile research project to identify and progress major sport event procurement opportunities within Brazil, Qatar and Russia.

This research project has progressed from developing the conceptual contractual framework, relating to typical timelines and event service requirements, to placing major sport event experts in- situ over several months.

The aim has been to build relations and progress opportunities, while passing on 4 global’s planning expertise, operational knowledge and experience from each of the previous Olympic Games since Sydney 2000 to those at the decision-making end of organising committees and governmental bodies.

The scope of this research goes beyond event specific services and considers the wider infrastructure requirements of the countries and cities, procurement prerequisites and supply chain and consortia opportunities within the pipeline.

This provides UKTI and its business network with an invaluable and objective insight into the current market place across three continents, two FIFA World Cups, two Summer Olympic Games and one Winter Olympic Games, and a real-time perspective on when and how to engage the UK sector with upcoming major event contracts so that the opportunities for new business can be maximised.

Innovations within UK sector with respect to sustainability, transportation and logistics management

This is a new and growing area of importance in terms of helping to drive growth in the UK sector but nonetheless it is an important one.

For example, Sustainable Events, based in Manchester, were instrumental in helping to pilot the world’s first global Sustainability Management System for Events ISO 20121119 that was inspired by the London 2012 Olympic Games, involving an imaginative mix of workshops, training and consultancy support delivered by the company and a sister not-for-profit organisation120 that is now working closely with the events sector in the UK to ensure these standards are adopted for all events.

A key growth driver is to get games organisers around the world to recognise that sustainability is a reputational risk and that all global sports events should be delivered in a sustainable way. The ISO

planning components of the project and may simply focus on physical construction issues to the detriment of looking at the bigger picture, by which time it’s late in the day and they could have saved themselves fees had they built this into their thinking at an earlier stage of the process,” 118 UKTI’s contracted delivery partner 119 Fiona Pelham, managing director, Sustainable Events, chaired the committee that created the international standard at the International Standards Organisation in Geneva and currently works with sports rights holders including Manchester United FC and brand owners, including Coca-Cola that has been praised for implementing sustainable practices in its business 120 Positive Impact

20121 helps to raise the UK sector’s leadership in this area on the global stage and there has been strong interest from games organisers in adopting ISO 20121.121

It’s this level of ingenuity, creativity and commercial nous that has marked out the UK sports marketing and consultancy sector as being the best in the world.

The UK sector’s global leadership in football will strengthen over the next decade

The English Premier League continues to grow rapidly around the world, with 98% of all broadcast Premier League games now shown outside of the UK. As a result, the value of foreign TV rights is set to soar and alongside this sponsorship rights will continue on an upward trajectory.

In April 2013, Manchester United agreed a ground-breaking 8-year deal with American insurance company AON, worth over GBP15m a season, for the naming rights to the club’s Carrington training ground.

From 1 July 2013, the Carrington training ground will be known as the 'AON Training Complex' although the club have said that the naming rights to the stadium at Old Trafford would never be sold, largely because the fans would reject such a move that would commercialise the ‘Theatre of Dreams’ in a totally unacceptable way.

The sponsorship deal also includes AON branding on the team’s training kit, their annual summer tours and, for the first time, friendly matches.

AON also receives business to business (B2B) rights as principle partner of the Manchester United Business Network and corporate social responsibility (CSR) rights as sponsor of the Manchester United Foundation.

The deal highlights the commercial value of the club that recently signed a GBP357m, 7-year shirt sponsorship deal with US-car giant General Motors to have its Chevrolet brand on the team’s shirts from 2014 when the current shirt sponsorship agreement with AON expires.

Although Chevrolet is not a brand marketed by GM in the UK122, the sponsorship deal clearly demonstrates the power of the Manchester United brand in Asia where the car marque is sold and where the Premier League has its biggest TV audience.

Growth of the ‘entertainment economy’ is fuelling expansion of the UK sector

The convergence of sports and entertainment is gathering pace in an attempt to satisfy the next generation’s appetite for multi-channel and multi-entertainment experiences, both on-line and offline.123

As the digital landscape evolves, new opportunities and challenges emerge for the UK sports marketing and consultancy sector. The convergence of social media, mobile computing, analytics and the cloud is transforming the way all businesses operate and sports marketing and consultancy firms in the UK sector that adopt available technologies ‘to go digital’ will be better positioned to

121 This includes FIFA World Cup Rio 2014 as well as the Olympic Games Rio 2016 122 Vauxhall Motors is the brand marketed in the UK by General Motors 123 Sometimes referred to as ‘dual screening’ or ‘second screen’ where a sports fan may be watching the broadcast of a live Premier League game whilst at the same time interacting on social network sites on a smartphone or tablet

43 take advantage of the rapidly shifting opportunities and leap ahead of the competition in other markets.

New technologies are rapidly transforming the global sports sector as well as other sectors, such as traditional broadcasting, into the ‘entertainment economy’124.

For example, the speed at which smartphones and tablets have become the principle way that millions of people access the web and consume live action sport could not have been predicted even two years ago. 125

And these devices were not designed with this user experience in mind, which creates both an opportunity as well as a challenge for sports rights holders, their partners and sponsors who are constantly exploring new ways in which to gain deeper audience and fan engagement.

A ‘second-screen’ experience unlocks opportunities outside the control of right-holders that can be exploited by sponsors and very importantly it builds a strong opportunity for personal engagement with the user.126

TV viewing of a live sports match, race or event is now very much a communal experience to be enjoyed with friends in a pub, for example.

The second screen experience is much more personal and interactive. This can be achieved through a live companion app – offering the means of synchronous information consumption and an enhanced live-viewing experience. The second screen can also deliver deeper entertainment experience by relating the content to a broadcast or studio-based TV programme.127

In this way, the second screen experience complements the TV broadcast experience by providing what is missing and impossible on a standard TV broadcast.

For example, it can provide a richer context and greater information about a sports event, deeper data and statistics, alternative viewing angles and access to immediate video-on-demand content.

It can also act as a conversation platform with remote friends and the social ecosystem, while it also offers a contribution platform to end-users to enable their voice heard to be heard.

124 The transition from ‘real goods’ to ‘feel goods’ was accurately predicted a decade ago by Michael Wolf, former Head of Media and Entertainment Practice at Booz-Allen & Hamilton and founder of Activate Inc, a technology and strategy consulting firm based in New York, USA 125 The average British internet user spends 37 hours a month on the web and is increasingly likely to go online on mobile devices according to a new study, 2013 Digital Future in Focus, published by comScore. Researchers estimate that almost a third of page views were found to come from non-PC devices where the shift is away from consuming content on PCs and on smartphones and tablets that now drive one third of all internet usage in the UK 126 “It’s not about the rights you are buying from a property owner like the IAAF or UEFA. It’s about the ability to take the idea, understand in a profound way the fans’ unmet needs that they don’t even know they have and then bring your brand to them in a way that engages, surprises and connects with them,” advises Lesa Ukman, co-founder and Chief Insights Officer, IEG 127 Often referred to as synchronous engagement, it is sport and entertainment content built for a specific TV programme. Through the broadcast, the studio interacts directly with these mobile devices and social media interaction is a key aspect of the user experience. “Fans browsing on their phones in many markets exceeds that from their PCs so you have got to get mobile right,” warns Lesa Ukman, co-founder and Chief Insights Officer, IEG

From the rights holder’s perspective, it is an alternative channel that can generate additional advertising revenues, both in the form of delivering ads as well as sponsor activation, with one huge advantage compared to the first screen: through second-screen brand owners can target individual users as they know who they are. Monetisation can also come from affiliated m-commerce partners.

The second screen can also be used as a strong engagement engine to generate loyalty, while it can be used as a sophisticated audience metrics platform, something traditional TV has struggled with achieving for years.

Many brand owners in sport now view the second screen and social viewing as an essential part of integrated sports coverage and a bridge that keeps the audience with the brand owner between comprehensive pre-game and post-game news and studio analysis.

There are various technological advancements that could further disrupt and offer opportunities to the UK sector including:

 tablet devices that can become a true remote control, connected with the set-top box, providing an implicit synchronisation and audience metric system;  a software app that allows tablets to stream video to the TV while providing a connected second-screen experience;  connected TV sets that will become the screens of the future and at the same time be an open app platform; and the  second screen has already started to become feature in-stadia in order to add value by enhancing the fan’s sport and entertainment experience  electronic and virtual perimeter advertising. The UK has several companies such as Supponor, which specialise in providing equipment and content for electronic and virtual perimeter boards. The impact of this technology is changing the very structure of sports marketing, sponsorship packaging and how perimeter boards are used and marketed. Global brands can deliver different messages in different markets, local brands can acquire rights only to the markets where they distribute, brands that are not allowed in stadia for legal reasons (i.e. alcohol in France) can advertise in French events while respecting local laws etc.

Figure 1.5: Main growth drivers for UK sector over the next 9 years The increasing power of women consumers Top 3 incremental new business opportunities for the UK sector over the next 9 years trillion Women’s expected Middle East global spending £1.6bn responsibility by 2014

Central, Eastern & Developing world Southern Europe Women’s incomes 2.3% £1.4bn increased more than mens

South America Purchasing decisions £1.2bn controlled or inﬂuenced 80% by USA women

Major sports events across the world over the next 9 years ANNUAL Western & GROWTH 33% Northern Europe RATE 21% Asia Central, Eastern & 20% Southern Europe 7% North America 7% 7% South America 5- Oceania 6% The average for Middle East UK sports & 4% marketing sector 2013-2022 1% Africa Section 1.6: Estimated level of turnover of the UK sports marketing and consultancy sector over last five years and projected growth to 2022

Research for this Report indicates that getting an accurate or robust figure for the value of the UK sector is extremely difficult for a number of reasons:

 many of the 163 businesses analysed for this report were small-medium size with a turnover less than GBP10m and many companies registered at Companies House were too small under UK company law to be required to provide detailed turnover figures;128  many businesses provide services to other business sectors, not just sports marketing and consultancy services, but do not necessarily account for separate sports-related income streams in their accounts;129  the sports sponsorship industry is only one input in terms of the total estimated turnover of the UK sports marketing and consultancy services sector130; and  other research studies provide a useful but nevertheless limited view of the UK sports market.131

Table 1.6.1: Compound Annual Growth Rate of the UK sector* (2013-2022)

Taking all factors into account, the UK sports marketing and consultancy sector is conservatively estimated to be worth GBP500-GBP750m per annum, with a compound average growth rate (CAGR) of 7% cent over the next decade that will see the UK sector value grow to over GBP1bn.

This positive forecast is based on a number of factors including:

 past performance of the UK sector;  outlook for the UK sector;  growth in the global sports market;  value of goodwill generated by the London 2012 Olympic Games;  further professionalization of the UK sector;  developing nations demand for the sports marketing and consulting services;  an increased shift to sponsor-funded events; and  the explosion in digital content creating new sports and entertainment opportunities.

128 See Appendix 1.1 129 For example, this would apply to architects, lawyers, accountants, catering equipment, engineering and logistics management companies 130 IEG forecasts (April 2013) a global growth in sponsorship of 4.2% but a European growth rate of 2.8% compared with 4.7% in 2012 131 PwC’s Report ‘Changing the Game – Outlook for the global sports market to 2015’(December 2011) does an excellent job in predicting the growth of the sports market insofar as it applies to gate revenues, sponsorship, media rights and merchandising but does not include revenues from sports market research or fees generated by infrastructure, engineering and architect firms involved in the design and build of sports venues and stadia which tends to be the ‘big ticket’ expenditure around the world with respect to one-off global sports events delivered by games organisers in host cities

From the sample of 163 companies analysed, 75% offer a pure sports and entertainment service whereas 25% deliver sports services as part of their overall offerings. Currently there is no standard industry code (SIC) for the sector.

Historically, the more narrowly defined UK sports marketing sector has been growing by about 7% per annum over the past 5 years132 but this growth varies year-on-year as a result of the cyclical nature of revenues in the global sports sector where big ticket events such as an Olympic Games or a FIFA World Cup tend to fall in even-years and smaller ticket events tend to fall in odd-years.

The percentage growth assumption represents a blended rate to factor in that certain years, for example 2014 and 2016 will register bigger growth due to the “big ticket” events in even-number years, whilst odd-number years will see slower growth, although some sports governing bodies, such as the Rugby League International Federation133 and the ICC134 have learnt that they need to be big in odd number years in order to even out the boom and bust cycle that tends to affect the revenues of sports governing bodies across the world.

The indications are that an increase in sponsorship growth on the back of the London 2012 Olympic Games is helping to fuel growth in the UK sector where global and regional brand owners are increasingly turning to sport and entertainment as a way to fulfil brand marketing, sales and communications objectivities.135

A review of annual reports, analyst reports and investor relation presentations for the larger listed/quoted entities reviewed in the sports marketing sector reflected very upbeat future trading outlooks.

Where sports’ marketing was not the only service offering (such as within WPP) it frequently made the key financial headlines in the report to shareholders. Chime Communications anticipate an annual 7% growth in the sector and this in line with analyst expectations.

Buoyed by the outlook of the UK sector, many companies are on the acquisitive trail and the UK sector industry has seen a high level of merger and acquisition activity over the last 3 years.136

The primary motive of this activity has been to rapidly build scale and resource so that companies can provide their global client base a ‘full service’ sports marketing offering.

This activity is expected to continue and potentially accelerate in the near future given the positive outlook for the UK sector and increasingly the global spread of sports marketing and consultancy services opportunities in emerging economies.137

132 Research by PwC puts this figure at 3.8%, although according to Julie Clark, UK Head of Sports & Leisure Practice, PwC this figure is likely to be revised 133 The Rugby League World Cup in UK and Ireland takes place in 2013 134 The ICC Cricket World Cup in Australia and New Zealand takes place in 2015 135 “We bought Fast Track from Alan Pascoe and Edward Leask not knowing that sport would become one of the really dominant disciplines in marketing in the world today,” says Chris Satterthwaite, CEO, Chime Communications, owners of CSM Sports and Entertainment 136 Chris Satterthwaite, CEO, Chime Communications warns: “The problem with buying a social media agency is that you don’t learn how to do this stuff yourself and end up becoming dependent on them. Cracks in the relationship start to appear when resentment starts to build as agency fees gets re-directed to the social media agency and eventually there’s a falling out and the relationship ends in disaster, which is one reason why uniquely we’ve never bought a social media agency and prefer to grow our own team in-house” 137 See Section 2.1

Section 1.7: Macro-economic factors

UK economy

The UK economy was stronger in the first quarter of 2013 than in the final three months of 2012 when it contracted by 0.3%, reversing the strong rebound to 1% growth in the third quarter that was boosted by the London 2012 Olympic Games.138

Gross Domestic Product (GDP) growth in the UK economy is expected to be around 1% in 2013 and rising to around 2% in 2014. This is based on the assumption that there is a gradual revival in the global economy and that there is no unexpected turbulence that blows the Eurozone economies off course in the next 24 months.139

The outlook is that the road to recovery will be slow and bumpy but the signs are that the UK economy will gradually return to growth in 2013-14.

In the current scenario, it is important that the UK economy continues to attract more inward investment from the BRICs and other high growth markets.140 And there are encouraging signs that this is starting to happen.

For example, the UK sports marketing and consultancy sector has been successful in securing contracts in Brazil, Russia, India and China ahead of global sports events such as the FIFA World Cup Rio 2014141, FIFA World Cup Russia 2018142, ICC World Twenty20 India 2016143 and the IAAF World (Outdoor) Athletics Championships China 2015.144

Much of this success can be attributed to the ‘host nation effect’.145 Research carried out by Oxford Economics shows that the London 2012 Olympic Games will help to generate an estimated GBP16.5 billion impact over a 12-year period and create a legacy whereby the UK economy will benefit by GBP4.95 billion over the next 5 years.146

Although most analysts expect the UK economy not to have emerged from its fragile state before 2014, there is optimism that the underlying growth in the UK economy will come from business and

138 “London 2012 is the most important sporting event the UK has ever staged. However, it is also impacting our economy in a way that cannot be ignored. We’ve witnessed a construction project on an unprecedented scale, the economic ripples of which are being felt not only in the host city but across the UK. London 2012 will help support employment, tourism, consumer spending and living standards…for many years to come,” observes Patrick Foley, chief economist of Lloyds Banking Group 139 ‘UK Economic Outlook’ published by PwC (March 2013) 140 Foreign Direct Investment (FDI) has historically been dominated by the advanced economies but the period since 2000 has seen a significant rise in the FDI arising from emerging economies. In 2011, emerging economies contributed around 10% of total global outward FDI flows, up from less than 1% in 2000. A major opportunity for the UK lies in attracting further investments from fast growing economies like Russia, Mexico, South Africa, Middle East, India and China, according to PwC’s ‘UK Economic Outlook’ (March 2013) 141 See Appendix 2.16 142 See Appendix 2.11 143 See Appendix 2.20 144 See Appendix 2.19 145 See Section 1.4 146 ‘The Economic Impact of the London 2012 Olympic & Paralympic Games’ published by Oxford Economics and commissioned by Lloyds Banking Group (July 2012)

49 professional services of which sports marketing and consultancy firms147 are a growing and vibrant part of the business and professional services sector.148

Despite the subdued prospects for growth in real earnings and the drag factor caused by a high level of household debt in the UK economy, analysts predict that consumer spending will start to slowly pick up in 2013/14149 and expect to see real GDP growth for 2015-19 increase to 2.4%.150

This increase in economic activity will help fuel demand from sports governing bodies, sports rights holders and brand owners that will continue to invest in the UK sports marketing and consultancy services sector in order to ride the wave of an upturn in the UK economy when that time arrives.

The increased use of digital channels, the ever-changing nature of consumer behaviour and the globalisation of the world economy is rapidly changing the face of sport and entertainment and in doing so is creating growth opportunities for the UK sports marketing and consultancy sector.

In addition, global sports events on British soil including the Rugby League World Cup 2013 and the Commonwealth Games 2014 will continue the momentum of interest in sport as well as inspire the world in what the UK’s sports marketing and consultancy services sector has to offer; building on the legacy of the London 2012 Olympic Games that established the UK as one of the world’s great sporting nations.

Global economy

Since the financial meltdown down in 2008, the global economy has struggled to get on its feet and recover from the blow.

Across the globe, governments face a difficult balancing act as developing economies must institute enough fiscal austerity to limit current and future deficits but not so much as to stifle growth. And at the same time, developing economies face the dilemma of administering sufficient stimulus to sustain much needed growth but not so much as to stoke inflation. In the case of either austerity or stimulus, the outcome depends on the proscribed amount.151

In 2012, global economic growth in developed economies weakened further and a growing number fell into a double dip recession, caught in a downward spiral of high unemployment, weak consumer demand compounded by fiscal austerity, high public debt burdens and financial sector fragility.

Growth in major developing countries and transition economies also decelerated but avoided slipping into recession. However, the weakening of growth in those economies reflected external vulnerabilities as well as domestic challenges.

147 Currently there is no Standard Industry Code (SIC) for the UK sector and this should be considered given the importance of sports marketing and consultancy services to the UK economy. See Executive Summary & Recommendations 148 A good example of a bright future is Chime’s CSM Division. From a standing start in 2007, its sports and entertainment operating income growth increased by 35% to the year ended 31 December 2012 to £157.5m, with pre-tax profits of £25.3m, up 70%, recording an earnings per share (EPS) growth of 66%, making CSM the UK’s no.1 sports marketing agency and a global Top 5 in the sector 149 A moderation in inflation in late 2013 and through 2014 could reduce the squeeze on household real incomes and spending, although risks to inflation remain weighted to the upside 150 Global economy watch projections (April 2013) published by PwC. See http://www.pwc.co.uk/economic- services/global-economy-watch/gew-projections.jhtml 151 German-Swiss Renaissance physician Paracelsus, who founded the discipline of toxicology in the 15th Century, once remarked “The right dose differentiates a poison and a remedy”

Any notion of decoupling the fortunes of the developing economies from the developed ones is fanciful as what happens in Europe and the USA will affect China, Asia, Africa and other developing economies.152

That said, developing economies are still the main driver of global growth and are expected to grow at more than 5.5% in 2013-14153 while the economies in the Eurozone are also predicted to show a gradual recovery through the remainder of 2013 and with the outlook further improving in 2014.154

Taken together, conditions are favourable for the expansion of investment in sports marketing and consultancy services particularly in those developing countries where the ambition is to have a place on the global sports stage as part of a wider plan to attract more inward investment and tourism in those economies.

Table 1.7.1: Global economic prospects of selected global economies (2013-14)

Country Share of GDP growth GDP growth Consumer Consumer world GDP 2013 2014 price inflation price inflation (%) (%) 2013 (%) 2014

UK 3.5 1.1 2.1 2.8 2.4

Ireland 0.3 0.8 2.0 0.7 1.1

Spain 2.1 (1.1) 0.4 2.6 1.8

France 4.0 0.2 1.1 1.4 1.6

Italy 3.2 (1.2) 0.5 1.9 1.8

Germany 5.1 0.4 1.6 1.6 1.9

Netherlands 1.2 (0.5) 1.0 2.4 2.0

Poland 0.7 1.9 2.6 2.9 3.1

Russia 2.7 3.8 4.1 5.7 6.1

Turkey 1.1 3.9 3.9 7.1 5.5

Saudi Arabia 0.8 4.0 3.9 4.7 4.2

Canada 2.5 1.9 2.4 1.8 2.0

152 World Economic Forum, Davos (January 2013) 153 This is a 2% lower growth rate than at pre-crisis levels in 2008 154 ‘Outlook for the global economy’ published by PwC (March 2013)

USA 21.7 2.0 2.8 1.9 2.2

Argentina 0.6 3.0 2.5 11.0 11.1

Brazil 3.6 3.0 3.9 5.7 5.8

Mexico 1.7 3.6 4.0 3.6 3.5

South Africa 0.6 2.9 4.0 5.3 5.2

China 10.5 8.0 8.0 3.4 3.2

India 2.4 6.0 6.9 6.6 7.0

Japan 8.4 1.0 1.1 0.3 1.5

South Korea 1.6 2.9 3.2 2.3 2.8

Indonesia 1.2 6.1 6.2 5.1 5.2

Australia 2.1 2.5 3.0 2.9 2.8

Source: Latest PwC main scenario for 2013-14; IMF for GDP shares in 2012 at market exchange rates (2013)

Figure 1.7: Macro economic factors

Share of GDP growth Consumer price inﬂation world GDP 2013 2014 2013 2014 3.5% 1.1% 2.1% 2.8% 2.4%

London 2012 Olympic Games will help the UK generate an estimated UK GROWTH EVENTS £16.5bn Cricket Football Athletics over the next

12years

ICC World FIFA IAAF World Twenty20 World Cup Athletics India 2016 Rio 2014 China 2015

Brazil, France, China and India

Country Share of GDP growth Consumer price inﬂation world GDP 2013 2014 2013 2014 3.6% 3.0% 3.9% 5.7% 5.8% 4.0% 0.2% 1.1% 1.4% 1.6%

10.5% 8.0% 8.0% 3.4% 3.2%

2.4% 6.0% 6.9% 6.6% 7.0% Section 1.8: Barriers to growth of UK sector155

The interviewees for this Report, drawn from across a broad spectrum of the UK sports marketing and consultancy sector were asked to identify key barriers for growth that could adversely affect the prospects of the sector in securing new business globally over the next decade.

The issues faced by those in the UK sector was largely dependent on the size of their operations and all that goes with being a small, medium or large sized business.

Barriers to growth for small UK sports marketing and consultancy firms

Finding the right partners to collaborate with156

A key barrier to growth for a small business in the UK sector is the ability to reach the appropriate partners in order to collaborate with them in a local market outside of the UK. A lot depends on developing local partnerships in order to open the possibility of new business opportunities.

Such issues can also impact the growth potential of a small business that relies on identifying suitably qualified local capability to carry out services in a market that requires a high level of technical expertise and experience.157

‘Localism’ or competing against the local advantage

Ironically, this is the flip side of the same coin in finding the right partners to collaborate with in a local market.

Localism loads the dice in favour of the local supplier, particularly in saturated markets where competition is intense and local suppliers have local knowledge that gives them a competitive edge over other suppliers.

Competition does not always come down to a question of value for money, which is one way to even out an uneven playing field, but often competition can turn on a single issue - price158 - and therefore make it uneconomical for a UK business to bid for such contracts. 159

155 See also Section 2.5 156 UK Trade & Investment provide guidance, help and support in this area 157 “One of our objectives is to train people around the world to deliver our unique content. We found that we weren’t able to reach people internationally which was a potential barrier for the growth of our business. This exacerbated a situation where we couldn’t get people to focus on the Sustainability Management System for Events (ISO 20121) with the result that some of these people may have started to think that sustainability isn’t important to them,” explains Fiona Pelham, managing director of Sustainability Events 158 This is particularly the case in European countries like Spain which is facing significant cuts in public spending, including sports infrastructure and investment 159 “There are an awful lot of events we don’t even target because we’re not going to be selected as it will be cheaper for them to do it locally. As far as we’re concerned, building a kitchen involves understanding engineering, equipment and performance issues that need to be managed in a certain way. However, we shouldn’t forget that any country around the world has kitchens in hotels, schools and hospitals. So if a sports event organiser makes the decision they are going to build and install their own kitchen, then that’s what they’ll do. The local supplier is always the ever present competition,” observes Peter Schad, commercial director, PKL

Presence in the local market is quite often another deciding factor, as it was at the London 2012 Olympic Games.160

Scarcity of resources

Smaller businesses often feel they are at a disadvantage in the marketplace for global work compared to the larger agencies because they find it challenging justifying the costs of exploratory visits to potential clients overseas.161

Many small businesses also need access to capital in order to manage their cash flows, particularly in tough economic conditions where invoices are often paid late by clients.

Yet the banks have been more than just risk averse in their appetite to lend to small business and have as yet to fully exploit the opportunities for increasing lending to small business as a result of the Government’s Funding for Lending Scheme (FLS).162

But scarcity of resources is not restricted to cash but also people and the difficulty in recruiting talent can also be a big drag factor for the growth of a small company.163

Legal frameworks in different countries

Contractual law and the protection of intellectual property rights and their enforcement coupled with taxation laws and regulations can be a significant burden for a small business when trying to do business outside of the European Union.164

160 About 98% of work on the London 2012 Olympic Games was awarded to UK-based companies and many other developed markets work the same way. UK Trade & Investment advice is that UK companies should either establish a local presence, enter in joint ventures or look at establishing a physical office in the local market depending on the products and services being sold 161 Such an argument is roundly rejected by Chris Satterthwaite, CEO, Chime Communications. “Absolute rubbish. If they’re entrepreneurs and they’ve got a good niche and they assess the risk, they can fly premium economy and compete with anybody! That’s the beauty of our industry. I really do believe the small companies have a natural competitor advantage against big companies in many ways, always. They’ve just got to be smart about that,” he says 162 The scheme, which began in August 2012, was designed to encourage banks to lend more money, both to individuals and businesses, and boost the economy. But the Bank of England announced (March 2013) that net lending fell by £2.4bn in the final quarter of 2012, compared with the previous three months. Business Secretary Vince Cable said: "It is working in some areas with some of the new banks but it isn't yet countering the very negative trend, the very conservative lending patterns that the banks in general are promoting in relation to business" 163 “The types of people we need to recruit are hard to find. We tend to shy away from the consulting model so we don’t tie the growth of the business to freelance support and in most cases we aim to negotiate a fixed price which allows us more flexibility in how we deploy people,” explains Eloy Mazon, managing director of 4 global who have joint ventures in Australia and Brazil and are undertaking a review about opening a wholly owned operation ahead of the FIFA World Cup Rio 2014 164 UK Trade & Investment has acknowledged this and assists small companies to navigate through the thicket of legal regulations that they face in doing business outside of the EU

The absence of an ‘intelligent buyer’

The best opportunities for new business are often found in developing economies as discussed in this Report. But more often than not such territories lack the maturity of more developed markets and it can be a struggle to find the right person to do business with.

Once that barrier has been removed, very often the decision-maker may lack the requisite knowledge and experience to specify their organisation’s requirements in precise terms in order to give the UK business any prospect of closing the sale.

Many small companies interviewed for this Report often find themselves doing business in the absence of an ‘intelligent buyer’ which itself can act as a ‘hidden’ barrier for growth.165

Competing against suppliers willing to work for no fee or heavily subsidised fee

For major one-off sports events sports, many larger companies are often prepared to provide products and services in return for promotional and hospitality rights rather than a fee.

Some sports governing bodies will also buy products and services that have been heavily discounted which effectively excludes smaller firms from competing for these high profile opportunities as they do not have the economic means to provide what is in effect a subsidy.

Increasingly, major services contracts at world-class sports events typically form part of main sponsorship deals with sponsors that are effectively paying for the right to be exclusive suppliers or service providers and/or undertaking value-in-kind deals that effectively shuts the door for any UK company from being considered.166

Barriers to growth for medium size UK sports marketing and consultancy firms

Size and strength of international competition

Where a UK business emerges from being a small, niche or specialist entity into a medium-size company it will often face stiff competition from more established players in that market segment.

165 This point is well illustrated by the experiences of Populous. “As an architectural business, we’ve moved the conversation from designing a stadium and how much this will cost to a conversation about how we design a building or branding solution that can generate this much revenue. In a mature market like the US, the need to convince someone that you need to spend £1m on a rebranding exercise is relative - it’s not so straightforward but large major corporations understand that. We pride ourselves on really understanding the users of a building and the behaviour of those who use that building. When it comes to dealing with smaller businesses, it’s a different story. For example, football clubs have enormous revenues but essentially they’re small businesses. There’s an assumption that there’s a depth of management and in many cases, this really isn’t the case,” observes Nicholas Reynolds, director at Populous 166 The converse situation is not always true, even where there is an apparent ‘home advantage’ as Jeremy Summers, partner, Pitmans SK Sport & Entertainment LLP explains. “I tried various times to make contact with people within the London bid committee and then Locog. Obviously I can’t afford to work for free, unlike the big legal firms who can, so you’re effectively frozen out. In fact, I was brought in to help with various things and I’d solved a lot of problems with relation to commercial sponsorship issues. I put myself forward and said could I tender for the sponsorship work and I was laughed at”

In such instances, the business needs to be positioned as a ‘challenger brand’ in order to be able to differentiate itself from the pack and be able to compete.167

Educating clients to consider operational issues that much earlier in planning process

A recurring theme in the research for this Report is the issue of education and raising the game of global sports events organisers in understanding what they need to do and how they should think about achieving it that is built on the solid track record and experience of the UK sports marketing and consultancy services sector.168

Working with time constraints

Small-medium size businesses may often lack the human resources of a larger competitor and therefore may struggle to find time to identify potential new projects, particularly in markets where they have no local partners. They are often too busy as well to promote themselves to potential new clients or build vital relationships with local organising committees and sports federations that could be a valuable source of new contracts in the future. In this way, working with time constraints can be another drag on the growth of a business.

Fragmentation of the UK sector can hinder business development

A major supplier based in the UK, who is currently tendering for contracts at several global sports events, described the UK sector as “chaotic and unstructured” and believes that the fragmentation within the sector is hindering business development in other markets.169

Barriers to growth for large UK sports marketing and consultancy firms

Lack of major sports events being hosted in the UK

For the UK to continue to have credibility in the global sports sector it will need to continue to attract global sports events as a showcase for its global expertise and experience around the world in the wake of London 2012 Olympic Games.170

167 Temporary seating and overlay structure company Arena is a good example of this point and faces stiff competition for contracts for other global events against bigger players from France, Holland and Germany. “The beach volleyball court on Horse Guards Parade for the London 2012 Olympic Games has been a great calling card internationally for the company,” remarks Matthew Wheeler, managing partner at Sports Investment Partners (SIP) 168 “My experience of the London 2012 Olympic Games demonstrated that most organisations put the operational aspects of running their venues quite low down their strategic list of important things. They tend to be obsessed with raising money, obsessed about PR, about getting support for the project and just attracting political support everywhere. They think the operation bit ends up way down the line. Our challenge is to try and change that mind-set. We’ve got to try and get those people who are building new facilities around the world to understand the value of bringing someone with our knowledge and expertise early on; and if we don’t manage to educate them then our business will really struggle,” says Jon Sellins, head of business development at Wembley Stadium Consultancy 169 “There are too many consultants, offering too many things to too many people who don’t really get what it is we are doing, because I’m not sure we all so know what we are offering.” The identity of the person has been kept confidential on request 170 A point made passionately by Chris Satterthwaite, CEO, Chime Communications: “Scale and experience is vitally important in this marketplace and risk management is probably the most important discipline that the UK sector can demonstrate leadership in. As a result, it’s vital we continue to attract and host major sports and entertainment events in the UK. We’ve got the Rubgy League World Cup 2013, the ITU Triathlon Championships Series 2013, the Commonwealth Games 2014, the IRB Rugby World Cup 2015 and the IAAF

Lack of integration when new businesses are merged or acquired

Large sports marketing networks, such as IMG, CSM Sports and Entertainment and Octagon have increased their global footprint through a mix of organic growth and acquisition of smaller agencies in the market.

However, in order to avoid fractures occurring within these enlarged groups, there needs to be a genuine integration of these businesses.

Need to keep ‘feet on the street’

A key issue for these large companies is to ensure they have a tight handle on what is happening at a local level in sports markets outside of the UK.171

Hidden ‘closed shop’ and other activities in regional markets

So called ‘closed shop’ activities are known to operate in some regional markets that are hard to identify and prove but nonetheless dramatically inhibit the ability of the UK sector to fairly compete and win contracts in that territory.172

Changing nature of the sector

Globalisation, technology and the tectonic shifts in the purchasing behaviour of customers, clients, prospects, supporters and fans has forced brand owners to have a radical re-think about their current marketing and communication strategies and programmes.

Unless the large agency networks can step up to the plate and assist global clients to navigate through the changing nature of the sector, then this will present a major barrier for growth in the future.173

Taxation of profits earned outside the UK

Some of those interviewed for the Report felt that the taxation of profits was a particularly difficult problem that requires some form of intra-Government solution as the way local taxes are applied to invoices rendered by UK companies in other jurisdictions can adversely affect competitiveness as well as impact the bottom line profitability of those contracts.174

World Athletics Championships 2017 coming here, which is all incredibly important for our reputation as one of the world’s leading sporting nations” 171 “If we want to grow internationally, we have to have very credible and strong local operations populated by very strong and credible local teams that understand the nuances of these local markets,” adds Andy Westfield, CEO, Fast Track 172 “Off the record, Russia is a little bit of a problem area for me. I don’t think I would want a client doing something there right now. I hear too many horrible things about everything that happens with doing sports in Russia.” The identity of the person making this comment has been withheld on request 173 “Sponsorship without social media and mobile probably wouldn’t be growing anymore in any market. The fact is that there are less and less parts of the world where consumers believe the words ‘sponsored by’ actually means anything. The challenge for brand owners is to take those sponsorship rights and deliver experiences to people they never thought possible,” observes Lesa Ukman, co-founder and Chief Insights Officer, IEG 174 For example, sports marketing and consultancy services firms working in Brazil are finding that invoices rendered for work carried out for FIFA World Cup Rio 2014 incur between 20-27% of local taxes before the

So that’s a huge chunk of your invoice and then obviously you've got to pay tax here on whatever profit you’ve got left.

So that makes you uncompetitive unless it’s a very specialist service where you can charge a significant premium on the rates.

UK taxation and cost of living

The issue of attracting talent to the UK sector is important in terms of the future growth and prosperity of the UK sector. However, there is evidence that senior leadership candidates considered for posts within the UK sector are sometimes put off choosing to live and work in the UK because of the comparative level of taxation and standard of living compared with other opportunities in developing economies, such as Qatar.175

profits are repatriated to the UK, where they are also subject to further taxation which can deeply affect the profitability of these contracts. Simply adding an additional amount to cover local taxes will have the effect of making the UK business uncompetitive in comparison with local suppliers unless it is a specialist service where there can be a significant uplift on the rates charged 175 “Somebody sitting in Switzerland deciding where their next career move will be may have two job offers on the table – London and Qatar. There’s a huge upside financially to move to a country where the executive has to pay less tax and where the cost of living is a lot cheaper. The Government needs to be very careful not to increase the deterrent for talent to work in the UK,” warns Simon Cummins, managing partner, managing partner, international sports practice, Odgers Berndston

Section 1.9: Employment prospects within UK sector

All those interviewed for this Report are pursuing ambitious growth plans and looking to increase the head count of permanent staff and freelance support for their businesses over the next decade.

Fragmentation in the UK sector is not having a drag effect on the retention or recruitment of people to work within sports marketing and consultancy services but in fact is creating new opportunities for employment as these businesses grow organically and by acquisition.176

For example, sponsorship activation agency PRISM (part of WPP) recruited 28 people in Q1 2013 as a result of a steep increase in new business across all its market segments.

When considering the pipeline of prospective opportunities over the next decade, all those interviewed felt very confident that they stood an excellent chance of converting at least 50% of these opportunities with the effect that these would double if not treble the size of their business by 2022.

Growth of the global sports and entertainment business is the tipping point for improved employment prospects within the UK sector, from graduates177 to board level appointments and everything else in between.

Some of the larger organisations within the UK sector tend to have their own in-house graduate training and apprenticeship programmes178 so that they can grow their future senior team from within the business as a way of controlling the quality of the service delivered for clients as well as overhead costs.

Other organisations pursue an acquisition strategy where this makes sense and where they need a significant capability in a particular area, such as social media and mobile which cannot be achieved in the timescales through organic growth.179

And at the other end of the market, many senior business executives are now prepared to consider a career move to the sports marketing and consultancy services sector where before this would not have been considered an option.180

The roll-call of high profile business executives crossing over to the world of sport include Paul Deighton, former Goldman Sachs COO who joined Locog as its CEO and has recently joined the board of England Rugby World Cup 2015; Michael Bolingbroke, former COO of Cirque de Soleil who joined Manchester United FC as its COO in 2007; Keith Bradshaw, former partner with Deloitte in Australia

176 At the time of writing, Fast Track is seeking a Business Development Manager and a Producer/Editor for its content production 177 For example, PRISM have a pilot programme in the UK for taking on graduates, training them, and then sending them out to its offices all over the world in order to help expand the operation from 10 to 20 offices globally 178 For example, CSM Sports & Entertainment 179 “Earlier this year we acquired stakes in a number of media rights and data companies because the whole area of convergence of sports data along with the media rights is a fast moving business,” explains Rob Mason, managing director, IMG Consultants 180 “The sports sector has become so much more commercial and so much more global and so much more exciting and challenging as a business that very senior executives now treat the sector as a positive career move that opens horizons for future further enhanced promotion rather than a decade ago when it was seen as a cul-de-sac because it was an amateur business and a cottage industry,” observes Simon Cummins, managing partner, international sports practice, Odgers Berndston and the leading global head-hunter` in the sector

60 who was headhunted to be the CEO of the MCC and Ed Warner, formerly CEO of Old Mutual Financial Services UK and IFX Group plc who is now Chairman, UK Athletics.

As the UK sector increases in its professionalism across the board181, candidates for middle- management roles within sports marketing agencies and marketing services providers must demonstrate business as well as creative flair.

This can be summarised as:

 the ability to leverage the value of data and apply outcome thinking to solving problems for clients;  have experience in the use of online and social media, including the mobile platform182 as part of the sport and entertainment mix; and  be competent financial and project managers and able to understand how to manage risk exposure that global sports events projects tend to present.

Looking to the future, the shape of the workforce within the UK sector is likely to be very different at the end of decade, where there will be more regional hubs in developing markets such as Asia and a larger percentage of a non-UK based workforce for some of the large sports marketing and consultancy firms183.

181 “We have new channels to monetise rights in sports and entertainment as well as big data starting to really let us see what people care and are passionate about,” says Lesa Ukman, co-founder and Chief Insights Officer, IEG 182 “We are almost 18 months behind all the cutting edge stuff that’s already happening – the trend setting stuff that’s in the vanguard form social media activities. Some of our people are getting involved but it’s only at a tertiary level and it’s not as broad and deep as it could be. Over the next 9 years the digital social element could easily increase to 25-35% of a sponsorship activation programme,” says Steve Madincea, Founder and Group Managing Director, PRISM 183 CSM Sport & Entertainment predict that 50% of its workforce in the future will have English as a second language. “Every business plan I see, the growth is in the Middle East, Asia and Brazil, every single business plan,” observes Matthew Wheeler, managing partner, Sports Investment Partners

Section 1.10: Future developments in UK sector

UK sector is facing the future with confidence

All interviewees for this report expressed a high level of confidence in the future prospects of the UK sector in terms of growth for the next decade and beyond without many reservations, reflecting the robust nature of sports marketing and consultancy firms to have prospered in the face of strong competition and tough trading conditions.184

As advertising budgets around the world have shrunk, global brand owners are looking for better ways to connect with customers, clients, prospects, supporters and consumers and there is no better way to do that than to connect with something they are emotionally engaged with such as sport and entertainment.185

UK sector set to double in size over the next decade

Currently, the UK sports marketing and consultancy sector is conservatively estimated to be worth between GBP500-750m but over the next decade that is likely to have grown to be worth in excess of GBP1 billion.186

The growth of the UK sector continues to be dependent on one-off major sports events that offer the best new business opportunities for the vast majority of small-medium size companies.

Those with larger, more established businesses and longer trading histories are sanguine about the growth opportunities presented by mainland Europe with a few notable exceptions such as Russia, France and Turkey, where growth rates for sports marketing and consultancy services is much healthier than in the rest of Europe.

This view is largely held as a result of the economic turmoil that many European economies continue to face at least in the foreseeable future and is likely to result in a scaling back of investment in sport – as has happened in Spain.187

It is clear that sports marketing and consultancy firms must seek fresh opportunities around the world in order to build the legacy for the UK sector on the back of arguably the most successful Olympic Games in modern times.188

184 One reservation, expressed by Jon Sellins, Head of Business Development at Wembley Stadium and formerly Head of Venue Management for the London Organising Committee of the Olympic Games, is the fear that the UK sector may have peaked with the London 2012 Olympic Games. “It’s all about how we exploit the reputation that we gain from now. I think we’ve jot to be nimble on our feet as a sector and as individual businesses and get out there and exploit the opportunities for what they’re worth” 185 Karen Earl, chairman of the European Sponsorship Association adds: “Sport works, sport events work and sport works for this country in so many ways. It works for business, it works for consumers, it works for fans, it works for health issues, and it works for an alternative to the pressures of life. Sport is very important. I think everybody recognises that and it just works at all levels. And so I’m very positive about the future prospects for our sector” 186 See Section 1.1 187 See Appendix 2.2 188 “There’s every reason to feel that people should be positive. It should be remembered sport is a global industry and we are a nation of a lot of expertise in that industry and regardless of how the national economy is going, I do feel there are a lot of opportunities to export that expertise,” observes Simon Rines, publisher of Sponsorship Today

The focus of effort tends to be in emerging markets such as the Middle East and Asia where those territories have ambition and money to aspire to being a major player on the global sports stage and want to attract inward investment and tourism receipts in the future as a result of the investments they need to make today.

Another key driver in the future for growth of the UK sector will be the continuing evolution of technology delivering a sports and entertainment experience to fans globally. These new channels will create opportunities for sports rights holders and brand owners that are not yet available today and which will also need to be monetised.

UK sector like to see more fragmentation and consolidation over the next decade

According to Julie Clark, UK Head of Sports & Leisure Practice, PwC, although there will be more consolidation within the sector which has the effect of creating bigger sports marketing groups, at the same time there will also be more niche companies (5 employees or less) that will be more innovative and specialised and the UK sector will have room for both types of business.189

UK sector will require different types of skills and experience over the next decade

The skill sets of those working in the sponsorship sector in the next decade will need to be less sport specific and much more marketing and analytically focused, according to the vast majority of interviewees for this Report who manage large companies in the UK and USA.190

For example, expertise in channel management will be critically important coupled with data analytics and a deep understanding of social media and mobile channels of communication.

The intellectual property (IP) rights that need to be negotiated with the sports rights holder will look fundamentally different to those IP rights that many brand owners and sponsors purchased only two years ago as the sector will evolved rapidly over the course of the next decade so as to make some of these former IP rights redundant. 191

Off-line skills will also be important, particularly with respect to spectator an fan experience that is delivered at the stadium, venue or event where the brand owner, sponsor or partner will want to sprinkle its ‘magic dust’ over the sports and entertainment experience.192The power of the narrative will need to be strong to capture and hold an audience’s interest and simply sticking a logo on a shirt or affixed to the side of a stadium or venue may well be ‘screened out’ by a more media literate fan and consumer in the future. There is also a requirement for those working in sports marketing and consultancy firms to fully understand the differences between inputs, outputs and outcomes.193

189 See also Section 1.1 190 A view shared by Andy Westlake, CEO of Fast Track and Lesa Ukman, co-founder and Chief Insights Officer, IEG in Chicago, USA 191 “There’s likely to be an emphasis on different media, a greater knowledge of how they can help rights holders and they’ll be working more for rights holders proportionately. Hopefully, it will also mean they’ll be working for smaller clients- sponsors and rights holders – they’ll understand the value of sports marketing but also the entry costs will be less,” predicts Simon Rines, publisher of Sponsorship Today 192 Karen Earl, chairman, European Sponsorship Association 193 “People are introducing new ways of measuring social media coverage and that sort of thing, but I still think we have the challenge of trying to find ways of measuring success of some of the corporate social responsibility (CSR) initiatives and the whole changing of cultural type initiatives. So I think there are still areas that need a bit more work,” says Julie Clark, UK Head of Sport and Leisure Practice at PwC

Appendix 1.1: Profile of the UK sector analysed for this Report

Figure 1: Company type analysed for this Report by number and turnover

In total, 163 businesses were analysed for this Report of which 85% (139 businesses) are privately owned, with 2% of the companies (3 194 PLC 2% businesses ) listed on the London Stock Exchange and the remainder 13% (21 businesses) are limited liability partnerships.195 Privately owned 85% Year of formation

From the sample analysed, it is clear that the UK sector is a young LLP 13% industry, with many of those businesses having been incorporated 18 years ago (1995). However this finding is slightly skewed by the long-established construction/law firms that now have a defined sports presence. With respect to the small/niche businesses in the UK sector, these tended to have been incorporated within the last 5 years.

Turnover

Not all 163 businesses had filed full 2011/112 accounts at Companies House at the time of writing this Report (April 2013). Many of the companies registered at Companies House were too small under UK company law to be required to provide detailed turnover figures. A further complication encountered was that many sports marketing firms are often part of larger advertising and marketing networks and as a result do not segment revenues by specific service offerings, such as sports marketing.

Table 1: Net assets of 163 businesses analysed for this Report

Segment Net Assets (GBP) Technology & Media Providers 22,172,856 Stadia construction 120,386,319 Sports marketing service providers 182, 505 Professional advisors 6,737,670 Media rights management (979,892) Source: Individual company accounts reviewed from Companies House (2013)

194 Perform Sports (PER: London) are the only dedicated sports marketing and consultancy services company in the UK sector that has utilised the equity markets for funding 195 See Appendix 1.2 for a full list of the businesses analysed

Taking the sample as a whole, the following conclusions were drawn from the data:

 a firm with specific sports marketing revenues of GBP10m+ is a large player in the sector;

 a firm with specific sports marketing revenues between GBP3m-GBP10m is a medium size player in the sector; and

 a firm with specific sports marketing revenues under GBP3m is a small player in the sector.

A large number of companies analysed at Companies House are listed as “dormant” or equally are still in the first accounting period and not submitted accounts as yet. For the dormant companies, whilst all have a web presence and service offering it could be that they are not actively trading as yet, or are channelling the finance through an alternative company/structure.

Percentage of work undertaken outside the UK by companies analysed for this Report

Analysis of the revenue figures (where available) from accounts filed at Companies House gave an incomplete picture of the percentage of work undertaken outside of the UK. An additional complication was that the disclosure of revenue on a geographical basis is not required for small company reporting purposes.

A combination of recorded information at Companies House and responses from interviewees for the report has been used to compile the following view.197

Table 2: Percentage of sports marketing and consultancy work undertaken outside of the UK

Business Stated percentage of work undertaken outside the UK 4 global 90 % Arena Group 50% CSM 40% Carillion 27% Charles Russell LLP 25% Fast Track 35% Harbottle & Lewis LLP 27% Hill & Knowlton 40% IMG Consulting 40% McLaren Construction 4% Octagon 34% Odgers Berndston 50% PKL 90% Perform 70%

196 Refer to Appendix 1.2 for a full list of companies analysed 197 The sample size is 28 businesses that are small, medium and large and represent 17% of the total sample (163) of businesses analysed for the Report

Populous 54% Populous Activate 25% PRISM 40% REIDSteel 62% SK Sport & Entertainment 30% SPORTFIVE 4% Synergy 19% Sports Investment Partners 0% Sports Technology 2% Squire Sanders LLP 20% Supponor 70% Sustainable Events 30% Wembley Stadium Consultancy 85%

Although in the vast majority of cases the businesses are currently receiving most of their revenues from within the UK, the growth opportunities for the whole UK sector are firmly outside of the UK and it is expected that the balance between UK and international work will have significantly shifted at the end of the decade to be more in favour of work undertaken outside of the UK.198

Office locations

All of the businesses reviewed are based in the UK and the vast majority of sports marketing companies are headquartered in London, which has an international reputation as a hub for sport and business.

The majority of the consultancy businesses offices are also based in London, with companies in the construction sector typically having a London HQ and then a network of regional offices across the UK.

From the sample analysed, 20% of companies currently have operations outside of the UK and these are spread across the following territories:

Figure 2: Headquarters of businesses in the UK sector analysed for this Report 180 160 140 120 100 80 60 40 20 0

198 This is likely to look like 60% of sports marketing and consultancy work undertaken outside of the UK

Number of employees

From the sample of 163 businesses analysed, it was estimated that 36,000 people were employed by infrastructure, technology and logistics companies (58%), 21,500 people were employed by sports marketing agencies (35%) and 3,800 were employed by marketing services providers (6.2%).

Figure 3: Employees within 163 businesses analysed for this Report

Sports Marketing Agencies and Advisors, 21,572 Infrastructure, Technology & Logistics Companies, 36,624

Marketing Service Providers, 3,850

Make up of boards of directors in the UK sector

Research for the Report identified the following trends occurring within the UK sector:

 the management teams of sports marketing and consultancy firms tend to be predominantly male;  the senior members of these businesses tend to have at least ten years’ experience specifically within the sports sector;199  recent major hires are not necessarily from a sporting background but may come from general management and professional services; and  a notable number of Locog senior executives have taken up appointments within the sector.200

Clients

The research for the Report segmented clients as local, national and global in stature as well as segmenting clients into the categories of sports governing bodies201, sports rights holders202 and brand owners/sponsors203.

199 Historically, many former professional athletes entered the UK sector to start their own sports marketing and consultancy agencies after retiring from their chosen sport. Over the last ten years, the sector has professionalised and now attracts top flight talent from other business sectors as senior executives see a role within sport management as a significant career move and increasing their personal earning capacity, according to Simon Cummins, Managing Partner, international sports practice, Odgers Berndston, the leading head hunter in the sector globally 200 The most high profile appointment in the UK sector is that of Lord Sebastian Coe who took up the appointment of executive chairman of Chime in March 2013

Figure 4: Segmentation of stature of clients from sample analysed

60% 52% 47% 50%

40%

30%

20%

10% 1% 0% Local National Global

Figure 5: Segmentation of type of client from sample analysed

90% 80% 80% 70% 60% 50% 38% 40% 34% 30% 20% 10% 0% Sports rights holder Global brand Sport's governing owner/sponsor body

As can be seen, the vast majority of clients being serviced by the UK sector tend to fall into the segment of global brand owners.204 In some cases, clients were both a rights holder and a sponsor in their own right.205

201 For example, the England & Wales Cricket Board and FIFA 202 For example, Manchester United FC and David Beckham 203 Such as adidas and Coco-Cola 204 “From the sponsorship agency perspective, they see it’s easier to sell rights or work for sponsors then to really work closely with rights holders, especially medium sized teams and properties where there’s a lot of potential for growth but it’s untapped in the UK and globally,” observes Simon Rines, publisher of Sponsorship Today 205 For example, Coca-Cola

Breadth of services

Although business differed significantly in focus and areas of specialism, there were several features of the UK sector that came through the research for this Report:

 many providers in the UK sector described themselves as in the business of “sport and entertainment” rather than just “sport”;  a high proportion of sports marketing and consultancy firms offered a wide spectrum of products and services as opposed to a primary product/service focus. This ‘kitchen sink’ approach was observed more frequently among small sports marketing companies in the UK sector;  at the other end of the scale, a few large agency groups206 have dedicated “sports” offerings as part of their wider service offerings that include other business sectors, such as healthcare or professional services or celebrity representation; and  from the sample analysed, 75% are dedicated exclusively to sports marketing and consultancy services, whilst 25% of other business offered sports marketing and consultancy services as part of a wider range of product and services, such as legal, accountancy, architectural and engineering services.

206 These have a turnover in excess of £10m a year

Appendix 1.1: Proﬁle of the UK sports marketing and consultancy sector

Public or privately owned Percentage of sports marketing and consultancy work undertaken Privately owned 85% outside of the UK LLP 13% PLC 3.2% BUSINESS STATED PERCENTAGE OF WORK UNDERTAKEN OUTSIDE THE UK

Average Net Assets of 164 4 global 90 % companies analysed in the UK sector Arena Group 30% CSM 40% Carillion 27% SEGMENT NET ASSETS (£) Charles Russell LLP 25% Deloitte 10% Fast Track 35% Technology & Media Providers 22,172,856 Harbottle & Lewis LLP 27% Stadia construction 120,386,319 Hill & Knowlton 40% Sports marketing service providers 182, 505 IMG Consulting 40% Professional advisors 6,737,670 McLaren Construction 4% Media rights management (979,892) Octagon 34% Odgers Berndston 50% PKL 90% Type of accounts ﬁled Perform 70% Populous 54% No accounts filed 10% Populous Activate 25% PRISM 40% Medium 1% REIDSteel 62% Total exemption full 4.3% SK Sport & Entertainment 30% Small 5% SPORTFIVE 4% Total exemption small 45% Synergy 19% Dormant 8.6% Sports Investment Partners 0% Group 10% Sports Technology 2% Squire Sanders LLP Full 20% 20% Supponor 70% Sustainable Events 30% Wembley Stadium 85% Location of Foreign Oces Consultancy

South America 1.95% Africa 0.65% Client stature Australasia 8.44% North America 6.49% Local 1% Middle East 6.49% National 47% Asia 16.23% Global 52% Europe 19.48%

Number of employees Nature of client Marketing service providers 3,850 Rights holder 34% Infrastructure, technology & Brand owner/sponsor 80% logistics 36,624 Sport’s governing body 23% Sports marketing agencies and advisors 21,572 Appendix 1.2: Alphabetical list of UK sports marketing and consultancy firms analysed

This Report analysed 163 diverse businesses that collectively make up the core of UK sports marketing and consultancy services sector as well as evaluating the best possible opportunities for new business based on one-off global sports events in both developed and developing economies globally.

Trade Name Categories 9gc Sports marketing agencies and advisors Activate Sport Management Sports marketing agencies and advisors Addleshaw Goddard LLP Sports marketing agencies and advisors Alliotts Sports marketing agencies and advisors Ambro Events Marketing Service Providers Arena Group Infrastructure, technology & logistics Aspire Sports Marketing Sports marketing agencies and advisors Aurora Media Worldwide Sports marketing agencies and advisors bam Infrastructure, technology & logistics barr Infrastructure, technology & logistics Believe Sports marketing agencies and advisors Berwin Leighton Paisner LLP Sports marketing agencies and advisors Big on Results Sports marketing agencies and advisors Bird & Bird Sports marketing agencies and advisors Blakesport Sports marketing agencies and advisors Blue Chip Hospitality Marketing Service Providers Brabners Chaffe Street LLP Sports marketing agencies and advisors Brand Rapport Sports marketing agencies and advisors Brebners Sports marketing agencies and advisors BSG Valentine Sports marketing agencies and advisors carillion Infrastructure, technology & logistics Charles Russell LLP Sports marketing agencies and advisors Clifford French Sports marketing agencies and advisors Close Hospitality Marketing Service Providers Comperio Research Sports marketing agencies and advisors Corinthian Sports Ltd Marketing Service Providers Corporate Entertainment Company Marketing Service Providers Couchmans LLP Sports marketing agencies and advisors Deloitte Sports marketing agencies and advisors digital sports group Infrastructure, technology & logistics DLA Piper UK LLP Sports marketing agencies and advisors DTB Sports Hospitality Marketing Service Providers Elite Performance Sports Consultancy Sports marketing agencies and advisors entourage access Uk Marketing Service Providers Event Masters Marketing Service Providers Events International Marketing Service Providers

Farrer & Co Sports marketing agencies and advisors Fast Track Agency Sports marketing agencies and advisors Finders-Keepers Marketing Service Providers FMG Consulting Sports marketing agencies and advisors Four Global Sports marketing agencies and advisors fuse sport Sports marketing agencies and advisors Futures sport and entertainment Sports marketing agencies and advisors G2 Sports Group Sports marketing agencies and advisors Gala Events Marketing Service Providers GBSport Sports marketing agencies and advisors GMI Infrastructure, technology & logistics GP Sports Management Sports marketing agencies and advisors Green room sports Marketing Service Providers GSE Management Sports marketing agencies and advisors Harbottle & Lewis LLP Sports marketing agencies and advisors harlaxtons Sports marketing agencies and advisors Hatch Sports marketing agencies and advisors Henry Birtles Associates Sports marketing agencies and advisors Hill and Knowlton Sports marketing agencies and advisors Hospitality Sports & Business Club Marketing Service Providers iLUKA Sports marketing agencies and advisors IMG Sports marketing agencies and advisors imgevents Marketing Service Providers IML Sports Marketing Sports marketing agencies and advisors initiate sports Sports marketing agencies and advisors International Sport Marketing Service Providers IRIS Ticketing Infrastructure, technology & logistics JDC Sports marketing agencies and advisors JSC Sport Sports marketing agencies and advisors KBI Sports & Modular Infrastructure, technology & logistics Keith Prowse Marketing Service Providers KHP Sports Consultancy Sports marketing agencies and advisors Knight Kavanagh & Page Sports marketing agencies and advisors Lewis Silkin LLP Sports marketing agencies and advisors Limelight Sports Sports marketing agencies and advisors Lingo 24 Marketing Service Providers Living With the Lions Sports Travel Marketing Service Providers LubbockFine Sports marketing agencies and advisors Lucid Events Marketing Service Providers M&C SAATCHI SPORT & ENTERTAINMENT Sports marketing agencies and advisors Match Point Marketing Service Providers McLaren Construction Infrastructure, technology & logistics media syndicator Infrastructure, technology & logistics Merlin Elite Ltd Sports marketing agencies and advisors

Miller Sports Consultancy Sports marketing agencies and advisors Mishcon de Reya Sports marketing agencies and advisors Mission Sports Management Sports marketing agencies and advisors Nathaniel Lichfield & Partners Infrastructure, technology & logistics Navitas Sports Sports marketing agencies and advisors Oaks Consultancy Sports marketing agencies and advisors Octagon Sports marketing agencies and advisors Odgers Sports marketing agencies and advisors Olswang Sports marketing agencies and advisors Onside Law Limited Sports marketing agencies and advisors Paragon Sports Management Marketing Service Providers Pearl Linguistics Marketing Service Providers Perform Infrastructure, technology & logistics Pinniger Sports Sports marketing agencies and advisors Pinsent Masons LLP Sports marketing agencies and advisors Pitch Sports marketing agencies and advisors Pitmans SK Sport & Entertainment Sports marketing agencies and advisors pmplegacy Sports marketing agencies and advisors Populous - global group of architects Infrastructure, technology & logistics Prestige Hospitality Marketing Service Providers PRISM Sports marketing agencies and advisors Professional Sports Group Sports marketing agencies and advisors Proglobal sports Sports marketing agencies and advisors Progressive Sports Technologies Infrastructure, technology & logistics Pro-stream Sports marketing agencies and advisors Proteus Sports Ltd Sports marketing agencies and advisors RBA Events Marketing Service Providers Red Central Sports marketing agencies and advisors REIDSteel Infrastructure, technology & logistics Repucom Sports marketing agencies and advisors Revolution Sports Sports marketing agencies and advisors rms Sports marketing agencies and advisors RPM Sports marketing agencies and advisors RPMC Marketing Service Providers Rushmans Sports marketing agencies and advisors SBM Sports Sports marketing agencies and advisors Sedulo Sports marketing agencies and advisors Sheridans Sports marketing agencies and advisors Signature Sponsorship Sports marketing agencies and advisors Sillsport Group Sports marketing agencies and advisors Sir Robert McAlpine Infrastructure, technology & logistics SMG Insight Sports marketing agencies and advisors snack media Infrastructure, technology & logistics SNR Denton Sports marketing agencies and advisors

Sport Cal Sports marketing agencies and advisors Sport structures Sports marketing agencies and advisors Sport, Leisure and Culture Consultancy Sports marketing agencies and advisors SPORTFIVE Sports marketing agencies and advisors Sporting Affair Marketing Service Providers Sports Construction Consultancy Sports marketing agencies and advisors Sports Media Infrastructure, technology & logistics Sports Officials Consultancy Sports marketing agencies and advisors Sports Solutions Sports marketing agencies and advisors Sports Technology Infrastructure, technology & logistics Sports Tours International Marketing Service Providers SportsBusiness Group Sports marketing agencies and advisors Sportseen Sports marketing agencies and advisors SportsRevolution Sports marketing agencies and advisors SportsRisq Sports marketing agencies and advisors Squire Sanders LLP Sports marketing agencies and advisors stadia project & Construction management Infrastructure, technology & logistics Stadium Solutions Infrastructure, technology & logistics Star Sports Marketing Sports marketing agencies and advisors Stuart Higgins Communication Sports marketing agencies and advisors Synergy Sports marketing agencies and advisors Talking Heads Marketing Service Providers team tactics Marketing Service Providers Ten Monkeys Sports marketing agencies and advisors The BIG Partnership Sports marketing agencies and advisors The Cavendish Group Marketing Service Providers The Sporting Traveller Marketing Service Providers The Sports Business Sports marketing agencies and advisors The Sports Consultancy Sports marketing agencies and advisors THG Sports Marketing Service Providers three60 Sports Management Sports marketing agencies and advisors Threshold Sports Sports marketing agencies and advisors Tigerseye UK Sports marketing agencies and advisors Tyler Sports Management Sports marketing agencies and advisors UK Sports Media Infrastructure, technology & logistics Viking Hospitality & Events Marketing Service Providers VU Ltd Marketing Service Providers Whitestone Sports marketing agencies and advisors WSM Sports marketing agencies and advisors

Appendix 1.3: Selection of profiles of companies in UK sector

This Report analysed 163 diverse businesses207 that collectively make up the core of UK sports marketing and consultancy services sector as well as evaluating the best possible opportunities for new business based on one-off global sports events in both developed and developing economies globally.208

Out of the 163 businesses analysed for this Report, 85% (139 businesses) are privately owned, with 2% of the companies (3 businesses209) listed on the London Stock Exchange and the remainder 13% (21 businesses) are limited liability partnerships.210

Small

4 Global Head Office: Building 3, Chiswick Park 566 Chiswick High Road London W4 5YA UK Tel: +44 208 +44 (0) 208 849 8902 Web site: http://www.fourglobal.org

Key contact: Eloy Mazon, Managing Director Offices: UK, Turkey, Brazil, Australia No. of employees: 24 plus freelance support (60)

Established in 2000, 4 global is a major event and sport business consultancy and its clients include organising committees, sports federations, local, regional and national governments, sport and leisure small-medium size organisations. It is one of the few companies in its segment that has worked on every Olympic Games since Sydney 2000. Its services span all stages of a major sports event, from concept and bidding through to planning, event delivery and legacy. It has a track record for delivering on time and within budget. A separate part of the business is its sport intelligence consultancy that was formed as a result of the acquisition of LeisureMarkets Ltd in 2012.

Populous Activate Head Office: 14 Blades Court Deodar Road London SW15 2NU UK Tel: +44 (0) 208 874 7666 Web site: http://www. populous.com

Key contact: Nicholas Reynolds, Director, Populous Offices: UK, Canada, Australia No. of employees: 20

207 See Appendix 1.2 208 See Section 2 209 Perform Sports (PER: London) are the only dedicated sports marketing and consultancy services company in the UK sector that has utilised the equity markets for funding 210 See Appendix 1.2 for a full list of the businesses analysed

Populous Activate was established in 2005, born out of the architecture business and specialises in design architecture and interiors, way finding and signage, graphics, interactive media and exhibits that embody a brand in the fabric of a building, such as a sports stadium. It was responsible for the overlay of the stadiums and locations at the London 2012 Olympic Games. It is a global leader in delivering brand activation to sports and events venues and events, including the Super Bowl, one of the most watched single-sports events on the planet and was responsible for the overlay of the O2 which has become a historic and cultural landmark in London.

Pitmans SK Sport & Entertainment LLP Head Office: 1 Crown Court 66 Cheapside London EC2V 6LR UK Tel: +44 (0) 208 874 7666 Web site: http://www.pitmans.com

Key contact: Jeremy Summers, Principal Offices: UK (London and Reading) No. of fee earners: 10

SK Sport and Entertainment was established in 2002 and merged with Pitmans in 2009 to form Pitmans SK Sport and Entertainment LLP. It is a specialist sports and entertainment law firm providing legal and commercial advice and support to sports stars, athletes and sports governing bodies on all transactions relating to sport including all legal aspects of representation agreements, sponsorship, brand management and image rights, sports events, partnership, hosting, ticketing and hospitality, participation and supplier agreements; licensing, merchandising, endorsement and intellectual property protection including trade mark protection. The firm also advises on sports regulatory issues and offers a mediation and dispute resolution service. Clients include Usain Bolt.

SMG-Insight/YouGov Head Office: 50 Featherstone Street London EC1Y 8RT UK Tel: + 44 (0) 20 7012 6000 Web site: http://www.smg-insight.com

Key contact: Frank Saez, Managing Director Offices: UK, USA, Middle East No. of consultants: 8

Established in 2010, SMG Insight delivers leading edge B2B and B2C research and consulting solutions enabling world-leading sports governing bodies, sponsors and sports investors to meet their strategic goals and business objectives. These include a holistic consultancy service covering all aspects of sponsorship programmes, from the selection of brand-fit sponsorships and establishing appropriate key performance indicators (KPIs) to monitoring the investment and providing guidance on enhancing performance and return. Other services include sponsorship benchmarking and auditing, sponsorship evaluation and strategy, market analysis, rights valuations and special projects. Clients include the ATP World Tour.

Sustainable Events Head Office: 2nd Floor, Fourways House 57 Hilton Street Manchester M1 2EJ UK Tel: +44 (0) 161 273 5107 Web site: http://www.sustainableeventsltd.com

Key contact: Fiona Pelham, Managing Director Offices: UK (Manchester) No. of employees: 8 plus freelancers (16)

Established in 2010, the main areas of expertise include the implementation of sustainability standards, such as ISO 20121 and sustainability reporting. Clients include Manchester United FC and Coca-Cola. A separate not-for-profit organisation, Positive Impact, provides educational and training resources on sustainability for the events industry. The company was behind the world’s first sustainable events management standard in the global events industry that was adopted by the London 2012 Olympic Games.

Wembley Stadium Consultancy Head Office: Wembley Stadium Wembley London HA9 0WS UK Tel: +44 (0) 844 980 8200 Web site: http://www.wembleystadium.com

Key contact: Mandy Shaw, Manager

Offices: UK (London) No. of employees: 3

Established in 2010, Wembley Stadium Consultancy was created to meet the commercial demand of organisations who want to access the knowledge and experience at the world’s most famous stadium. Many international guests from other venues have visited Wembley Stadium looking to view the facilities and seek the expertise of its team. Similarly, Wembley Stadium Consultancy has visited numerous international venues advising them on design, facilities systems, operations and commercial practices. The company is part of Wembley Stadium and undertakes study reports and act as consultants as part of multi-discipline teams, managing the design and development of venues. This includes existing venues and predominantly new venues where Wembley’s experience is of greatest value. Wembley Stadium Consultancy has multi-skilled consultants in all areas of activity and, when required, draws on the more specific skills of professionals within Wembley Stadium.

Medium size

PRISM Head Office: 1 Knightsbridge Green London SW1X 7NW UK (T) +44 (0)20 7711 6850 Web site: http://www.prismteam.com

Key contact: Steve Madincea, Founder & Group Managing Director Offices: UK, Amsterdam, Germany, USA, Thailand, Australia, Africa No. of employees: 150

Established in 1993, PRISM is a wholly owned member of WPP and is the largest and most successful sponsorship activation partner agency within the group, providing industry leading sponsorship insight, content generation and flawless activation in the areas of sponsorship, sports marketing, content public relations, brand experience and sports marketing valuation. PRISM’s key worldwide clients include Casio, Ford, Shell, Johnson & Johnson, AirTel, Land Rover, Heineken, Tata, Unilever and Infiniti.

PKL Head Office: Stella Way, Bishops Cleeve Cheltenham, Gloucestershire GL52 7DQ UK (T) +44 (0) 0845 840 42 42 Web site: http://www.pkl.co.uk

Key contact: Peter Schad, Commercial Director Sites: UK, Ireland, France No. of employees: 90 plus temporary (125)

Established in 1988, PKL Group is the UK's leading provider of outsourced catering infrastructure solutions. This includes the supply of temporary kitchens and catering equipment for hire, major event kitchen complexes, permanent modular kitchen buildings, the complete management of catering equipment estate assets, and containerised and modular kitchen facilities for overseas clients. During the London 2012 Olympic Games the company delivered 142 kitchens at 20 venues for 17 clients including LOCOG. Major sports events account for around 25 per cent of its business.

Odgers Berndston Head Office: 20 Cannon Street London EC4M 6XD UK (T) +44 (0)20 7529 1111 Web site: http://www.odgersberndtson.co.uk

Key contact: Simon Cummins, Partner and Head of Sports Practice Offices: 57 offices in 35 countries

No. of employees: 8 plus consultants in other practice areas (20) The sports practice was set up in 2005 and is the leading head hunter in the sector. Odgers is experienced in searching out world class leaders with both local and global expertise to move into the sports sector. It has unrivalled global presence, in-depth industry knowledge, functional expertise and a consultative approach to deliver cost effective results. Recent clients include Vancouver 2010, London 2012, Rio 2016, Glasgow 2014, 2015 Pan Am Games, Goodwill Games, Atlanta Olympic Games, FIFA World Cup, England 2018 World Cup Bid, FIFA, UEFA, The FA, BOA, ERFU, SRFU, WRU, Premier Rugby, Manchester United FC, Liverpool FC, The MCC, UK Athletics, Sport England, UK Sport, DCMS, Powerboat P1, English Golf Union, London Irish and Scarlets Rugby Football Clubs, Red Bull North America, Washington Red Skins, USTA and NBA Europe.

Sports Investment Partners Head Office: Sports Investment Partners LLP 7 Hanover Square London W1S 1 HQ UK (T)+44 (0)20 3205 3957 Web site: http://www.sportsip.co.uk

Key contact: Matthew Wheeler, Managing Partner Offices: UK (London)

In February 2012, Sports Investment Partners (SIP) alongside MML Capital invested GBP16.5m equity into Arena Group. Arena Group specialises in complete event overlay design and management solutions, creating bespoke temporary venues for the most prestigious sporting, broadcast, music and live events across the globe.

Arena built a number of temporary venues and structures for the London 2012 Olympic Games including the iconic 15,000 seat Beach Volleyball stadium on Horse Guards Parade. With its headquarters in the UK and international capabilities across Europe, Middle East, Americas and Asia, the Arena Group has an extensive in-house inventory of temporary events infrastructure and an experienced team of event professionals.

In April 2013 SIP provided further funding to enable Arena Group to acquire Karl's Event Services a US business with revenues of US$40m. Karl's has offices in Wisconsin, California, Florida and New Jersey which are now part of the Arena Group network.

In June 2012, SIP invested GBP 11.6m in Supponor Inc. and transferred ownership to the UK. Supponor is a specialist company that has focused entirely on developing and commercialising Digital Billboard Replacement Technology (DBRLive) for live sports broadcasts. DBR Live produces different and multiple versions of the advertising around sports grounds in different territories. Viewers in different television markets can see different versions of the perimeter advertising in real time. The senior business and commercial management are based in London while a team of software engineers are based at its research and development centre in Espoo, near Helsinki.

Brand Finance Head Office: 3rd Floor, Finland House 56 Haymarket London SW1Y 4RN UK (T) +44 (0) 20 7389 9400 Web site: http://www.brandfinance.com

Key contact: David Haigh, Founder & CEO Offices: London, Amsterdam, Bangalore, Durban, Colombo, Dubai, Hong Kong, Istanbul, Lisbon, Madrid, Moscow, Nairobi, New York, Paris, Sao Paulo, Seoul, Sydney, Singapore, Toronto and Zagreb,

No. of employees: 40

Founded in 1996, Brand Finance is the world’s leading brand valuation consultancy. It advises global brand owners on how to maximise the value of their brands and intangible assets. The company has performed thousands of branded business, brand and intangible asset valuations worth trillions of dollars. Clients include international brand owners, tax authorities, intellectual property lawyers and investment banks. It also publishes an extensive number of research reports including the most valuable 500 brands in world.

Large

CSM Head Office: Southside, 6th Floor 105 Victoria Street London SW1E 6QT UK (T) +44 (0) 20 7593 5200 Web site: http://www.csm.com

Offices: London, Glasgow, Abu Dhabi, Adelaide, Auckland, Cape Town, Doha, Dubai, Hong Kong, Madrid, Melbourne, Moscow, Paris, Rio de Janeiro, Tokyo and Qatar. No. of employees: 575

A division of Chime Communications PLC, CSM Sport & Entertainment is the fourth largest sports marketing agency in the world, comprising four major, internationally-recognised, operating companies: Essentially, Fast Track, ICON and iLUKA. The group’s focus is providing clients including corporates, brand owners, rights holders, bidding nations and cities, and sports federations and governing bodies with a range of services. These include: event bidding, strategic consultancy, live event management, rights sales and activation, event management, branding and experiential, athlete management and PR, communications and content solutions. The client list includes many of the world’s major rights holders and brands, and spans more than 40 sports.

Fast Track Head Office: Southside, 6th Floor 105 Victoria Street London SW1E 6QT UK (T) +44 (0) 20 7593 5200 Web site: http://www.csm.com

Key contact: Andy Westlake, Managing Director

Clients include HSBC, Emirates, Mubadala, Glaxo SmithKline, AEGON, Land Rover and the National Lottery.

IMG Consulting International Head Office: McCormack House Burlington Lane London W4 2TH UK (T) +44 (0) 20 8233 5969 Web site: http://www.imgworld.com

Key contact: Rob Mason, Senior VP and International Managing Director Offices: 20 offices in 16 countries No. of employees: 160

IMG is the oldest and largest sports marketing firm in the world and works with most of the world’s leading rights holders and brand owners. Its consultancy arm specialises in creating sports and entertainment marketing programmes for brands including GE, 02, British Airways, HSBC, Pepsico, IBM and many more. Its proprietary ‘discover, design, deliver’ methodology ensures specialist expertise across strategy, content creation and implementation. It also offers a market-leading specialism in the business performance and employee engagement field. IMG’s wider business includes media distribution and sales, sports media production, talent representation and management, commercial representation, event ownership and management, licensing and hospitality across the whole arena of sports and entertainment.

Appendix 1.4: Research methodology

Desk research

In March 2013, desk research commenced to identify a representative core sample of businesses that make up the UK sports marketing and consultancy services sector.

In excess of 40 different search terms were selected:

 Accountants  Advertising firms  Architects  Audience research  Brand valuation  Broadcast companies  Catering  Civil engineering firms  Contingency planning  Design  Disassembly of stadia  E-commerce solutions  Event management  Facilities management  Health and safety  Hospitality and entertainment  Law firms  Licensing agents  Linguistic services  Logistics  Management consultancies  Media rights management  Mobile marketing  Naming rights  Planners  PR firms  Professional advisors  Risk management  Security  Sponsorship  Sports market research  Sports marketing service providers  Stadia construction  Surveyors  Sustainability  Systems integration  Tax advisors  Technology providers  Ticketing systems  Travel

These search terms were then used to search the Companies House database of companies registered in the UK. The focus of this part of the research was to concentrate on companies where sports marketing was a key focus, service or product offering. Companies analysed would also have to be domiciled in the UK.

This yielded 163 separate businesses that were then segmented across three vectors that make up the UK sector:

Marketing Agencies & Advisors

The following information for each company (where available) was retrieved from Companies House and other sources of information:

 Year of formation  Public or privately owned  Turnover (estimated where not published)  Percentage of work undertaken outside of the UK  Office locations/year of opening  Geographical reach  Number of employees  Client listing  Stature of clients  Breadth of products and services.

Information on the company formation, size, and year of establishment and group structure as well as financial data was not always available for all companies. Where available, the Report relies on the last reported financial statements to understand net assets, turnover, employees, ownership and length of trading.

For the larger/listed entities included in the analysis, the Report takes account of historical annual reports and investor relation presentations to source additional information and insight on trading conditions for the UK sector. Other sources included data produced by PwC and analyst reports from Bloomberg.

Face to face/telephone interviews

In addition to the above inputs, 18 face to face and telephone interviews were conducted (March/April 2013) in order to understand in more detail the issues, challenges, opportunities and threats facing the UK sector.

Interviewees for this Report are:

 Andrew Bacchus, Head of Global Sports Projects, UK Trade & Investment  Andy Westlake, Managing Director, Fast Track (part of CSM Sports & Entertainment/Chime Communications)  Chris Sattwerthwaite, CEO, Chime Communications  Duncan Hall, Operations Director,PKL  Eloy Mazon, Managing Director, 4 global  Fiona Pelham, Managing Director, Sustainable Events  Jeremy Summers, Partner, Pitmans SK Sport & Entertainment LLP (part of Pitmans)  Jon Sellins, Head of Business Development, Wembley Stadium Consultancy  Julie Clark, UK Head of Sports & Leisure Practice, PwC  Karen Earl, Chairman, European Sponsorship Association  Lesa Ukman, Co-Founder and Chief Insights Officer, IEG (part of WPP)  Matthew Wheeler, Managing Partner, Sports Investment Partners LLP  Nicholas Reynolds, Director, Populous Activate (part of Populous)  Peter Shad, Commercial Director, PKL  Rob Mason, Senior Vice President and International Managing Director, IMG Consulting International (part of IMG)  Simon Cummins, Managing Partner, International Sports Practice, Odgers Berndston  Simon Rines, Publisher, Sponsorship Today  Steve Madincea, Founder and Group Managing director, PRISM (part of WPP).

All interviews were conducted on a structured questionnaire basis and were recorded on a small tape recorder for note-taking purposes. The majority of interviews lasted 60-70 minutes and the tapes of the interviews were transcribed into separate Microsoft Word® documents.

Section 2: Opportunities in global markets for services to 2022

Section 2.1: Summary of global market opportunities (2013-22)

This Report focuses on opportunities for the UK sector based on one-off major sports events across the world rather than annual sports events established in a city or country, such as a F1 Grand Prix, a Grand Slam tournament or a major golf championship. 211

The assessment of global market opportunities for UK sports marketing and consultancy firms over the next decade has been calculated based on two inputs:  the number of major sports events within a particular geographic Region;212 and  the countries that offer the greatest new business potential based on the value of operational and infrastructure budgets and the likely spend on sports marketing and consultancy services over the next decade and beyond.213

Number of major sports events within geographic Regions

Research for this Report identified the top 55 one-off major sports events that collectively represent GBP5.9bn214 of incremental new business for the UK sports marketing and consultancy sector over the next decade and beyond.

Figure 2.1: Major sports events by geographic Region (2013-22)

Oceania Asia 7% Africa 21% 1% Middle East 3%

South America 8%

Western and Northern Europe 32% North America 7%

Central, Eastern and Southern Europe 21%

211 Such sports events are likely to have long-term supplier relationships already in place, although ad hoc opportunities may arise, albeit much less frequently whereas one-off major sports events often have a higher number of opportunities available for companies in the UK sector, particularly where new sports venues and stadia are planned or refurbished 212 These have been ranked by importance. See Appendix 2.25 for an explanation of the methodology used 213 Ibid 214 Operational and infrastructure budgets for these one-off sports events are estimated to be worth £222.3bn of which £5.9bn is expected to be spent on sports marketing and consultancy services

 Western and Northern Europe will host 32% of the major sports events awarded to date;  Asia will be host 21% of the major events awarded to date;  Central, Eastern and Southern Europe will host 21% of the major events awarded to date;  North America will host 7% of the major events awarded to date;  South America will host 8% of the major events awarded to date;  Oceania will host 7% of the major events awarded to date;  Middle East will host 3% of the major events awarded to date; and  Africa will host 1% of the major events awarded to date.

Breakdown in terms of incremental new business opportunities for UK sector (2013-22)

 Middle East with estimated spend of GBP1.6bn  Central, Eastern and Southern Europe with estimated spend of GBP1.4bn  South America with estimated spend of GBP1.2bn  Western and Northern Europe with estimated spend of GBP634m215  Asia with estimated spend of GBP617m  North America with estimated spend of GBP234m  Oceania with estimated spend of GBP121m  Africa with estimated spend of GBP8.1m.

215 Excluding UK

Figure 2.1: Regional The total spend of new market opportunities business opportunities for UK sector 2013-2022 £5.9bn for the next 9 years

WESTERN & NORTHERN CENTRAL, EASTERN & EUROPE SOUTHERN EUROPE NORTH AMERICA

ASIA

MIDDLE EAST

AFRICA

SOUTH AMERICA

OCEANIA

Estimated spend of new business opportunities for UK sector 2013-2022

Middle East £1.6bn Central, Eastern & Southern Europe £1.4bn South America £1.2bn Western & Northern Europe £634m Asia £617m North America £234m Oceania £121m Africa £8.1m

Who will play host to the major sports events awarded to date?

Western & Northern 33% Europe 21% Asia Central, Eastern South Middle & Southern America 20% Europe 7% 4% East

North Oceania Africa 7% America 6% 1% Section 2.2: Global outlook for UK sports marketing and consultancy sector by region (2013-22)

Table 2.2.1: Gold performance: 25% of contracts won = GBP1.5bn in new business

Rank Region Value of new business GBP (GBP) #1 Middle East 421,480,005 #2 Central, Eastern and Southern Europe* 353,966,424 #3 South America 319,622,584 #4 Western and Northern Europe 158,563,666 #5 Asia 154,498,581 #6 North America 58,707,094 #7 Oceania 30,361,367 #8 Africa 2,049,445 TOTAL All Regions 1,499,249,167

Table 2.2.2: Silver performance: 10% of contracts won = GBP600m in new business

Rank Region Value of new business GBP (GBP) #1 Middle East 168,592,002 #2 Central, Eastern and Southern Europe 141,586,570 #3 South America 127,849,034 #4 Western and Northern Europe* 63,425,466 #5 Asia 61,799,432 #6 North America 23,482,838 #7 Oceania 12,144,547 #8 Africa 819,778 TOTAL All Regions 599,699,667

Table 2.2.3: Bronze performance: 5% cent of contracts won = GBP300m in new business

Rank Region Value of new business GBP (GBP) #1 Middle East 84,296,001 #2 Central, Eastern and Southern Europe 70,793,285 #3 South America 63,924,517 #4 Western and Northern Europe* 31,712,733 #5 Asia 30,899,716 #6 North America 11,741,419 #7 Oceania 6,072,273 #8 Africa 409,889 TOTAL All Regions 299,849,833

New business outlook - Middle East Region (2013-22)

Opportunity rank #1

1. Gold = GBP421m in new business 2. Silver = GBP168m in news business 3. Bronze = GBP84m in new business

The estimated value of potential contracts for UK sports marketing and consulting firms relating to events that have been awarded to host cities and countries in the Middle East Region to date is GBP1.6bn.

Key features of market opportunities in the Region:

 The majority of sports marketing and consultancy opportunities in the Middle East will be in Qatar216 as a result of the 2022 FIFA World Cup, although Saudi Arabia, Bahrain and the United Arab Emirates are becoming more active in wanting to host major sports events in the Region.217

 Qatar is consciously engaged in a complete ‘make over’ in the Region by focusing investment in sporting, cultural and educational facilities and has the ambition to become the universally recognised sports hub of the Middle East and a major destination for world-class sports events.

 Qatar is spending an estimated GBP138bn on the 2022 FIFA World Cup, approximately 60 times the GBP2.3bn South Africa spent on the 2010 FIFA World Cup.

 The ‘Qatar National Vision 2030’ programme is also investing heavily in a number of high profile mega projects of interest to the UK sector in areas including transportation and logistics, tourism, health, education and housing.

216 See Appendix 2.13 217 Bahrain and UAE already host annual F1 races

 After Doha failed to qualify as a candidate city for the 2020 Summer Olympic Games, it immediately launched its campaign to host the Summer Olympic Games 2024.218

 The UAE Football Association has recently made a formal bid, with Government backing and financial support, to host the 2019 Asian Cup and will be competing against six nations – Bahrain, Lebanon, Oman, Saudi Arabia, Thailand and Iran - to host the continent’s premier tournament six years from now.

 Saudi Arabia and Bahrain have on-going major sports stadia and infrastructure projects that also provide the UK sector with unrivalled opportunities to bid for work, particularly as the Middle East has demonstrated a willingness to embrace Western concepts and take advantage of expertise outside of their Region.

New business outlook – Central, Eastern and Southern Europe Region (2013-22)

Opportunity rank #2

1. Gold = GBP354m in new business 2. Silver = GBP141m in news business 3. Bronze = GBP70m in new business

The estimated value of potential contracts for UK sports marketing and consulting firms relating to events that have been awarded to host cities and countries in Central, Eastern and Southern Europe Region to date is GBP1.4bn.

Key features of market opportunities in the Region:

 Poland219 and Ukraine are keen to capitalise on the infrastructure built for EURO 2012 and attract sports events to their countries while they are still on the radar of the sporting world. The tournament catalysed a massive shake-up of Poland's ramshackle infrastructure and transformed its image on the global stage, securing a stronger basis for hosting major sports events in the future.220

 Ukraine has also benefited from improved infrastructure but has a lot more work to do than Poland in order to change its image globally to one that is more positive than at present.

 Russia221 offers the greatest potential for the UK sector in this Region.222 Over the next few years it will host a plethora of major sports events such as the 2013 IRB Rugby World Cup Sevens, the 2013 IAAF World Championships in Athletics (Outdoor), the 2013 Kazan Summer Universiade, the 2014 Winter Olympics in Sochi, the 2015 FINA World Championships, the 2016 IIHF World Hockey Championships and the 2018 FIFA World Cup.

218 It is also looking to bid to host the FIFA World Cup in 2026. Dubai has also signalled its interest to host the FIFA World Cup 2026 219 See Appendix 2.10 220 Poland is the only EU member to have kept growing throughout the bloc's economic crisis, highlighting the potential for doing business in that country 221 See Appendix 2.11 222 A possible 2024 Summer Olympic Games bid could hail from St Petersburg or Kazan

 The 2014 Winter Olympic Games have already become the catalyst for sports development in Sochi that has already become one of the main sports centres in Russia but it will need guidance to ensure it creates a long term legacy. This will create opportunities for UK sports marketing and consultancy firms. At the same time, major stadium development is already underway ahead of the FIFA World Cup 2018, with new venues integrating entertainment, leisure and retail features.

 Russia is self-conscious of its negative perception around the world and is taking steps to start to reverse this with the assistance of external consultancy support.

 Several Central and Eastern European cities are in the frame for bidding for the next Winter Olympic Games that will be awarded by the International Olympic Committee (IOC).

 In Southern Europe, Turkey223 is rapidly becoming a new sport ‘super power’ and is currently undertaking a major infrastructure building programme. Sport has been identified as the key to securing a bright sporting, social and economic future for future generations. The country is using its status as one of the world’s fastest growing economies224 to underpin its commitments for sports development in the capital Istanbul.

 Turkey is already set to host several major events over the next few years including the 2013 Outdoor Archery World Championships, the 2013 Mediterranean Games, the 2014 FIG World Championships in Rhythmic Gymnastics and the 2017 Deaflympics - all of which offer sports marketing and consultancy opportunities for the UK sector.

New business outlook – South America Region (2013-22)

Opportunity rank #3

1. Gold = GBP319m in new business 2. Silver = GBP127m in news business 3. Bronze = GBP64m in new business

The estimated value of potential contracts for UK sports marketing and consulting firms relating to events that have been awarded to host cities and countries in the South America Region to date is GBP1.2bn.

Key features of market opportunities in the Region:

 As the host country for the 2014 FIFA World Cup and with Rio de Janeiro having been chosen to host the 2016 Olympic and Paralympic Games, Brazil225 is set to have an extremely high profile in international sports in the coming years and will already be on the radar of many UK sports marketing and consultancy firms.

 Brazil’s Rousseff administration has continued Brazil’s ambitious infrastructure programme under the name PAC 2. Over the 2011-2014 period, the PAC 2 will invest approximately GBP347bn in energy, infrastructure and housing priority projects while the country also prepares to host both FIFA 2014 World Cup and the 2016 Olympic Games.

223 See Appendix 2.12 224 In 2011, the annual growth rate was 8.5% 225 See Appendix 2.16

 Local and foreign investors are now coming together hoping to bring Brazil into its place as the next mega-economy equipped with efficient airports, ports, roads and infrastructure to avoid growth bottlenecks and maintain a sustainable growth rate.

 A study by the University of Sao Paulo estimated the infrastructure outlays in Brazil ahead of the 2014 FIFA World Cup to be around GBP11.9bn with GBP9.25bn coming from Brazilian tax receipts. The expected outlays devoted to hosting the Olympics are an additional GBP9.92bn, resulting in a total outlay of GBP21.8bn for both sport events.

 Opportunities for the UK sector will project beyond 2016 and although competition for business is highly competitive in Brazil, there may be better opportunities in less saturated markets in the Region.226

 UK sports marketing and consultancy firms may find that working directly with the individual cities hosting the 2014 FIFA World Cup matches is a better route than targeting the local organising committee where relationships are harder to establish.227

 Elsewhere in South America, Argentina228 is currently bidding for two major events, the 2018 Youth Summer Olympic Games and the 2019 Pan American Games.229

 Medellin in Colombia also made the three-city shortlist to host the 2018 Youth Olympics.

 Argentina is also reported to be considering making a bid for the 2023 or 2027 IRB Rugby World Cup.

 It is clear that infrastructure investments in Brazil will be a driving force for economic growth in the longer term. The country will take quite a few steps towards modernisation, become more efficient and lure increased foreign investment. With improved roads, railways and marinas the country will increase its efficiency, making it more attractive to do business with.

New business outlook – Western and Northern Europe Region230 (2013-22)

Opportunity rank #4

1. Gold = GBP158m in new business 2. Silver = GBP63m in news business 3. Bronze = GBP31m in new business

The estimated value of potential contracts for UK sports marketing and consulting firms relating to events that have been awarded to host cities and countries in the Western and Northern Europe Region to date is GBP634m.

226 For example, Argentina and Colombia 227 The 12 Brazilian cities elected to host FIFA World Cup games are Belo Horizonte, Brasilia, Cuiabá, Curitiba, Fortaleza, Manaus, Natal, Porto Alegre, Recife, Rio de Janeiro, Salvador and São Paulo. 228 See Appendix 2.16 229 Also bidding are Peru, Venezuela and Chile 230 Excludes UK

Key features of market opportunities in the Region:

 Although forthcoming major events in the UK are not covered in this part of the Report, UK sports marketing and consultancy firms may find they have greatest opportunities within the UK itself for working with major event organisers such as the Glasgow 2014 Commonwealth Games.

 The greatest business opportunity for the UK sector is the UEFA 2016 European Championships (EURO 2016) in France231.

 And with UEFA 2020 set to take place in multiple cities across Europe, there will be further opportunities that are not just limited to one country in the Region.

 If Madrid232 succeeds against all the odds and wins its bid to host the 2020 Summer Olympic Games, then there is a strong opportunity for the UK sector to leverage the track record of experience gained since the London 2012 Olympic Games.

 Experience shows that working with Olympic Games bidding cities is an ideal way for the UK sector to start to build strong and lasting relationships with potential future host cities.

 Stockholm and Gothenburg in Sweden233 aspire to attract more world class events and would be open to being advised as to how to achieve this.

 Although the outlook for new business on mainland Europe is potentially positive, the economy is the major negative factor coupled with the high level of competition in what is one of the most saturated markets in the world for sports marketing and consultancy services.

New business outlook – Asia Region (2013-22)

Opportunity rank #5

1. Gold = GBP154m in new business 2. Silver = GBP61m in news business 3. Bronze = GBP30m in new business

The estimated value of potential contracts for UK sports marketing and consulting firms relating to events that have been awarded to host cities and countries in the Asia Region to date is GBP617m.

231 See Appendix 2.3 232 See Appendix 2.2 233 See Appendix 2.5

Key features of market opportunities in the Region:

 China234, Japan235 and South Korea236 in particular all offer attractive opportunities for the UK sector seeking procurement opportunities at major events.

 Meanwhile, both Malaysia and Singapore are also developing major events strategies and also require external support. In March 2013, the Singapore government announced it will boost its spending on sports programming and infrastructure by more than GBP133m over the next five years to build a strong sporting culture among Singaporeans.

 After a lull in major events hosting after the 2008 Beijing Summer Olympic Games, China has been busy in securing a raft of events over the next few years including the 2014 Youth Summer Olympic Games, the 2014 FIG Artistic Gymnastics World Championships, the 2015 ISU World Figure Skating Championships, the 2015 ITTF World Table Tennis Championships and the 2015 IAAF World Championships in Athletics (Outdoor). Whilst none of these events will require any major infrastructure development, there are opportunities for the UK sector to work with local organising committees and host cities of the events.

 Chinese city Zhangjiakou has confirmed plans for a joint bid with Beijing for the 2022 Winter Olympic Games.

 Over the next few years, Japan will host the 2014 ISU World Figure Skating Championships, the 2014 World Table Tennis Championships, the 2017 Asian Winter Games and the 2019 IRB Rugby World Cup.

 Japan made history by being the first Asian country to be awarded hosting rights for an IRB Rugby World Cup. Hosting the tournament in 2019 is expected to increase the popularity of the sport in the country. The event is estimated to cost GBP145.1m to stage. With rugby being a developing sport in Japan and Asia as a whole, this presents an excellent opportunity for the UK sports marketing and consultancy sector which has strong credentials in the sport.  Tokyo is currently bidding for both the 2019 FINA World Swimming Championships and the 2020 Summer Olympic Games, both of which would offer opportunities for the UK sector if these bids are successful.237

 UK Trade & Investment trade missions to South Korea are helping to stimulate interest in the UK sector’s expertise and experience in the construction of the 2012 Olympic Park in East London and how this can be used to win lucrative contracts ahead of the 2014 Asian Games in Incheon, 2015 Summer Universiade in Gwangju and the 2018 Winter Olympics in PyeongChang.

 The total budget for the 2014 Asian Games in Incheon will be GBP1.07bn of which GBP920m will be spent on venue construction, GBP66.1m on road projects, GBP35.7m on private

234 See Appendix 2.19 235 See Appendix 2.21 236 See Appendix 2.22 237 Fuelled by the city’s dynamic atmosphere and youth-driven culture, the bids have an additional important role to play in the process of Japan’s spiritual and physical recovery efforts following the earthquake disaster in 2011

venue construction, GBP7.2m on training venues and other costs accounting for GBP39m in expenditure.

 The infrastructure development of PyeongChang 2018 will be around GBP4.1bn and GBP330.7m is estimated to be invested up to 2018 in the ‘Drive the Dream’ legacy programme.

 India238 remains an opportunity for the UK sector because of close cultural and sporting links with the country but the recent issues surrounding India’s delivery of the 2010 Delhi Commonwealth Games has dented what aspirations it may have had in hosting a Summer Olympic Games in the Region.  India does however continue to attract cricket events. The 2011 ICC Cricket World Cup was co-hosted by Bangladesh, India, and Sri Lanka and India also recently hosted the 2013 ICC Women’s World Cup. India will also host the 2016 ICC World Twenty20, which will also be a big opportunity for UK sports marketing and consultancy firms with credentials in the sport.

 The outlook for the UK sector in sourcing work around major events in Asia is strong in China, Japan and South Korea with opportunities also available in Malaysia and Singapore.

New business outlook – North America Region (2013-22)

Opportunity rank #6

1. Gold = GBP58m in new business 2. Silver = GBP23m in news business 3. Bronze = GBP11m in new business

The estimated value of potential contracts for UK sports marketing and consulting firms relating to events that have been awarded to host cities and countries in the North America Region to date is GBP234m.

Key features of market opportunities in the Region:

 Opportunities in Canada239 look positive as a result of the successful Winter Olympic Games held in Vancouver in 2010 and an increase in interest in winter sports. Several other cities are also jostling for the crown as Canada’s best sports city and these include Toronto, Ottawa, Montréal, Quebec City, Calgary and Edmonton – all of which could be sources of new business for the UK sector.

 Most suppliers of major events are viewing the 2015 Pan American Games as the biggest opportunity in Canada, if not North America as a whole, over the next few years. The overall budget for Toronto 2015 is approximately GBP0.91bn split almost equally between the operating and capital development budgets.

 With Toronto considering a possible bid for the 2024 Summer Olympic Games, hosting a successful Pan American Games will strengthen is pitch in the same way that hosting the 2007 Pan American Games was a factor in helping Rio de Janeiro fulfil its Olympic Games

238 See Appendix 2.20 239 See Appendix 2.14

ambitions. UK sports marketing and consultancy firms involved in Toronto for the Pan American Games can foster invaluable relationships for the future if an Olympic bid becomes a reality.

 The 2015 FIFA Women's World Cup, the largest single-sport women's event in the world, will not only expand the tournament from 16 to 24 teams from around the world, but will also mark the first time that a single-sport event has been hosted from coast to coast in Canada. The FIFA Women's World Cup Canada 2015 official host cities are Vancouver, Edmonton, Winnipeg, Ottawa, Montréal and Moncton and these should generate new business for UK sports marketing and consultancy companies.

 Elsewhere in Canada, Quebec City was originally interested in bidding for the 2022 Winter Olympic Games. The city later backed out of its potential bid, saying it would bid for the 2026 event instead. The city hosted the SportAccord Convention in 2012 during which the city’s major reiterated the city’s Olympic ambitions.

 Canada’s national policy is to only support two major multisport events in the country in a 10 year period and one large international single sport event every two years and that can be viewed as a constraint by some of the cities looking to host events in Canada.

 Over the next few years several major events will be held in the USA240, including the 2015 Special Olympics, the largest single event to be staged in Los Angeles since the 1984 Olympic Games and projected be the largest sports and humanitarian event held anywhere in the world in 2015. The 2015 UCI Road World Championships will be held in Richmond, Virginia. For Virginia, the economic impact of Richmond 2015 is estimated to be GBP104.5m as a result of both event staging and visitor spending in the city.

 Various US cities are considering being the country’s representative to bid for the 2024 Summer Games and the 2026 Winter Games but given the saturated sports marketing and consultancy sector in the USA, it is unlikely that this will generate incremental new business opportunities for the UK sector.

 Sports marketing companies that want to work with Mexican sports organisations and brands are better served thinking of the culture and market as an extension of South American culture, rather than as part of North America.

 Mexico241 may benefit from external expertise if it is to repair its reputation following the Guadalajara 2011 Pan American Games that suffered from construction delays in the build- up to those Games. In February 2013, Guadalajara did not make the final short list to host the 2018 Youth Olympic Games but has announced it may bid for the 2024 Olympic Games. Mexico is also expected to be preparing a bid to host the 2026 FIFA World Cup and is expecting tough competition from the US for such a bid.

 The outlook for the UK sector sourcing work around major events in North America is positive in Canada and Mexico but opportunities are more limited in North America where it is a saturated market.

240 See Appendix 2.15 241 See Appendix 2.17

New business outlook – Oceania Region (2013-22)

Opportunity rank #7

1. Gold = GBP30m in new business 2. Silver = GBP12m in news business 3. Bronze = GBP6m in new business

The estimated value of potential contracts for UK sports marketing and consulting firms relating to events that have been awarded to host cities and countries in Oceania Region to date is GBP121m.

Key features of market opportunities in the Region:

 Australia242 is hosting the 2015 Asia Cup, 2018 Commonwealth Games and is jointly hosting the 2015 ICC Cricket World Cup and 2017 Rugby League World Cup with New Zealand.

 New Zealand243 offers the best prospects for new business in comparison with Australia which is a saturated and to some extent a closed market for the UK sector unless there are existing relationships already in that market.

 New Zealand will host the 2015 FIFA Under-20 World Cup, the 2016 World Bowling Championships and the 2017 World Masters Games.244

 There will be opportunities for the UK sector to work with the cities hosting New Zealand’s major events and with organising committees245 following the Memorandum of Understanding entered into between EventScotland and New Zealand Major Events246 that committed both countries to co-operate in improving capabilities and enhancing each other’s reputation as a global destination for international events.

 For the 2018 Commonwealth Games in the Gold Coast, the Queensland government is underwriting a GBP750m investment in the re-development of its Parklands Area into a residential and commercial precinct; accelerating community and sports facilities on the Gold Coast; and upgrading transport systems.247

 Melbourne is expected to make a bid for either the 2024 or 2028 Summer Olympic Games as infrastructure is already in place and the only major venue that would need to be constructed would be a rowing and canoeing course.

242 See Appendix 2.23 243 See Appendix 2.24 244 The latter event is expected to contribute £29.5m to New Zealand’s GDP, including £20.4m worth of inward investment to Auckland. The return on regional investment for this event is estimated to be 226% that would represent the highest return achieved than any other major event held in the city 245 Realistically, given the distances and time zones involved, these opportunities will be dependent on local partnerships and joint ventures or wholly owned subsidiaries of sports marketing and consultancy firms in the Region 246 Signed in August 2012 247 Spending on these projects is projected to generate £1.38bn in economic benefits and around 30,000 full- time equivalent jobs in the Region

 The outlook for the UK sector sourcing work around major events in Oceania is stronger in New Zealand than Australia as the latter has a highly developed major events infrastructure and is less likely to need to work with outside companies.

 Whilst New Zealand gained valuable expertise and experience during the 2011 IRB Rugby World Cup it will seek external assistance when it co-hosts the 2015 ICC Cricket World Cup and 2017 Rugby League World Cup with Australia.

New business outlook – Africa Region (2013-22)

Opportunity rank #8

1. Gold = GBP2m in new business 2. Silver = GBP819,000 in news business 3. Bronze = GBP409,000 in new business

The estimated value of potential contracts for UK sports marketing and consulting firms relating to events that have been awarded to host cities and countries in the Africa Region to date is GBP121m.

Key features of market opportunities in the Region:

 Some countries in Africa248 are embarking on infrastructure changes in order to boost their presence on the world’s sporting stage and improve sport at a grassroots level.

 For example, Nigeria has embarked on a sports development programme.249Contracts have also been awarded for the construction of 43 miniature sports complexes in different states; allied sports facilities in 14 locations across the country; and restoration/upgrading of facilities at the various stadia under the control of the federal government.

 Nigeria has also been developing relationships with sports bodies in other countries – such as UK Sport.

 Nigeria is expected to be bidding to host the 2019 African Cup of Nations Finals along with rivals Keyna, DR Congo, Liberia, Zambia and Algeria.

 Morocco is set to stage the 2015 Africa Cup Finals and Libya will organise the 2017 Africa Cup Finals.

 The 8th All Africa Games were held successfully in October 2003 in Abuja, Nigeria and gave the African country a taster of what it was like to be in the international spotlight.

 South Africa also had its moment in the global spotlight when it hosted the 2003 ICC Cricket World Cup and then the first African FIFA World Cup in 2010 and like Nigeria is keen to continue being a destination for major world class sports events.

248 See Appendix 2.18 249 Nigeria has located 12 new sports zonal centres in Jos, Benin, Kaduna, Bauchi, Enugu, Ibadan, Minna, Sokoto, Damaturu, Akure, PortHarcourt and Nguru and staffed them with senior personnel involved in sports development and administration

 It is expected that South Africa will bid for the 2024 or 2028 Summer Olympic Games.

 South Africa disbursed GBP3.99m of its 2010 FIFA World Cup legacy fund in January 2013 to support a variety of projects involving teenage players, coaches and administrators. This presents a good opportunity for UK sports marketing and consultancy firms that have the credentials to work on these football projects. Future plans in the country include the construction of all-weather football pitches in each of South Africa's 52 regions within the next 10 years to support the grassroots structure of the game.

 The outlook for the UK sector in sourcing work around major events in Africa is the weakest global Region opportunity as a result of the lack of major events in the pipeline. The limited scope of new business opportunity will be around working with countries and cities directly in the Region, particularly those lacking bidding expertise or requiring assistance in developing sport at a grassroots level.

Figure 2.2: Gold, silver and bronze 25% contracts won Middle 10% £421m contracts new East business won 5% £168m new contracts business won £84m new business

Central, Eastern & Total estimated Southern Europe £1.6bn value to date Total estimated £1.4bn value to date South America

£354m £141m £70m £319m £127m new new new new new business business business business business £64m new business Western & £158m Total estimated Northern new £1.2bn value to date business Europe £63m new business Total £31m estimated new Asia value to date business £154m £61m £30m new new new £634m business business business

Total estimated value to date North America £617m £58m £23m new new business business Total £11m estimated £30m Oceania new value to date new business business Total £234m £12m estimated new value to business £6m date Africa new £121m £2m £819k business new new business business £409k new business Total estimated value to date £8.1m Section 2.3: Top 5 countries offering biggest new business opportunities for UK sector (2013-22)

The Top 5 countries offering the biggest potential for new business to the UK sector based on the value of operational and infrastructure budgets over the next decade with a cumulative value of GBP5.0bn.250

Table 2.3.1: Top 5 countries for new business opportunities

Rank Country Total (GBP) 1 Qatar 1,676,623,570 2 Russia 1,375,993,214 3 Brazil 1,276,149,320 4 South Korea 481,716,789 5 France 276,244,071 Total All top 5 countries 5,086,726,964

Qatar 253

Country rank #1

Estimated value of contracts available: GBP1.6bn

During this period the Middle East will host 4% of the major events awarded to date as measured in terms of importance.254

The majority of opportunities will be in Qatar as a result of the country hosting the 2022 FIFA World Cup. By paying attention to sport, cultural and education facilities, Qatar aims to raise its profile on the world stage for global sport and is determined to achieve the status as the sports hub of the Middle East and a major destination for world-class events in all sports.

Qatar is spending estimated GBP138bn on the 2022 FIFA World Cup and infrastructure investments include GBP16.5bn on a metro and rail network, GBP6.61bn on New Doha International Airport, GBP4.6bn in a deep water seaport and a GBP660m crossing to link the new airport with projects in the northern part of Doha. An additional GBP13.2bn will also be spent to build and expand roads.

250 It is estimated that an additional £900m in expenditure is outside of these 5 countries 251 Three cities have made a bid: Istanbul, Tokyo and Madrid. The International Olympic Committee will elect the host city on 7 September 2013 at the125th IOC Session in Buenos Aires, Argentina 252 Many cities are now exploring the possibility of bidding. The bidding calendar was announced by the IOC in October 2012, with the application deadline set on 14 November 2013. The host city will be elected on 31 July 2015 at the 127th IOC Session in Kuala Lumpur 253 See also Section 2.8 254 For a note on the methodology used, see Appendix 2.25

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This does not include the Qatar-Bahrain Friendship Bridge project at a cost of GBP2.6bn. As part of its strategy to establish Qatar as a new tourist destination, the government has also set aside GBP11.2bn for tourism development.

Table 2.3.2: Forthcoming global sports events and major infrastructure programmes in Qatar

Forthcoming global sports events255 Most popular sports in Qatar 2014 FINA World Championships (25m) Football, basketball, handball, volleyball, 2016 UCI Road World Championships camel racing, horse racing, cricket 2022 FIFA World Cup Bids Venues under construction Potential 2024 Summer Olympic Games bid Al-Gharafa Stadium Al-Khor Stadium Al-Rayyan Stadium Al-Shamal Stadium Al-Wakrah Stadium Doha Port Stadium Education City Stadium Khalifa International Stadium Lusail Iconic Stadium Qatar University Stadium Sports City Stadium Umm Slal Stadium

Russia256

Country rank #2

Estimated value of contracts available: GBP1.3bn

During this period Eastern and Southern Europe will host 20% of the major events awarded to date as measured in terms of importance.257

Russia offers the most potential for the UK sector compared with any other country on mainland Europe. Over the next few years Russia will be host of the 2013 IRB Rugby World Cup Sevens, the 2013 IAAF World Championships in Athletics (Outdoor), the 2013 Kazan Summer Universiade, the 2014 Winter Olympics in Sochi, the 2015 FINA World Championships, the 2016 IIHF World Hockey Championships and the 2018 FIFA World Cup. There may be a possibility of a bid for the 2024 Summer Olympic Games in the wake of the success of these global sports events.

The 2014 Winter Olympic Games have already become the catalyst for sports development in Sochi. The city hosts tens of different sports events every year – ranging from mass public competitions to international tournaments. Sochi has already become one of the main sports centres in Russia but will need guidance to ensure it creates a long term legacy. Meanwhile, major stadium development is already underway in the country for the FIFA World Cup 2018, with new venues encompassing the growing trend to create entertainment and retail facilities alongside sports pitches. Taken together,

255 See Appendix 2.13 256 See Section 2.7 and Appendix 2.11 257 For a note on the methodology used, see Appendix 2.25

102 these investments will go a long way to reverse the negative image that exists of Russia around the world.

Table 2.3.3: Forthcoming global sports events and major infrastructure programmes in Russia

Forthcoming global sports events258 Most popular sports in Russia 2013 IRB Rugby World Cup Sevens 2013 IAAF Football, ice hockey, basketball, winter World Championships in Athletics (Outdoor) sports, tennis, gymnastics 2013 Universiade - Summer 2014 Winter Olympics 2015 FINA World Championships 2016 IIHF World Hockey Championships 2016 Modern Pentathlon Senior World Championships 2018 FIFA World Cup Bids Venues under construction ICF Canoe Sprint World Championships and 12 stadiums to be built by 2018 will be in the the ICF Junior & U23 Canoe Sprint World following cities: Moscow (Dynamoand Championships in 2017, Luzhinki Stadiums259), Krasnodar (Krasnodar ICF Canoe Sprint World Cups in 2015 2014 and Kuban Stadiums), Vladikavkaz, Saransk, ICF Dragon Boat National World Yekaterinburg260, Nizhny Novgorod, Championships Kaliningrad, Rostov, Volgograd and Samara. Possible 2024 Summer Olympic Games bid from St Petersburg

Brazil261

Country rank # 3

Estimated value of contracts available: GBP1.2bn

During this period, South America will host 7% of the major events awarded to date as measured in terms of importance.262

As the host country for the 2014 FIFA World Cup and with Rio de Janeiro having been chosen to host the 2016 Olympic and Paralympic Games, Brazil in particular is set to have an extremely high profile in international sports in the coming years and will already be on the radar of many UK major events companies.

Brazil’s Rousseff administration has continued the country’s ambitious infrastructure programme under the title PAC 2.

For 2011-2014, PAC 2 will invest approximately GBP347.8bn in energy, infrastructure and housing priority projects while Brazil prepares to host both FIFA World Cup Rio 2014 and the Summer Olympic Games Rio 2016.

258 See Appendix 2.11 259 Complete overhaul of old stadiums are planned 260 Ibid 261 See Section 2.16 262 For a note on the methodology used, see Appendix 2.25

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Local and foreign investors are now coming together hoping to bring Brazil into its place as the next mega-economy equipped with proper airports, ports, roads and infrastructure to avoid growth bottlenecks and keep a sustainable growth rate.

A study by the University of Sao Paulo estimated the infrastructure outlays in Brazil ahead of the 2014 FIFA World Cup to be GBP11.9bn with GBP9.25bn coming from Brazilian taxpayers. The expected outlays devoted to hosting the Olympic Games are an additional GBP9.92bn, resulting in a total outlay of GBP21.8bn for both the FIFA World Cup Rio 2014 and the Summer Olympic Games Rio 2016.

Table 2.3.4: Forthcoming global sports events and major infrastructure programmes in Brazil

Forthcoming global sports events263 Most popular sports in Brazil 2013 FIFA Confederations Cup Football, motorsports, volleyball, Mixed 2014 FIFA World Cup Martial Arts, basketball 2016 Rio Summer Olympic Games Bids Venues under construction None at the time of writing Multiple stadiums and venues relating to the 2014 FIFA World Cup and 2016 Rio Olympic Games

South Korea264

Country rank # 4

Estimated value of contracts available: GBP481m

During this period Asia will be host to 21% of the major events awarded to date as measured in terms of importance.265

UK firms involved in the construction of the 2012 Olympic Park in East London have already been on trade missions in an attempt to secure lucrative contracts ahead of the 2014 Asian Games in Incheon, 2015 Summer Universiade in Gwangju and the 2018 Winter Olympics in PyeongChang among other events.

The total budget for the 2014 Asian Games in Incheon is GBP1.07bn of which GBP920m is to be spent on venue construction.

About GBP66.1m is to be invested in on-going road projects, GBP35.7m on private venue construction, GBP7.2m on training venues, with other expenditure estimated to be GBP39m. Meanwhile, the budget for the infrastructure development of the Winter Olympic Games PyeongChang 2018 amounts to a total of GBP4.1bn and an additional GBP330.7m is to be invested in the ‘Drive the Dream’ legacy programme.

263 See Appendix 2.16 264 See Section 2.12 265 For a note on the methodology used, see Appendix 2.25

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Table 2.3.5: Forthcoming global sports events and major infrastructure programmes in South Korea

Forthcoming global sports events266 Most popular sports in South Korea 2013 Asian Indoor and Martial Arts Games Football, baseball, golf, basketball, bowling, 2013 FISA World Rowing Championships table tennis, taekwondo, badminton 2014 Asian Games 2015 Universiade – Summer 2015 Military World Games 2018 PyeongChang Winter Olympic Games Bids Venues under construction 2019 FINA World Swimming Championships 23 new venues for the 2014 Asian Games in Incheon 2 new venues for Gwangju 2015 Summer Universiade 6 new venues for 2018 PyeongChang Winter Olympic Games

France267

Country rank #5

Estimated value of contracts available: GBP276m

During this period Western and Northern Europe will host 33% of the major sports events awarded to date in terms of importance268 and this represents the largest number of opportunities for the UK sector globally.

The greatest potential for new business will be related to the UEFA 2016 European Championships (EURO 2016) in France.

New venues are planned in some of the host cities, with other venues set to undergo extensive renovations, all of which creates strong opportunities for the UK sector.

Transportation issues regarding some of the smaller host cities may also need to be addressed using external expertise and support.

266 See Appendix 2.22 267 See Section 2.6 268 For a note on the methodology used, see Appendix 2.25

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Table 2.3.6: Forthcoming global sports events and major infrastructure programmes in France

Forthcoming global sports events269 Most popular sports in France 2013 ITTF World Table Tennis Football, rugby union, handball, basketball, Championships cycling, sailing, volleyball, motorsport, golf, 2014 FEI World Equestrian Games tennis 2015 FISA World Rowing Championships 2016 UEFA European Football Championships

Bids Venues under construction 2017 FIH World Hockey Championships (joint Stade de Bordeaux bid with Germany) Stade des Lumières 2017 ICF Canoe Slalom World Stade de Nice Championships New French Rugby Stadium 2017 ICF Wildwater Canoeing World Championships 2018 Gay Games Possible 2022 Winter Olympics bid from Nice and 2024 Summer Olympics bid from Paris

269 See Appendix 2.3

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Figure 2.3: Top ﬁve market opportunities (2013-2022) Qatar Value: £1.6bn £5bn t opportunity: Bigges a World Cup 2022 Fif Total budget potential for new business opportunities for UK sector 2013-2022 Russia 1 Value: £1.3bn t opportunity: Qatar £1.6bn Bigges inter 2014 W ames Olympic G Russia £1.3bn 2 Brazil Brazil £1.2bn alue: £1.2bn V t opportunity: Bigges A World Cup 2014 FIF S.Korea £481m France £276m 3 orea South481m K alue: £ V t opportunity: Bigges inter 2018 W ames Olympic G e 4 Franc76m Value: £2 t opportunity:opean Bigges 16 Eur UEFA 20 5 Championships Qatar £138bn Estimated Qatar spending on the 2022 FIFA World Cup £16.5bn £13.2bn £6.61bn £4.6bn

Metro & rail Building & New Doha Deep water network expanding International seaport roads Airport Section 2.4: Key competitors for the UK sector in regional markets

Whilst many UK sports marketing and consultancy firms find sourcing contracts in some regions much harder than in others, particularly where English is a second language or is not spoken widely, it is largely irrelevant as to whether the target is a developed or developing region as barriers to entry are known to exist across all markets.270

These barriers include competitors prepared to do work for free or at a significant subsidy; the lack of an ‘intelligent buyer’ within a games’ organising committee (OC) so that the specifications for goods and services required are opaque or unclear and hidden ‘closed shop’ activities that are hard to identify and prove but nonetheless exist and inhibit fair competition.271

Given these and other challenges, UK sports marketing and consultancy firms must be fully prepared before attempting to take on a raft of local suppliers that have a home advantage. And knowing their capabilities, competencies and experience will be a bonus in helping to position any competitive product and service offering.272

Competition will come from all directions but the UK sector is most likely to face competitors from the following countries:

 France  Germany  Australia  USA.

France

The country has a very strong sports marketing and consultancy services sector273 built on the success of several global sports events such as the FIFA World Cup France 1998, World Athletics Championships 2003 as well as the annual Tour de France. French companies tend to be strong competitors in areas such as temporary overlay, catering and hospitality services.

270“I genuinely don't see any significant differences between the countries in regard to securing work,” explains Joe O'Neill, Director of Global Overlay & Event Services at Arena Group, a former supplier to Locog and who is now engaged in seeking procurement opportunities in Korea, Brazil and Russia among other developing countries 271 See Section 1.8 272 “Before initiating a connection with the organising committees, I would suggest any business seeking work from these global opportunities needs to think about its point of differentiation, what makes it unique or different from competitors and develop that USP in all communication and marketing. Evidence of capability and credibility is everything, so the better the client testimonials; the more likely the OCs and other stakeholders will pay attention. Ideally, past work and involvement for rights holders and brand owners whilst not entirely mandatory is desirable”, advises Joe O'Neill, Director of Global Overlay & Event Services at Arena Group. See also Section 2.5 273 “We approach some event organisers and ask them if they have a specific need. Some contracts are won through our strong network of contacts and we would also travel together with the companies to an international trade show, such as in Qatar, and then arrange technical meetings,” recalls a source within a French competitor company

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Many French companies involved on the supply-side of sports events entered the market through their involvement as sponsors in the first instance and still use sports and entertainment as a way of showcasing their products and services today.274

In France, the promotion of service providers and facilities companies is the responsibility of the Ministry of Sport and the Ministry of Trade.

The Ministry of Sport focuses its efforts in supporting small-medium size companies275 and has only been involved in such activities over the last few years as well as supporting the activities of UBIFrance, the French Trade Commission.

That said, the Ministry of Sport is very proactive in showcasing France’s expertise at global sports events and it helps that French is the official language of more than 30 international sporting federations.276 The Ministry of Sport also actively supports French-speaking members of the International Olympic Committee277 to help lobby for business for its sports marketing and consultancy services sector.

And on a wider level, the Ministry of Sport has entered into agreements with many countries to leverage France’s prowess in sport which it does through a combination of trade missions and networking events.278

UBIFrance has 66 economic missions in 46 countries and more than 1,400 employees in France and abroad responsible for supporting French companies in their international business development.

The Ministry of Sport also uses a variety of options to source potential contracts279and promotes French sports events specialists by highlighting their strengths and abilities rather than claiming technical superiority over the competition. For example, prior to the 2008 Beijing Olympic Games, the French lobbied hard for the Chinese to use French-owned event and security companies.280

274 For example, EDF supplied power to the aquatic centre at the 2008 Beijing Olympic Games and was the official partner and supplier of the London 2012 Olympic and Paralympic Games 275 For example, Doublet and ECA2 276 The Ministry of Sport chairs an inter-departmental working group that promotes use of the French language within sport and its role as an official language of the Olympic movement. 277 According to one well-placed source: “When it comes to sport, France has a seemingly endless supply of money. It’s a ‘secret source’ that seems to be ever-replenishing. The French will invest in anything that improves sport within its nation or that will showcase French sport globally, which is a policy that the UK for example just doesn’t have. The French will doggedly go after any contract that will help them grow on the world stage with the result that they are now up for lots of grandiose projects. The mind-set of the Ministry of Sport is that if a project is good for France, then it will take it on board. The French embassies and diplomatic staff in every country have a person that looks after the sports interests of France overseas. That’s how important sport is to France.” The identity of the person who provided this insight has not been disclosed upon request 278 Trade missions were made to Beijing in advance of the 2008 Olympics and to Qatar in advance of the 2006 Asian Games in Doha, both of which helped French companies secure contracts at these global sports events 279 “We approach some event organisers and ask them if they have a specific need. Some contracts are won through our strong network of contacts and we would also travel together with the companies to an international trade show, such as in Qatar, and then arrange technical meetings,” recalls a source within a French competitor company 280 The Ministry of Sport as well as representatives from the French Olympic Committee were involved in proactive lobbying and were particularly pushy in getting defence and security contractor Thales to be considered as a supplier of security for the Beijing Olympic Games. Other tactics included offering ‘soft’ loans in order to push themselves forward for contracts

109

Key French competitors

Doublet281

The French manufacturer was a sponsor of the FIFA World Cup France 1998 and then used the expertise gained to secure a contract at the Olympic Games Sydney and was the official flag supplier to the London 2012 Olympic Games.

ECA2282

Part of the French Publicis Group, the company is involved in the creation, production and engineering of large scale events and has a global reputation for its innovation, technical expertise and know-how in opening and closing ceremonies. The ECA2 team has produced a host of on- going, semi-permanent and one-off shows all over the world.

Wilmotte & Associés283

The French international design practice provides urban planning, architecture, interior design, and museography and product design services from offices located in France, UK, Italy, Brazil and South Korea. The practice has a portfolio of diverse projects that range in typology, scale and location. The practice has a major international reputation for architectural design of public buildings, commercial offices, corporate headquarters, high-end residential dwellings and luxury hotel developments.284

Marty-Sports

Founded in 1979, the French manufacturer produces all sports equipment for indoor and outdoor facilities and specialises in athletics (IAAF certified range), football, basketball and badminton.285

281 According to industry sources there are three reasons why French companies have been so successful in securing contracts at sports events: French companies have been able to access new markets following showcasing their services at sports events in France; many of these successful companies such as Doublet are very entrepreneurial and forward-thinking and the French authorities should be commended for making the effort to consolidate efforts and promote these companies overseas 282 The company has worked on XXVI Summer Universiade, Shenzhen, China (2011), XXIX Olympic Games Ceremonies, Beijing, China (2008), Paralympic Games Ceremonies, Greece (2004), 8th All Africa Games Ceremonies, Nigeria (2003) and FIFA Football World Cup Ceremonies, France (1998) as well as many non- sport events including the Eiffel Tower Millennium Show, France (2000) and the World Expo Shanghai Opening Ceremony, China (2010) 283 Founded in 1975 by Jean-Michel Wilmotte, the company now employs 187 staff from over 20 different countries. The practice is currently managing over 100 projects across the world. Jean-Michel Wilmotte is recognised for his eclectic approach to architectural design and for his continual striving for the application of high quality materials and detailing 284 Some of the key projects that the practice currently has on site include a large office building in King’s Cross Central in London, The Allianz Riviera Nice Stadium in France (35,000 seats) and the Kaliningrad Stadium (45,000 seats) commissioned for the 2018 FIFA World Cup, the recently completed School of Law in Paris, The Brain and Spinal Cord Institute in Paris and The Ferrari Sporting Management Centre (Formula 1) in Maranello- Fiorano, Italy 285 The company has equipped venues for the 2010 FIFA World Cup, 2009 African Confederations Cup, Games of Francophonie Lebanon 2009 – Volleyball, African Athletics Championship Brazzaville Congo 2005, Pan Arabian Games in Algiers 2004 – Athletics and the Athletics' European cup Charlety Stadium France 1998. It is also technical partner of the French Federation of Basketball and Official Supplier & French Championships Official Partner of the Badminton French Federation

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Lagardere Unlimited286

The French group of companies recently consolidated its stadium and arena activities that had previously been managed by its SPORTFIVE and World Sports Group subsidiaries under the newly created Lagardère Unlimited Stadium Solutions.287The company offers a range of integrated and comprehensive solutions for the development and management of stadiums and arenas around the globe. It has gained global experience through the planning and implementation of 9 out of 12 stadiums for the FIFA World Cup Germany 2006, 3 out of 4 stadiums for UEFA EURO Poland/Ukraine 2012 and has a growing list of stadium projects for UEFA EURO France 2016. In addition, the group recently launched Lagardère Unlimited Live Entertainment, which now lead’s the group’s live music and entertainment activities.

Labosport 288

The French company is a global leader in sports field and product testing. It surveys construction work and certifies sport installations for football, rugby and hockey fields, running tracks, indoor floors, tennis courts and equestrian tracks among others to ensure they comply with current best practice and regulations in order to meet the highest quality and safety standards. The company holds accreditations from all the major sports federations.289

GL Events290

The French company is one of the world’s largest overlay companies for major events and undertakes over 250 trade shows across all key business to business (B2B) and business to consumer (B2C) sectors. GL Events has worked with every Olympic Games since 1992 and for the London 2012 Olympic Games the company secured a significant GBP multi-million overlay contract.291

Havas Sports Entertainment292

The French global brand engagement network has 36 offices in 20 markets with the mission to connect fans and brands through their passions in sports and entertainment. The company draws

286 The group has offices in Russian Federation, France, Germany, Netherlands, Poland, UK, Qatar, Morocco, USA, China, Hong Kong, Australia, India and Singapore 287 With this new centralised structure, Lagardère Unlimited Stadium Solutions is able to provide an international network with local product and market know-how, through its affiliates such as SPORTFIVE, World Sport Group, BEST and IEC in Sports. It possesses in-depth knowledge of current, international state- of-the-art stadium construction and offers its services to clubs, federations and cities around the world 288 The 20 year-old company has offices in Turkey, France, Italy, Portugal, UK, Saudi Arabia, Canada, US, China and Hong Kong 289 Including FIFA, IRB, IAAF, ITF and IFH 290 The company has offices in GL Events has offices in Switzerland, Turkey, Belgium, France, Hungary, Italy, Luxembourg, Netherlands, Portugal, Spain, UK, Qatar, UAE, Algeria, Canada, USA, China, Hong Kong, Macao, Brazil and South Africa 291 The £18.3m deal included 170,000m² of temporary structures for more than 80 sites (32 venues hosting the competitions and the satellite villages + 50 other sites) the supply of 95,000 and 125,000 seats, spread across 13 venues. This six month implementation phase had a project team of 140 people of 28 different nationalities, with 400 people a day on average working on the Olympic sites. The installation took 25,000 man days and 4,000 truck operations (2,100 for the installation phase and 1,900 for the dismantling phase) 292 Havas has offices in Russian Federation, Austria, France, Germany, Hungary, Ireland, Italy, Netherlands, Poland, Portugal, Spain, UK, Mexico, USA, China, Argentina, Brazil, Chile, Colombia, Peru, India, Gabon, South Africa

111 its experience from a wide range of disciplines including advertising, marketing, music, sports, cinema, journalism, publishing, broadcast and production.293 Its roster of global clients include adidas, American Express, Atos, BBVA, BP, The Coca-Cola Company, Danone, Delta Air Lines, EDF, ESPN, Hyundai, Kia, Lloyds Banking Group, LVMH, Mars, Orange, Procter & Gamble, PSA Peugeot Citroën, Reckitt Benckiser, Santander, Sony, the United Nations Foundation, Victoria’s Secret, and Yahoo! and sports organisations such as the English Premier League, FIFA, the French Golf Federation, the Italian Rugby Federation and Roland Garros.

Bodet294

The French company is a manufacturer of scoreboards, video screens and electronic whistle control systems. It has been a technical partner of international basketball federation FIBA since 1999 and partner of several national basketball and handball federations and stadiums globally. Bodet has had a presence in the Middle East for more than 30 years and in Qatar the company recently equipped Al Jazeera Sport Studios, Al Uddaid Base, Al Jabber Stadium in Kuwait and Sorbonne University in Abu Dhabi.

Keneo295

Founded in 2008 by a group of former French executives of major international events organising committees, Keneo offers its expertise to sporting and cultural organisations, providing them with strategic consulting and services in a wide range of areas around sporting events and infrastructures. The three core areas of its expertise are bids and organisation of major events; servicing and marketing and sports policies and corporate social responsibility (CSR) programmes.

Thales Rail Signalling Solutions

The French company is a subsidiary of the multi-national engineering, defence and security company Thales. Its focus is on the delivery of capital projects and infrastructure-related services and sustainable and intelligent transportation systems.

It is involved in all phases of the design; manufacturing; testing; installation and commissioning of communications-based train control (CBTC) signalling systems and has a long history in delivering these systems throughout the world. In the past 5 years, Thales has equipped over 130 km of high- capacity urban rail systems with CBTC equipment and is the world’s leading provider of this advanced urban rail signalling solution.296

293 Products and services include strategic consulting major brand owners and rights holders, consulting and communication strategies for major events bids, sponsorship strategy and activation for major international brand owners, branded and live content, partnerships, brand ambassadors and celebrities endorsements, social and digital media, PR, experiential marketing, hospitality, research and measurement 294 It has offices in Switzerland, Belgium, Netherlands, Spain and UK 295 The company has worked with the following organisations in sport: France’s UEFA EURO 2016 bid, Tokyo’s Olympic Games 2020 bid, Medellin 2018 Youth Olympic Games Bid, World Equestrian Games Normandy 2014, 2012 African Cup of Nations in Gabon, 2010 BWF Badminton World Championships, Singapore 2010 Youth Olympic Games, French Football Federation, National Rugby League, French Tennis Federation, Foundation of Football, IAAF 296 For the past 2 years the company has been monitoring the Brazilian urban rail market and is a member of the team composed of Andrade Gutierrez, CR Almeida and Scomi that has been selected as the low bidder for the design and construction of the São Paulo Line 17 monorail project. Thales is also interested in participating in future bids for the São Paulo and Rio de Janeiro projects to modernise and upgrade their existing transit systems with modern signalling solutions

112

Germany

There is less Government-focused support for the German sports marketing and consultancy services sector compared with the efforts of the French Government.297German sports federations tend to be autonomous and bid for hosting international sports events through their own efforts.298

The Federal Ministry of the Interior does not tend to run specific trade missions for German companies, such as construction and facilities companies, in order to try and promote them to overseas events or games’ organising committees (OC).299

There have been several high-profile German initiatives in the past, focused on China and specifically on opportunities arising from Olympic Games Beijing 2008. At that time, China had chosen to work with several German partners in promoting personal mobility as well as improving public transportation.

More recently, German companies have been active in South America in the build-up to the FIFA World Cup Brazil 2014 and the Summer Olympic Games Rio 2016.300There was a similar involvement in South Africa in the build-up to the FIFA World Cup South Africa 2010.301

The Federal Ministry of the Interior has bilateral agreements with foreign ministries responsible for sport with the following countries:

 France  Finland  Hungary  Poland  Czech Republic  Slovakia  Austria.

297 A spokesman for the German Federal Ministry of the Interior said: “Important international sport events in Germany may receive financial assistance from the Federal Ministry of the Interior. Applications may be backed in a non-material way by the German Foreign Office, German Embassies as well as Ministers during the normal course of international business” 298 Germany used its host status of the FIFA World Cup Germany 2006 to project itself to the world as a cosmopolitan, friendly and welcoming place 299 A source at German steel construction company Donges Stahlbau says he has heard of trips run by local governments but they tend to focus on large companies rather than small-medium-sized ones like his. “We certainly haven’t been invited. The German Government just isn’t interested in the likes of us. They are always saying they will help us but they don’t. We therefore source our own work.” The German Ambassador in Qatar did introduce the company to the right people, but this is rare. The identity of the source has been withheld at his request 300 “In South America, we often bump into a very strong German network. It starts from Deutsche Bank and filters down to the consultancies,” says Nicholas Reynolds, director, Populous 301 “A common impression in the market place is that there was government investment and trade deals between the German Government and the South African government. There was an announcement by German Chancellor Angela Merkel at the time about a €20m investment into the market there, and the offer of using Deutsche Bank to help fund some of the projects in South Africa was then resulting into a natural trickle down into the consultancy work of Deutsche Bank requiring consultants to deliver some of the designs on which they were providing funding to,” says Nicholas Reynolds, director, Populous. In this case, Deutsche Bank was acting as the lead facilitator and local German banks continued to put up the funding for capital projects, according to Michael Mainelli, CEO, Z/Yen

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As a competitor with the UK, the German sector has some key strengths in sports marketing and consultancy services.

Table 2.4.1: Key strengths of German sports marketing and consultancy services sector

Strength Projects undertaken by German companies

Design Several Formula 1 circuits designed by German track specialist Herman Tilke including Sepang International Circuit, Bahrain International Circuit, Shanghai International Circuit, Istanbul Park Racing Circuit, Valencia Street Circuit, Marina Bay Street Circuit, Yas Marina Circuit, Buddh International Circuit in India and the Circuit of the Americas in Austin, Texas Steel construction Donges Stahlbau - Arena Auf Schalke, Gelsenkirchen and Al- Sadd Sports Club, Doha, Qatar Temporary structures Germany is a leading market for the production, sale and rental of temporary structures. The leading company in this sector is Röder HTS Höcker where the company’s main area of speciality is Formula 1 and German Touring Cars Telecoms/electronics Siemens at Summer Olympic Games Athens 2004 and Beijing Olympic Games 2008, Formula 1 and other global sports events

Key German competitors

Donges Stahlbau302

The German company is an engineering and construction subsidiary of Hitachi Power Europe GmbH and designs and fabricates industrial buildings, multi-storey/high-rise buildings, car parks, bridges, aircraft hangars, stadiums, sports and leisure centres, power plants, and special constructions.

Röder HTS Höcker

The German company is a designer and manufacturer of high quality temporary and semi- permanent structures systems used across a wide spectrum of market sectors that include events and hospitality for major brands including Audi and BMW. The company’s extensive range of event marquees and modular building systems are distributed via its 20 technical sales offices and warehouses worldwide.

302 The company, based in Darmstadt, Germany, has carried out the following stadium roofing projects: Rhein-Neckar Arena, Sinsheim, Stadium roof project at Jassim-Bin-Hamad Stadium, Al-Sadd Sports Club, Doha, Qatar, Bruchwegstadion Mainz, Osttribüne Kaiserslautern and Arena "Auf Schalke", Gelsenkirchen, Westfalenstadion, Dortmund

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UFA SPORTS303

The main activities of this German sports marketing agency include the distribution of media, sponsorship, corporate hospitality and testimonial rights as well as traditional sports marketing consultancy services. It also works with a range of brand owners and sports rights holders.304

SPORTFIVE Deutschland

One of the leading German sports marketing companies covering the whole spectrum of sports marketing - from stadium advertising and shirt sponsorship to hospitality packages and media rights. It has 14 professional football clubs in its marketing portfolio, including defending Bundesliga champion Borussia Dortmund.305It sees its future as creating digital media solutions for clubs that will replace ad space on boards as well as other online media services that provide clubs with technical solutions for engaging with football fans.

Australia

Australia’s ability to punch well above its weight in international sport, from swimming to cycling, is often attributed to its extensive training facilities, financed by government, communities and sponsors. A nation of only 23m population, it supports sports talent with funds and facilities to achieve world rankings ahead of many larger countries with bigger budgets.

Riding on the success of the Olympic Games Sydney 2000, predominantly small-medium-sized Australian companies team up with local partners and consortiums to offer their expertise in areas ranging from architectural design, engineering and security to merchandising, training and accommodation around the world.

Australia has gained global experience from the Olympic Games Beijing 2008, Commonwealth Games 2006 and 2010 as well as the 2010 Asian Games in a wide variety of areas including master plan design and construction, project management, opening and closing ceremonies, staging expertise and facilities management.

Austrade is the federal government agency that helps Australian companies secure overseas business for their products and services by claiming to reduce the time, cost and risk involved in

303 The history of the UFA Sports brand goes back to 1988 when UFA Film und Fernseh GmbH, a subsidiary of Bertelsmann, signed the first ever private television rights contract with the German Football League and then acquired the television rights of the Wimbledon tennis tournament, the same year – two revolutionary deals in the German media landscape at that time. In 1994, UFA Sports successfully invested in the rehabilitation of the football club Hertha BSC Berlin and thereby laid the foundation for the first ever general marketing agreement with a Bundesliga Club. Seven years later, UFA Sports underwent several mergers and acquisitions, among others with the two French sport rights agencies Sport+ and GJCD 2000, and was renamed Sportfive. In 2008, UFA Sports was reformed under the roof of its original shareholders the RTL Group and Bertelsmann and is now led by several former Sportfive managers with the headquarters of the agency based in Hamburg 304 These include German Bundesliga clubs FC St. Pauli, 1. FC Union Berlin and Alemannia Aachen as well as with the boxer and current WBA Middleweight Super Champion Felix Sturm 305 “It obviously helped that we’ve been able to establish a very sound market leadership in the area of brand rights in Germany and in the German sports world that we try to extend even further. In addition, we want to operate as a very knowledgeable partner for clubs and sponsors through service and expertise advantage in comparison to our competitors. This has been our ambition for the past 25 years, and we want to continue down this road,” says SPORTFIVE CEO Philipp Hasenbein

115 selecting, entering and developing international markets. It is represented in over 50 countries with an extensive domestic network throughout Australia. It offers practical advice, market intelligence and on-going support (including financial) to Australian businesses looking to enter international markets by providing advice and guidance on overseas investment and joint venture opportunities as well as facilitating introductions with potential overseas investors.306

The Olympic Games Sydney 2000 boosted the profile of Australia’s sports marketing and consultancy services sector considerably, creating a greater sense of confidence and the notion that Australians can now do things they did not realise they could do before, helping to position the sector to bid for work on a global basis.

Austrade had its first of many trade missions to China in August 2001, and went back again a month after Beijing won its bid to host the Olympic Games to showcase Australian companies to China. Austrade also reciprocated the gesture by hosting Chinese delegations to Australia.307

More recently, Austrade has been particularly active in seeking work for Australian companies in the US and Brazil in the run-up to the FIFA World Cup Rio 2014 and Summer Olympic Games Brazil 2016 through a series of trade delegations in those countries.308

Key Australia competitors

PTW Architects309

One of Australia’s oldest and best-known architectural firms, Peddle Thorp & Walker (PTW), was acquired by China Construction Design International (CCDI) in March 2013.310The deal allows the firm, which has already been practising in Asia for 28 years, to step up its regional expansion and resolve cash flow problems in a tight market that are affecting a number of other architect firms. PTW offers architectural design, master planning and urban design, building refurbishment, conservation and heritage architecture, sports architecture, interior design, urban and regional planning services within its multi-disciplinary environment.

306 According to a source at Austrade: “We cover several specialist areas such as venues, environmental protection, transportation and telecoms. All sorts of opportunities fit under those sectors and we allow any company to attend the briefings and then try and match them to opportunities overseas. The only criteria is that the company has to be Australian and is able to supply the services offered and have the financial resources to succeed” 307 According to a source at Austrade: “There’s nothing like seeing what we can do in person. We’ve always looked at China as a long- term proposition and are trying to be a partner to them, working with the Chinese rather than for them” 308 Delegates included key contacts from the local organising committees of the 12 FIFA World Cup 2014 host cities and those from the Summer Olympic Games Brazil 2016, state and federal government level sport, tourism and development personnel, specialist major event infrastructure and organisation companies, and other groups involved with Brazil's sport and major event industries. The mission included return visits to Sydney, Melbourne and Brisbane, with the delegation attending a number of important presentations, business–matching opportunities, stadium and sport precinct tours and networking events 309 It employs over 200 people with offices in Sydney, Beijing, Shanghai, Hanoi and Ho Chi Minh City 310 PTW was established in Sydney in 1889 and has been responsible for the design of many landmark buildings in Australia and overseas, including the “water cube” swimming venue at the 2008 Beijing Olympic Games, on which the practice worked with CDDI. The purchase price is undisclosed but has been reported as A$15m (£10m)

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Cleanevent311

The Australian company is one of the world's leading cleaning service providers in the leisure, sports and entertainment sector. It has been involved in several Summer Olympic Games (Atlanta, Sydney, Salt Lake City, Athens and London), the 2010 Vancouver Winter Olympics and the 2006 Commonwealth Games (Manchester, Melbourne). Cleanevent hired over 4,000 people to work on its team at London 2012 Olympic Games across all venues.

Sinclair Knight Merz312

The Australian engineering firm has enjoyed continuing success after the Olympic Games Sydney 2000 having provided engineering services to the UK, Malaysia, China, Portugal and New Zealand. SKM also designed and assisted in the delivery of the roof for the main Athens Olympic stadium and velodrome, plus the pedestrian and transport interchange in the Oaka precinct at Olympic Games Athens 2004.

SGL

One of the leading lifestyle, leisure and community consulting firms in Australia and New Zealand, SGL has successfully completed projects in Australia, New Zealand, the Asia/Pacific region and the USA. SGL has undertaken an extensive range of sport, recreation, tourism and community service projects in all mainland territories, as well as national projects for the Australian Federal Government and for the national and local governments in New Zealand. Clients have included the FIFA U17 Women's World Cup, World Junior Touch Nationals and National Touch Championships. SGL was recently been appointed by the Gold Coast 2018 Commonwealth Games Corporation to conduct a review of the sports programme and to evaluate a number of sports that have expressed an interest in being included in the event.

Twenty3313

The privately-owned Australian company provides strategic business and marketing planning, design and creative, media planning and buying and digital marketing services to the sport and entertainment sector. Twenty3 partners with clients across various industries to identify and maximise high-value opportunities, and overcome business-critical challenges. It has a proprietary suite of analytical and creative tools that it uses to solve key business, commercial and brand communication issues. The company also has an event marketing arm - Twenty3 Live - that offers Australia's leading entertainment producers and promoters a host of services in order to drive awareness and maximise ticket sales to live sports and entertainment events.

311 The company, owned by the Spotless Group, employs 40,000 employees to deliver 30m service hours a year across all major business and industrial sectors. It provides cleaning services to major sports stadiums, entertainment venues, racecourses, international air shows, festivals, F1 grand prix races, motorcycle grand prix races, music festivals and community fairs 312 Established in 1964, the private company employs 7,500 people across 40 offices with a fee income in excess of A$1bn 313 Twenty3 was founded by Australian sports commentator and AFL club owner Eddie McGuire, Paul Dainty (the major Australian promoter who has brought WWE and extreme sports to Australia and is currently working with the Rolling Stones) and one of Australia’s leading media buyers/specialists Paul Leeds

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USA

The USA has a long history of supporting international athletic events, including hosting eight modern Olympic Games. The US government is bullish about international athletic competitions because the events provide a showcase for US culture, help promote mutual understanding between nations, generate a sense of national pride within the USA and create a significant economic impact for the US economy.

There is no Ministry or Department for Sport in the US. Instead, responsibilities for the promotion of sport are shared between several parts of the State Department, Department of Commerce and the US Olympic Committee (USOC).

The Department of Commerce plays a major role in co-ordinating trade and investment activities in support of US firms doing business overseas, including those exporting sports services. The Department of Commerce also co-ordinates State Department advocacy on behalf of US businesses and offers problem-solving assistance in opening markets, levelling the playing field, and resolving trade and investment disputes.

The Department of Commerce has an International Trade Administration, Manufacturing and Services Bureau.314 This has four separate offices which develop trade policy, identify foreign market barriers and analyse trends affecting the domestic and foreign competitiveness for US businesses in the service, tourism and finance industries. The Bureau also sends out a regular e-mail bulletin to companies on its list, informing and reminding them of tender announcements and deadlines.

The International Trade Administration, Manufacturing and Services office has a presence in over 85 countries, often located within the US Embassy of a particular country, and often has its own premises.

Several US trade missions have taken place to Greece, China and Qatar in the past, specifically sourcing construction work relating to the 2004 and 2008 Olympic Games and 2006 Doha Asian Games. Brazil is currently seen as a big opportunity for US companies in the build- up to FIFA World Cup Rio 2014 and the Summer Olympic Games Brazil 2016, with numerous bi-lateral agreements between the two nations fostering reciprocal benefits. Companies that go on US trade missions must finance the costs for themselves.315

The US Trade and Development Agency (USTDA) invited 12 delegates from Brazil’s public and private sector aviation officials to the USA for a reverse trade mission in March 2012. As a strategic part of the National Export Initiative in the US, this visit focused on familiarising senior Brazilian officials with US airport and civil aviation-related modernisation technologies and best practices through site visits and meetings with public and private industry experts. The mission introduced

314 “We promote US companies abroad in a number of different ways. For example, we have an advocacy department. US companies can qualify for our advocacy to help them in the consideration of awards, usually related to Olympic programmes. We also help them with promotional aspects. A company might come to us saying that they are working on a project to build a soccer stadium in Uruguay for example and we will help them meet the right people who can help them,” explains a spokesperson for the International Trade Administration, Manufacturing and Services Bureau 315 “It can be difficult for small-medium-sized enterprises to participate in our programs because of lack of financing. We have therefore found it to be better practice to concentrate on those that can qualify from a financial basis in the first place. We do encourage smaller firms to partner though,” explains a spokesperson for the International Trade Administration, Manufacturing and Services Bureau

118 the delegation to US technology, services, products and best practices that could help the Brazilians in their airport modernisation and upgrade programme prior to the FIFA World Cup in 2014 and the Summer Olympic Games in 2016.

Meanwhile, the Mayor of Los Angeles, Antonio Villaraigosa, has said that he will lead a trade and investment mission to Qatar in late 2013. This is in response to the delegation visit in February 2013 led by the Qatar 2022 Supreme Committee secretary general Hassan Al Thawadi and Susan Ziadeh, the US ambassador to Qatar who met with Villaraigosa in Los Angeles in order to discuss areas of mutual interest and cooperation including infrastructure, green technologies, and trade and investment projects.

Los Angeles is the second largest city in the USA, one the world’s largest economies and is home to six professional sports teams. Al Thawadi and Ziadeh expressed confidence that the trade mission would deepen the vital economic relationship between Qatar and the USA and generate economic growth and high quality investment for both countries.

The Qatar 2022 Supreme Committee and the US Embassy in Qatar began a joint trade mission to the western USA at that time to tour sporting venues, visit infrastructure projects, research innovative, sustainable energy technologies and build mutually beneficial partnership opportunities for US companies as Qatar prepares to host the 2022 FIFA World Cup.

Commercial ties between Qatar and the USA have expanded at a rapid pace over the last 7 years with trade volumes growing from $738m in 2003 to $4.03bn in 2011.

The secretary general delivered a presentation to over 100 American companies on the business opportunities the 2022 FIFA World Cup presents to the west coast and the United States at a briefing organised by the US-Qatar Business Council and the National US Arab Chamber of Commerce.316 The trade mission underscored the Qatari-American commitment to shared trade growth and to economic cooperation in US markets that meet Qatar’s demand for specialised, first- rate goods and services.317

Despite this entente cordiale, some observers say that American companies are a bit too slow at getting involved during a hot period for a tender and their approaches are often not in line with the favoured approach of an organising committee.

316 Al Thawadi explained why the 2022 Supreme Committee had chosen to initiate one of the committee’s first fact-finding business missions to the United States and specifically Los Angeles: “We are here in the United States — a country that is very well known for nurturing and incubating innovative spirits, releasing them and creating great success stories whether on an individual basis or organisationally — in order to build mutually reciprocal partnerships with companies who are interested in using the 2022 FIFA World Cup Qatar as a platform to target a market of 300m consumers across the Middle East and the Arab World. Moreover, we are not here to just reach out to the world’s largest corporations, but companies that can add true value to our vision and join us on our journey to 2022 and beyond,” he said 317 Susan Ziadeh said: “The 2022 FIFA World Cup is a key example of how Qatar’s rising international prominence is bringing about new and exciting partnership opportunities. US firms are world leaders with unique capabilities and experience in project management, event management, and other areas crucial to Qatar’s preparations to host the World Cup. American firms have a proven track record of delivering world- class projects on time and on budget”

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The US is one of the most saturated markets in the world and as a result will not present the strongest new business opportunity for the UK sector.318

Key USA competitors

AEG

AEG, one of the world’s leading sports and entertainment presenters in the world and is a wholly owned subsidiary of the Anschutz Company that owns, controls or is affiliated with over 100 of the world's leading facilities.319

In addition, AEG developed and operates The Home Depot Centre, a $150m national training centre located on the campus of California State University, Dominguez Hills in Carson, CA which is an Official USA Olympic Training Site and features elite facilities for soccer, tennis, track and field, track cycling, boxing, lacrosse, rugby, football and other sports, as well as concerts and family shows, and is home to MLS Champion Los Angeles Galaxy and Chivas USA MLS franchises. The company is also spearheading the development of Farmers Field, a 72,000-seat stadium and Event Centre in downtown Los Angeles designed to host an NFL franchise, conventions and special events.

Franchises including the Stanley Cup Champion Los Angeles Kings (NHL), Manchester Monarchs (AHL), Ontario Reign (ECHL), Houston Dynamo & Los Angeles Galaxy (MLS), three hockey franchises in Europe as well as the Hammarby (Sweden) Futbol Club, management of privately held shares of the Los Angeles Lakers, events such as the Amgen Tour of California cycling road race, the Zazzle Bay to Breakers foot race and an on-going schedule of soccer exhibitions in the United States featuring the most popular international teams are part of the portfolio of AEG Sports.

AEG Live, the live-entertainment division of Los Angeles-based AEG, is dedicated to all aspects of live contemporary music performance. AEG Live is comprised of touring, festival, exhibition, broadcast, merchandise and special event divisions, fifteen regional offices and owns, operates or exclusively books 35 state-of-the-art venues.320

318 According to a sports marketing expert based in the US, William Vitale, chairman of Vital Communications, there is not much competition for sports marketing companies in the US: “I actually haven’t witnessed a great deal of international shops getting involved in the US. Honestly, I see a lot of the reverse; a lot of US-based companies either activating internationally or opening offices in international locations, with the home office remaining in the US” 319 These include: STAPLES Centre (Los Angeles, CA), Sprint Centre (Kansas City, MO), Citizen's Business Bank Arena (Ontario, CA), The Rose Garden (Portland, OR), O.co Coliseum (Oakland, CA), American Airlines Arena (Miami), Best Buy Theatre (Times Square, NY), Verizon Theatre (Grand Prairie, TX), Colosseum at Caesars Palace (Las Vegas, NV), Target Centre (Minneapolis, MN), BBVA Compass Stadium (Houston, TX), Allphones Arena (Sydney, AU), MasterCard Centre (Beijing, China), Ahoy Arena (Rotterdam), Ericsson Globe Arenas (Stockholm), Qatar National Convention Centre (Doha), O2 World Hamburg (Hamburg), O2 World (Berlin) and The O2, a 28-acre development located in the eastern part of London along the Thames River which includes a 20,000-seat arena and over 650,000 square feet of leisure and entertainment use which are all part of the portfolio of AEG Facilities; AEG Merchandising, a multi-faceted merchandising company; and AEG Global Partnerships, responsible for worldwide sales and servicing of sponsorships naming rights and other strategic partnerships 320 The current and recent concert tour roster includes artists such as Taylor Swift, The Black Eyed Peas, Bon Jovi, Usher, Carrie Underwood, Daughtry, Justin Bieber, Leonard Cohen, Wisin & Yandel, Kenny Chesney, P!nk and Paul McCartney. The company is also currently producing productions including Celine Dion, Rod Stewart and Shania Twain at The Colosseum at Caesars Palace, as well as Def Leppard at the Hard Rock Hotel & Casino in Las Vegas. The division's exhibition portfolio boasts the most successful exhibition of all time,

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AEG directed the overall creation and development of LA LIVE, the 4m square foot / $2.5bn downtown Los Angeles sports, residential and entertainment district featuring venues such as Nokia Theatre L.A. LIVE, Club Nokia and The Conga Room; the GRAMMY Museum, saluting the history of music and the genre's best known awards show; a 54-story, 1001-room convention "headquarters" destination (featuring The Ritz-Carlton Los Angeles and JW Marriott Los Angeles L.A. LIVE hotels and 224 luxury condominiums — The Ritz-Carlton Residences at L.A. LIVE — all in a single tower), Regal Cinemas L.A. LIVE Stadium 14 movie theatre, "broadcast" facilities for ESPN, along with entertainment, restaurant and office space making it the region's most active 'live content and event campus.'

21 Sport and Entertainment Marketing Group

Founded in 1991, the company is of the major sponsorship agencies in the USA. Its client list includes: International Olympic Committee, Brazilian Olympic Committee, United States Olympic Committee, Canadian Olympic Committee, Rio 2016 Olympic Games, FIFA, America's Cup, NBC Sports Network, Global Experience Specialists, NASA, NBA, NFL, Smithsonian Institution, IAAF, Fina, IndyCar Series, Maloof Money Cup, Rugby World Cup, Kentucky Derby, Preakness Stakes, Belmont Stakes, USA Gymnastics, USA Basketball, USA Track and Field, USA Pentathlon, US Figure Skating, US Ski Team, USA Hockey, CBS, ABC and NBC.

Chicago Sports and Entertainment Partners

Chicago Sports and Entertainment Partners (CSEP) is a full service sports and entertainment marketing, management and consulting agency. Its team of senior level sports and entertainment agents and marketing executives have over 60 years combined experience in corporate brand strategies and activation, media/public relations, corporate social responsibility (CSR) and athlete representation and management.

CSEP has a long history of working with athletes in all facets of sponsorship and endorsement marketing campaigns. The company works with athletes primarily in two ways: as athlete agents321and it has an extensive and constantly growing roster of champion athletes across all sports.322

In its work with brand owners, CSEP provides market analysis, sponsorship strategy, sponsorship search, selection, negotiation, activation, and on-going evaluation of the sponsorship results. The company employs both specific, individualised strategies for creating traditional PR opportunities (one-way promotion), like television show appearances and print publication profiles, as well as strategies for understanding and maximising the new and constantly evolving opportunities presented by social media (two-way promotion).

Tutankhamen and the Golden Age of the Pharaohs, which has attracted more than 7m visitors since 2005. AEG Live is also the largest producer of music festivals in North America from the critically acclaimed Coachella Music & Arts Festival to Stagecoach and New Orleans Jazz & Heritage Festival 321 It directly represents a collection of elite athletes and manages their marketing, sponsorships, endorsements, PR efforts, public speaking and charitable associations 322 These champion athletes are used for marketing and advertising campaigns of its corporate clients or as part of corporate sponsorship activation initiatives

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Genesco Sports Enterprises

Genesco Sports Enterprises is a corporate sports marketing consulting agency based in Dallas, with offices in New York, Las Vegas, Charlotte, New Jersey, Phoenix, and Chicago. The 60-person agency brought in more than $12m in annual retainers and project fees in 2010. Genesco is three years into a deal with Verizon Communications to help implement the latter’s $720m four-year contract with the NFL. It key services are sports marketing, sponsorship and athlete negotiations, mobile marketing, premiums and incentives.

IMG

IMG Worldwide is the world’s oldest and biggest sports marketing firm and a market leader in global sports, fashion and media with over 3,500 employees operating in more than 30 countries from more than 80 offices around the globe. Its turnover is GBP1.5bn a year.323

IMG's global expertise is diverse and wide ranging:

 IMG College is the leader in collegiate marketing, licensing and media rights  IMG's Joint Ventures: IMG Reliance, IMX, IMG CCTV and IMG Doğuş in the emerging markets of India, Brazil, China and Turkey offer the company significant long-term growth opportunities  IMG Media is the world’s largest independent producer and distributor of sports programming  IMG Events and Federations owns and manages some of the most sought after events and includes long standing associations with the world's most important sports organisations, leagues, and federations  IMG Fashion owns and operates fashion events around the world  IMG Models represents the world's top models and leading designers  IMG Art+Commerce represents the most influential photographers, art directors and stylists  IMG Clients has been the global leader in talent representation for the past 50 years, including over 1,000 elite athletes, coaches, industry executives and prestigious sports organizations across the sports, entertainment, and fashion and media industries  IMG Performance is aimed at developing sports performance research, products and services that have grown out of the division’s world-leading integrated academic and athletic training institution, IMG Academy  IMG Consulting324 employs 170 people globally and connects many of the world's leading brands with consumers through access to unique sports and entertainment properties325  IMG Licensing is considered one of the premier independent licensing companies in the sports, fashion and media world.

323 “Emotionally and financially IMG’s the market leader globally,” says Chris Sutterthwaite, CEO, Chime Communications 324 The turnover is £40-50m per annum 325 Services include league, team and event sponsorship, music and film tie-ins, appearances and celebrity endorsements, stadium and public sector naming rights, grassroots and cause marketing, experiential marketing, customer events and hospitality programmes, consumer and trade promotions, custom media production and licensing

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Madison Avenue Sports and Entertainment

Madison Avenue Sports and Entertainment (MadAve) is a global sports and entertainment firm that operates across three key areas: marketing, talent representation and media.

The core areas of its operation are:

 Marketing services326  Brand consultancy services327  Sponsorship services328  Promotion and experiential marketing329  Digital marketing330  Entertainment and hospitality 331  Talent booking332  Research and analysis.333

Octagon

Octagon is the global sports and entertainment content marketing arm of the Interpublic Group of companies. Octagon currently operates with over 800 employees around the globe, with an equal number of athlete and personality clients, and manages upwards of 13,400 events per year. It manages and influences some $3bn in sponsorship-related spending annually. Other Octagon representation divisions include baseball, basketball, digital, entertainment, financial services, first call, American football, football (soccer), global events, hockey, music, Olympics and action sports, speakers, tennis, and track and field.

326 Includes strategic consulting, identifying key client marketing and sponsorship opportunities in sports and entertainment and creating strategic plans consistent with business objectives leveraging lifestyle marketing 327 Its brand work includes event and promotion name and identity development, logo design and creation, graphic design/production studio managing print, digital, social, event materials, POS displays and sales and marketing collateral 328 Includes identification, analysis and recommendations for property sponsorship opportunities and negotiation of sponsorship and media agreements 329 Includes development of themed consumer and trade promotions for clients, management of sponsorship assets and development/planning/management of activation programming, retail/shopper marketing/merchandising programs, on-packs, gift with purchase (GWPs), rebates, sweeps and contests, user generated content (UGC) and games, development of sports and entertainment themed events, mobile tour and sampling initiatives for clients, event/tour management and field staffing 330 Includes site development (design, coding/programming, hosting), mobile marketing, social media initiatives, event/in-store technology, custom application development, content development and distribution 331 Includes the development and execution of event-oriented activities, small and large scale hospitality management and sales incentive and travel programmes 332 Includes leveraging talent and management relationships to meet client objectives, booking talent for networks, shows, big events, corporate functions and commercial endorsements 333 Includes identifying industry trends and comparable data, pre and post-sponsorship and event research, and program ROI analysis

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LeadDog Marketing

LeadDog Marketing is a 125-person, independently-owned, full-service integrated marketing agency based in New York City, with offices across the US, including Los Angeles, Boston, Chicago, Atlanta and Boulder. 334 Major clients include NASCAR, NHL, World Wrestling Entertainment (WWE), NY/NJ Super Bowl Host Committee, ABC Television, The Oprah Magazine, Madison Square Garden Network; Better Homes and Gardens, USTA, Nautica Fragrance and Glacéau Vitamin Water. The agency has a proven track record in the creation, development and management of award-winning national and international brand initiatives, and has capabilities ranging from brand promotion, strategy and activation, live events, sports marketing, experiential marketing, public relations, website design, green marketing and sweepstakes management.

Teneo335

Headquartered in New York with offices in Beijing, Dubai, Dublin, Hong Kong, London, São Paulo, Washington, DC and Zurich, it employs more than 130 employees and is an advisor to many global companies, non-profit institutions and governments. It key services are the design and execution of marketing and communications strategies, protect and enhance corporate reputation and helping clients to navigate legal, political and regulatory challenges in their market segments. Clients include Dow Chemical, and ESPN that hired the agency to assist in its development of the Global X Games.

Helios Partners

Helios Partners is an international sports marketing consultancy with offices in Atlanta, Beijing and London. The company delivers services to global corporations, major sports properties, and worldwide cities involved with the Olympic Games and the FIFA World Cup. Its bidding city clients have included Winter Olympic Games PyeongChang (South Korea) 2018, Winter Olympic Games Sochi 2014, FIFA World Cup Russia 2018, FIFA World Cup Qatar 2022, Doha Bid for Olympic Games 2016 and the Summer Universiade Games, Kazan (Russia) 2013.

Helios specialises in sports marketing consulting services within the following areas of expertise:

 Corporate sponsorships  Sports properties  Bid cities and organising committees.

334 Named a Promo 100 Agency for five consecutive years and winner of two Telly Awards, three EX Awards and four FAME Awards, LeadDog emphasises the power of an idea, and specialises in brand, cause, sports and media/entertainment properties 335 Teneo was founded in 2011 by three partners: Declan Kelly (former US Special Envoy to Northern Ireland, US CEO of Financial Dynamics, and EVP & CIO of FTI Consulting), Doug Band (Counsellor to President Bill Clinton) and Paul Keary (former Senior Managing Director of FTI Consulting)

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Figure 2.4: Key competitors for the UK sector in regional markets

France Germany UBIFrance has more than employees in France The Federal France and abroad Ministry of the 1,400 responsible for Interior has Finland supporting French bilateral companies in their agreements with Hungary international business foreign ministries development. responsible for Czech Republic 66 sport with economic Slovakia missions Austria 46 di erent countries

Main competition to the UK

Australia has gained global experience from the 2003 Olympic Games Beijing 2008 $738m Commonwealth 2011 Games 2006 and 2010 2010 Asian Games $4.03bn in a wide variety of areas including Commercial ties between Qatar and the master plan design and construction, USA have expanded at a rapid pace over project management, opening and the last 7 years with trade volumes closing ceremonies, staging expertise growing from $738m in 2003 to $4.03bn and facilities management. in 2011. Australia USA Section 2.5: Key strategies for overcoming barriers to market opportunities 2013-22

The interviewees for this Report, drawn from across a broad spectrum of the UK sports marketing and consultancy sector, were asked to identify key barriers for growth that could adversely affect the prospects of the sector in securing new business globally over the next decade336 as well as strategies for overcoming these and other business barriers.

The strategies employed largely depend on the size of the operation and all that goes with being a small, medium or large sized business. There is also an opportunity for Government support in helping to overcome some of these barriers in order that the UK sector secures contracts in key developed and emerging markets.337

The Report has identified 5 key strategies for the UK sector in overcoming barriers to market opportunities over the next decade:

 build meaningful face2face relationships with prospective clients in regional markets;  leverage the UK’s ‘host nation’ Olympic effect to secure new business in regional markets;  use ‘knowledge transfer’ to help sell products and services in regional markets;  maintain a presence with partners in regional markets; and  improve new business building activities in regional markets.

Build meaningful face2face relationships with prospective clients in regional markets

According to UK Trade & Investment (UKTI), there is no substitute for forging face-to-face relationships with potential clients as a precursor to securing contracts at global sports events.

In fact, this is probably the single most effective strategy for overcoming barriers to market opportunities that could be faced by the UK sector in regional markets anywhere in the world.338

Given that the best prospects for new business over the next decade is the Middle East,339 UK sports marketing and consultancy firms need to be prepared to invest time and resources building meaningful face-to-face relationships in the region, which can be easier said than done.340

336 See Section 1.8 337 According to the research for this Report, the best new business opportunities for the UK sports marketing and consultancy sector are in Qatar, Russia, Brazil, South Korea and France over the next 9 years 338 “It seems that in a lot of countries you deal with - whether it’s the Middle East, Far East or Russia - it’s about building relationships. These people will not simply say sign on the dotted line. You go and you talk to them, you develop relationships and that’s why I think our future isn’t a short-term, piecemeal piece of business. It’s got to be about developing long-term relationships with partners, persuading them that we’re the people to do business with, that we’re trustworthy and that we deliver and unfortunately that’s going to take investment in time and resources. There’s a very clear message that all these people expect you to invest the time, get to know them, get to understand them. It’s a cultural thing as much as anything else and I think if we want to play in the game, we’re going to have to play by those rules and that will be an investment in time on our part,” adds Jon Sellins, Head of Business Development, Wembley Stadium Consultancy 339 Qatar is estimated to spend £1.6bn on sports infrastructure, transportation, logistics and other services in preparedness for the FIFA World Cup 2022. See Appendix 2.13 340 Julie Clark, UK Head of Sports & Leisure Practice, PwC believes that UK companies cannot beat a good old fashioned bit of networking when it comes to Qatar: “In Qatar we’ve tried to attend a lot of conferences and have meetings with people within the broader sports sector, really just as an opportunity for everybody to

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The sports industry in Qatar is growing rapidly and the scale of change in the country is enormous, driven by its broad economic and social aims341 with huge investments taking place in sports and entertainment infrastructure, road development, transportation, hotel development, tourism and other areas.

In building relationships in Qatar and UAE, UK companies may encounter some challenges along the way which could include bureaucracy within local authorities when trying to register the company and as a result establishing a local presence in the market could take many months and be quite frustrating. In addition, identifying suitable partners, agents and distributors can also be time consuming and equally frustrating, so it is important for UK companies to have done their homework thoroughly before they pack their suitcases and head for the airport.342

For example, price can be a critical factor in the decision-making process with only limited consideration of quality issues and ‘value based’ decision-making in evidence. That said, UK products and services enjoy a good reputation in the Middle East and from that standpoint the UK sector has a competitive advantage over some of its rivals from other countries, such as Germany and the USA.343

Building face-to-face relationships cannot happen over-night and does require assimilation with traditions, customs and practices of doing business in the region which at first glance may appear alien to many UK companies.344

The Qatari market is very competitive and there are many companies doing business there from across the Middle East, US, Europe and Asia.

UK companies should not assume everyone they meet will automatically understand that they offer the best product, service or solution in the market.

There are many people knocking on doors trying to sell themselves so UK sports marketing and consultancy firms must carefully consider the environment in which they will be competing for new

network, to learn from each other and share contacts and experiences. I'm sure that’s the best way in terms of moving particularly into totally new markets such as the Middle East” 341 ‘National Vision 2030’. See Appendix 2.13 342 For example, UK sports marketing and consultancy firms should find out about the organisations and people they are likely to see, try to understand what their objectives are and what they might be looking for. If UK businesses are visiting for the first time, they should try to talk to someone who has been there and can provide an insight about what to expect. Above all, it is important to understand that there are many aspects of doing business in Qatar which differ from the UK – what is best practice in the UK may not be best practice in Qatar or UAE 343 See Section 2.4 344 “Time is a relative concept in the Middle East. For example, if a potential client is late for a meeting, it does not necessarily indicate a lack of interest or commitment. UK companies should also not be surprised if meetings are interrupted by phone calls, requests for signatures or other points of urgent business. Business meetings are sometimes held in the evening and this is considered part of the working day by Qataris. If it is a first meeting, then the cue for engagement should be taken from the host; some people in Qatar prefer to feel comfortable with a person before moving on to the real business. Others may be short of time and want to get things done quickly. UK companies should be flexible and not count on delivering a long power-point presentation – hold it in reserve for a follow-up meeting if judged appropriate,” advises Mike Lee, Chairman, Vero Communications

127 business and try to include local case studies, perhaps based around London 2012 if possible and adapt their pitch that best addresses local needs and requirements. 345

The importance of building relationships in any part of the world that the UK sector wants to do business cannot be overstated and to a large extent the UK has the diplomatic skills par excellence to pull this off better than any other nation.

This in part explains why at least 70 UK companies have secured new business from the FIFA World Cup in Russia in 2018 and several more hope to have signed substantial overlay contracts at the time of writing.

The Russians have said that outside of its domestic suppliers, the UK sector has secured the highest number of contracts than any other foreign nation; largely as a result of close relationships being formed in that country.

And according to UKTI, face2face relationships between Rio and London have forged the strongest links ever between 2 Olympic back-to-back hosts 346 that has helped to unlock substantial new business opportunities for the UK sector.

Leverage UK’s ‘host nation’ Olympic effect to secure new business in regional markets

The most immediate opportunity to leverage the ‘host nation’ Olympic effect will be the forthcoming Commonwealth Games in Scotland 2014, where the UK sector expects to be in the lead to secure new business from sponsors and sports rights holders, although clearly not on the same scale as the London Olympic Games 2012. 347

All those interviewed for the Report agreed London 2012 was a major catalyst for stimulating global interest in the UK sports marketing and consultancy sector and is the best ‘shop window’ for helping to close GBP5.9bn worth of new business at global one-off sports events over the next decade.348

However, the ‘host nation’ Olympic effect will last just 3 years349 before the Summer Olympic and Paralympic Games in Rio, Brazil 2016 steals the spotlight from London and the UK sector needs to

345 “In Qatar we were privileged to play a part in the winning the FIFA World Cup 2022 bid. We also have done extensive work with the Qatar Olympic Committee and are involved in two major international projects based in Doha,” explains Mike Lee, chairman, Vero Communications. In terms of UK companies looking for work relating to FIFA World Cup Qatar 2022, the country is certainly willing to work with external expertise and likes to work with the best. International companies, including US and German-based groups, have won some important contracts to date. UK Trade & Investment has been active in leading trade missions and Mike Vero is a member of its Qatar Working Group 346 “Not just between the Olympic Organising Committees but between the Governments but also what individual government departments were doing too. This is just part of the diplomatic work that’s gone on to support the Brazilians in understanding the delivery of the Olympic Games. And crucially, this includes knowledge transfer which has helped to form strong relationships for the UK sector,” says Andrew Bacchus, Head of Global Sports Projects, UK Trade & Investment 347 “The Commonwealth Games will be bigger and better than it ever has been for us in the UK because of the legacy of London 2012,” claims Rob Mason, Senior VP and International MD, IMG Consulting International 348 There have been a series of trade missions to several countries including Brazil, Russia, Qatar and South Korea that have been successful in flying the flag for the UK in the wake of the success of the London 2012 Olympic Games 349 “We have a limited window of opportunity right now. I think all things London 2012 are interesting to the world at the moment as they were post-Sydney 2000, when Sydney did well. We’ve got to be conscious as a

128 maximise the opportunities to promote itself globally much more effectively than it does at present.350

A good example of where the UK sector can leverage the ‘host nation’ Olympic effect right now is in the development of new games and formats, such as Rugby Sevens.

The HSBC Sevens World Series351consists of 9 tournaments held around the world between October and May. National Sevens teams compete for World Series points at each round with winners in the Cup, Plate, Bowl and Shield crowned at each location. An overall HSBC Sevens World Series champion is crowned at the end of the season, based on points accumulated throughout the 9 events. There are 15 'core' teams who participate at each round of the Series and from 2012/13 teams can be promoted as well as relegated from this status, with a pre-qualifier in Hong Kong and a final Series core team qualification event held in London, alongside the final round of the HSBC Sevens World Series.

Rugby Sevens and other formats like it are important to the UK sector as they need to be developed to their full commercial potential and require world-class sports marketing and consultancy expertise that in many respects the UK sector is best placed to offer.352

UKTI is working hard to support the UK sector in helping to convert such opportunities and the Government has an ambitious GBP11bn target for exports and investment business it sees as the legacy from the London 2012 Olympic Games.353

Use ‘knowledge transfer’ to sell products and services in regional markets

With the budgets for many global sports events in excess of GBP1bn and rising,354many games’ organisers, particularly in developing markets, are seeking more than transactional relationships from suppliers – rather they want to select a genuine partner whom they can work with and who will have an empathy for the vision that they want to deliver for their country.

As a result, the UK sector needs to support potential clients not just by the delivery of exceptional products and services but also through ‘knowledge transfer’ to the clients’ own teams on the ground.355 country that we have this limited window of opportunity. We need to work off that as well as exploit this opportunity,” says Jon Sellins, Head of Business Development, Wembley Stadium Consultancy 350 “I definitely think that we can’t afford to miss the opportunity that London 2012 has given us to really showcase UK expertise. I still think there’s more we can do to showcase the success and really not just pretty pictures and pretty films but actually you know the measurable stuff, why was London 2012 successful?,” advises Julie Clark, UK Head of Sports & Leisure Practice, PwC 351 Previously known as the IRB Sevens World Series 352 “I think the World Series in Rugby Sevens is an absolutely brilliant example. I recently went to the Hong Kong Sevens for the first time in years. I didn’t expect Portugal, Kenya, USA and Croatia to be there - not just to be there, but to be serious competitive forces. Rugby Seven’s is going to be a new sport at the Summer Olympic Games in Rio 2016 and I think the sport will do rugby a heap of good in the same way that Twenty20 has done cricket a heap of good by attracting a younger fan base to the sport,” says Chris Satterthwaite, CEO, Chime Communications who also believes that sports that originated from the UK stand a better chance of being adopted globally unlike sports from other countries, such as American football or baseball, that have struggled to build the same kind of following globally compared with the fan base each has in the USA 353 See Section 1.4 354 See Section 2.3 355 “We don’t see ourselves as consultants that go in to write a report to tell the client how to solve their problems. Instead, we deploy a team or a mixture of people to go and work for the client as part of its own

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Maintain a presence with partners in regional markets

The majority of small-medium size UK sports marketing and consultancy firms will struggle to secure contracts at a major sports events in regional markets unless they have a partnership in place with a local firm that understands regulatory, financial, cultural and political issues that will need to be navigated through in order to close deals in that region.356

Such a strategy also works for those large sports marketing and consultancy firms that are bidding for GBP multi-million projects as regional governments, particularly in emerging economies, tend to favour such an approach when it comes to working with international companies.357

Improve new business building activities in regional markets358

A major challenge for the UK sector is where to focus the resources and energy for driving new business on a global basis.359

As this Report demonstrates, there are a lot and varied business opportunities in both developed and emerging markets and any decision must be based on the prioritisation of business development objectives coupled with the resources necessary to carry out effective new business activities in these markets.360

Guidance is available through UKTI that organises trade missions on a frequent basis and has made a significant difference in helping the UK ‘fly the flag’ across key emerging markets as well as opening doors for the UK sector.361 But much more should and still needs to be done by the UK sector in improving its new business activities across the world. For example the following strategies may be worth considering: team. Our approach is to work with the client’s team to solve the challenges or problems they face. So a really big part of what we deliver to a client is knowledge transfer,” explains Eloy Mazon, Managing Director, 4 global 356 “For developing countries, UK firms probably need to go in with other people. It might be a local partner. I mean in some countries you actually do need a local sponsor anyway, but if it’s not a local partner it still helps perhaps to go in with someone else - being part of a consortium or part of a group that’s marketing to the sports body. And I'm not saying it’s impossible to do on your own, but it’s about evaluating and prioritising a vast number of opportunities and creating strategies that will maximise the chances for success,” advises Julie Clark, UK Head of Sports & Leisure Practice, PwC 357 “It’s important not to come across as ‘smash and grab’. It’s always good practice to promote your legacy ambitions and plans, send the message that your business is committed and intends to stay beyond the event and all of that is very positive. But that always requires a local partner scenario and in our experience the chances of securing work are more often exclusively about those local partnerships. Even when there’s an absolute recognition that the infrastructure required is not available locally, there’s always an overriding desire to see it procured through local sources teamed with international suppliers who can comply with the specifications and regulations required,” advises Joe O’Neill, Director of Global Overlay & Event Services, Arena Group 358 See also Section 1.4 359 UKTI sees the FIFA World Cup Sochi, Russia 2018 and the Winter Olympic Games, South Korea 2018 as prime new business opportunities for the UK sector over the next 9 years 360 The Report identifies 55 operational and infrastructure budgets for one-off global sports events are estimated to be worth £222.3bn of which £5.9bn is expected to be spent on sports marketing and consultancy services 361 “If you’re moving into completely new markets then having a friend to accompany you into these markets actually helps enormously because often you also need to identify a suitable local partner and the UKTI team is there to help,” explains Julie Clark, UK Head of Sports & Leisure Practice, PwC

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 based on clear and measurable new business targets362 the UK sector should consider creating high-value networking opportunities with key prospects;  the UK sector should consider creating a central library of multi-media case studies that powerfully demonstrate not just the inputs into a global sports project but also the measurable outputs that were achieved and most importantly measurable brand marketing, business, behavioural and financial outcomes that were achieved as a result of this work363; and  the UK sector should consider partnering with a wider range of companies and organisations364 in order to create industry-wide workshops; seminars; networking events; conferences and exhibitions aimed at attracting and engaging with prospective clients on a global basis.365

Subject to the availability of budgets and other financial support, these new business building activities should be carefully planned and carried out on a frequent basis366 and where possible, such activities should be woven into an integrated sales and marketing programme that segues with the trade missions undertaken by the Government.367

A central point of contact within the Government for coordinating trade missions would remove the crossed-wires that currently happen when several Government departments pursue their own inward investment programmes but are unaware they are targeting the same individuals and organisations in global markets.368

It is clear that the Government can be a useful enabler for the coordination of sales and marketing activities and for ‘flying the flag’ for the UK. However, at the same time the UK sector needs to organise itself better so it can work more in harmony with all of these efforts in order to secure a higher percentage of sports marketing and consultancy services contracts around the world.

362 It is essential that any time and resource invested in sales and marketing activities globally falls within a sales and marketing plan that supports the business strategy otherwise it is tactical and will fail to deliver measurable results 363 Initiatives such as the Supplier Recognition Scheme and the recently launched ‘Inspired by 2012’ logo (April 2013) should be utilised and used as widely as possible within the terms and conditions set down for the use of these promotional tools 364 Such as SportAccord and Soccerex 365 See Section 1.1 366 Each quarter or a more frequent basis should be considered depending on the decision-making cycle of prospective clients 367 For example, DCMS and UKTI are part of the legacy initiative through the Cabinet Office to promote ‘UK Plc’ across all global markets. Details available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/78105/201210_Legacy_Publ ication.pdf 368 “What you can’t do is to organise 20 different visits of senior people in government to Brazil, one by the Home Office, one by UKTI another one by FCO, because they’re going to see the same people and that doesn’t give a very good image of what we’re doing or how we’re doing it,” warns Eloy Mazon, Managing Director, 4 global

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And the prize for Government and the UK sector working in harmony in overcoming barriers to global market opportunities is very significant.369

Table 2.5.1: Impact of new business for the UK sector 2013-22370

Region Value of new business Value of new business Value of new business if 25% of deals secured if 10% of deals secured if 5% of deals secured Middle East GBP421m GBP168m GBP84m Central, Eastern and GBP354m GBP141m GBP70m Southern Europe South America GBP319m GBP127m GBP64m Western and Northern GBP158m GBP63m GBP31m Europe* Asia GBP154m GBP61m GBP30m North America GBP58m GBP23m GBP11m Oceania GBP30m GBP12m GBP6m Africa GBP2m GBP819,000 GBP409,000 All regions GBP1.5bn GBP600m GBP300m *Excludes UK UKTI recently commissioned a mapping exercise of the lifecycle of global sports events and the tendering process that accompanies them in order to assist the UK sector in targeting and securing contracts over the next decade.371

369 See also Section 2.2 370 See also Section 2.2 371 4 global are undertaking this research on behalf of UKTI and will use this to create a lifecycle map that will identify the broad areas of procurement for sports marketing and consultancy services in the near and mid- term as well as what can be expected to be procured in these markets

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Section 2.6: Overview of Western and Northern Europe market opportunities (2013-22)372

During this period (2013-22) the region will host 33% of all the top 55 one-off major sports events awarded to date where the estimated value of potential contracts for the UK sector is GBP634m. 373

The greatest potential for the UK sector in Western Europe374 will be in relation to the UEFA 2016 European Championships (EURO France 2016).375

And with the UEFA 2020 European Championships set to be staged in multiple cities across Europe, there will be further opportunities for the UK sector to increase its dominance in football as contracts will not be restricted to one country but spread over several territories.

If Madrid376 is successful in its bid to host the 2020 Summer Olympic Games, there could be good new business opportunities for UK sports marketing and consultancy firms and particularly those with a track record post-London 2012 Olympic Games.377

The Scandinavian countries of Northern Europe, such as Sweden, are keen to have a presence on the global sports stage. For example, Stockholm and Gothenburg aspire to attract more world class events and this ambition could be a fertile area of new business development for the UK sector.

The outlook for the UK sector sourcing work around major events in Western and Northern Europe is positive, although it is a saturated market so competition will be greater than in other less saturated markets that have fewer local competitors in the region.378

372 See also Appendices 2.1-2.8 373 See also Section 1.6 374 This Report excludes opportunities in the UK as the focus is on global market opportunities for UK sector 375 UK sports marketing and consultancy firms should also explore new business opportunities with 2013 Rugby League World Cup 2013, World Open Squash Championships 2013, ITU Triathlon World Championship Series 2013, Commonwealth Games, Scotland 2014, FIG Artistic Gymnastics World Championships, Scotland 2015, IRB Rugby World Cup 2015, IAAF World Championships in Athletics (Outdoor) 2017 376 See Appendix 2.2 377 Working with Olympic Games bidding cities is an ideal way for UK companies in the major events industry to form relationships with future hosts 378 See Section 2.4

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Figure 2.6: Overview of market opportunities (2013-2022) Western & Northern Europe

Estimated new business opportunities £634m for UK sector (2013-2022)

Will play host to 33% of the major 33% sports events awarded to date

Euro France 2016

Greatest new business potential OMPETITION C High £634m Estimated spend

Due to saturated OMPETITION

C market OMPETITION C OMPETITION C Section 2.7: Overview of Central, Eastern and Southern Europe market opportunities (2013-22)379

During this period (2013-22) the region will host 20% of the top 55 one-off major sports events awarded to date, where the estimated value of potential contracts for the UK sector is GBP1.4bn.380

Russia offers the greatest new business opportunity in the region (GBP1.3bn) and is a global top 5 country381 for the UK sector according to research for this Report.

Preparations for the Winter Olympic and Paralympic Games Sochi 2014 has been a major catalyst for sports development in Russia and has turned Sochi into one of country’s main sports centres382 as the country gets ready to stage the IRB Rugby World Cup Sevens 2013, Winter Olympic Games 2014 and the FIFA World Cup 2018.383

Not to be left behind, Poland and Ukraine are keen to maximise the return on investment from the infrastructure built for EURO 2012 and want to attract global sports events to their respective countries whilst the memory of a highly successful EURO 2012 is still fresh in the minds of games’ organisers around the world.384

To that end, Poland recently announced its joint bid to host the Winter Olympic and Paralympic Games 2022 with co-host Slovakia385 which, if successful, would mark the first time in history that either country has staged the Olympic Games. 386

Elsewhere in the region, Turkey is rapidly becoming a new powerhouse in global sports as the country transforms its infrastructure in order to realise its vision of securing a bright sporting, social and economic future.387

379 See also Appendices 2.9-2.12 380 See also Section 1.6 381 Russia is just behind Qatar in the value of the contracts on offer, based on one-off sports events in the region over the next 9 years. See also Section 2.3 382 According to UK Trade and Investment (UKTI), around 70 UK sports marketing and consultancy services firms have secured contracts in Russia and there are expectations that more work is in the pipeline for overlay and other services. Sochi also needs guidance to ensure it creates a long-term legacy from the Winter Olympic Games 2014 in much the same way as London 2012. Major stadium development is already at an advanced stage for the FIFA World Cup 2018, with new venues encompassing the growing trend to create entertainment and retail facilities alongside sports pitches. Taken together, Russia is rapidly changing the perception of the country on the global sports stage 383 Other global sports events include IAAF World Championships in Athletics (Outdoor) 2013, Kazan Summer Universiade2013, FINA World Championships2015 and IIHF World Hockey Championships 2016. In addition, there may be a possible bid from St Petersburg or Kazan to host the Summer Olympic Games 2024. See also Appendix 2.11 384 The tournament catalysed a massive shake-up of Poland's ramshackle infrastructure and transformed its image on the global stage, providing potential for long-term gains. Poland is the only EU member state to have kept growing throughout the bloc's economic crisis, highlighting the potential for doing business in that country. Ukraine has also benefited from improved infrastructure but has a lot more work to do than Poland in order to change its image globally to one that is more positive than at present 385 March 2013 386 Germany has also announced its intention to bid to host the Winter Olympic Games 2022 387 Turkey is using its status as one of the world’s fastest growing economies to underpin promises and budgets for sports development in Istanbul. According to the IMF, its economy is expected to grow by 3.4% in 2013 and 3.7% in 2014

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To this end, the largest city, Istanbul has bid to host the 2020 Olympic Games388 that if successful will propel the country onto the global sports stage. National government resources are already in place to support long-term strategies for the development of sport and related infrastructure.389

As this Report indicates, working with Olympic Games bidding cities is an excellent way for the UK sector to start to form long-lasting relationships with games’ organisers that could translate into GBP multi-million contracts in the future. For example, several cities in Central and Eastern Europe have expressed interest in bidding for the Winter Olympic Games 2022390 and this presents a strong new business opportunity for sports marketing and consultancy services firms looking to increase their business prospects in the region.

The outlook for the UK sector sourcing work around major sports events in Central, Eastern and Southern Europe is extremely positive with many of the countries in the region keen to embrace Western European concepts and take advantage of the expertise and experience that the UK sector has to offer.

388 The city’s 5th bid in less than 20 years 389 Turkey is spending an average of £0.8bn annually on transport infrastructure alone 390 Kazakhstan has been considering a bid for the 2022 games in Almaty, the Kazakh capital until 1997, largest city, and financial centre of the country. Kazakhstan hosted the 2011 Asian Winter Games, which can be seen as preparation for hosting the Winter Olympic Games in the future

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Figure 2.7: Overview of market opportunities (2013-2022) Central, Eastern & Southern Europe

Estimated new business opportunities £1.4bn for UK sector (2013-2022)

Will play host to 20% of the major 20% sports events awarded to date Winter Olympic Games Sochi 2014 set to emulate the success of London 2012 Olympic Games W O Central, Eastern & Southern Europe £1.4bn SC Estimated 96 stadia spend 2,500 gyms 184 swimming pools 26 ice rinks 60 shooting centres 3,500 sports ﬁelds MO

a year on sports infrastructure and rate of Turkey £0.8bn transport annual 8.5%growth Section 2.8: Overview of Middle East market opportunities (2013-22)391

During this period (2013-22) the region will host 4% of all major sports events awarded to date.392 The biggest jewel in the region’s crown is the FIFA World Cup 2022 and to date Qatar has spent GBP138bn on getting ready for the event, approximately 60 times that spent by South Africa on the FIFA World Cup 2010.393

The majority of new business opportunities for the UK sector will be as a result of the FIFA World Cup Qatar 2022394, although other countries in the region are stepping up to become hosts of other major sports events.395 The Middle East represents a high growth area for new business alongside South East Asia, China, Russia and Brazil.

New research shows that consumer confidence in the region is ‘extremely optimistic’ compared with other emerging markets, such as Asia,396 and provides a greater potential for brand owners looking to drive growth.

By focusing on sport, cultural and education facilities, Qatar is looking to take its place on the global sports stage. Sport is also perceived as being a fantastic way of projecting a modern and forward thinking image of the country397 and Qatar has the ambition as well as the resources to become a world-class hub for major sports events in the region.

The ‘Qatar National Vision 2030’ programme is also investing heavily in a number of high profile mega projects of interest to the UK sector in the areas of transportation, tourism, health, education and housing.

391 See also Appendix 2.13 392 “Middle East is an important growth market for us, especially places like Qatar and Abu Dhabi. We’ve worked with brands like Mubadala, the sovereign wealth fund, since we opened an office in Abu Dhabi in February 2008,” explains Andy Westlake, CEO, Fast Track 393 “They want to compete on the world stage, they want to obviously improve their own international product and to do that they recognise that they have to build an infrastructure,” observes Rob Mason, international MD, IMG Consulting International 394 “We do a programme for Nike called ‘The Chance’ and doing that programme probably takes about 40% education and 60% execution. But when we run a programme like that in the UK, it’s probably 90% execution and 10% education and understanding. You have to recognise that other markets are not as up to speed as we are in the UK in reference to sports marketing and sponsorship and activation,” says Steve Madincea, founder and Group MD, PRISM 395 For example, Saudi Arabia, Bahrain and the United Arab Emirates (UAE). The latter two are hosts of annual Formula 1 races 396 MasterCard published the results of a survey (March 2013) of 11,339 people across 25 countries and 8 Middle East markets. “Consumer confidence levels in Qatar, Oman, Saudi Arabia and UAE have all been steadily increasing in our most recent indices, reflecting a positive outlook for key sectors and confidence in these countries’ plans and vision for the coming years,” said Eyad Al-Kourdi, UAE country manager, MasterCard 397 “Countries in many ways compete like brands and so sport is a major branding device that exhibits the competitive advantage and stature of that country. For example, the Beijing Olympic Games 2008 clearly did that and broke down barriers that had existed previously in terms of readiness of people see China as a business partner. Sport is an expression of a country’s competitive advantage and it’s the most impactful way of delivering that message which is why I’m sure, Turkmenistan, Azerbaijan, Russia and UAE countries are all turning to sport as way of framing to the outside world what they’re about and their own people what their position in the world is, and I think that makes a lot of sense,” observes Chris Satterthwaite, CEO, Chime Communications

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The plan includes a GBP16.5bn metro and rail network, the GBP6.61bn New Doha International Airport, a GBP4.6bn deep water seaport and a GBP0.66bn crossing to link the new airport with projects in the northern part of Doha. An additional GBP13.2bn will also be spent to build and expand the country’s road network. 398

After Doha failed to become a candidate for the 2020 Summer Olympic Games, it stated its intention to run for hosting the Olympic Games in 2024399 on the back of hosting the FIFA World Cup Qatar 2022.

Promoting sports and sporting events is also a key strategy for Dubai and is strongly supported at governmental level. For example, the UAE Football Association has recently made a formal bid to host the 2019 Asian Cup.400

With major infrastructure projects also underway in Saudi Arabia and Bahrain, the outlook for the UK sector sourcing work around major events in the Middle East is very strong401 , and many of the countries in the region have already showed their willingness to embrace Western concepts and take advantage of global expertise not available from within the region.402

398 This does not include the Qatar-Bahrain Friendship Bridge project at a cost of £2.6bn. As part of its strategy to establish Qatar as a new tourist destination, the government has also set aside £11.2bn for development of tourism in the region 399 A possible bid is also likely from Dubai 400 Other interest has come from Bahrain, Lebanon, Oman, Saudi Arabia, Thailand and Iran 401 There may be a requirement to provide a bond in order to secure work in the region which may inhibit small-medium size sports marketing and consultancy firms from bidding for work as this can be as higher as 10% of the contract value and this may represent the profits from such a project, which can have implications for the bidder. According to Andrew Bacchus, Head of Global Sports Projects, UK Trade & Investment, a lot of this will come down to UK companies developing local partnerships to crack these opportunities 402 The tipping point, according to Steve Madincea, founder and Group MD, PRISM is whether they can generate enthusiasm amongst their consumers to grow a grass roots base in football like they have in the UK

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Figure 2.8: Overview of market opportunities (2013-2022) Middle East

Estimated new business opportunities £1.6bn for UK sector (2013-2022)

Will play host to 4% of the major 4% sports events awarded to date

Qatar National Qatar Vision £138bn £66bn Qatar FIFA World including Cup 2022 approx spending to date £16.5bn Metro & rail £72K network Highest per capita income £13.2bn in the World expected to Building & reach £72,000 by 2016 expanding roads £6.61bn New Doha International Airport Tourism development £4.6bn £11.2bn Deep water seaport

1%GDP growth 14.for 2011 Section 2.9: Overview of North America market opportunities (2013-22)403

During this period (2013-22) the region will host 7% of the top 55 one-off major sports events awarded to date, where the estimated value of incremental new business is GBP234m,404with the biggest slice coming from Canada (GBP211m), a member of the Commonwealth and a country with very close ties to the UK.

Figure 2.9.1: Breakdown of North America potential new business 2013-22

Mexico £1.3m (1%)

USA £21m (9%)

Potential new business Canada £211m £234m (90%)

As the most developed and largest sports market in the world, North America is saturated with sports marketing and consultancy firms405 that tend to compete within the region, unlike their British counterparts that tend to compete for business across global markets.406

Although cultural and linguistic differences are not a barrier for business in the region, the sheer size of competition in North America can be enough to persuade many UK sports marketing and consultancy firms that their efforts are better placed in securing work in less saturated markets.407

Across the region there are 4 global events in 2015 that potentially offer the greatest new business opportunities for the UK sector408:

 Pan-American Games 2015  FIFA Women's World Cup 2015  Special Olympic Games 2015  UCI Road World Championships 2015.

403 The North America region includes Canada, Mexico and the USA 404 See also Section 2.1 405 IMG is a big player in the US that it regards as its ‘home’ although it makes more money outside of the North America region 406 “I would have to say the UK sports marketing industry is the force to be reckoned with. And if I were starting a sports marketing agency today, I wouldn’t look to Europe or North America as those markets are so saturated and so serviced,” says Lesa Ukman, co-founder and Chief Insights Officer, IEG, based in Chicago, USA 407 Chris Satterthwaite, CEO, CSM Sport & Entertainment says that the success of the group has been in penetrating less saturated markets and that continued to be more lucrative then trying to crack the North America region 408 According to Simon Rines, publisher, Sponsorship Today, UK sports marketing and consultancy firms may have a good opportunity to work with rights holders as this group do not tend to be well-served in North America. Another area where the UK excels is in the way that community and grass roots activation is managed on behalf of sponsors as this is another area that is under-developed in the North America region

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A successful Winter Olympic Games in Vancouver 2010 put Canada firmly on the global map as a great sporting host. In addition to Vancouver, Canada has several cities jostling for position as the country’s best sporting city.409

One of the biggest opportunities in the region for the UK sector is the Pan American Games 2015 in in Canada.410

With Toronto considering a possible bid for the Summer Olympic Games 2024, hosting a successful Pan-American Games 2015 will undoubtedly improve its chances in much the same way that hosting a successful Pan-American Games 2007 helped Rio to fulfil its own Olympic aspirations with a successful bid to host the Olympic and Paralympic Games in 2016.

If UK sports marketing and consultancy firms can be involved in Toronto for the Pan-American Games 2015 then this will undoubtedly foster invaluable relationships for the future if an Olympic Games bid becomes a reality for Toronto.

Also in Canada, the FIFA Women's World Cup 2015 is the largest single-sport women's event in the world. In 2015, the tournament has been expanded to accommodate 24 teams from around the world and it is the first time that a single-sport event has been hosted from coast-to-coast in Canada.411

Given the UK’s global dominance in sports marketing and consultancy services in football, this should present an excellent incremental new business opportunity.

Elsewhere in Canada, Quebec City was originally interested in bidding for the Winter Olympic Games 2022. The city later backed out of its potential bid, saying it would bid for the 2026 event instead. The city hosted the SportAccord Convention in 2012 during which the city’s mayor reiterated the city’s Olympic ambitions.

Canada’s national policy is to only support two major multi-sport events in the country in a 10-year period and one large international single sport event every two years and that can be viewed as a constraint by some of the cities looking to host events in Canada.

Over the next few years, several major events will be held in the USA, including the Special Olympics 2015, the largest single event to be staged in Los Angeles since the 1984 Olympic Games and projected be the largest sports and humanitarian event held anywhere in the world in 2015.

The 2015 UCI Road World Championships will be held in Richmond, Virginia where the economic impact of hosting the championships has been estimated to be worth GBP104.6m, both from event staging and visitor spending.

Various US cities are considering being the country’s representative to bid for the 2024 Summer Olympic Games and the Winter Olympic Games 2026, but sports industry insiders say that the opportunities for the UK sector in the US are not as strong as in other markets in the Americas.

409 These include Toronto, Ottawa, Montréal, Quebec City, Calgary and Edmonton 410 The overall budget for Toronto 2015 is approximately £0.91bn, split almost equally between the operating and capital development budgets 411 The FIFA Women's World Cup Canada 2015 official host cities are: Vancouver, Edmonton, Winnipeg, Ottawa, Montréal and Moncton. The UK sector may find there are business opportunities with those cities

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Sports marketing companies who want to work with Mexican sports organisations and brands are better served thinking of the culture and market as an extension of South American culture, rather than as part of North America.

Mexico may benefit from external expertise if it is to repair its reputation following the Guadalajara 2011 Pan American Games that suffered from construction delays in the build-up to the event.

In February 2013, Guadalajara did not make the final short list to host the Youth Olympic Games 2018 but has announced it may bid for the 2024 Olympic Games.

Mexico is also rumoured to be preparing a bid to host the 2026 FIFA World Cup and is expecting tough competition from the US against such a bid.

The outlook for UK sports marketing and consultancy firms sourcing work around major sports events in North America is positive in Canada412 and Mexico413 but less so in the US414 where UK firms face a highly developed and saturated sports marketing and consultancy sector.

412 See Appendix 2.14 413 See Appendix 2.17 414 See Appendix 2.15

143

Figure 2.9: Overview of market opportunities (2013-2022) North America

Estimated new business opportunities £234m for UK sector (2013-2022)

Will play host to 7% of the major 7% sports events awarded to date

BIG OPPORTUNITY £0.91bn 2015 Pan American Games budget

Special Olympic World Gay Games 2014 Summer Games 2015 expected to generate will generate economic activity worth £275m $10’s m additional spending in Cleveland in Los Angeles USA Section 2.10: Overview of South America market opportunities (2013- 22)415

During this period (2013-22) the region will host 7% of the top 55 one-off major sports events awarded to date, where the value of incremental new business for the UK sector is GBP1.2bn.416

The greatest potential for new business will undoubtedly be the FIFA World Cup Rio 2014 and the Summer Olympic and Paralympic Games Brazil 2016.417

UK business culture is well regarded by Brazilian counterparts and is perceived as being efficient, high quality, trustworthy and reliable.418

Whilst publicly the major construction companies in Brazil support the political approach that lead headline contractors for major projects should be Brazilian, they accept privately that more broadly based consortia, partnerships and supplier networks are necessary to bring these projects to fruition. For example, Oderbrecht419 has been candid in this respect and has been keen to develop a good working relationship with foreign companies.420

Federal, state and municipal authorities in Brazil are also important in this equation.421 The political class responds well to official government to government contact but does not respond well to be being told what is ‘good for them’ or pushed towards a certain solution.

However, where UK sports marketing and consultancy sector firms can leverage the experience of London 2012 they will find Brazilian officials openly receptive, although the UK sector can expect to face strong competition from local suppliers and sports marketing and consultancy firms from other countries. Personal and frequent contact is therefore essential as is working with a local partner that can converse with contacts and nurture relationships in the local Portuguese language.422

A key focus for incremental new business will be the ambitious infrastructure programme the Brazilians are pursuing under the project name ‘PAC 2’.

Over the period 2011-14, PAC 2 will have invested approximately GBP347.8bn in energy, infrastructure and housing priority projects while the country also prepares to host both the FIFA World Cup 2014 and the Olympic Games 2016.

Brazilians acknowledge that a very substantial investment in infrastructure, venues and logistics is necessary in order to realise the vision for a mega successful 2014 FIFA World Cup and Rio 2016 Olympic Games. They further recognise that not all of the expertise is readily available locally in Brazil and this suggests that the required political will and funding will be in place and that there is a willingness to see significant participation from overseas businesses.

415 See also Appendix 2.16 416 See also Section 2.3 417 According to Simon Rines, publisher of Sponsorship Today, apart from football there are no other sports that are as big commercially in Brazil. Football accounts for 70% of all sports sponsorship deals 418 However, UK businesses have been criticised in the past for under-valuing the Brazilian market and of not playing a proactive role in building commercial interests there 419 South America’s largest engineering and construction company 420 Some of the litigiousness that beset many public sector projects in Brazil in the past has been avoided because of the acute political and reputational importance of the World Cup 2014 and Olympic Games 2016 421 Many leading politicians are also leading business figures in Brazil 422 For example, CSM Sports and Entertainment has a permanent office in Brazil and has 70 people working in Rio, St Paolo and Bello Horizonte

145

A study by the University of Sao Paulo estimated that infrastructure outlays ahead of the 2014 FIFA World Cup amounted to GBP11.9bn, with GBP9.25bn coming from taxation receipts. And the expected outlays for hosting the Olympic Games 2016 were estimated at GBP9.92bn, resulting in a total outlay of GBP21.8bn for both global sports events.

The fashion for re-branding a country or individual cities by staging a global sports event is one of the most powerful ways of attracting inward investment and tourism and Brazil is a real-time example of how this can be achieved.

By creating a powerful identity for Rio through harnessing the power of the FIFA World Cup 2014 and the Olympic Games 2016, the Brazilians have made it easier for their cities to compete for a share of the world’s consumers, tourists, businesses, investment money, skilled workers and global media spotlight.

However, with many FIFA World Cup 2014 and Olympic Games Rio 2016 projects still behind schedule and requiring a major amount of work to be done, there are still hundreds of tenders, supply contracts, specialised technology requirements and advisory roles still to come, not to mention added opportunities stemming from inevitable design alterations and last minute changes.

For overseas businesses able and willing to win work on FIFA World Cup Brazil 2014 projects, the fact tenders are still being released not only shows that the window of opportunity is still open, but that things are likely to start moving a lot quicker than they have been up until now.

Furthermore, the previously hazy details surrounding most projects are now coming into sharper focus providing a clearer picture of potential new business opportunities that are set to emerge in the run up the FIFA World Cup 2014 and the Olympic Games 2016.423

UK sports marketing and consultancy firms should also consider engaging with individual host cities where matches will be played as this is potentially another source of incremental new business.

The 12 Brazilian cities selected to host matches at the FIFA World Cup 2014 are:

 Belo Horizonte  Brasilia  Cuiabá  Curitiba  Fortaleza  Manaus  Natal  Porto Alegre  Recife  Rio de Janeiro  Salvador  São Paulo.

423 “Opportunities are still cropping up because a lot of things are running late. For example, in Recife a procurement for overlay has only just gone out. There will be plenty of opportunities in the build-up to Rio 2016 and beyond as well, although often contracts get awarded to local suppliers some of which are relatively unknown. In contrast, in Qatar, UK companies have to enter that market much earlier to have any chance of success,” observes Dennis Mills, Chief Executive, Major Events International

146

Elsewhere in South America, Argentina is currently bidding for two major sports events: the Youth Summer Olympic Games 2018424 and the Pan-American Games 2019425 and is reportedly considering making a bid to host the 2023 or 2027 IRB Rugby World Cup.

Given the UK sector’s world-class experience in rugby and the recent phenomenal success of the London 2012 Olympic Games, these are strong possibilities for incremental new business.

In summary, the outlook for the UK sector in South America over the next decade is highly positive; particularly for those sports marketing and consultancy sector firms that were involved with London 2012 Olympic Games and who can leverage that experience in Brazil ahead of the FIFA World Cup 2014 and the Summer Olympic Games 2016.

It should also be borne in mind that opportunities within South America will not stop in 2016 but will continue well into the future as economies such as Argentina, Colombia and others in South America continue to develop in much the same way that Brazil has achieved in recent times.

424 Argentina is pitched against the UK (Glasgow) and Colombia to stage the event in 2018 425 Argentina is one of the four bidding countries to host the games, in competition with Venezuela, Peru and Chile. A decision is expected October 2013

147

Figure 2.10: Overview of market opportunities (2013-2022) South America

Estimated new business opportunities £1.2bn for UK sector (2013-2022)

Will play host to 7% of the major 7% sports events awarded to date

FIFA World 2016 Cup Summer 2014 Olympic & Paralympic £347.8 Games Brazil billion £21.8 BRAZIL billion Infrastructre Investment spending in energy, infrastructure & housing South America £11.9 £1.2bn Estimated billion spend Infrastructre spending Section 2.11: Overview of Africa market opportunities (2013-22)426

During this period (2013-22) the region will host 1% of the top 55 one-off major sports events awarded to date, where the estimated value of incremental new business is GBP8.1m.

Between 2013 and 2022, Africa will host 1% of the major sports events awarded to date as measured in terms of importance.

Despite what may appear to be a small number of global sports events that could generate incremental new business for the UK sports marketing and consultancy sector, Africa in many respects is a ‘sleeping giant’ in terms of the number of consumers with a growing appetite for branded products and services as recent research by consultants McKinsey very clearly puts into context.427

For example, Africa’s combined consumer spending was estimated to be $860bn in 2008 and by 2020 it expected to have grown to $1.4tr.428 Private consumption in Africa is higher than in India or Russia and as a result of the surge in consumer spending, Africa’s consumer facing industries are expected to grow by more than $410bn. 429

Some countries in the region are embarking on infrastructure changes in order to boost their attractiveness as a tourist destination and see sports events as a stimulus for city re-branding and regeneration.

For example, Nigeria has located 12 new sports zonal centres in Jos, Benin, Kaduna, Bauchi, Enugu, Ibadan, Minna, Sokoto, Damaturu, Akure, PortHarcourt and Nguru and staffed them with senior personnel involved in sports development. Contracts were also awarded for the construction of 43 miniature sports complexes in different states; allied sports facilities in 14 locations across the country; and restoration/upgrading of facilities at the various stadia under the control of the federal government.

Nigeria has also been developing relationships with sports bodies in other countries – such as UK Sport and is not alone in considering the power of sport to create an effective ‘make over’ of the country in terms of its perception and reputation with global audiences.

There is evidence that the rebranding of a city can successfully create competitive advantage over other cities whose image is blurry or vague and the re-branded city can find it easier to compete for a share of the world’s consumers, tourists, businesses, investment, money, skilled workers and media attention.430

Nigeria is a classic example of wanting to transform itself through the power of sport. Lagos had a very negative image because of poverty coupled with high crime rates and planners originally attempted to present Lagos as a developed city and it fell flat on its face as they were unable to convince tourists to visit the city since the crime rate remained unchanged. The lesson learnt was

426 See Appendix 2.18 427 See ‘Lions on the move’ (June 2010) and ‘The Rise of the African Consumer’ (2012) by McKinsey & Company 428 For example, Toyota has a presence in 54 African countries and expects to grow its market share across East and West Africa to grow by 5% in 2013 429 According to McKinsey, it rose by $568bn from 2000-2010. Apparel, consumer goods and food are expected to account for $185bn. This is due in part to urban Africans spending a large proportion of their budgets on food and groceries, more than consumers do on average in Brazil, China, India and Russia 430 For example, Rio and Beijing have used sports to do exactly this with the Beijing Olympic Games 2008 and the FIFA World Cup Rio 2014

149 that a negative or flawed image is unlikely to be replaced with a positive one overnight and that a well-planned and gradual process can help a city shake off its poor image and reputation over time.

And there is evidence that Africa is taking positive steps in this direction as sports infrastructure projects now tend to take account of the needs and requirements of local communities.

For example, Nigeria has embarked on a programme to develop sport from a grassroots level and is thought to be bidding to host the 2019 African Cup of Nations finals along with rivals Kenya, DR Congo, Liberia, Zambia and Algeria. Morocco is set to stage the 2015 African Cup of Nations finals and Libya will host the African Cup of Nations 2017.

What is clear is that Africa is learning that a city that does not design and build a strong tourist platform that is capable of attracting millions of visitors and gives them a positive experience simply will not be able to host a major sports event. Sport is a major trigger to attract visitors but on its own cannot be the only attraction.

For example, the 8th All Africa Games were successfully held in October 2003 in Abuja, Nigeria and gave the African country a taster of what it was like to be in the international spotlight.

South Africa also had its moment to shine by hosting the Rugby World Cup in 1995, the ICC Cricket World Cup 2003 and then the first African FIFA World Cup in 2010 and like Nigeria is keen to continue a hosting presence when it comes to world-class sports events. There is a strong possibility that South Africa may bid for the 2024 or 2028 Summer Olympic Games.

The South African government recognises that for any city, such as Durban, to host a mega-sport event such as the Olympic Games, there needs to be a strong connection between the city’s tangible and intangible assets and the sports event.

With respect to any ambition to host a future Olympic Games, the strategy must be to ensure that each year the city makes the likelihood of a mega sports event ever more attractive by continuing to attract participants and sports fans and ensures that sport is the heartbeat to the city in the same way it is in London, Moscow and New York.

This allows city planners and decision-makers to engage with potential sponsors who want to be associated with something new, big and successful on the continent of Africa and will pay for the privilege to do so.431

South Africa is laying down these roots having disbursed the first GBP3.98m of its 2010 FIFA World Cup legacy fund in January 2013 to a variety of projects involving teenage players, coaches and administrators, so it is early days but the country is moving in the right direction.

As a result, there may be opportunities for the UK sector to secure work with these and other projects in South Africa. Future plans in the country include the construction of one good all-weather football pitch in each of South Africa's 52 regions within the next 10 years to improve grassroots penetration of the game. The outlook for UK sports marketing and consultancy firms around major events in Africa is very limited given the lack of major sports events in the pipeline. However, Africa is changing and changing fast so there will be opportunities to work with countries and cities directly in the future and particularly those that need to build a legacy and will require help in doing so.

431 For example, there has been a massive increase in the use of mobile phones in Africa: 68% increase in mobile traffic in Nigeria in 2012, a 57% increase in mobile use in South Africa and 47% increase in its use in Kenya, according to South African newsletter Media Update. There has also been a corresponding 33% increase in mobile commerce (m-commerce) activities among South African consumers

150

Figure 2.11: Overview of market opportunities (2013-2022) Africa

Estimated new business opportunities £8.1m for UK sector (2013-2022)

Will play host to 1% of the major 1% sports events awarded to date

M-COMMERCE 2020

Nigeria mobile tra c grew $1.4tr

2008 68% $860bn in 2012 McKinsey African consumer spending prediction South Africa physical m-commerce purchases made 33%INCREASE Toyota sells 2,000 units per month & expects South Africa £3.98m spent in January 2013 of 5% its FIFA World Cup Legacy Fund to support growth grass roots football in 2013 Section 2.12: Overview of Asia market opportunities (2013-22)432

During the period (2013-22) the region will host 21% of the top 55 one-off major sports events awarded to date, where the estimated value of incremental new business is GBP617m over the next decade.

South Korea433 offers the best outlook for incremental new business opportunities in the region as the potential value of contracts is GBP481m.434 UK companies involved in the construction of the 2012 Olympic Park in East London have already been involved in trade missions to the country organised by UK Trade and Investment (UKTI) in an attempt to secure lucrative contracts ahead of the 2014 Asian Games in Incheon435; 2015 Summer Universiade in Gwangju; and the 2018 Winter Olympics in PyeongChang.

Elsewhere in the region, China436 and Japan437 all offer attractive procurement opportunities for the UK sector and Malaysia and Singapore are also developing major sports events strategies that are likely to require external support and could also convert into new business for the UK sector over the next decade.438

Following the highly successful Summer Olympic Games Beijing 2008 there had been a lull in hosting major events in China.

However, China is once again asserting its position as one of the world’s great sports superpowers, having secured the rights to host the Youth Summer Olympic Games 2014; the FIG Artistic Gymnastics World Championships 2014; the ISU World Figure Skating Championships 2015; the ITTF World Table Tennis Championships 2015; and the IAAF World Championships 2015 in Athletics (Outdoor). And beyond 2015, China would like to host the Winter Olympic Games 2022.439

Whilst none of the sports events between 2014-15 require any major infrastructure development, there may be incremental new business opportunities for the UK sector to work with local organising committees and host cities of these events as well as with Beijing and Zhangjiakou in helping them prepare the bid to host the 2022 Winter Olympic Games.

Over the next few years, Japan will host the ISU World Figure Skating Championships 2014; the World Table Tennis Championships 2014; the Asian Winter Games 2017; and the IRB Rugby World Cup 2019.440

432 See Appendices 2.18-2.22 433 See Appendix 2.22 434 According to the research for this Report, South Korea is ranked 4th in the Top 5 market opportunities (2013-22) above France (£276m) but below Qatar, Russia and Brazil. See Section 2.3 and Appendix 2.22 435 The total budget for the 2014 Asian Games in Incheon is £1.07bn, of which around £0.92bn is to be spent on construction. Around £66.1m is going on road projects, £35.7m on private venue construction, £7.2m on training venues, with other costs accounting for £39m. Meanwhile, the budget for the infrastructure development of PyeongChang 2018 amounts to a total of £4.1bn and another £330m will be invested from 2012-18 in the ‘Drive the Dream’ legacy programme 436 See also Appendix 2.19 437 See also Appendix 2.21 438 For example, in March 2013 the Singapore government announced it will boost its spending on sports programming and infrastructure by more than £133m over the next 5 years 439 At the time of writing, Chinese city Zhangjiakou has confirmed plans for a joint bid with Beijing 440 Japan made history by being the first Asian country to be awarded hosting rights for an IRB Rugby World Cup 2019. Hosting the tournament in 2019 is expected to increase the popularity of the sport in the country. The event is estimated to cost £145.1m to stage

152

With rugby being a developing sport in Japan and across Asia as a whole as well as the growing popularity of Rugby Sevens, there will be excellent opportunities for UK sports marketing and consultancy firms with world-class expertise in rugby to secure new business in Japan.

Tokyo is currently bidding for both the 2019 FINA World Swimming Championships and the 2020 Summer Olympic Games; both of which offer opportunities for the UK sector if the bids are successful.

Fuelled by the city’s dynamic atmosphere and youth-driven culture, the bids have an additional important role to play in the healing process of Japan following the national earthquake tragedy in 2011.

Another major opportunity for UK sports marketing and consultancy firms is India,441 which must be a favourite to host the Olympic Games on the continent within the next 20 years.

With a population of 1.2bn and an increasingly important super global economy, some of India’s cities are ripe for the infrastructure development that hosting the Olympic Games would precipitate.

Given that the dominant sport in India is cricket, it was highly creditable that India finished 2nd in the medal tables at the Commonwealth Games Delhi 2010; demonstrating that there is more to India than just cricket.

However, the circumstances around the almost total collapse of management control ahead of the Commonwealth Games Delhi 2010 will need to be addressed if India is to make a successful future bid to host a global sports event of the magnitude of the Olympic Games.

India continues to be the global home for cricket, attracting the 2011 ICC Cricket World Cup442 as well as recently hosting the ICC Women’s World Cup 2013. India will also host the ICC World Twenty20 2016. Building on its legacy in cricket will be the strongest platform for India to reach out to the rest of the world as a sports superpower.

The outlook for UK sports marketing and consultancy firms sourcing work around major sports events in the region is very strong; particularly in South Korea, China and Japan with potential additional incremental new business opportunities in Malaysia and Singapore. India has the potential for new business for the UK sector, but some sports marketing and consultancy firms felt they got their fingers burnt as a result of the problems they encountered with the Commonwealth Games 2010 and are being much more cautious as a result.443

441 See also Appendix 2.20 442 Co-hosted with Bangladesh 443 However, it would be a mistake to drop India off the new business radar. In February 2013, the largest ever trade delegation to India was led by Prime Minster David Cameron in the hope of strengthening bi-lateral relations that have existed between UK and India for over 300 years and will continue to derive benefits for both countries well into the future

153

Figure 2.12: Overview of market opportunities (2013-2022) Asia

Estimated new business opportunities for UK £617m sector (2013-2022)

Will play host to 21% of the major 21% sports events awarded to date

Singapore boosts £1.07 sports spending on infrastructure billion Asian Games China £133m budget next 5 years

Made

history as s opportunities ﬁrst Asian country to AFC Champions host IRB League viewers Japan Rugby up by World Cup 2019 w busines % Japan £145m t ne South

the cost to stage Bes 53 Korea Section 2.13: Overview of Oceania market opportunities (2013-22)444

During this period (2013-22) the region will host 6% of the top 55 one-off major sports events awarded to date, where the estimated value of incremental new business is GBP102m.

Australia and New Zealand are jointly hosting the 2015 ICC Cricket World Cup and 2017 Rugby League World Cup that represent new business opportunities for the UK sector. In addition, Australia is host of the Asia Cup 2015 and the Commonwealth Games 2018 while New Zealand will host the 2015 FIFA Under-20 World Cup, the World Bowling Championships 2016 and the World Masters Games 2017 that is expected to contribute GBP29.6m to New Zealand’s economy. The return on regional investment for this event is estimated to be 226%, a greater return than on any other major event held in Auckland.445 The cost to host the World Masters Games 2017 in Auckland is estimated at GBP18.5m.446.

There should be opportunities for the UK sports marketing and consultancy sector to work with the cities hosting New Zealand’s major events and with the games’ organising committee.

The relationship between New Zealand and the UK was strengthened as a result of a Memorandum of Understanding (MOU) entered into with EventScotland that pledged mutual support and cooperation for both countries in helping to attract inward investment as well as share know-how and expertise ahead of Glasgow hosting the Commonwealth Games in 2013.

Australia is more saturated market and does not present that many opportunities for the UK sector unless existing business relationships are already in place. For the Commonwealth Games 2018 in the Gold Coast, the Queensland government is spending GBP0.75bn in the redevelopment of its Parklands area into a residential and commercial precinct; accelerating community and sports facilities on the Gold Coast; and upgrading its transport systems. Spending on these projects is projected to generate GBP1.38bn in economic benefits and generate up to 30,000 full time equivalent jobs. Elsewhere, Melbourne is considering making a bid to host either the 2024 or 2028 Summer Olympic Games. The only major venue that would need to be constructed would be a rowing and canoeing course.

The outlook for UK sports marketing and consultancy firms sourcing work around major events in Oceania is stronger in New Zealand than Australia as the latter is already a highly developed and saturated market and there is less requirement for work with outside companies.

Whilst New Zealand gained valuable expertise during the 2011 IRB Rugby World Cup it will still require some outside assistance and there are likely to be opportunities for UK companies when New Zealand co-hosts the 2015 ICC Cricket World Cup and 2017 Rugby League World Cup with Australia.

444 See Appendices 2.23-4 445 Auckland is expected to receive £20.4m 446 Auckland Council and central government have approved £6m each and the remaining £6.4m will come from ticket sales, media rights, licensing and sponsorship

155

Figure 2.13: Overview of market opportunities (2013-2022) Oceania

Estimated new business opportunities £121m for UK sector (2013-2022)

Will play host to 6% of the major 6% sports events awarded to date

Commonwealth Games 2018

economic beneﬁt to the alia £1.38bn Queensland Government tr full time equivalent us 30,000 jobs generated A

Rugby JOINT ICC League Cricket World Cup HOSTS World Cup 2017 Australia & 2015 New Zealand

New Zealand Australia World Masters Games 2017 expected to contribute 40% Net wealth held by £29.6m 50-69 to New Zealand GDP year old age group Appendix 2.1: Current sports events, host bids and construction in Ireland 2013-22

Table 1: Key sports and current bids to host major events in Ireland

Events Most popular sports 2013 Rugby League World Cup (one host Rugby union, Gaelic football, hurling, venue) football, boxing, hockey Bids Venues under construction 2018 Gay Games None at the time of writing

Background

The Irish are well known for their love of sports, in particular rugby union, Gaelic football, hurling, football, boxing, hockey and horse racing.

Annual and on-going sports events

The Dublin Marathon is held every October and horse racing takes place across the year, weather conditions permitting.

Major sports event marketing opportunities

Limerick, one of the 2011 European Cities of Sport, will host a match in the 2013 Rugby League World Cup. The Limerick bid team valued one World Cup game alone as being worth in excess of GBP1.7m to the city and region.447

Meanwhile, Irish cricket has received a tremendous boost with the news that it has been appointed by the International Cricket Council (ICC) to host the ICC Women's World Twenty20 Global Qualifier. The tournament, due to be held in July-August 2013, will see 8 teams battle it out for the final spot in the ICC Women's World Twenty20 2014.

Although neither of these sports events require any major infrastructure or significant new venue builds, there will be opportunities for temporary overlay and for all other services that could generate new business for the UK sector.

Bidding opportunities

Limerick is bidding to host the 2018 Gay Games.448 If successful, the 2018 Gay Games will attract in excess of 10,000 participants and approximately 15,000 spectators to Limerick and the surrounding

447 "We were initially told that we would never get a game outside the host nations of England and Wales but we did, and Ireland meets Australia in Thomond Park on November 9th 2013 for the Rugby League World Cup. We hope it will be a major gathering event in the region and we expect to attract over 6,000 Aussie fans that will help fill Thomond Park to capacity. We estimate that this one match is worth close on £1.7m to the wider Shannon region,” says Adam Skerritt of Shannon Development 448 “Gay Games are huge and most people have no clue how big an opportunity they really are. The gay community has a higher proportion of people in great jobs; they’ve got big ideas that are so creative. It’s wrong to look at the Gay Games as some form of corporate social responsibility. It’s about supporting diversity and the real opportunity isn’t about responsibility; it’s about opportunity,” observes Lesa Ukman, co-founder and Chief Insights Officer, IEG

157 areas in August 2018. The University of Limerick will be transformed into The Gay Games Village where the majority of events will take place, along with a media and hospitality centre.

Limerick’s bid has received support from Shannon Development, Failte Ireland, Shannon Region Conference and Sports Bureau, University of Limerick & University Arena, Limerick City Council, Shannon Airport, Limerick Chamber of Commerce, The Red Ribbon Project and Analog Devices.449

449 "While it looks like we are up against stiff competition from the other bidding cities, we believe that Limerick has the facilities, infrastructure, desire and the determination to be successful in the bidding process and deliver an event that Limerick has never seen before," claims Cillian Flynn, Press and Communications Director, Limerick 2018 bid

158

Appendix 2.2: Current sports events, host bids and construction in Spain 2013-22

Table 1: Key sports and current bids to host major events in Spain

Events Most popular sports 2013 FINA World Swimming Championships Football, basketball, cycling, handball, 2014 FIBA World Basketball Championships motorsport, golf, tennis, skiing 2014 UCI Road World Cycling Championships 2015 Winter Universiade 2017 Mediterranean Games

Bids Venues under construction 2020 Summer Olympic Games (Madrid) Valencia Nou Mestalla Possible 2022 Winter Olympics bid from Bilbao Estadio San Mames Barria Barcelona Nuevo Estadio Atlético de Madrid

Background

Football is the dominant sport in Spain in terms of popularity. Other popular sports include basketball450, tennis451, cycling452, handball453, motorcycling, F1454, golf and skiing.

In January 2013, Madrid was host to the IHF World Handball Championships, although continuing Government support for such sports events has been put in doubt as the federal Government recently announced plans to halve its financial support for national sport agencies in the wake of the economic crisis that has adversely affected the economy.455

Annual and on-going sports events

Spain’s capital city Madrid hosted the 1982 FIFA World Cup final and has hosted over 250 sports events in the last 10 years including 85 European championships and 77 world championships.

Historically, the city serves as the last stage of the Vuelta a España cycling classic in the same way as Paris does in the Tour de France. The city has two major annual road running events – the Madrid Marathon and the San Silvestre Vallecana 10 km run – and tens of thousands of runners take part in these races each year.

Madrid hosts the largest Plaza de Toros456 in Spain, Las Ventas, established in 1929. Las Ventas is considered by many to be the world centre of bullfighting and has a seating capacity of almost 25,000. Madrid's bullfighting season begins in March and ends in October. Bullfights are held every day during the festivities of San Isidro457 from the middle of March to the middle of June, and every

450 Spain won the FIFA World Basketball Championships in 2006 and Eurobasket in 2009 451 The success of male tennis players such as Nadal, Ferrero, Verdasco and many others in recent years has increased interest in this sport exponentially 452 Through Spain’s premier road race the Vuelta 453 Spain was World Handball Champion in 2005 454 Fernando Alonso has raised the sport’s profile in the country 455 Unemployment in Spain is some of the highest in Europe, at around 25% and across the board spending cuts have been planned in order to avoid a European Central Bank bailout 456 Bullring 457 Madrid's patron saint

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Sunday, and public holiday, the rest of the season. Las Ventas also hosts music concerts and other events outside of the bullfighting season.

The Spanish Grand Prix in F1 from 2013 onwards will alternate every year between the Circuit de Catalunya in Barcelona and the Valencia Street Circuit in Valencia.

Major sports event marketing and consultancy opportunities

Spain will host the 2013 FINA World Swimming Championships in Barcelona, the 2014 FIBA World Basketball Championships in Madrid and Barcelona, the 2014 UCI Road World Cycling Championships in Ponferrada, the 2015 Winter Universiade in Granada and the 2017 Mediterranean Games in Tarragona.

Tarragona estimates that the economic impact of the Mediterranean Games will be GBP845m (€1 billion) and will create 7,000 jobs.

At the time of writing, Spain’s worsening economic crisis was putting pressure on local officials to look beyond federal money to come up with the €5m needed to underwrite the 2014 UCI Road World Cycling Championships in Ponferrada. Juan Carlos Castaño, president of the Spanish cycling federation, stirred the waters in late 2012 when he pointed out that Ponferrada organisers must look to private business to help fund the event. 458

Ponferrada was the surprise winner to host the 2014 UCI Road World Cycling Championships. The mountainous region will provide a dramatic backdrop for road and time trial races, with courses favouring climbers. Spanish riders Alberto Contador and Alejandro Valverde have already said the route is ideal for their style of racing.

However, Spain’s parlous finances have already had a devastating effect on cycling in the country as scores of races over the past half-decade have been cancelled due to a lack of sponsorship support.

Spain once boasted the best spring racing schedule outside of Belgium, with a series of one-week races stretching from February to April that kept teams busy ahead of the grand tours. But times have changed.

Setmana Catalana, Bicicleta Basca, tours in Valencia and Aragon, and one-day races such as Luis Puig and Mont Puig have all been cancelled over the past few years.

With dwindling local and regional government funding, other races are shrinking in order to survive. For example, the Vuelta a Murcia was a five-day event but is now reduced to a weekend race, while the Rioja Tour has been reduced from five days to a one-day event.

Even more established events are at risk of being cancelled. The Volta a Catalunya and the Vuelta al País Vasco, two of Spain’s World Tour events, were on the edge of being cancelled in 2012 before last-minute funding from regional governments saved the events and Spanish pride.

458 “With the federal government threatening to cut funding, there could be last-minute funding shortages. It could difficult, if not impossible to count on the public money, so the only way to assure solid funding is to look for private businesses to step up and help pay the costs,” said Juan Carlos Castaño, President of the Spanish cycling federation

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Madrid bid to host Summer Olympic Games 2020

Madrid459 is currently bidding to host the 2020 Summer Olympic Games, although the current economic crisis in the country could be the deciding factor against it being awarded to the city. If ‘against-the-odds’ Madrid is successful in its bid to host the Summer Olympic Games 2020, there will be good opportunities for UK sports marketing and consultancy firms that have continued to build their portfolios since the London 2012 Olympic Games. Madrid’s chances of landing the 2020 Summer Olympic Games should not be completely written off.

Since 1999, Madrid has created a strategic development plan that encompasses the vision of hosting the Olympic and Paralympic Games.460 It should also be remembered that Madrid is Spain’s most sustainable city as well as one of the largest economies in Europe and this will count in its favour with the International Olympic Committee (IOC).

The bid team Madrid 2020 is confident that its ‘smart’ approach to the bid, utilising facilities and resources developed through earlier efforts, can help the bid succeed.461

According to bid team Madrid 2020, 28 of the 35 venues required to stage the 2020 Summer Olympic Games are already built and that its budget to finish preparations is GBP1.25bn, with an additional GBP127m being spent on security.

459 Madrid first set its sights on hosting the 1972 Olympic Games but lost out to Munich. The city also missed out in the tenders for the 2012 and 2016 Olympic Games, finishing third behind Paris and victorious London for the 2012 Olympics before being edged out by Rio de Janeiro in the final vote for the Summer Olympic Games 2016 460 This plan included the regeneration of green spaces, improved transportation, development of renewable energy, construction of new sports facilities and the strengthening of the city’s image on the international stage 461 “No other bid can beat ours as far as venues and their proximity to one other. But we also have to underscore our cost controls. The adjustment of our budget to the present circumstances of the world is what’s needed,” claimed Alejandro Blanco Blanco, Spanish Olympic Committee President in a recent interview

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Table 2: Possible opportunities for UK sector should Madrid 2020 bid succeed

Aim Opportunity Internationalisation of the city Marketing and PR consultancy Increase in expertise and organisational skills Event organisation consultancy New training centre for rowing and canoeing Construction and overlay advisers Expansion of the public transport network, Construction, overlay and sustainability underpinning sustainable mobility advisers Consolidation of the dynamics of public- Financial consultants and tax planners private partnership through the creation of the ‘Businesses for Madrid’ Forum Training of future sports professionals, with Coaching and education advisers 10 agreements signed with world class universities specialising in sports training Creation of the 2020 for 2020 Start Up Business planners and financial advisers Madrid programme, attracting a considerable number of entrepreneurs to the city to establish new business Launch of the Integrados (Integrated) Charities and educational advisers programme which will reach out to the city’s children with disability or at risk of social exclusion The recruitment, training and retention of a Recruitment and training specialists and large group of volunteers during the bid accreditation systems companies phase, demonstrating Madrid’s citizens’ enthusiasm for and commitment to hosting the Games. Cultural initiatives linked to the Games Cultural experts and planners Building of four new sports venues Construction, overlay and sustainability advisers

Barcelona bid to host Winter Olympic Games 2022

The mayor of Barcelona, Jordi Hereu, announced on 13 January 2010 that the city aspired to organise the 2022 Winter Olympics.462

The opening, closing and medal ceremonies and indoor sports would be held in Barcelona, while outdoor sports would be held in ski resorts in the Pyrenees.

Barcelona plans to share the Winter Olympic Games with La Molina (155 km from Barcelona).

Current venue and stadia projects

Only three facilities need to be built for the Mediterranean Games 2017 in Tarragona which will support 30 sports, a record in this competition, with 13 locations, 18,500 hotel rooms and a €57m (GBP48m) budget.

462 Barcelona hosted the 1992 Summer Olympic Games and if it were to host the 2022 Winter Olympic Games it would be the first city to have hosted both the Summer and Winter Olympic Games in Olympic history

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Building works for a new the new stadium for Valencia CF463 commenced in August 2007 but ran into financial difficulties and the project was halted in February 2009 and has yet to be resumed, despite loan arrangements that also fell through in 2011.464

Building works for the new home of Athlétic Club de Bilbao are also underway and on schedule to open in 2013.

First plans for the construction of a new stadium, replacing the current Estadio San Mamés, were made as early as 2004, and first contracts were signed by the end of 2006. The club then presented definite plans for the stadium in 2009. The stadium will have a capacity of 54,000 seats, and is being built adjacent to the present stadium. Once three out of the four stands are finished, the old stadium will be demolished to make space for the construction of the fourth stand.

The first stone was laid in March 2010 and a few months later actual construction of the stadium began. By the middle of 2012 most foundation works had been completed and the structure was slowly starting to move upwards. The stadium is expected to open in time of the 2013/14 season.

The project is a joint venture with funding coming from Athletic Club, BBK (Bilbao Biscay Savings Bank) and The Council of Bizkaya. The Basque regional government has a GBP42.2m stake in the project, while Bilbao City Council has committed GBP9.3m.

Club Atlético de Madrid has also started initial works that should lead to a new home by 2015. Atlético had been considering a move to a new stadium for several years as its current Estadio Vicente Calderón lacks possibilities for expansion, being enclosed by a river and a motorway on one side and residential buildings on the other.

The new stadium has a capacity of 67,500 seats, about 12,000 more than the Vicente Calderón. Should Madrid succeed in being awarded the 2020 or 2024 Olympic Games, the stadium will also serve as the main venue for the event.

The stadium will be designed as a football-specific stadium though, with the stands close to the pitch. Any athletics tracks will be built on top of the lower parts of the stands, thereby lowering the capacity for the Games to about 60,000 seats. If this happens, Atlético will have to move to another stadium for around a year.

The stadium will be built at the site of the current Estadio La Peineta, which in recent years was mainly used for athletics events. Parts of Estadio La Peineta have been incorporated in the design of the new stadium and parts will be demolished.

Estadio La Peineta is located in the east of the city of Madrid, just over 8 kilometres from Madrid’s city centre and not far from Barajas International Airport. It lies almost adjacent to the M-40 motorway and already has two metro stations in its vicinity.

The costs of the project are estimated to be GBP169m, which will be financed by the development of the land on which the Vicente Calderón currently stands. Atlético Madrid will become the sole owner of the stadium.

463 Valencia Nou Mestalla 464 The stadium project had an original budget of €240m (£202m), but it is estimated that €150m (£126m) is needed to complete the project. The main body of the stadium has already been finished. In December 2011, the Mayor of Valencia and the President of Valencia CF announced that an agreement had been reached with main creditor Bankia and that works were to resume in 2012 and expected to finish in 2014. With the financial difficulties that Spain’s national bank found itself in, no work has re-commenced to date

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The club presented its plans for the new stadium in December 2011. At the same time it announced that works had already started with demolishing part of the old structures and making the terrain ready for the subsequent foundation works although not much work has been reported since. Atlético hopes to move into the new stadium before the start of the 2015/16 season.

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Appendix 2.3: Current sports events, host bids and construction in France 2013-22

Table 1: Key sports and current bids to host major events in France

Events Most popular sports 2013 ITTF World Table Tennis Football, rugby union, handball, basketball, Championships cycling, sailing, volleyball, motorsport, golf, 2014 FEI World Equestrian Games tennis 2015 FISA World Rowing Championships 2016 UEFA European Football Championships

Bids Venues under construction 2017 FIH World Hockey Championships (joint Stade de Bordeaux bid with Germany) Stade des Lumières 2017 ICF Canoe Slalom World Stade de Nice Championships New French Rugby Stadium 2017 ICF Wildwater Canoeing World Championships 2018 Gay Games Possible 2022 Winter Olympic Games bid from Nice and 2024 Summer Olympic Games bid from Paris

Background

The most-watched sport in France on television and in terms of paid attendances is football (the Tour de France is thought to draw live attendance in the region of 14 million people). Other popular sports include rugby union, handball, basketball, cycling, sailing, volleyball, motorsport, golf, handball and tennis.

Paris hosted the Olympic Games in 1900 and 1924 but famously lost out to London in the race to host the 2012 Olympic Games. The city decided not to bid for the 2020 Summer Olympics after Annecy's 2018 Winter Olympic Games bid was rejected and announced it would bid instead for the 2024 Summer Olympic Games.

Paris hosted successful IAAF World Athletics Championships in 2003 and the IRB Rugby World Cup Final in 2007.

Annual and on-going events

Annual events held in Paris include:

 IAAF Golden League – Meeting Gaz De France  French Open Tennis Roland Garros  Tour de France closing stage  IRB World Cup Sevens  France Football Home Games  France Rugby Union Home Games  Prix de l’Arc De Triomphe

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 Longchamps (horseracing)  Paris Marathon  Beach Volley Paris Grand Slam  Paris-Deauville Rally  Eric Bompard Ice Skating Trophy  Paris International Showjumping  Paris Diving Show  Open Gaz de Paris.

Major sports marketing and consultancy opportunities465

France will host the ITTF World Table Tennis Championships 2013, the FEI World Equestrian Games 2014 and the FISA World Rowing Championships 2015.

Although these events do not require any major infrastructure or significant new venue builds, there will be opportunities for the UK sector to bid for temporary overlay and other services466 required by these events.

France hopes that the FEI World Equestrian Games 2014 will have a sizeable or greater impact than it did on the Kentucky economy when the event was held in the USA in 2010.467

For the FISA Word Rowing Championships 2015, the successful Aiguebelette bid was based on the laying of a new course with difficult anchoring conditions because of the depth of the lake and construction of a new finish tower.

The bid committee engaged an engineering firm that analysed the situation and provided guarantees for the installation of the Albano course and floating installations.

Some temporary structures will be required to supplement the existing permanent facilities. The existing team facilities will be renewed.

Some 81% of the operating budget expense for the event has been guaranteed by the French government and 100% of the infrastructure budget has been guaranteed by the local government.

For Rugby League World Cup 2013, Perpignon and Avignon will host matches.468

UEFA European Football Championships 2016

465 “In France, the French would like to employ the French. If they go out looking for sponsors, they prefer French or global sponsors,” says Karen Earl, chairman, European Sponsorship Association 466 According to Lesa Ukman, co-founder and Chief Insights Officer, IEG, UK companies could successfully compete and secure hospitality contracts as she believes the UK stands head and shoulders above France and all other countries in this area. “You guys know how to do flowers, you know how to do catering, you know how to do pomp and circumstance in a way no-one else does,” she says 467 An estimate of the economic impact on the Kentucky economy put this at £133.4m, taking account of direct consumer spending at the event venue of £84.8m and indirect spending for food and lodging suppliers, construction, hospitality and other services of £48.5. An additional £36.7m was spent on tickets, food, souvenirs and other items at the event while £26.2m was spent on accommodation. The event in France will cost organisers £8.4m to stage or 10% of the contribution that was delivered to the Kentucky economy in 2010 468 Although France is a saturated market, Fast Track, IMG, PKL all have offices there

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The greatest potential for the UK sector 2013-22 is the forthcoming EURO 2016469 as France will be under pressure to capitalise on its successful hosting of the FIFA World Cup 1998. In late January 2013, the UEFA Executive Committee confirmed the 10 cities for EURO 2016:

 Bordeaux  Lens  Lille  Lyon  Marseille  Nice  Paris  Saint-Denis  Saint-Etienne  Toulouse.

New stadiums will be built in Lyon, Nice (scheduled for completion in 2013) and Bordeaux with the other venues undergoing some renovations.

The 76,474-seat Stade de France in Saint-Denis, just outside the French capital, earmarked for the opening match and final, will not require a significant revamp.

However, transportation issues regarding some of the smaller host cities may need addressing with the help of external consultants and this may open up opportunities for the UK sector.

The French stated vision for EURO 2016 is to modernise national football stadia infrastructure and provide French football with a mobilising and unifying project over the next 10 years, creating positive, sustainable effects.

It is estimated that financing of EURO 2016 will cost GBP1.77bn, comprising a mix of publicly funded and public-private partnerships.

For the new stadiums, an average of GBP4,650 per seat is being invested covering land purchase, fees site fees, site infrastructure, licensing and other ancillary services.

The tournament has a bullish legacy plan in place. Renovations will allow clubs to improve their operational revenues and the tournament organisation will help grow football in France and have a positive effect on the training of new volunteers and improve organisational expertise at different levels.

The construction of sustainable stadia should underpin an environmental legacy for France and there will also be a boost for inward investment in additional spending and tourism and a commission is due to be set up to integrate grassroots football into the preparations for EURO 2016.

469 “EURO 2016 is so big and sits in Europe makes it a massive opportunity for the UK sector. A lot of the big brands that are involved are American, such as Coca-Cola and McDonalds and we have the advantage of knowing them well. This plays to our advantage - we know football, we know Europe reasonably well, and we have a North European marketing culture. And it’s a big opportunity for MasterCard that have been involved in football for a long time – and its activation for the FIFA World Cup France 1998 was largely run out of Octagon in London. There will be opportunities like that, I’m sure,” says Simon Rines, publisher, Sponsorship Today

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An UEFA Evaluation Report of EURO 2016 concluded there are areas where external consultancy support may be required.470

Bidding opportunities

The International Ice Hockey Federation has received two co-hosting bids for its 2017 World Championships, from Germany-France471 and Denmark-Latvia. 472

The Germany-France bid proposes to use the Lanxess Arena in Cologne and Bercy in Paris, one of the most famous arenas in Europe.473

Pau in France is bidding to host the ICF Canoe Slalom World Championships and the ICF Wildwater Canoeing World Championships in 2017.

Paris is bidding to host the 2018 Gay Games. Built upon the three principles of participation, inclusion and personal best, the Gay Games have empowered thousands of lesbian, gay, bi-sexual and transgendered athletes (LGBT) and artists through sport, culture and fellowship since 1982.474

The Gay Games have been held in such cities as San Francisco, Vancouver, Sydney, New York City, Amsterdam, Chicago, Cologne and Cleveland. Sports in the Gay Games include diving, marathon, badminton, billiards, cycling and rodeo.

In addition to sporting events, an emphasis is also placed on the arts with band and choral festivals, visual arts displays, and films, among others and can generate significant economic activity.475

According to the Paris 2018 Gay Games bid book, existing venues will be used on the whole, although one large space will be sought to stage volleyball, basketball and handball. The venue will be a part of the exhibition centre of Porte de Versailles. Paris 2018 will need to rent the space and to create all the playing surfaces.

Each country has its own and very different culture and relation with the LGBT world and this is an area where the UK sector could support the Paris 2018 bid with brand marketing experts that have run successful campaigns in reaching that community.

470 "In most areas, requirements have been met, although a number of compromises have been made by the stadium project teams, in particular with regard to seating, welfare, viewing quality, turnstiles, parking, hospitality and media provisions. Deliverability is generally good... confirmation would be required that the proposed level of private funding had been secured. All host cities have remarkable experience in holding major international sports events or major public entertainment events. The fan zone concept is well understood and features some exceptional and scenic sites" concluded the UEFA Evaluation Report 471 Germany hosted the World Championship in 2010 with more than 77,000 spectators attending for the opening match in Gelsenkirchen 472 The IIHF says it will make its decision at its annual congress in Stockholm (May 2013) 473 Opened in 1984, Palais Omnisports de Paris-Bercy will be modernised and expanded in time to seat at least 14,000 spectators 474 “Gay Games are huge and most people have no clue how big an opportunity they really are. The gay community has a higher proportion of people in great jobs; they’ve got big ideas that are so creative. It’s wrong to look at the Gay Games as some form of corporate social responsibility. It’s about supporting diversity and the real opportunity isn’t about responsibility; it’s about opportunity,” observes Lesa Ukman, co-founder and Chief Insights Officer, IEG 475 For example, Gay Games 2006 in Chicago, USA generated an estimated £33.8m to the local economy

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Soon after the failure by Nice to secure the French nomination for the 2018 Olympic Games, the mayor of Nice announced the city intended to bid for the Winter Olympic Games 2022. Meanwhile, Paris is rumoured to be considering a bid for the Summer Olympic Games 2024.

Venues under construction

Table 2: Venues for EURO 2016 being constructed

Stadia Construction details Cost Due to open Stade de Nice Plans for a new venue were first mooted GBP155.5m Summer UEFA capacity: 35,000 around the start of 2000 but construction of 2013 Tenant: OGC Nice the Stade de Nice (since named the Allianz Riviera following the acquisition of naming rights by the German financial services company), located in Saint-Isidore near the Var river did not start until 2011. Due to be completed in 2013, the arena will replace the Stade Municipal du Ray, Nice's home since it was opened in 1927. Constructed from wood and steel, and covered with a transparent membrane, the stadium will also house the Musée National du Sport (National Sport Museum), which is currently located in Paris Stade de Bordeaux Work began in 2013 in order for the stadium GBP169m Summer UEFA capacity: 42,000 to be ready in time for 2015/16 season. 2015 Tenant: FC Girondins Designed by Swiss firm Herzog & de Meuron, de Bordeaux the team behind the Fußball Arena München, and features a 'floating' roof supported by a large number of thin poles. Located between a man-made lake and the Garonne river in north Bordeaux, it will replace the Stade Chaban-Delmas – venue for games at the 1938 and 1998 FIFA World Cups – as home for the Girondins.

Stade des Lumières Located in the commune of Decines- GBP270.5m Summer UEFA capacity: 58,000 Charpieu, 10km east of central Lyon, the 2015 Tenant: Olympique stadium will form part of a complex Lyonnais stretched over 50 hectares and featuring a training ground for OL as well as hotels and office buildings. Constructed under the project name Grand Stade OL, the finished venue will consist of three tiers with seats no further than 15 metres from the pitch. The arena will replace the Stade de Gerland, Lyon's home since 1950 and among seven venues for the 1984 UEFA European Championship. The Stade de Gerland was also a venue for the 1998 FIFA World Cup

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Other new venues slated for France include:

New French Rugby Stadium476

After several months of discussion with three competing groups, the Steering Committee of the French Rugby Federation (FFR) has retained the services of architects Populous477 for the Grand Stade FFR. The stadium will epitomise the future of the Fédération Française de Rugby and of French rugby, hosting 17-20 events a year, including 5-6 games of the French national rugby team and the final of the TOP 14.

Stade de la Mosson

The city of Montpellier478 has presented the final plans for an upgrade of Stade de la Mosson, choosing the designs of architects A+ Architecture as its preferred option. Building works are scheduled to start in 2014. Montpellier has long mooted the idea of renovating the home of its local football and rugby club and hopes to see this fulfilled by 2017.479

476 The 82,000-capacity FFR Grand Stade will become the national stadium of rugby and will host all the French rugby home matches. A multi- purpose venue, it can accommodate a broad range of sports and entertainment events. The retractable pitch is one of the best amongst major rugby stadiums in the world. The retractable roof will deliver a more intense atmosphere, it will ensure matches are played whatever the weather and will create the largest roofed entertainment venue in Europe. Four large video boards will form part of the multi- purpose facilities, allowing the broadcasting of replays and added fan experience 477 See Appendix 1.3 478 Host city of EURO 2016 479 The two most notable aspects of the renovation project are the new orange and white exterior that will wrap the stadium on three sides, and the cantilever roof that will get built over the currently uncovered three- tiered stand. The new roof will be held up by two 76-metre tall masts. Extra hospitality and VIP facilities will be added and the interior and catering facilities will be updated. Overall, the project is expected to cost at least £42.2m

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Appendix 2.4: Current sports events, host bids and construction in Italy 2013-22

Table 1: Key sports and current bids to host major events in Italy

Events Most popular sports 2013 World Masters Games Football, basketball, volleyball, rugby union, 2013 UCI Road World Championships cycling, tennis, athletics and fencing 2013 Winter Universiade 2014 Women’s FIVB Volleyball World Championships Bids Venues under construction Possible 2024 Olympics bid from Rome Stadio di Palermo AS Roma new stadium

Background

In Italy, football is the most popular sport, followed by basketball and volleyball. Other popular sports are golf, tennis, athletics and rugby.

Annual and on-going events

Sports events held annually in Rome include:

 IAAF Golden League – Golden Gala  Giro D’Italia (cycling)  Italia Masters Roma (tennis)  Six Nations Rugby  Rome Marathon.

The Italian Grand Prix is one of the longest running events on the motor racing calendar. The first Italian Grand Prix motor racing championship took place on 4 September 1921 at Brescia. However, the race is more closely associated with the course at Monza, which was built in 1922 in time for that year's race, and has been the location for most of the races over the years.

Major sports marketing and consultancy opportunities

As can be seen from Table 1, Italy will host four world-class events 2013-14. None of these events require any major infrastructure or significant new venue builds but there will be opportunities for temporary overlay and for all other consultancy services at these sports events.

In August 2013, Torino will host the 80th World Masters Games, the summer games for participants between 35-100 years old,480 which could provide an opportunity for UK sports marketing and consultancy firms.

480 The event, funded by Regione Piemonte, Provincia di Torino and Comune di Torino, attracts over 50,000 athletes, fans and tourists and is expected to deliver a massive boost to the local economy. Organisers expect 350,000-1m visitors that will stay 7-21 days, watching 28 sports that will be staged at 72 venues across all the provinces of Piemonte. The World Masters Games are second to the Olympic Games as the international event with the highest number of participants

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Bidding opportunities

Back in 2004, Rome had been favourite to secure the Summer Olympic Games but lost out to Athens.481 Fast forward to plans to bid for the 2020 Olympic Games and this time Rome pulled out in early 2012 after the intervention of Italian Prime Minister Mario Monti who called it "irresponsible" to proceed with them in light of the country’s economic difficulties. In any event, the Italian government were not able to guarantee to finance the cost of the staging the event, estimated to be about GBP10.6bn.

Media reports circulating at the end of 2012 indicated that the ambition to stage an Olympic Games had not been completely extinguished and Rome was expected to make a return bid to host the Summer Olympic Games in 2024.482

Venues under construction

Stadio di Palermo

At this stage the proposed 35,000-seat football stadium for Palermo Calcio is still on the drawing board. The club wants to build the stadium at the site of the Velodromo Borsellino that lies about 2.5 kilometres further north from where Palermo’s current stadium Renzo Barbera is situated. The main advocate of the plan is Palermo’s chairman Zaparini,483 but there is no clear schedule of when the club expects to have the stadium completed.

AS Roma

When Thomas Di Benedetto became the club’s owner in 2011 he made it clear that building a new stadium that could be used to stage a UEFA Champions League final was a high priority. In December 2012, AS Roma confirmed the location of its proposed new 60,000-seat football stadium will be located at Tor di Valle on the south-western outskirts of the city, 10 kilometres from Rome’s historic centre just within the ring road.484

The new stadium project will include the development of restaurants, retail space and offices. Architect Dan Meis has been hired to design the stadium, which is expected to cost GBP139.5m- GBP177.5m and to be completed in time for the 2016/17 season.

481 The fact Rome had staged the Olympic Games in 1960 may have counted against it, but Rome had easily the best infrastructure of the bidding cities, judging by the evaluation commission's reports. It also has so many world-class facilities that it could virtually stage the Olympic Games without the need to build new venues or stadia 482 The city’s mayor, Gianni Alemanno, was reported to have said withdrawing the bid to host the Olympic Games 2020 was a mistake and that Rome needed to be ready to start the bid process for the Summer Olympic Games 2024 by 2017 483 According to Zaparini, funding is already in place and as the stadium will be constructed from prefabricated materials it could be built within six months 484 The site lies on the banks of the river Tiber and is currently occupied by a racetrack that will be demolished. It is served by trains on the local Roma-Lido line, though station Tor di Valle and the line is in need of further development

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Appendix 2.5: Current sports events, host bids and construction in Sweden 2013-22

Table 1: Key sports and current bids to host major events in Sweden

Events Most popular sports 2013 IIHF World Hockey Championships Ice hockey, football, golf, speedway, (jointly with Finland) handball, athletics 2015 ISU European Figure Skating Championships Bids Venues under construction None at time of writing Tele2 Arena

Background

The most popular participation sports in Sweden are football, golf, gymnastics and athletics, whilst the sports with the largest number of TV viewers are ice hockey, football, golf, motor sport485 and athletics.

Winter sports also attract a high number of participants and spectators whilst floorball486 has gained a mass following in the country.

Other popular sports include bandy, basketball, handball, orienteering, tennis and table tennis. Except for basketball, US sports have not gained a foothold in the country, although American football and baseball are played there.

Popular recreational sports activities include brännboll487 (popular in schools), boule, kubb488, skiing, swimming, gymnastics, walking, running, cycling, dancing, fishing and hunting.

In March 2013, the European Athletics Indoor Championships in Gothenburg was held in the Scandinavium Arena. Prior to the event, the arena floor was raised 3 metres and was equipped with running tracks. The venue was serviced by activities in the adjacent Market Square, which was the size of two football fields. Fans were able to try different activities in the area, visit the fan zone and the victory ceremonies or restaurants and performances.

Annual and on-going events

The Stockholm Summer Games are a popular annual sports event and take place in late June in Sweden's capital. Matches and competitions take place in around 20 arenas and fields within the city that attracts international competitors 8-18 years-old. The sports events include football, swimming, wrestling, beach volleyball, street-basket489, mini-golf, arm wrestling, archery, trampoline and inline skating.

The Stockholm Marathon is another popular sports event and attracts participants from over 40 countries around the world. Competitors make their way around two laps of the course that runs

485 Particularly speedway 486 A type of floor hockey 487 Similar to the British game of rounders 488 A lawn game where players throw wooden clubs to knock over wooden posts 489 A version of basketball

173 through the city. It starts and finishes at Stockholm Stadium, which is one of the most popular sites for spectators to watch the annual event. Open to runners 18+ years-old, the Stockholm Marathon was first held in 1979 and now attracts approximately 17,000 participants and several hundred thousand spectators each year.

One of Stockholm's most popular sporting events, the annual Midnattsloppet combines a 10km run with a party atmosphere involving live bands and samba musicians that line the route during an evening in August every year. Taking place in Södermalm in Stockholm, the event attracts over 16,000 participants and around 200,000 spectators who line the route cheering the runners on.

Part of the IAAF Super Grand Prix, DN Galan is one of the leading track and field athletics events in Sweden. Held in the Stockholm Olympic Stadium, built in 1912, the event draws in some of the biggest names in world athletics. Since 1994, every athlete that sets a new stadium record has been awarded with a one-carat diamond. DN Galan was first staged in 1967 and has grown to become the largest annual sporting event in Sweden.

An event exclusively for women, Tjejmilen is a running race that attracts close to 25,000 participants each year. It takes runners on a 10km course through the Royal Park of Djurgarden in Stockholm. The event is open to women of all ages and running abilities and starts and finishes in Gardet in central Stockholm.

Major sports marketing and consultancy opportunities

Sweden will be the co-host along with Finland of the IHF World Hockey Championships 2013490 and will also host the ISU European Figure Skating Championships 2015.

Neither of these events requires any major infrastructure or significant new venue builds but there will be opportunities for temporary overlay and for other sports marketing and consultancy services at these events.

Bidding Opportunities

Stockholm was recently unsuccessful in its bid to host the 2015 EuroGames. Officially called the European Gay and Lesbian Multi-Sports Championships, similar to the Gay Games, EuroGames are a sports-for-all-event, open to everyone, irrespective of sex, age, sexual identity or physical abilities. The bidding committee had budgeted GBP169m for communications for the event.

Venues under construction

Tele2 Arena

The Tele2 Arena two-tier 30,000-seat stadium with retractable roof is the currently being built for football clubs Hammarby IF and Djurgårdens IF. The stadium will serve as an all-purpose arena also hosting concerts, other sporting events and exhibitions and is due to open in May 2013.

First plans for the stadium were made a decade ago, but it took several years for them to materialise. Plans for the construction of the Tele2 Arena derived from a need by Stockholm to increase its entertainment and concert facilities as well as a requirement for Hammarby IF to replace its aged Söderstadion.

490 Infront Sports & Media is the exclusive marketing partner handling all major commercial rights sales

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Stockholm city council approved the plans in 2009 and around the same time contracts were signed with the Anschutz Entertainment Group491 for the operation of the stadium.

Construction of the stadium started in late 2010 and works are scheduled to be completed in July 2013. Several delays have pushed back an initial completion date of December 2012.

In October 2011, other Stockholm club Djurgårdens IF came to an agreement with Hammarby to share the Stockholmsarenan after the club had failed to find an alternative for its own Olympiastadion. The aged Olympiastadion would have failed to meet the new league standards that will come into effect in 2013.

The stadium is being built in the south of Stockholm next to the indoor arena Ericsson Globe (Globen), which is also operated by AEG. Transport connections are therefore already in place.

The whole project comes at a cost of GBP0.27bn and will be paid for by the city of Stockholm, which will also own the arena.

491 AEG is a shareholder of Hammarby IF

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Appendix 2.6: Current sports events, host bids and construction in Denmark 2013-22

Table 1: Key sports and current bids to host major events in Denmark

Events Most popular sports 2013 FEI Dressage and Jumping Football, ice hockey, sailing 2013 European Volleyball Championships 2014 European Handball Championships 2015 Outdoor Archery World Championships Bids Venues under construction 2017 IHF World Hockey Championships with Copenhagen Arena Riga, Latvia

Background

The national sport in Denmark is football and other popular sports include handball, cycling, sailing sports, badminton, ice hockey, swimming and golf.

Sport Event Denmark was established in 1994 by the Danish Government and the National Olympic Committee and Sports Confederation of Denmark with the main objective of attracting and organising major international sports events and congresses in the country.

During the event process, Sport Event Denmark works in cooperation with the event rights holder, the local organising committee and the host city. This means an active involvement all the way from the vital bidding process to the careful event planning and marketing until the event is successfully delivered.

Denmark’s event hosting strategy is a tri-party relationship between Sport Event Denmark, the host city and the national federation that will run the competition – all three of which are publicly-funded to a greater or lesser degree.

The international federation or property owner that distributes the event sits in the middle of this ‘sport event triangle’ working with all three partners.

Figure 1: Tri-party relationship within sport in Denmark

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The national federation enables the competition, the host city enables the physical staging of the event and Sport Event Denmark effectively ‘enables the enablers’ by coordinating their activities at a strategic level, particularly during the bidding phase.

Denmark’s capital Copenhagen is the perfect example of how a rather moderately-sized city in a small country can punch above its weight and set an example for other cities around the world.

Copenhagen has a clear strategy for attracting major events to the Greater Copenhagen region based on a number of factors:

 city branding  economic impact  national pride  volunteering  involvement  activation  environmental impact

The city’s dedicated event organisation is called Wonderful Copenhagen Events492 and its overall strategy is to continue building an international reputation for all size events.493 It collaborates with Sport Event Denmark, Visit Denmark494 as well as the international sports federations and event owners when promoting sports and entertainment events internationally.495

Most events are staged at the heart of Copenhagen that provides a picturesque backdrop for archery at the canals, cycling in closed-off-streets, triathlon on the city beach with swimming in the clean harbour and running at all points within the city including across the square in front of the Royal Castle.

The city also makes a big effort to engage with local communities through arts and cultural festivals that run in parallel to these sports events and also through the love of cycling which is a way of life for its inhabitants.496

Annual and on-going events

These include:

 Challenge Copenhagen Ironman  WTA Sony Ericsson Open  UCI World Cycling Tour – Copenhagen Gran Fondo

492 Abbreviated to WCE 493 “The story of Copenhagen is a story about a host city with the proven ability to organise successful events in creative, green and beautiful surroundings. A host city where all events – big and small – are completely integrated into the life of the city and thus activate the citizens as well as guest right from the beginning. Add to this the easy accessibility, general level of efficiency and low crime rate and Copenhagen deserves the accolades that are regularly given to it,” comments Rachael Church-Sanders, author of Ultimate Sports Cities: Strategies for Successful Event Hosting 494 Responsible for tourism in the country 495 It tends to use digital and social media channels to reach customer segments internationally 496 Copenhagen’s status as the Union Cycliste International (UCI’s) first Bike City was enabled not just by its facilities and interest in cycling as a sport but by the strength of its cycling culture within mainstream life

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 Copenhagen Marathon  Copenhagen Half Marathon  DHL Relay Running, (125.000 participants)  FIM Danish Speedway Grand Prix  Copenhagen Open Skateboard  Tour of Denmark - cycling  Copenhagen Cycling  Copenhagen Masters – badminton.

Major sports marketing and consultancy opportunities

Denmark will host two major global sports events in 2013: FEI Dressage and Jumping and the European Volleyball Championships. Post-2013, it will host the European Handball Championships 2014 and the Outdoor Archery World Championships 2015.

None of these sports events require any major infrastructure or significant new venue builds but there will be opportunities for temporary overlay and for other services required for these events.

Bidding opportunities

Copenhagen is making a joint bid with Riga, Latvia to co-host the IHF World Hockey Championships 2017.

Venues under construction

Copenhagen Arena497

A team of 3XN, HKS Architects, Arup, ME Engineers and Planit won the design competition for the new Copenhagen Arena that will be situated in the Ørestad-locality, a short metro ride from the city centre. The arena compares very favourably with other facilities around the world built to a very high standard in terms of urban and building quality and is expected to be completed by the end of 2015. The arena will support city life and is expected to attract inward investment to the capital and the rest of the country.

Together with Jyske Bank BOXEN in Herning, Jutland, Malmö Arena and other facilities in the capital, the arena will be marketed nationally and internationally in the hope it will attract large international events to the Oresund Region.498

497 Copenhagen Arena will be built by several contractors and there are likely to be 10-20 contracts. The first contract notice for tender at the time of writing: Contract E-01 Earth, Sewage and Drainage 498 Live Nation will operate the arena and currently manages some of the biggest venues in Europe including Dublin’s O2; Wembley Arena, London; Motopoint Arena, Sheffield and the Heineken Music Hall, Amsterdam. Live Nation is the largest promoter in Denmark and has unique insight into the Danish and Copenhagen event market

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Appendix 2.7: Current sports events, host bids and construction in Germany 2013-22

Table 1: Key sports and current bids to host major events in Germany

Events Most popular sports FIG World Championships in Rhythmic Football, motorsports, handball, ice hockey, Gymnastics 2015 winter sports, tennis, cycling, golf, boxing Bids Venues under construction 2017 IHF World Hockey Championships with Paris, France Possible 2022 or 2026 Winter Olympic Games bid from Munich and 2024 or 2028 Summer Olympic Games bid from Berlin

Background

Football is the most popular sport in Germany and in most other German-speaking nations. Winter sports, such as skiing are also hugely popular, particularly in Austria and Switzerland as well as motorsports.

Germany’s capital Berlin enjoys a global reputation as an excellent sports metropolis with a large number of major sports events and sports facilities that meet Olympic Games’ standards. Berlin hosted the 1936 Olympic Games and was the host city for the FIFA World Cup Final 2006. The IAAF World Championships in Athletics 2009 were held in the city’s Olympiastadion.

Annual and on-going events

Berlin hosts around 50 national and international sports events across 20 different sports each year, for example, the annual Berlin Marathon and the annual Golden League event ISTAF for athletics.

The WTA Tour holds the Qatar Total German Open annually in the city. Founded in 1896, it is one of the oldest tennis tournaments for women.

The FIVB World Tour has chosen an inner-city site near Alexanderplatz to present a beach volleyball Grand Slam every year.

In January 2013, Nurburgring agreed a deal with Formula 1 boss Bernie Ecclestone to host the 2013 German Grand Prix on 7 July 2013. The Nurburgring and Hockenheim circuits host the race on alternate years. However, financial problems had put a question mark over the fate of the race given the rivalry between the two German Grand Prix circuit owners threatened to see the race drop off the calendar altogether.499

499 The AvD (Automobilclub von Deutschland) which owns the Nurburgring was adamant the race could not be transferred to Hockenheim if the circuit could not host it. The Nurburgring, which is 90% owned by the German regional state of Rhineland-Palatinate, ran into financial trouble amid a dispute with track operator NAG over leasing fees. The state is under pressure to see a return from its funding after spending millions of Euros on a racing-themed amusement park at the venue

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Major sports marketing and consultancy opportunities500

The German sponsorship market is the largest in Europe and as a result is highly saturated.501

Germany will host the FIG World Championships in Rhythmic Gymnastics 2015. This event will not require any major infrastructure or significant new venue builds but there will be opportunities for temporary overlay and for all other services needed at the event.

Bidding opportunities

Cologne is bidding along with Paris to co-host the IHF World Hockey Championships 2017.

Munich, which hosted the Summer Olympic Games 1972, failed in its bid to host the 2018 Winter Olympic Games losing to PyeongChang, South Korea.502

The mayor of Berlin, Klaus Wowereit, has stated that Berlin is exploring a bid for the 2024 or 2028 Olympic Games. Berlin hosted the 1936 Summer Olympics and last bid for the 2000 Summer Olympic Games, but was eliminated in the second round with decision going in the favour of Sydney, Australia.

Venues under construction503

At the time of writing, there are no stadium construction projects that could generate new business for the UK sector.

500 PRISM has had an office in Germany since 1995; largely as a result of its growing motor sport marketing and consultancy business. IMG’s second largest European office outside the UK is in Cologne. Chime Communications has an office in Germany 501 The 3 most advanced sports sponsorship markets in the world are USA, UK and Germany – with Germany being closer to the UK in terms of expertise and experience, according to Simon Rines, publisher, Sponsorship Today 502 The city is rumoured to be exploring its options to make a fresh bid for the 2022 or 2026 Winter Olympic Games 503 Since the FIFA World Cup Germany 2006, German architect teams have been in demand internationally. For example, RKW and HPP (Düsseldorf) and Gerkan, Marg und Partner (Hamburg) are often regarded as market leaders. The firms have designed in excess of 60 stadiums and two dozen have been built or are currently under construction in Europe, Africa, the Near East, China and South America. Three FIFA World Cup stadiums were built according to their plans in South Africa in 2010, and they are also the builders of the National Stadium in Warsaw and the Olympic Stadium in Kiev for the 2012 European Football Championship

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Appendix 2.8: Current sports events, host bids and construction in Netherlands 2013-22

Table 1: Key sports and current bids to host major events in Netherlands

Events Most popular sports 2014 FISA World Rowing Championships Football, field hockey, volleyball, tennis 2016 European Athletics Championships Bids Venues under construction 2018 Gay Games Ten Cate Arena Possible 2028 Summer Olympic Games bid New Stadium Rotterdam

Background

Football is the most popular sport in the Netherlands followed by field hockey and volleyball as the other most popular team sports. Tennis, gymnastics and golf are also widely played and cricket is starting to become popular.504

In 2008, Amsterdam promised to make “every person in the city active from cradle to grave “as part of its public health policy.505 Amsterdam has set itself the objective to raise its profile within the international sports world506 and this fits within the Netherlands’ wider ambition of using sport to create a healthier nation.

One of the Netherlands’ four Centres for Elite Sports and Education (CTOs) is located in Amsterdam and is dedicated to helping produce athletes of the future in a variety of sports including football, volleyball, baseball, basketball, rowing, swimming and squash.

Annual and on-going events

Amsterdam’s AFC Ajax is historically one of the most successful football clubs in the world. According to the International Federation of Football History and Statistics, Ajax was the 7th most successful European club of the 20th century.

Both Amsterdam and Rotterdam have annual marathons attracting thousands of runners. Other running events include the Den Haag City-Pier-City Loop, an annual international half-marathon that attracts close to 18,000 participants each year.507

In sailing, the annual Race of the Classics regatta brings together 20 teams from universities and colleges across the country that race from Rotterdam to Ipswich, UK via Ostend before returning to Amsterdam.

504 Native Dutch sports include fierljeppen (polsstokverspringen), beugelen, kaatsen, klootschieten, kolven and korfball 505 City of Amsterdam Sports Plan 2009-2012 506 In November 2011 Amsterdam beat Istanbul and Split in its bid to host the European Athletics Championships 2016. It uses external consultants TSE for advice in making the right connections within the world of international sports 507 It is a very fast, flat course starting in the Den Haag city centre, then goes to the pier at the coastal resort of Scheveningen and loops back to the starting point in Den Haag

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Major sports marketing and consultancy opportunities

The World Rowing Championships (24-31 August 2014) will be held at Bosbaan, Amsterdam and the Netherlands will also host the European Athletics Championships 2016. Neither of these events will require any major infrastructure or significant new venue builds but there will be opportunities for temporary overlay and for all other services required for these sports events.

Bidding opportunities

The Netherlands is bidding for the 2018 Gay Games.508

Rotterdam failed to get through to candidate city status in the race to host the Youth Olympic Games 2018. The Netherlands’ national sports plan509 identifies organising the Summer Olympic Games 2028 as a key driver and catalyst for all sporting activities planned for the coming decade. Amsterdam hopes to be selected as the candidate city for the Netherlands in its bid for the 2028 Olympic Games and as such wants to increase its influence within the sports world.510 Amsterdam is on target to complete all sports infrastructure in order to meet the International Olympic Committee (IOC) standards and requirements in time for the European Athletics Championships 2016.

Venues under construction

Ten Cate Arena

Heracles Almelo is currently in an advanced planning stage of building a new 15,000-seat stadium that is scheduled to open in 2013. Heracles only moved into its current Polman Stadion 14 years ago, but since the club was promoted to the Eredivisie in 2005 the stadium has consistently sold out. An initial enlargement already raised capacity from 6,900 to 8,500 seats but further expansions turned out to be costly and the club decided to pursue a strategy of new build. The stadium will be built a few hundred metres away from the Polman Stadion, in the south of Almelo, at a site that is currently in use by a number of amateur football clubs. The stadium will initially have a capacity of 15,000 seats but will be easily expandable to 20,000 seats. Costs of the stadium are budgeted at GBP25m. In April 2012, the club announced that a naming rights deal had been reached with shirt sponsor Ten Cate.

Stadiumpark Area Vision

Dutch architect Erick van Egeraat has presented his vision on a new stadium venue and its value for the city of Rotterdam.511 In Moscow, his design for the new Dynamo stadium is currently in progress and will host matches in the FIFA World Cup Sochi 2018.

508 “Gay Games are huge and most people have no clue how big an opportunity they really are. The gay community has a higher proportion of people in great jobs; they’ve got big ideas that are so creative. It’s wrong to look at the Gay Games as some form of corporate social responsibility. It’s about supporting diversity and the real opportunity isn’t about responsibility; it’s about opportunity,” observes Lesa Ukman, co-founder and Chief Insights Officer, IEG 509 ‘Olympic Plan 2028’ 510 100 years after the country first hosted the Olympic Games in 1928. The national Olympic ambition seamlessly fits in with many aspects of the plans that Amsterdam already has in place and is rolling out 511 “To develop a stadium for merely football these days is not a viable option. The new Kuip stadium will be a mixture of sport, retail and leisure and this combination ensures an economic viability for the future. I envision a new venue which embraces the city and city-life and will become an accelerant for the city of Rotterdam,” says Dutch architect Erick van Egeraat

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Appendix 2.9: Current sports events, host bids and construction in Hungary 2013-22

Table 1: Key sports and current bids to host major events in Hungary

Events Most popular sports 2013 FIE Fencing World Championships Football, boxing, tennis, team handball, skating, lacrosse Bids Venues under construction Budapest has been linked to several possible Nagyerdei Stadion Summer Olympic Games bids but has yet to formally apply

Background

The Hungarian Sport Office is responsible for sport in the country and is an independent institution linked to the prime minister's office.512

The Hungarian Olympic Committee plays a leading national role in sport within the country in addition to the Hungarian Sports Confederation, the National Leisure Sports Confederation and the National Association of Disabled Athletes. 513

The Ministry of Local Government, Regional Development and Sport is responsible for leading bids to host major sports events in the capital city Budapest.

Within Hungary, sports events are funded by a variety of sources including state, local government, national sports federations and local sports associations’ resources as well as by commercial partnerships and private sector sponsorship.

Budapest is a jewel of Eastern Europe with the magnificent River Danube flowing through its centre and old and new parts of an historic city that is charming and beautiful as any other in Europe. Hungary has always been the most Westernised of the former Soviet bloc countries and Budapest can genuinely boast a highly sophisticated and cosmopolitan population as well as one of the most well-developed public transport, motorway and rail networks in the region.

Annual and on-going events

Sports events held annually in Budapest include:

 Formula One Hungarian Grand Prix  Magic Sport Island  Red Bull Air Race World Series  Budapest Marathon  Great African Run (Budapest-Bamako Rally).

512 It is responsible for funding the Institution of Talent Development, which co-ordinates youth and talent development programmes in Hungary 513 Currently, there are 66 national sport federations that are members of the Hungarian Sports Confederation, and several others that are not yet officially recognised by the government as official and exclusive Hungarian sport federations

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The Hungarian F1 Grand Prix, one of the world’s most prestigious global sport and entertainment events, is held at the Hungaroring circuit east of Budapest in August each year.514 Its origins date back to 1986 when the Hungarian Grand Prix was the first F1 race to take place behind the Iron Curtain.

Major athletics meetings and football matches are held at Budapest’s 56,000-seat arena Puskas Ferenc Stadion,515 whilst indoor sports events take place at the nearby Budapest Arena, a futuristic venue with capacity for 12,000 spectators.516

Budapest’s City Park517 has one of the largest artificial-ice surfaces in the world and is the centre of Hungarian bandy. The B-group stages at the Bandy World Championship 2004 were held there as was the Bandy World Championship for Women in 2007.

Major sports marketing and consultancy opportunities

The FIE Fencing World Championships will be held in Budapest in August 2013. This event will not require any major infrastructure or significant new venue builds but there will be opportunities for temporary overlay and for other services required to stage this event. This is likely to be a high profile occasion as the world championships are taking place in the year of the FIE’s centennial.518

Bidding opportunities

Hungary missed out on co-hosting the UEFA European Football Championships (EURO 2012) when it made a joint bid for the event with Croatia.519

Budapest has been linked to several possible Summer Olympic Games bids in recent years but has yet to formally apply. It has previously bid unsuccessfully five times – for the events in 1916, 1920, 1936, 1944 and 1960.

In considering a bid for the 2020 Summer Games which did not ultimately happen, Budapest reportedly narrowed down to two the potential locations where the Olympic Games would be held. One was the area around Hungary’s main sports stadium close to the centre of the city, whilst the other was on an island of the Danube River in a suburb of Budapest.

Construction work would have to be carried out on 500 hectares in Budapest and three new bridges would be built on the River Danube and at least one metro line, four football stadiums, 11 new sports centres, 61km of new city roads, 300km of highways and 400km of country roads. The

514 Although the Hungarian Grand Prix is a narrow and slower circuit compared with those in San Marino or Monaco, the warm weather and excellent facilities make the Hungarian Grand Prix a favourite in the F1 calendar and race organisers have the rights to stage this until 2016 when it is likely that it will be renewed by Bernie Ecclestone, the sports rights owner of F1 515 Formerly called the Nepstadion 516 The stadium, which opened in 2002 and was built by French construction company Bouygues, replaced the old Sportcsarnok venue after it burnt down in 1999 517 Known locally as Városliget, the park was used to host motorsport events in the 50s but in 1985 the city government decided against hosting Hungarian Grand Prix races in the park 518 The 2013 World Championships in Budapest will be one of several events to celebrate the founding of the FIE on 29 November 1913 in Paris 519 Hungary bid for the 3rd consecutive time after failing to win either EURO 2004 or EURO 2008. It teamed up with Croatia after its previous partner Austria opted to join Switzerland and successfully bid to host EURO 2008

184 renewal of 1350km of train lines would also be required. These plans remain on the drawing books should Budapest decide to make another bid to host the Winter Olympic Games in the future.

Venues under construction

Nagyerdei Stadion

Nagyerdei Stadion is the new stadium of football club Debreceni VSC and is scheduled to open in spring 2014. The stadium is being built at the site of the old Nagyerdei Stadion that opened in 1934 and served as the home of Debreceni before the club moved to the nearby Stadion Oláh Gábor Út. Planning approval was granted in January 2013 and construction is expected to last 15 months. The transparent design of the stadium has been created to blend in sympathetically with the surrounding parkland and it will have the capacity to seat 20,000 spectators and includes VIP, hospitality and entertainment areas as well as bars and restaurants within its vicinity.

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Appendix 2.10: Current sports events, host bids and construction in Poland 2013-22

Table 1: Key sports and current bids to host major events in Poland

Events Most popular sports 2013 FIVB Beach Volleyball World Football, basketball, boxing, ice hockey, Championships volleyball, weightlifting, speedway, fencing, 2013 CEV Men's Volleyball European American Football, handball, swimming Championship (with Denmark) 2014 FIVB Volleyball Men's World Championship Finals 2014 IAAF World Championships in Athletics (Indoor) 2016 EHF European Men's Handball Championship Bids Venues under construction Various Canoeing events Vive Targi Arena Possible Winter Olympics 2022 Bid Nowy Stadion w Bielsku-Białej Stadion w Zabrzu

Background

Football is the most popular sport in Poland, followed by track and field athletics, basketball, boxing, fencing, American football, handball, ice hockey, swimming, volleyball and weightlifting. The first Polish F1 driver, Robert Kubica increased popularity of motor racing and Tomasz Gollob, a successful motorcycle speedway rider also made that sport popular in Poland.

In the past, Poland had been host to a number of major sports events including the European Special Olympics Summer Games 2010.

But it was EURO 2012 - co-hosted with its neighbour Ukraine - that put Poland on the global sports stage and was the catalyst for a massive shake-up in its ramshackle infrastructure.520

It was the first time in its history that the UEFA Championships were held behind the former Iron Curtain and the tournament became a valuable showcase for Poland521 winning plaudits from the fans and European football's governing body UEFA.522

520 "We think the 'Poland Effect' is something more than the 'Barcelona Effect'," explains Marcin Herra, boss of PL.2012, the state body that oversaw preparations EURO 2012. "Barcelona was essentially about boosting tourism but in Poland it's been about the economy overall, the infrastructure, and know-how." The ‘Barcelona Effect’ is economists' jargon for the long-term positive economic effect of hosting a major sporting event, in reference to the Summer Olympic Games Barcelona 1992. The Spanish city was already established on the tourist circuit but the number of visitors began climbing ahead of the Olympic Games and continued to do so as it became a magnet for trend-conscious Europeans 521 It is estimated that 677,000 fans came to Poland which generated £225m in incremental spend as a result of EURO 2012, 33% more than forecast. Some 92% of foreign supporters surveyed by the PBS Institute in Poland at the end of EURO 2012 said they would recommend it for a holiday and 80% aimed to come back. In 2011, 3m foreign tourists visited the country, which is forecast to grow by 766,000 visitors a year through to 2020 522 "I think the long-term impact of EURO 2012 is the most important part of the success story," says Dr Jakub Borowski, chief economist at Kredyt Bank, visiting lecturer at Warsaw School of Economics and author of a

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The impact of EURO 2012 on the Polish economy has helped it maintain steady incremental growth in the face of a weak European economy, but the economic bounce factor of the sports event did not extended to the beleaguered Polish construction industry.523

Annual and on-going events

Sports events held annually in Poland include:  Polish Extraleague (speedway)  Polish Hockey SuperLeague  Ekstraklasa (football).

Major sports marketing and consultancy opportunities

Poland will host the FIVB Beach Volleyball World Championships 2013, the CEV Men's Volleyball European Championship 2013524 and the FIVB Volleyball Men's World Championship Finals 2014.

Volleyball has enjoyed a huge surge in popularity in Poland over the last few years with Gdansk hosting the World League Finals 2011 where the Polish men’s team finished third.525

Poland will also host the IAAF World Championships in Athletics (Indoor) 2014 at the Ergo Arena in Sopot. The event will cost around GBP4m to stage and the city is putting up GBP1.4m with the remaining funds guaranteed by the Ministry of Sport and Tourism and the Government of the Pomeranian Province526 and the Organising Committee is currently seeking commercial sponsors for the Championships.

These events will not require any major infrastructure or significant new venue builds but there will be opportunities for temporary overlay and for all other services required at the event.

Poland is also due to host the EHF European Men's Handball Championship 2016 for which a new indoor handball arena is currently being built and this may provide an opportunity for the UK sector to get involved.

Bidding opportunities

Poland is seeking a near clean sweep with bids to host top international canoeing events in 2015 and 2017, as the city of Poznan vies to host the ICF Canoe Sprint World Championships and the ICF Junior & U23 Canoe Sprint World Championships in 2017, together with the ICF Canoe Sprint World Cups in 2015.

Meanwhile, Krakow is bidding to host the ICF Canoe Slalom World Championships and the ICF Junior & U23 Canoe Slalom World Championships in 2017, plus the ICF Canoe Slalom World Cups in 2015.

report on EURO 2012’s impact on the Polish economy. According to Brand Finance, EURO 2012 helped lift Poland up its 100-nation ranking, from 24th to 20th place. 523 Three large Polish contractors and more than 100 smaller ones went bankrupt in 2012 – largely because they engaged in a price war to win public tenders and were then impacted by fast rising fuel, steel and asphalt prices 524 Along with Denmark 525 They collected silver at the FIVB World Championship Japan 2006 and a year later Katowice hosted one of the best-ever FIVB World League Finals 2007 526 IAAF sponsors will also make a contribution in sponsorship rights fees to the event

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Slovak Prime Minister Robert Fico recently announced that Slovakia and Poland could make a joint bid to host the Winter Olympic Games 2022 as the two countries share a border along the High Tatras mountain range which is a highly popular destination for winter holidays and an ideal location to stage the Winter Olympic Games.527 Poland’s Sports Ministry has announced it would back the proposal to co-host the Winter Olympic Games and that the government would be meeting soon to discuss necessary guarantees for the bid.

Venues under construction

As part of its plans to host matches in the EHF European Men's Handball Championship 2016, candidate city Kielce and Polish champions Vive Targi Kielce have unveiled plans to build the Vive Targi Arena.

The arena will be a duplicate of Zlatorog Arena in Celje, but in a larger scale and is likely to be located close to Kielce Trade Fairs, have a capacity to seat 8,000 spectators and will cost approximately GBP16.9m to build.528

Nowy Stadion w Bielsku-Białej

Nowy Stadion w Bielska-Białej is the planned new stadium of TS Podbeskidzie. It will replace Podbeskidzie’s present Stadion Miejski. The new stadium project was first presented in 2008, but it took several years for the plans to get approved in 2012 after agreement was reach with the local residents who had objected to its construction. The new stadium will be built in place of the Stadion Miejski which is located in central Bielsko-Biała. Construction is expected to last 28-36 months and will be phased in stages so that TS Podbeskidzie can continue to play its home matches at the ground. The new stadium will be fully covered, have a capacity of 15,000 seats, is estimated to cost GBP16.6m to build and is scheduled to open 2014/15.

Stadion w Zabrzu

Stadion w Zabrzu will be the new stadium of Górnik Zabrze. The stadium will have a capacity of 31,871 seats, almost three times the number of Górnik’s previous stadium, Stadion im Ernesta Pohla, before it got partly demolished. The new stadium will be built on the same site as the Stadion im Ernesta Pohla. The first phase involves the demolition and construction of three sides of the stadium and is due to take 20 months, allowing Górnik to continue playing at its home ground.

The second phase of the development involves the demolition of the last stand and construction of the one remaining stand. No concrete schedule has yet been provided in relation to the completion of the second phase, though it can be assumed that the complete stadium will be finished at some point during 2014. The club received approval for its plans in 2011 and has already finished the demolition of the three old stands. By the middle of 2012 it had also finished most of the foundation works for the construction of the new stands.

527 The Slovak Prime Minister Robert Fico recently met representatives from the Slovak Olympic Committee, the High Tatras area and the country’s ice hockey and ski associations in the town of Poprad to discuss the matter of a bid. “The fundamental question is whether we can afford it or not and whether we have the needed infrastructure for disciplines expected to take place here,” he said 528 A Slovenian company, which also designed Veszprem Arena and Zlatorog Arena - which are hosting matches in this season’s VELUX EHF Champions League 2013 - is responsible for the new hall project in Kielce

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Appendix 2.11: Current sports events, host bids and construction in Russia 2013-22

Table 1: Key sports and current bids to host major events in Russia

Events Most popular sports 2013 IRB Rugby World Cup Sevens 2013 IAAF Football, ice hockey, basketball, winter World Championships in Athletics (Outdoor) sports, tennis, gymnastics 2013 Universiade - Summer 2014 Winter Olympic Games 2015 FINA World Championships 2016 IIHF World Hockey Championships 2016 Modern Pentathlon Senior World Championships 2018 FIFA World Cup Bids Venues under construction ICF Canoe Sprint World Championships and 12 stadiums to be built by 2018 will be in the the ICF Junior & U23 Canoe Sprint World following cities: Moscow (Dynamo* and Championships in 2017, Luzhinki* Stadiums), Krasnodar (Krasnodar ICF Canoe Sprint World Cups in 2015 2014 and Kuban Stadiums), Vladikavkaz, Saransk, ICF Dragon Boat National World Yekaterinburg*, Nizhny Novgorod, Championships Kaliningrad, Rostov, Volgograd and Samara. Possible 2024 Summer Olympic Games bid from St Petersburg *Complete overhaul of old stadium planned

Background

Football is the most popular sport in Russia, followed by ice hockey, winter sports, tennis and gymnastics, with 3 out of 8 sports events held in the capital city Moscow.

Since the Olympic Games Moscow 1980, the city has successfully hosted over 100 World and European championships.529 For example, the UEFA Champions League Final 2008 was hosted at the city’s 70,000-seat Luzhniki Olympic Complex530 and the Modern Pentathlon Senior World Championships 2011 were held in Moscow following the withdrawal of the original host Cairo due to political instability in that country. Following the success of that event, Moscow narrowly edged out Rome to secure the rights to host the Modern Pentathlon Senior World Championships 2016 and was host to the World Championships in figure skating in 2011, taking over the event from Japanese organisers who were struggling with fall-out from the country’s major earthquake and nuclear accident at the time.

Moscow has 96 stadia, more than 2,500 gyms, 184 swimming pools, 26 ice rinks, 60 shooting centres and almost 3,500 sports fields making it one of the most well-resourced sporting capitals in Europe.

529 These include the Davis Cup 1994, Artistic Gymnastics World Championship 1996, International Youth Games 1998, Swimming World Championship – Short Distance 2002, Gymnastics European Championship 2003, World Skating Championship 2005, FIFA Women World Cup U-20 2006, Athletics Indoor World Championship 2006, Men's World Ice-Hockey Championship 2007 530 This was a significant logistical and operational test, demonstrating the city's capacity to deal with a large influx of visitors and the technical demands of one of the world’s most prestigious sports and entertainment events

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The Luzhniki Olympic Stadium is the 4th largest stadium in Europe531 and 40 other sport complexes are located within the city, including 24 ice palaces with artificial ice. There are also 7 horse racing tracks of which Central Moscow Hippodrome, founded in 1834, is the largest.

Moscow has a significant local talent pool of sports administration, coaching and refereeing personnel at its disposal. The city is home to over 170 youth sports schools, 9 sports colleges, 3 colleges dedicated purely to Olympic sport and the Moscow State Academy for Sports and Tourism.

Ahead of its bid to host the Olympic Games 2012, 65% of the venues were already in existence along with a developed sports administrative, coaching and management infrastructure.

But the feeling within Russia is that while it gains in financial terms through hosting global sports events it often has to counter a poor negative image of Moscow globally.532

Annual and on-going events

Annual events held in Moscow include:

 Moscow International Peace Marathon  Kremlin Cup Tennis  Russian Youth Games  IAAF International indoor tournament ‘Russian Winter’.

Major sports marketing and consultancy opportunities

Many of those interviewed for this Report are actively involved in Russia in the run up to the Winter Olympic Games 2014 and the FIFA World Cup 2018.533

The IRB Rugby World Cup Sevens 2013 will be the first IRB tournament held in Russia and its first major 15-a-side tournament. It gives Moscow the opportunity to showcase high quality international rugby to the Russian public and develop key legacy schemes designed to attract more young people to the game.

Moscow’s 13,000-seat arena Sports Palace Megasport will be the main venue of the IAAF World Championships 2013 in athletics. The arena was built for the IIHF World Championship 2007534 with 2 ice sheets so teams do not require an additional facility for practice purposes, 39 VIP boxes, 2 restaurants, 8 dressing rooms as well as 2 gyms and media facilities. It is used by the annual Euro Hockey Tour event and it also hosted some league games of football club Dynamo Moscow during the 2010-2011 Season.

531 It hosted the UEFA Cup 1999, UEFA Champions League finals 2008 and Summer Olympic Games 1980 532 One insider at the FIFA World Cup Moscow 2018 organising committee said: “What we lack is proper PR. Whilst we allocate a lot of money to education and sport at school level we don’t employ enough agencies to deliver the message to the rest of the world. Remnants of our KGB days still impede us and give people and outdated view of our wonderful city.” The identity of the person has been kept confidential on request 533 For example, Chime Communications has offices in Moscow and Sochi. Other sports marketing and consultancy firms that are active in the region include 4 global, IMG, Fast Track, Odgers, Sports Investment Partners (through Arena Group). Others, like Wembley Stadium Consultants hope to use their expertise in how to close down, redesign and open a stadium for a lot of the projects in Moscow 534 Formerly known as Khodynka Arena

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Meanwhile Sochi will host the first ever Winter Olympic Games for Russia in 2014. Sochi is unique among winter Games hosts in being a popular beach resort during the summer months and an Olympic-standard skiing resort during the winter.

The sports facilities and infrastructure under construction are world-class and more than 70% complete. For many Russian companies, the Olympic Games 2014 will be their first real opportunity to promote themselves on the world stage in front of a global audience.

The legacy of the Olympic and Paralympic Games Sochi 2014 will greatly enhance Russian society as a whole, with increased environmental awareness and the integration of people with a disability into mainstream Russian society being the two most important social goals with the greatest impact for Russian society and its standing globally.

Sochi is a huge success story even before the Olympic Games 2014 has commenced, as for the past two years, the city has been able to forego government funding to which it is entitled as a result of a record-breaking marketing programme that has already generated more than GBP1bn in sponsorship and licensing revenues.535

Whilst it has yet to be called upon, the Russian government stands firmly behind the financial commitments it made to the Organising Committee and the IOC but at the time of writing was concerned about delays to some of the venues and spiralling costs of others.

The 2014 Winter Olympic Games have already become the catalyst for sports development in Sochi that has become one of the main sports centres in Russia. The city hosts tens of different sports events every year – ranging from mass public competitions to international tournaments.

Russia will also host the 2018 FIFA World Cup that will see 64 matches played across 11 cities in 12 stadiums.536

Assessment of opportunities

To be successful in Russia it is important to be seen there and so sports marketing and consultancy firms should plan to visit, taking at least three trips a year. As already said in other places in this Report, it is important to do the homework on the country’s history, culture and geography. This knowledge gained, and the impression that time and money has been invested in visits, will help reassure Russians of the genuineness of interest in them.

Russia offers considerable potential for UK sports marketing and consulting companies willing to navigate what is largely considered to be a difficult marketplace for overseas companies.

The 2014 Winter Olympic Games have already become the catalyst for sports development in Sochi and companies that were involved in London 2012 are already trying to secure work at Sochi.

Sochi has become one of the main sports centres in Russia but recognises it will need guidance to ensure it creates a long term legacy.

535 Sochi 2014 Partners include Sberbank of Russia, Aeroflot, Bosco, PwC, Ingosstrakh, MegaFon, Rosneft, Rostelecom, Volkswagen Group Russia and Russian Railways 536 There are 4 geographical clusters: Moscow - Luzhniki and Spartak (central cluster); St. Petersburg and Kaliningrad (northern cluster); Nizhny Novgorod, Kazan, Samara, Saransk and Volgograd (Volga cluster); Rostov-on-Don and Sochi (Southern cluster) as well as Ekaterinburg

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Meanwhile, major stadium development is already underway in the country for the FIFA World Cup 2018, with new venues encompassing the growing trend to create entertainment and retail facilities alongside sports pitches. If UK companies can forge alliances with local partners, they will have a better chance of sourcing work with these venue owners and operators.

Winter Olympic Games Sochi 2014 and the FIFA World Cup 2018 in particular offer major opportunities for UK companies in architecture, construction, engineering, project management, event management and associated services.

Given the major infrastructure projects planned for the next decade and beyond, the Russian government is keen to develop appropriate financing and legal mechanisms, including Public Private Partnerships (PPP) - an area where UK is a natural leader and extremely well positioned to contribute to Russia's modernisation agenda.

Russia's financial and legal services sector is quite young and offers a range of opportunities for international companies, particularly in the light of Russian government’ plans to develop Moscow as an International Financial Centre.

Russia knows it has a poor image globally so is already working with UK PR consultants to improve its brand and perception around the world.537

Assessment of key challenges

UK companies trying to source work at major events in Russia have been frustrated by language difficulties and the extensive visa applications involved in entering the country.538

Russia has a long way to go in the process of improving the business climate, and combating bureaucracy. Corruption is a major barrier to business in Russia, which costs Russia a noticeable percentage of its GDP every year.

As Russian commercial legislation, and tax legislation in particular, contains provisions which can be interpreted in more than one way, they often overlap or conflict. Early advice on tax and legal issues is highly recommended. Furthermore, Russian accounting practices differ from Western standards.

According to Russian law, about 50% of all products to be sold and/or used in the country require mandatory verification of conformity.539

537 “Russia, the Soviet Union, the USSR, has undergone more changes than pop stars Cher and Lady Gaga combined. She has had to reinvent herself, face the reality of many of her children leaving and becoming independent, democracy of sorts sneaking in and Western influence on the population becoming a sobering reality – from the establishment of the Russian Mafia to a new generation emulating its counterparts to the east and anxious for more of the same. The growth of late has been unexpectedly rapid with the populace seeking to explore more of its own boundaries as the country beckons outside its borders to the rest of us to come and have a look,” observes Mickey Charles, president and CEO of The Sports Network 538 “I think Sochi is more difficult for UK firms to get involved in than other events globally. I know a UK PR advisor who is there and some of the architectural firms are from the UK so there clearly is some work for UK companies, but I just think it is slightly more of a challenge partly because of language and partly because we all recognise that there is a different way of doing business in Russia. Again it is useful to either have some ties with local companies or to already have some experience of doing business in Russia. When it comes to UK expertise we clearly know our football and I think those firms who have invested in relationships in Russia and are into Sochi already obviously will find it easier to get into the FIFA World Cup in Russia,” observes Julie Clark, UK Head of Sports & Leisure Practice, PwC

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Whilst an increasing number of Russian companies, particularly those with an international outlook, have English speakers on their staff, UK companies should not assume that everyone speaks English. It is advisable for them to engage a local interpreter to accompany them on their first meeting with a potential partner until they have established whether their partner is confident doing business in English.

Establishing personal relationships is essential in conducting business in Russia. UK companies will need to be prepared to invest time and effort into creating rapport with their business partners.

Obtaining meetings with officials from the public sector can be difficult, especially at a senior level, and these meetings can be particularly vulnerable to late changes. Meeting requests should be submitted by fax in Russian and preferably be followed up on, otherwise they are not considered.

When arranging a meeting, it is advisable to provide the Russian company with the subject of the meeting and provisional support materials in advance, although only limited detail will be required at that stage.

Meetings can be quite formal, with business coming first and small talk in the end. Russians rarely smile, but this should not be interpreted as a sign of coldness.

Bidding opportunities

Moscow is bidding for the ICF Canoe Sprint World Championships and the ICF Junior & U23 Canoe Sprint World Championships in 2017, the ICF Canoe Sprint World Cups in 2015 and the ICF Dragon Boat National World Championships in 2016.

Meanwhile St Petersburg is reportedly evaluating a bid to bring the Summer Olympic Games 2024 to Russia.540

Venues under construction

Kazan’s Aquatics Palace

This will be a key venue for the Summer Universiade 2013 as well as the FINA World Swimming Championships 2015 and construction costs are estimated to be GBP78m.

Sochi meanwhile is now the world’s biggest construction site with more than 50,000 people working 24/7 on building new facilities and infrastructure for the Olympic Games. Olympic sports facilities within Sochi are located in two separate areas – the Coastal and Mountain clusters.

539 That means they need to be approved by relevant Russian authorities in terms of compliance to national standards. Depending on the nature and application scope of the goods that UK firms are planning to ship to Russia, they may need to comply with one or more certification requirements

540 Marat Bariev of the Olympic Committee added that the plans were still at an early stage and there were potential rival bidders within Russia such as Kazan, building on its 2013 Summer Universiade development

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The Coastal Cluster venues:

 Fisht Olympic stadium (40,000 capacity)  Bolshoy Ice Dome (12,000 capacity)  Shayba Arena (7,000 capacity)  Ice Cube Curling Centre (3,000 capacity)  Iceberg Skating Palace (12,000 capacity)  Adler Arena Skating Centre (8,000 capacity).

The Mountain Cluster venues:

 Laura Cross-Country Ski and Biathlon Centre (9,600 capacity)  Rosa Khutor Alpine Centre (10,000 capacity)  RusSki Gorki Jumping Centre (9,600 capacity)  Sanki Sliding Centre (9,000 capacity)  Rosa Khutor Extreme Park (16,000 capacity).

In addition, Sochi will be home to Russia's first 5,854m long F1 circuit, one of the longest in the F1 world championship and is likely to be the stage for other races including Moto GP and World Superbike events.541 The construction secured significant financial backing from the Russian government and is due to host its first F1 race in 2014.

Momentum is already gathering pace ahead of the FIFA World Cup 2018. Arena-2018 was founded by the Russia 2018 Local Organising Committee (LOC) in April 2012 with the main task of monitoring the design, construction and rebuilding of the stadiums and ensuring that FIFA requirements are met. Russian cities building new stadiums to host the 2018 FIFA World Cup have also been warned by the country's sports minister Vitaly Mutko to keep within agreed budgets and not over-spend.542

Part of the fear stems from the fact that Russia is on the cusp of a football stadium boom although new venues are sorely needed: 12 of the country’s 16 Premier League teams play in Soviet-era arenas with minimal comfort, poor lighting, and inadequate drainage on the pitch.

However, several of the stadium projects have been in the works for several years including Moscow clubs Spartak, CSKA and Dynamo plus Rubin Kazan, Zenit St Petersburg and Sochi.543

A second wave of construction has come as a result of private investment in several provincial clubs such as Anzhi Makhachkala and Krasnodar although Alania Vladikavkaz has also recently announced plans for a new stadium. 544

541 This could include FIA GT World Series, FIA WEC, WTCC, Formula 3, Russian national championships, Moto GP, World Superbike and other events 542 Mutko issued the public warning during a January 2013 visit to Moscow by FIFA president Sepp Blatter to meet with Russian leader Vladimir Putin and check on the preparations for the tournament, which will be hosted in 12 stadiums in 11 cities. The fears have been raised after the costs of the New Zenit Stadium being built in St Petersburg soared to a reported £0.92bn 543 The 2014 Olympic Stadium will be transformed into a football arena after the competition ends 544 The 2018 FIFA World Cup is responsible for 8 planned stadiums that will join the Rubin, Spartak, Zenit and Sochi arenas on the world’s largest stage. In addition, there have been 3 temporary arenas built in Russia in the last 12 years: Arena Khimki outside of Moscow, Dynamo and CSKA’s temporary home; the Lokomotiv Stadium in Moscow; and Akhmet-Arena in Grozny, home to Terek although none will be used for the FIFA World Cup 2018

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Table 2: Summary of stadiums to be built by 2018

Stadium City Team Construction status Cost Kazan’s Aquatics Kazan - Completed in time for GBP78m Palace Summer Universiade 2013 Anzhi Arena Kaspiysk FC Anzhi Opened in March 2013 Undisclosed (Khazar Stadium Makhachkala 31,000 capacity overhaul) Rubin Stadium Kazan FC Rubin Kazan Due to open Summer GBP207m 2013 New Zenit St Petersburg FC Zenit Due to be ready for FIFA GBP784.5m Stadium Confederations Cup 2017 Otkritie Arena Moscow FC Spartak Due to open Spring 2014 GBP249m Moscow VTB Arena Moscow FC Dynamo Due to open 2016 GBP0.99bn Moscow Fisht Olympic Sochi - Estimated completion GBP374m Stadium November 2013 Rostov Stadium Rostov - Due to open 2016 GBP145.6m Samara Stadium Samara - Construction expected to GBP18.2m start January 2014 Kaliningrad Kaliningrad - Construction to GBP17.69m Stadium commence 2014 Stadion Yubileyniy Saransk FC Mordovia Due to open 2014 GBP193m Saransk Krasnodar Krasnodar FC Kuban Still subject to planning Stadium Krasnodar consent but scheduled to open 2016

Rubin Stadium, Kazan

The 45,000-seat stadium will become the permanent home of two-time Russian Premier League Champion FC Rubin Kazan in 2014 and although it had been due for completion in December 2012 construction is still on-going. The arena will host both the opening and closing ceremonies for the Universiade 2013 and group stage matches for the FIFA World Cup 2018. Once completed, it will become the biggest football stadium in the city, taking over from Rubin Kazan's current home ground, Central Stadium.

New Zenit Stadium, St. Petersburg

FC Zenit is currently building a new stadium at the site of the former Kirov Stadium. Planning for the new stadium began late 2005 and most of the main body of the stadium had been erected by the middle of 2012. The stadium was initially planned to be completed in 2009, but works have been hampered by a series of delays. The project was to be funded by Russian gas firm Gazprom, however after the company pulled out the project was taken over by the St Petersburg city government. The current schedule indicates that the stadium will be completed late 2013 at the earliest.

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The new ‘spaceship’ looking arena will have a 62,000-seal capacity and has been designed by Japanese architects Kisho Kurokawa along the lines of the Japanese Toyota Stadium which was designed by the same firm.

The former Kirov stadium is located on Krestovsky Island in the Neva river bay, about 7 kilometres north-west of St Petersburg’s city centre. The stadium is going to be one of the playing venues during the 2018 FIFA World Cup in Russia and is expected to host one of the two semi-finals.

Otkritie Arena, Moscow

Otkritie Arena545 will be the new stadium of FC Spartak Moscow which had been looking to build a new stadium from as early as the mid-90s. It will be the first time in its history the club has had its own stadium as it has played at various stadiums around Moscow. Earlier plans were shelved and the current project only went ahead after the club acquired a site at the Tushino Airfield grounds in the far north-west of Moscow, about 15 kilometres from the city centre in 2005.

Construction of the stadium finally started in July 2010 and by early 2013 most of the main body of the stadium had been completed, after which works are planned to continue on the roof.546 The stadium is expected to be completed by the end of 2013, with the first match to be played at the stadium in February 2014.

Initial plans were for a stadium with about 35,000 seats, but this was later revised upwards to 43,000 with an eye on the forthcoming FIFA World Cup 2018. Otkritie Arena got subsequently confirmed as the second Moscow playing venue in the tournament alongside Luzhniki Stadium.

VTB Arena

The VTB Arena will be the new stadium of FC Dynamo, with a planned 33,000-seat capacity that can expand to 45,000-seats and has been designed by Manica Architecture. First plans for the stadium were presented in the summer of 2010 and the stadium will be built on the site of the old Dynamo Stadium that was closed in 2008. Part of the facade, which is listed as a monument, will be preserved in the new stadium design, though most of the old stadium will be demolished. The seats of the stadium will be divided over three tiers and will include a total of 6,750 business seats and 98 VIP boxes. One of the arena’s stand-out features will be an 85-meter long LED screen at one of the short ends.

The project is being led by VTB Bank, which is 85% owned by the Russian government and itself owns 75% of FC Dynamo Moscow. The stadium has temporarily been named after the bank, but it is expected that ultimately a new naming rights sponsor will be sought. The Dynamo Stadium is located about 5 kilometres northwest of Moscow’s city centre, just outside the second ring road.

Demolition of the old stadium started late 2011 and the new stadium is expected to be finished in 2016.

545 In February 2013, Spartak announced a naming rights deal with local bank Otkritie, resulting in the name Otkritie Arena 546 The stadium will also have an indoor arena being able to accommodate about 12,000 people. FC Spartak also plans to include a club museum in the new stadium

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Krasnodar Stadium

Krasnodar Stadium will be the new stadium of FC Kuban Krasnodar and was initially intended to be built for the FIFA World Cup 2018 but Krasnodar did not get selected as a host city. The final plans for the new stadium were presented in April 2012, with the winning design submitted by Russian design institute Mosproject-4 and US architecture firm HKS Architecture. The shape of the stadium is based on that of a sunflower, a traditional flower of the Krasnodar region. The exterior will use a blind system that can ventilate the stadium in summer and isolate the spectators from cold winds in winter.

Krasnodar Stadium will become the new home of FC Kuban Krasnodar, replacing Stadion Kuban. FC Krasnodar, the city’s other major club, will not move to the new stadium, but has instead plans to build its own new stadium with lower capacity. The stadium will get built on the northern edge of the city of Krasnodar, at about 9 kilometres from Krasnodar’s city centre. Construction of the stadium was expected to start around the end of 2013 and take 2-3 years.

Rostov Stadium

International stadium architects Populous547 was selected to design the new Rostov Stadium for the FIFA World Cup 2018. This will mark the 4th stadium designed by the firm in Russia following its work on the Kazan, Saransk and Sochi sports arenas. Building on the notable success of its 2012 Olympic Stadium Design in Stratford, London, Populous’ green credentials and global experience in designing major sports landmarks helped the firm secure the contract.

Rostov Stadium will be built near the Sea of Azov and its design has been inspired by its surrounding landscape, featuring swirling sculptures that will rise up from the ground, representing the nearby ancient Kurgan burial mounds. The design also includes a large shade structure that wraps around the stadium, encouraging natural light as it protects fans from rain or wind. Shops will be located beneath the shade to welcome guests as they enter the stadium. The construction of the Rostov Stadium is part of a movement to reinvigorate the waterfront area. For the FIFA World Cup 2018 the stadium will initially seat 45,000 spectators before reducing seating capacity for 25,000 spectators when the games are over and the stadium will then serve as home to Russian Football Club FC Rostov. The Russian government has allocated GBP145m and construction is expected to be completed in 2016.

Samara Stadium

The central Russian city of Samara awarded the design contract for its new FIFA World Cup 2018 stadium to the State Unitary Enterprise of the Samara Region Institute548.The contract value is reported at GBP18.2m. The capacity of the new arena will be 45,000-seats which will then be reduced when the games are over 35,000-seats and the stadium will be used by the local football club Krylya Sovetov.549

547 “Russia is a big growth market for us at the moment because of the FIFA World Cup coming up although we are doing less work on the branding side,” says Nicholas Reynolds, director, Populous. See also Appendix 1.3 548 'TerrNIIgrazhdanproekt' 549 Regional governor Nikolai Merkushin said: "Design work is the most important stage of preparation for the 2018 FIFA World Cup. We believe that the stadium should be an ornament, the pride of Samara, both as an architectural object and as a sports facility"

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The stadium will be built in the Radiocenter district in the north of the city and is close to the airport, benefiting from easier access, car parking and surrounded by new residential housing. Construction is expected to commence in January 2014.

Kaliningrad Stadium

Wilmotte & Associés was recently awarded the contract for the design of the new FIFA World Cup Stadium situated in Kaliningrad550 that features an urban facade that wraps the stadium consisting of a series of orthogonal screens that respond to the surrounding urban environment. The primary steel structure also consists of a temporary upper tier that can be dismantled after the tournament and a flat sliding operable roof that will allow the stadium to accommodate a diverse range of events such as concerts, large conferences and various other sporting events.

Hosting facilities for the FIFA World Cup 2018 in the surrounding 220 hectare area site will include a hospitality village and media centre.

Construction of the 45,000-seat football stadium will begin in 2014, financed by the region of Kaliningrad and the Russian Federation.

Stadion Yubileyniy

The 28,000-45,000-seat stadium will be the new home of FC Mordovia Saransk and is being built on the eastern edge of the small city of Saransk. The stadium was first proposed in early 2010 and after various re-designs construction began in late 2011. It will be used for the duration of the FIFA World Cup 2018.

550 Formerly known as Konigsberg, is an exclave that borders the Baltic Sea and is isolated from Russian territory by the states of Poland and Lithuania with a population of 432,000 inhabitants

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Appendix 2.12: Current sports, host bids and construction in Turkey 2013-22

Table 1: Key sports and current bids to host major events in Turkey

Events Most popular sports 2013 Outdoor Archery World Championships Football, wrestling, basketball, volleyball, 2013 Mediterranean Games motorsports, athletics 2014 FIG World Championships in Rhythmic Gymnastics 2017 Deaflympics Bids Venues under construction 2020 Summer Olympics Konya Büyükşehir Stadı

Background

Football is the most popular sport in Turkey followed by basketball, volleyball, motorsports, Greco- Roman wrestling, freestyle wrestling and weightlifting.

Turkey is a unique country in so many ways. It straddles two continents - Europe and Asia – is the birthplace of one of world’s most ancient civilizations and is the only country in the world to have incorporated part of the Olympic Charter into its national constitution.

And nowhere is that national commitment to sport more evident than in the bustling streets of its largest city, Istanbul.

Turkey’s national government, in partnership with the city of Istanbul and the country’s main sports organisations, is fully committed to a broad based National Sports Plan which includes as one of its pillars the hosting of major sport events, including the Olympic Games.

This plan is backed by substantial national government resources supporting a long-term legacy strategy for the development of sport and related infrastructure in the country, including urban planning and transportation infrastructure investments that underpin the capital as a major destination for future sport and entertainment events.

From a business development perspective, Turkey offers strong potential for the UK sector interested in securing contracts in this region.551

Turkey has all the right ingredients to turn itself into global sports powerhouse over the next decade: a youthful nation where nearly 50% of the population is under 25 years-old552 and where sport is part of its national culture.

Istanbul was recently named the ‘European Capital of Sport 2012’, reflecting its importance in Europe as a centre for sport and the country has the resources to achieve a global status.

551 Central, Eastern and Southern Europe Region is ranked by this Report as Opportunity Rank #2, and is potentially more lucrative than South America. See Section 2.2 552 20m people are under the age of 20 years-old

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For example, mass transit and access routes to the major stadiums and sports venues within Istanbul are being completely renovated and the city is currently spending an average of GBP0.79bn annually on transport infrastructure alone.

The Olympic Games Master Plan is designed to overlay directly onto this existing strategy and is accelerating its implementation as well as enlarging its scale. And Turkey is using its status as one of the world’s fastest growing economies to underpin promises and budgets for sports development in the future.553

Annual and on-going events

Annual events held in Turkey include:

 Istanbul Cup – Women’s tennis  MotoGP Grand Prix  Youth and Sports Day  Red Bull Air Race World Series  International Motorcycle Fair  Rally of Turkey  Mountain Bike Races.

The Turkish Grand Prix was dropped in 2011 due to financial difficulties and plans to reinstate the race in 2013 looked unlikely to succeed at the time of writing.

Major sports marketing and consultancy opportunities

Turkey is set to host several major events over the next few years including the Outdoor Archery World Championships 2013, the Mediterranean Games 2013, the FIG World Championships 2014 in Rhythmic Gymnastics and the 2017 Deaflympics, all of which will offer opportunities for the UK sector.

Bidding opportunities

Istanbul is currently bidding for the 2020 Olympic Games, the city’s 5th bid in less than 20 years. Hosting the Olympic Games has been identified as a national priority and a personal passion by Turkey’s president, prime minister and sports minister. In addition, Istanbul has hosted 40 major events over the past seven years and the city’s growing status as a trusted host, combined with the National Sports Plan and significant investment in transport infrastructure, means the city will extend this level of commitment to hosting major international sports events.

One of Istanbul’s greatest strengths is the depth of integration between the city’s strategic plan and event specific master plans. The overall strategic plan for the city is based around objectives to achieve social, environmental and economic sustainability. Istanbul integrates the authorities designated to control the implementation of this plan into delivery organisation structures – helping boost progress towards the requirements for maximum sustainability in the city.

553 Turkey enjoyed 8.5% annual growth in 2011. Forbes has cited the Turkish stock market’s “astounding 56%” growth in a report that names Turkey the best performer in its 2012 Periodic Table of emerging markets. The news comes just as TÜÝK, the state-run statistics body, announced that Turkey’s jobless rate fell to 9.2% in 2012, the lowest it has been since 2005 and among the lowest in Europe

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For the 2020 Olympic bid, Istanbul’s bid will be delivered by the same organisation responsible for delivering the Olympic Games and ensuring the legacy is a success – the Olympic Games Preparation and Organisation Council (OGPOC).554

In January 2013, Turkish Airlines, Koc Holding, Ulker, Dogus Group, Digiturk, Sabanci Holding and Turkcell pledged to help sponsor the Olympic Games bid to the tune of GBP13.2m. Sports minister Suat Kilic announced the deals alongside representatives from the companies in Istanbul in March 2013.555

Istanbul Olympic bid organisers said the country's sole aim was to win the right to host the 2020 Olympic Games despite being earmarked as one of the potential hosts for football's European Championship (EURO 2020) being held the same year.

UEFA decided in January 2013 that the tournament would break from tradition and be spread over 13 nations with UEFA president Michel Platini saying he wanted the final and semi-finals to be played in Turkey.

International Olympic Committee (IOC) rules would prevent Turkey hosting any other major sporting event in 2020 should it succeed in securing the rights to stage the Olympic Games however and the chairman of Istanbul's bid said the IOC's evaluation committee would be assured that government support is behind the Olympics.556

Turkey had initially been favoured to host EURO 2020 on its own which would have seriously undermined its case for hosting the Olympic Games but UEFA's decision to make it a Europe-wide tournament was a major boost for Turkey’s Olympic Games bid.

Venues under construction

Turkey’s National Sports Plan has outlined a long-term development strategy for sports and the impact that this is having on Istanbul is evident from the number of newly built stadia across the city, and those that are in the pipeline.

A great example of the way legacy is at the forefront of decisions in Istanbul is the Ataköy Arena. Here a decision was made to build a new venue rather than adapt an existing one. This was then built in just 15 months; has already staged a World Championship tournament; will serve a vital

554 This organisation encompasses teams such as TOKI (a company already developing much of the city’s infrastructure), and so allows for smooth transition between planning, hosting and legacy 555 "Before our sponsors became involved in the process, we felt all alone. When they decided to provide their support we realised we were one big family." The minister said the 7 firms will put up £2.11m in sponsorship each; an amount that he said represented "50% of the burden". Hasan Arat, chairman of Istanbul 2020, added: “We are on an upwards trajectory right now and we are nowhere near the top of our arc. Istanbul 2020 is capitalising on Turkey’s strong economic situation and we have the 100% backing of every level of government and our powerful private sector. This is Turkey’s first sports bid in history to have been launched personally by the prime minister, and £13.2m in sponsorship represents the largest private sector investment in a Turkish sports bid ever. Istanbul 2020 has matched a 20-year desire with commitment and capacity,” he said 556 "The government made the decision. There is no official interest and these comments come from UEFA. Istanbul is very clear on the rules and (a bid for EURO 2020) would go contrary to an Olympic bid. I think it's very clear we are just for the Olympic Games. There is no other agenda, this is our number one agenda and that's what we will tell the evaluation committee," he said

201 community function in the immediate future; and will then be adapted to host judo, taekwondo and boccia for 2020 and beyond.

Table 2: Main sports venues planned in Istanbul over the next decade

Stadium Primary sport Seat capacity Commencement Planned opening New Ankara Football 41,000 2012 2014 Stadium Bursa Timsah Football 45,000 2011 2013 Arena New Izmir Stadium Football 41,000 2012 2014 New Antalya Football 41,000 2012 2014 Stadium Inonu Stadium Rugby 32,000 2017 2019 Bosphorus Stadium Marathon 70,000 2016 2019 Olympic Training Boxing, 6,000 2013 2015 Hall 1 powerlifting Olympic Training Table Tennis 5,000 2013 2015 Hall 2 Olympic Training Wrestling 8,000 2013 2015 Hall 3 Olympic Training Badminton, 5,000 2013 2015 Hall 41 wheelchair fencing Olympic Hockey Ice hockey 10,000 2014 2016 Centre Olympic Aquatic Aquatics 15,000 2014 2016 Centre Olympic Tennis Tennis 10,000 2014 2016 Centre

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Appendix 2.13: Current sports events, host bids and construction in Middle East 2013-22

Qatar

Table 1: Key sports and current bids to host major events in Qatar

Events Most popular sports 2014 FINA World Championships (25m) Football, basketball, handball, volleyball, 2016 UCI Road World Championships camel racing, horse racing, cricket 2022 FIFA World Cup Bids Venues under construction Potential 2024 Summer Olympic Games bid Al-Gharafa Stadium Al-Khor Stadium Al-Rayyan Stadium Al-Shamal Stadium Al-Wakrah Stadium Doha Port Stadium Education City Stadium Khalifa International Stadium Lusail Iconic Stadium Qatar University Stadium Sports City Stadium Umm Slal Stadium

Background

Qatar is categorically and unequivocally a major economic force and a true magnet for investment due to its outstanding economic performance given the continued global economic uncertainty. Qatar's economic GDP growth for 2011 was 14.1% and is the highest per capita income in the world, expected to reach slightly above GBP72,000 by 2016.

The Qatari construction market is expected to grow by an average of 12.5% a year over the next decade, compared with growth in European countries averaging just 1.7% to 2020.557

Despite a population of 500,000 native Qataris, the country has big ambitions for a small country given that it has access to an estimated 250-year supply of natural gas and is eager to establish other successful sectors within its growing economy, including global sport and entertainment and tourism.

The ambition is almost without limit as Qatar’s Emir has set the country on a monumental modernisation programme to become a role model for economic and social transformation in the region.558

557 According to a study by Oxford Economics and Global Construction Perspectives (2012) 558 Qatar has not placed any major construction projects on hold, unlike Dubai, Bahrain and Kuwait. In Qatar, the projects put on hold were around 4% of the total market, compared to 59% and 24% in UAE and Kuwait

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‘Qatar National Vision 2030’ is a GBP66.2bn programme designed to transform Qatar into an advanced country, capable of sustaining its own development and providing a high standard of living for its future generations. This is driving diversification in the economy and fostering Qatar as a knowledge-driven society.

The plan includes a GBP16.5bn metro and rail network, the GBP6.61bn New Doha International Airport559, a GBP4.6bn deep water seaport and a GBP0.66bn crossing to link the new airport with projects in the northern part of Doha. An additional GBP13.2bn will also be spent to build and expand roads as well as GBP2.6bn on the Qatar-Bahrain Friendship Bridge project.

As part of its strategy to establish Qatar as a new tourist destination, the government has also set aside GBP11.2bn for tourism development.560

Along with education and continued investment in the energy industries, the development of sports infrastructure is one of the key policy objectives introduced by the Emir a decade earlier. By focusing on sport, cultural and education facilities, Qatar is in the midst of a country ‘make-over’ in terms of its international image.

Sport is also a powerful way of reaching out to the world and the Qatar Olympic Committee (QOC) is determined that the country become universally recognised as the sports hub of the Middle East and a major destination for world-class events for all sports and entertainment. The QOC believes that sport promotes friendship, unity and peace and is determined that Qatar should be seen to support such ideals.

The tradition of hosting major sports events in the region can be traced back to the 1988 Asian Football Confederation (AFC) Asian Cup that was hosted in Doha. Other sports events include the Doha Asian Games 2006 - the largest ever Asian Games with 10,000 competitors from 45 countries competing in 39 sports and a budget of GBP1.8bn.561

Ultimately, hosting the 2006 Asian Games for the first time in the Middle East was historically significant. Doha was able to offer hope for a troubled region and show that there is a secure and safe environment to be found, despite the on-going turbulent situation in Iraq.

Qatar is working hard on changing perceptions of the Middle East and highlighting the tremendously warm and welcoming hospitality on offer in Doha. The city is seeking to modernise its culture and image while at the same time retaining its core values.

The focal point for Doha’s wide range of modern world-class facilities is the Doha Sports City Complex that includes the multi-purpose 50,000-capacity Khalifa International Stadium, Hamad Aquatic Centre562 and the Aspire Academy.563

Elsewhere, in the suburbs there are five multi-purpose stadiums:

559 Expected to open June 2013 with a capacity to handle 320,000 planes a year 560 New construction of 130 luxury hotels, resorts and other leisure facilities will increase hotel capacity in the region by 400% to 29,000 rooms by 2013 561 The country also hosted the AFC Asian Cup 2011 and the Pan Arab Games 2011 562 This will host the FINA short course World Cup 2013 563 This was Doha’s jewel in the 2006 Asian Games and was built over 22 months with a minimum of 2,100 workers on site at any one time. It is said to be the largest indoor sports dome in the world. The complex hosted gymnastics, badminton, weightlifting, wrestling, boxing, wushu and kadaddi all under one roof

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 Hamad bin Khalifa Stadium (capacity: 20,000 capacity)  Thani bin Jassim Stadium (capacity: 25,000)  Jassim Bin Hamad Stadium (capacity: 15,000)  Ahmed bin Ali Stadium (capacity: 27,000)  Grand Hamad Stadium (capacity: 13,000).

The city also has the Khalifa International Tennis and Squash Complex as well as the Doha Golf Club, whilst there are several stadiums and sport facilities currently under construction. Doha’s economic muscle and ambition has helped to transform a country that had suffered from a lack of infrastructure and a hostile climate for 6 months of the year into a major year-round global destination.

Annual and on-going sports events

Qatar regularly hosts multiple events in:

 golf  tennis  swimming  cycling  football  marine sports.

It also has a long history of hosting equestrian events on a national, regional and international scale. The country holds a variety of national events annually, such as:

 HH The Emir Cup  Horses Single Championship  Seniors Single Championship  Youth Single Championship  Cadets Single Championship  Best Team Cup  Best Coach Cup  Sporting Spirit Cup.

Doha plays host to numerous international events throughout the year including:

 International Horses Beauty Contest  International Equestrian Federation Jumping competitions  FEI World Cup Qualifier of the Arab League.

The country also held one of the qualifying events for the Olympic Games Beijing 2008. Motor sports and superbike racing are also popular in the region and in 2003 Qatar was awarded the rights to host a MotoGP Grand Prix by the FIM (International Motorcycling Federation). Each January, the attention of the European and Asian PGA tour turns to Qatar as many of the world's leading golfers converge on Doha for The Qatar Masters. Doha has also regularly hosted ATP and WTA tennis events. The world's best powerboat teams and drivers meet regularly in Qatar for racing events such as Class One Offshore World Championships, and the Formula 2000 Championship.

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Major sports marketing and consultancy opportunities

Qatar is the forthcoming host of the 2014 FINA World Championships (25m) and the 2016 UCI Road World Championships. Neither of the first two of these events requires any major infrastructure or significant new venue builds but there will be opportunities for temporary overlay and for all other services needed at sports event of this scale.

A FINA delegation, led by the federation’s executive director Cornel Marculescu, was in Doha in early March 2013 for a two-day visit within the frame of the preparation of the 2014 FINA World Swimming Championships (25m) to be held in December 2014.564

In conjunction with the FINA World Swimming Championships (25m) in December 2014, Doha will also host the third edition of the FINA World Aquatics Convention, a forum where FINA National Federations and business partners of the sports international market get together and have the opportunity to discuss the future of aquatics.

Plans are already underway in Qatar for the 2016 UCI Road World Championships - cycling’s first world championships in the Middle East.

The race will start and finish in the waterfront area in Doha, the home base for the Tour of Qatar. It will be flat, raced around the desert, and likely buffeted by high wind from the Persian Gulf.565The time trial circuit will cover around 10 kilometres. The men will ride it four times for nearly 42km. A larger circuit of around 15 kilometres will feature in the road race.

“Expect Amazing”, was the tag-line of the Qatar Bid committee for FIFA 2022 and this became a reality when FIFA awarded the right to host the 2022 FIFA World Cup to Qatar, the first country in the Middle East to get this honour. 566

The FIFA World Cup 2022 is expected to attract over half a million visitors, almost a third of Qatar’s current population as well as have an impact on the country’s economy and image on the global sports stage. The competition is scheduled to take place June-July 2022, although proposals have been made for it to switch to the winter of that year. The tournament will involve 32 national teams, including that of the host nation.

Assessment of opportunities

564 At a news conference, Marculescu expressed FINA’s satisfaction on the advancement of the operations: “Our close cooperation with the Qatar Swimming Association has proven to have strong foundations and they share with us the same vision: the Doha 2014 FINA World Swimming Championships (25m) will be an exceptional event, that will further promote the image and value of swimming. We are delighted and pleased by what we have seen and discussed and look forward to working again with our partners in charge of the organisation of these Championships in Doha” 565 “We are still busy designing the course because there’s always new roads. We are speaking with the UCI, making plans, and show them what we have,” said Eddy Merckx. The cycling legend co-owns the Tour of Qatar, which is run by Tour de France organiser ASO and is in its 12th year. He helped Sheikh Khalid launch a major stage race; now he is doing the same with the 2016 UCI Road World Championships. “It’s flat, but it’s windy here. You can see that from every day in the [Tour of Qatar]. It’s not so easy,” he said. The Worlds circuit will have a lot of change in directions. With the wind, it will be a hard race” 566 “We’re investing in Qatar because we know that there’s a football World Cup coming in many years’ time and there’s going to be a real enthusiasm to invest in the sporting infrastructure in that market. We do have a longer term vision particularly around the growth of our core businesses, but right now it’s kind of a 3-year plan that we have in our minds,” says Andy Westlake, CEO, Fast Track

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Qatar has not placed any major construction projects on hold, unlike Dubai, Bahrain and Kuwait.567

Meanwhile, Qatar's transportation sector is the biggest beneficiary of the massive investment by the government, as it plays not only a major role, but a pivotal one in the development of the social infrastructure of the country.

The tourism authority of Qatar has organised many events, conferences and exhibitions, raising Qatar's profile regionally. This has resulted in tourists paying Qatar a visit, thereby boosting the hotel sector. Qatar also provides ample opportunities for investors in the construction/real estate sector.

By paying attention to sport, cultural and education facilities, Qatar in particular is hoping to give its international image an overhaul. Sport is also perceived as being a way of reaching out to the world and the country is determined that it should become universally recognised as the sports hub of the Middle East and a major destination for world-class events in all sports.

The services sector is one of the dynamic aspects of Qatar's non-oil economy. This sector is considered to be one of the fast growing economic sectors in Qatar and a good example of that is the telecommunication sector.

Within Qatar it is recognised that hosting the FIFA World Cup 2022 is a catalyst for change within the country that will build bridges between different people and cultures and create a platform to enable people from all over the world to get together and to reappraise what they think about the Middle East and Qatar in that context.

The FIFA World Cup 2022 will make a significant contribution in raising Qatar's profile regionally and internationally as well as accelerating the development of the objectives of the Qatar National Vision 2030 which aims to be an advanced society capable of sustaining its development and providing a high standard of living for all of its people categorised under four categories - economic development, human development, social and environment development.

In addition, the FIFA World Cup 2022 is expected to have huge impact on national sports and young Qataris in the hope it will increase the level of participation of sports and physical activity within the country.

Qatar's successful 2022 FIFA World Cup bid has already boosted a plethora of infrastructure projects worth more than GBP65bn based on the Public-Private Partnerships (PPPs) model and as a result it will accelerate the development and expansion in the economy, creating many construction projects such as rail, air, hotel, sports facilities, and hotel/leisure facilities.

Qatar hopes that this will attract more inward investment in the country after the property bubble burst a few years’ ago and dampened the desire of foreigners to invest in Qatar. Another beneficiary of the FIFA World Cup 2022 ‘bounce’ could be the financial sector with some companies likely to go public for their funding, making Qatar competitive and a financial hub for the region.

Many UK sports marketing and consultancy firms have offices in the region, including signage and branding solutions company Icon, part of CSM Sports and Entertainment.568

567 In Qatar, the projects put on hold were around 4% of the total market, compared to 59% and 24% in UAE and Kuwait 568 Icon opened an office in Qatar in 2005 and the move led to an increasing amount of new business for the company in the region. As a result, Icon opened an additional office in Dubai in June 2010. "We are actively

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Challenges

There are challenges for the UK sector operating in Qatar. Companies must be prepared to invest the necessary time, money and effort to maximise opportunities for success and the process of registering with local authorities can be difficult and protracted. UK businesses need to take a long- term perspective and think in terms of developing partnerships. Businesses that demonstrate a willingness to invest in Qatar and a real commitment to the country are appreciated.

Networking is extremely important and often agreements to do business are made verbally although should be confirmed in writing in order to avoid misunderstanding or offence later.

Some UK sports marketing and consultancy firms have been put off because some projects demand that a bond be posted, which could be prohibitive.569

Bidding opportunities

Doha undertook a bid to host the 2016 Summer Olympics, in addition to bidding for the 2020 Summer Olympics. After Doha failed to become a candidate for the 2020 Games, it publicly announced it looks "forward to the 2024 race".570

Venues under construction

Under its proposal to FIFA, Qatar will build nine new stadiums571and renovate three existing ones with the 12 venues divided among seven host cities:

 Al-Daayen  Al-Khor  Al-Rayyan  Al-Shamal  Al-Wakrah  Doha  Umm Slal.

The first 5 proposed venues for the FIFA World Cup were unveiled in March 2010. The stadiums will employ cooling technology capable of reducing temperatures within the stadium by up to 20°C (68

partnering with local suppliers in the region as it is better to source materials locally whenever possible, thus creating a sustainable business,” explains Andrew Hodson, sales and marketing director at Icon

569 “Basically we have to secure a line of credit with the bank to provide that bond which probably means that we could only really afford to do one or two projects because the contracts are significant. The architectural fees in particular could amount to anything from between $20m and $40m and putting down a bond of 10% of that and foregoing that portion of your fee up until the end is probably your profit. You therefore know that it becomes very difficult to compete with certainly the larger firms with deeper pockets who can do that,” explains Nicholas Reynolds, director, Populous 570 “Everybody knows — it’s not a secret — that we have ambitions for the Olympics. We must test every discipline to show it can performed with success in Qatar,” said Sheikh Khalid 571 In a recent trade mission to Qatar (April 2013) for 30 British companies seeking contracts in the Region, Willie Walsh, President of the London Chamber of Commerce said the UK sector was in the lead to secure a substantial part of the $60bn worth of contracts in Doha ahead of the FIFA World Cup 2022 as a result of the expertise demonstrated by a phenomenally successful London 2012 Olympic Games as well as the fact the Qataris are reliant on importing this expertise to ensure the FIFA World Cup 2022 is as successful as the London 2012 Olympic Games

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°F), and the upper tiers of the stadiums will be disassembled after the FIFA World Cup and donated to countries with less developed sports infrastructure to make 22 new stadiums. All of the 5 stadium projects launched have been designed by German architect Albert Speer & Partners.

The Al-Khor Stadium is planned for Al-Khor, located 50 kilometres north of Doha. The stadium will have a total capacity of 45,330, with 19,830 of the seats forming part of a temporary modular upper tier. The Al-Wakrah stadium, to be located in Al-Wakrah in southern Qatar, will have a total capacity of 45,120 seats. The stadium will also contain a temporary upper tier of 25,500 seats. The stadium will be surrounded by large solar panels and will be decorated with Islamic art.

The Al-Wakrah and Al-Khor stadiums would have been built regardless of whether Qatar was awarded the FIFA World Cup 2022 according to the Qatar bid committee. However, temporary upper-tier sections will now also be added. By some estimates, the 2022 FIFA World Cup is going to cost Qatar approximately GBP138bn,572 estimated to be about 60 times the amount South Africa spent on the 2010 FIFA World Cup (GBP2.3bn). Around GBP107bn is to be spent on stadiums and facilities plus a further GBP31bn on transport infrastructure;573 GBP30bn will be spent on building air-conditioned stadiums with GBP48bn on training facilities and accommodation for players and fans; and a further GBP28bn will be spent on creating a new city called Lusail that will surround the stadium that will host the opening and final matches of the tournament.

Table 2: Stadiums FIFA World Cup Qatar 2022 Stadium Host City Construction Owner/investors Matches status planned Al-Gharafa Al-Rayyan Major Qatar Olympic Group matches Stadium renovation Committee / Government Al-Khor Al-Khor To be built Qatar Olympic Group Stadium Committee / matches, round Government of 16 Al-Rayyan Al-Rayyan Major Qatar Olympic Group matches Stadium renovation Committee / Government Al-Shamal Al-Shamal To be built Qatar Olympic Group matches Stadium Committee / Government Al-Wakrah Al-Wakrah To be built Qatar Olympic Group Stadium Committee / matches, round Government of 16 Doha Port Doha To be built Qatar Olympic Group Stadium Committee / matches, round Government of 16, quarter- finals Education city Al-Rayyan To be built Qatar Foundation/ Group stadium Government matches, round of 16

572 According to Grant Thornton Al Eid & Co, this represents 40% of Qatar’s budget 2013-16 to fund large infrastructure projects 573 Dr Nicola Ritter, a German legal and financial analyst made these projections at a recent analyst meeting (March 2013)

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Khalifa Al-Rayyan Major Qatar Olympic Group International renovation Committee / matches, round stadium Government of 16, quarter- finals, semi- finals Lusail Iconic Al-Daayen To be built Qatar Olympic Opening match, Stadium Committee / group matches, Government round of 16, quarter final, semi-final, final Qatar Doha To be built Qatar University / Group University Government matches, round Stadium of 16 Sports City Doha To be built Qatar Olympic Group stadium Committee / matches, 3rd Government place playoff Umm Slal Umm Slal To be built Qatar Olympic Group Stadium Committee / matches, round Government of 16, quarter- finals

Qatar also plans to build 90,000 additional hotel rooms, although FIFA only requires Qatar to build 65,000 rooms.

UAE574

Table 3: Key sports and current bids to host major events in UAE

Events Most Popular Sports Dubai Duty Free Darts Masters (World Series Football, motorsports, cricket of Darts, May 2013) Bids Venues under construction 2019 Asian Cup Dubai Sports City Possible 2024 Summer Olympic Games bid The Rock Stadium

Background

Dubai is a major hub within the region, situated on a natural inlet of the Persian Gulf and at the crossroads of Europe, Asia and Africa with direct flights to over 200 global destinations. It also has a strong reputation as a ‘meetings, incentive travels, conventions and exhibitions575 destination.

Promoting sports and sporting events is in line with the Dubai strategic vision and major events are strongly supported at government level. Bidding for events is the responsibility of the Department of Tourism and Commerce Marketing (DTCM) and the Dubai Sports Council.

574 Abu Dhabi has not been specifically included here because the Report is focused on one-off sports events that deliver the best new business opportunities for the UK sector. Abu Dhabi hosts the annual F1 Grand Prix (F1 events have been excluded from consideration). Dubai also has a more defined strategy for attracting major sports and entertainment events than Abu Dhabi 575 Sometimes abbreviated to ‘MICE’

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The DTCM works with sports authorities and relevant sports federations to bring their sporting events to Dubai. In addition, the department identifies potential events that make a strategic fit for Dubai by matching the interests of a particular sport in the region, sports arenas facilities and other considerations. DTCM is in the process of setting up a dedicated department to oversee sports events in Dubai.

Dubai has hosted several global sports events over the last 5 years:

 World Arab Boxing Championship 2012  SportAccord International Convention in 2010  FINA World Swimming Championships (25m) 2010  IRB Rugby World Cup Sevens 2009  International Archery Federation World Cup Final 2007  FIFA World Beach Soccer 2009.

Annual and on-going events

In the world of sport Dubai has a high profile for rugby sevens, power boat racing and horseracing events.

The Dubai World Cup, a thoroughbred horse race with a purse of GBP7m576 is held annually at the Meydan Racecourse in Nad Al Sheba.577. The development comprises a 60,000-seat grandstand as well as a 5-star hotel, IMAX cinema and marina.

Regular sporting events in Dubai

 Dubai Duty Free Tennis Championships  Barclays Dubai Tennis Championships  Dubai Desert Classics – Golf  Dubai Ladies Masters – Golf  Dubai World Championship – Golf  Dubai World Cup – Horseracing  Emirates Dubai Sevens – Rugby  Dubai Open Beach Volleyball  World Offshore Powerboat Championship  Dubai International Parachuting Championship.

The F1 Abu Dhabi Grand Prix was first held in November 2009 and is now hosted at the world famous Yas Marina Circuit.

Major event opportunities

Dubai will hold the Host Cities Congress in December 2013.

The world's top eight darts players will take part in the GBP165,000 Dubai Duty Free Darts Masters, which will be played in late May 2013 at the Dubai Tennis Stadium as the first leg of the Professional Darts Corporations’ World Series of Darts.578

576 Making it the richest horse race in the world 577 Opened in 2010, the state-of-the-art complex was built on the site of the former 35,000-capacity racecourse to give the Dubai World Cup horseracing event a new home

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Bidding opportunities

The DTCM works with sports authorities and relevant sports federations to bring their sports events to Dubai. In addition, the department identifies potential events that make a strategic fit for Dubai that align interests in a particular sport in the region with sports arenas facilities and amenities.

Dubai had been considering a bid for the 2020 Summer Olympics, though the city is now planning on bidding for the 2024 Olympic Games.579

At the same time, the UAE Football Association has made a formal bid to host the 2019 Asian Cup. The federation sent in its papers to the Asian Football Confederation (AFC) on the final day of accepting bids and will be competing against six nations – Bahrain, Lebanon, Oman, Saudi Arabia, Thailand and Iran - to host the continent’s premier tournament.

The UAE FA will be setting up special committees to start working on its bid presentation. After receiving the bid papers, the AFC will organise a workshop for bidding countries on 17 July 2013 and the inspection of infrastructure and facilities will be held from October to December 2013.

The bidding countries will then be given until May 2014 to prepare their final Bid Report and the winning bid will be announced two months later at the AFC general assembly. The UAE lasted hosted the event in 1996.

Venues under construction

Dubai Sports City

Dubai Sports City is a GBP2.6bn, 4.6m square-metre mixed-use sports city currently under construction and when completed it will be a mix of high quality apartment buildings as well as several luxury sports facilities.

578 Colm McLoughlin, Executive Vice Chairman of Dubai Duty Free said: "This is the first time that a professional darts tournament has been staged in Dubai and the first time that darts will be played in an outdoor arena. We think that this sport, which is growing in popularity across the world, will be a good addition to Dubai's busy sports and social calendar" 579 In December 2012, a top official of the UAE’s National Olympic Committee confirmed Dubai will bid for the 2024 Summer Olympics as soon as the government gives the go ahead. A YouGov poll (2012), in the days following the announcement, examined the views of residents across the region and their thoughts about the possibility of the Summer Olympic Games coming to Dubai. Overall, 72% of all respondents agreed that it is a good idea for Dubai to host the Olympic Games (rising to 75% for UAE residents). The majority of respondents felt an Olympic Games held in Dubai will not only have a positive impact on the world’s perception of the Middle East (76%) and Dubai (80%) but also on the world’s perception of Muslims (67%). The majority of respondents felt Dubai already has the capability to host the Olympic Games especially in terms of infrastructure (78%) and expertise (68%). Three-quarters of respondents also agreed Dubai is the safest place in the Middle East for the Olympic Games to be held. Nevertheless, an obvious concern about hosting a sporting event in Dubai is the summer heat and 39% of respondents felt it would be acceptable to postpone the Olympic Games until later in the year, compared to 35% who did not. However, amongst UAE residents, over two-thirds (69%) felt the Olympic Games should be pushed back to later in the year when the weather is cooler. Respondents think the key benefit of hosting the Olympic Games in Dubai is that it will be a ‘boost to the UAE’s economy’. In addition, respondents felt the Olympic Games will increase tourism, community spirit and encourage participation in sports (at present 30% of respondents state they never participate in sports and 43% never attend live sports events), the study said

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The first structures opened in late 2007. Dubai Sports City as a whole is the vision of three leading entrepreneurs from the UAE - Abdulrahim Al Zarooni, Abdulrahman Bukhatir and Abdulrahman Falaknaz.

The idea behind the project is to create one of the world's premier sporting destinations; a venue to watch major events; a place to learn and improve sporting skills; and a place to participate in sport at all levels.

Set within Dubailand development, when completed Dubai Sports City will feature 4 magnificent stadia: a 60,000-seat multi-purpose outdoor stadium for rugby, football and track and field events; a 25,000-seat capacity dedicated cricket stadium; a 15,000-seat multi-purpose indoor arena for tennis, hard court games, ice hockey, concerts and other events and a field hockey stadium for 5,000 spectators.

Already fully operational is the 25,000-seat capacity Dubai International Cricket Stadium, and the 18- hole championship golf course, The Els Club.580 The Academies campus within Dubai Sports City will be home to a number of globally recognised training and development brands.

The Multi-purpose Outdoor Stadium

The largest of the venues at Dubai Sports City, the 60,000 seat multi-purpose outdoor stadium is being designed to host football, rugby and track and field in addition to major cultural and entertainment events. It will be equipped with the very latest in technology from its ‘Ring of fire’ lighting system to its amenities for teams, media and VIPs.

The Multi-purpose Indoor Stadium

Designed to host all hard court games such as basketball, volleyball, handball, badminton, tennis, ice hockey and other sports, the 10,000 seat indoor stadium will deliver the ideal venue for sporting events throughout the Dubai's extremely hot summer months.

Field Hockey Stadium

The 5,000 seat field hockey stadium, built to the guidelines of the International Hockey Federation (FIH), will provide an excellent setting for both international and local competition in addition to being the location of the FIH World Hockey Academy. The venue will feature two state of the art water-based artificial surfaces, with excellent facilities for players, officials and media.

Other new venues planned for the UAE include the Rock Stadium, Al Ain Sports Arena581, which is a sunken stadium built into the side of a mountain.

Sustainability played a big part in the design and location of the Rock Stadium in Al Ain and the architects intend to use the material excavated in the stadium's construction for other parts of the project, while the sunken structure will limit the desert sun's impact and cooling costs, reducing any negative environmental impact.

580 Ernie Els’ first golf course design concept in the Middle East and the ICC Global Cricket Academy 581 Al Ain is fourth largest city in the UAE. The 40,000-seat Rock Stadium has been designed by MZ Architects, a Lebanese architecture studio. The firm has proposed a structure having minimal aesthetic and environmental impact on the surrounding landscape. Taking inspiration from ancient Greek stadia built into the sides of hills and mountains, the 200,000-square-metre structure is designed to blend into the side of Jebel Hafeet in Al Ain

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Appendix 2.14: Current sports events, host bids and construction in Canada 2013-22

Table 1: Key sports and current bids to host major events in Canada

Events Most popular sports 2013 Tour of Alberta Ice hockey, Canadian football, basketball, 2013 ISU World Figure Skating soccer, curling, baseball, lacrosse, golf, Championships tennis 2014 FIFA U-20 Women’s World Cup 2015 Pan-American Games 2015 FIFA Women’s World Cup 2016 FINA World Championships (25m) Bids Venues under construction 2018 FEI World Equestrian Games Possible New builds for Toronto 2015 and upgrades Winter Olympic Games 2026 bid from planned for the 2015 FIFA Women’s World Quebec City Cup

Background

Ice hockey is the most popular spectator sport in Canada, followed by Canadian football582 and other team sports include curling, street hockey, cricket, rugby and softball.583

Popular individual sports include:  auto racing  boxing  cycling  golf  hiking  horse racing  ice skating  rodeo  skateboarding  skiing  snowboarding  swimming  tennis  triathlon  track and field  water sports  wrestling.

The Winter Olympic Games 2010 galvanised the people of Vancouver with sports fans filling its stadiums and venues and local businesses getting behind the Canadian national team where sports such as freestyle, snowboarding as well as more traditional winter ice sports such as hockey, figure skating, curling and speed skating took place in Greater Vancouver.

582 The Grey Cup is Canada’s largest annual sports event 583 Ice hockey is the official national winter sport and Lacrosse is the official summer sport

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Since then, Vancouver has revelled in its role as home to the world’s best winter sports athletes and as the setting for alpine skiing, Nordic sports such as cross country skiing, ski jumping and biathlon as well as sliding sports in the Whistler region such as bobsleigh, luge and skeleton.

An advantage of the city is its infrastructure planning system and construction of new venues and renovations of existing ones ahead of the Winter Olympic Games 2010 were valued GBP241m, funded by the province of British Columbia as well as the Canadian government.

At the time of writing, the ISU World Figure Skating Championships 2013 had just been held in London, Ontario. The city saw the event as an opportunity to demonstrate that although small, it nonetheless presents a highly attractive destination for elite sporting competitions and tourism. The successful figure skating championships marked the largest sporting event London, Ontario584 had hosted.585

The transformation of London, Ontario provided a model for other smaller Canadian cities including Kingston and Kelowna BC that are looking at sports tourism to enhance their local economies.586

Elsewhere, Canada has several cities jostling for position as the country’s best sporting city and these include Toronto, Ottawa, Montréal, Quebec City, Calgary and Edmonton. Canada’s national policy is to only support two major multisport events in the country in a 10-year period and one large international single sport event every 2 years.

Annual and on-going events

Canadian cities host a number of varied sports and entertainment events across the year:

 The Vancouver Sun Run is a recreational 10 km run that annually attracts 50,000 athletes every year from both corporate teams and recreational athletes. The international marathon has been on the city’s sports calendar for many years and attracts a number of the world’s leading athletes.

 Tour de Delta and Tour de White Rock form part of BC Superweek in Vancouver and the city is also host to the biggest community tennis event in North America. The 16-day tennis event uses 18 courts in rotation for 12 hours a day, where tennis enthusiasts play against the beautiful backdrop of Stanley Park, attracting over 2,000 players of all ages and abilities and includes an international wheelchair tennis event.

 Calgary is host to the Calgary Marathon; international equestrian events that take place at Spruce Meadows and the Calgary Stampede rodeo that celebrated its centenary in 2012.

 Toronto hosts several major annual sporting events such as the Bell Canadian Open, the Rogers Cup and the Honda Indy.

 Montreal is home of the popular F1 Canadian Grand Prix.

584 Population 360,000 585 Winning the bid was a coup of 13 years in the making, starting with the decision to build a new sporting arena in the city’s struggling downtown core. “Until we built Budweiser Gardens, it wasn’t a nice place to visit. We had a city council that was visionary and we’re very, very fortunate that they opted to spend this kind of money on the downtown because it’s now paying off big time,” remarks Janette MacDonald, manager of Downtown London, a business-improvement association

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Major sports marketing and consultancy opportunities

Major events being held in Canada over the next few years include:  2013 Tour of Alberta  2014 FIFA U-20 Women’s World Cup  2015 Pan-American Games (Toronto)  2015 FIFA Women’s World Cup  2016 FINA World Championships (25m) (Windsor).

In September 2013, 11 Alberta communities will serve as the official hosts in the inaugural year for the Tour of Alberta Pro Cycling Event.587 Whilst the detailed 850-kilometre route for the Tour of Alberta is still being finalised at the time of writing, the event organiser, the Alberta Peloton Association (APA) has announced the list of communities that will host the start and finish for each stage of the race.588

The Pan American Games 2015 is one of the biggest opportunities for the UK sector in this region over the next couple of years. The vision for the event is to use the power of sport to engage with Toronto’s multi-cultural community and volunteers as well as to transform the region’s communities through legacy sports facilities and programmes in much the same way as London Olympic Games 2012 demonstrated.

In measurable terms, the Pan-American Games 2015 will:

 bring more than 10,000 athletes and officials to Ontario;  attract more than 250,000 tourists who will stay in hotels, eat in restaurants, shop and visit attractions;  generate more than 15,000 jobs;  involve more than 20,000 volunteers;  showcase the region on an international stage;  stimulate a number of key public projects such as public transportation and affordable housing;  create a legacy of new and updated sport venues including a new aquatics centre, athletics stadium, velodrome and 2 additional Olympic-standard swimming pools; and  on completion the athletes’ village will be part of a GBP billion development initiative that will accelerate the renewal of Toronto’s waterfront.

The overall budget for Pan-American Games 2015 is estimated to be GBP0.91bn split almost equally between the operating and capital development budgets.

The FIFA Women's World Cup 2015 is the largest single-sport women's event in the world, has been expanded from 16 to 24 teams and will mark the first time that a single-sport event has been hosted from coast to coast in Canada.

The FIFA Women's World Cup Canada 2015 official host cities are Vancouver, Edmonton, Winnipeg,

587 This takes place over a 6-day period 588 The overall start of the 2013 Tour of Alberta will begin with a prologue on Tuesday 3 September 2013 in Edmonton followed by 5 point-to-point stage races. Stage 1 will start on Wednesday 4 September in Strathcona County with racing through Alberta’s industrial heartland down rural roads through central Alberta. Other stages will include a route through several communities in central Alberta, a circle through the Canadian Badlands, a climb to the Canadian Rockies through Kananaskis Country, with the final stage winding through the foothills towards a finish circuit in downtown Calgary on Sunday 8 September.

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Ottawa, Montréal and Moncton.

The 2016 FINA World Championships (25m) held in Windsor589 will attract 2,500 visitors, including 700 athletes and is estimated to generate more than GBP16.2m for the local economy. The cost of hosting the championships will be GBP1.3m-GBP1.9m depending on government and corporate sponsorship.

Bidding opportunities

In July 2007, it was revealed that the Canadian Olympic Committee had begun work on a bid for the 2024 Summer Olympic Games for Toronto590, the largest city in Canada. In June 2012, the Toronto City Council voted overwhelmingly in favour of pursuing a 2024 Olympic bid and asked for a staff report on pursuing the 2024 Games, with the study expected to be completed by March 2013.

At the end of the 2011 Pan American Games, Allen Vansen, senior vice president of operations for the 2015 Pan American Games stated that if Toronto does a good job hosting the event it could go on to mirror the success of Rio which hosted the 2007 Pan-American Games before winning its the 2016 Summer Olympic Games bid. And as with Rio, IOC President Jacques Rogge has stated that successfully hosting the Pan-American Games could help Toronto to finally secure the Summer Olympic Games in 2024.

Meanwhile, at the end of February 2013, officials from Bromont in Quebec, Canada made their presentation to the FEI, the international governing body for equestrian sports, to host the World Equestrian Games 2018 which looks a formality for the city after it became the only candidate to last the distance since the bid process began 15 months previously.591

The Bromont bid committee said it plans to use the Montreal 1976 Olympic Stadium for the opening ceremony, and the Bromont Equestrian Park, which staged the equestrian events in the 1976 Olympic Games is the proposed venue for all 7 disciplines at the 2018 World Equestrian Games.592

The FEI evaluation commission will now produce a full report for the FEI Bureau. Once reviewed, the Bromont bid team will return to Lausanne for the in-person Bureau meeting at FEI headquarters in July 2013, after which the host city will be officially announced.593

589 The city spent approximately £130,000 on its successful bid to host the games 590 This would be Toronto's 3rd bid for the Summer Olympic Games, after a 3rd place bid for the 1996 Olympic Games and 2nd place bid for the 2008 Olympic Games. Toronto has been actively working on hosting the Summer Olympic Games since 1986. The 1976 Summer Olympic Games were the last time they were held in Canada 591 A delegation led by Paul Côté, president of the Bromont bid committee, made an in-depth presentation to the FEI evaluation commission at its headquarters in Lausanne, Switzerland covering a range of topics including horse welfare and anti-doping, the financial plan and revenue generation strategy and the legacies to Canadian equestrian sport, should the World Equestrian Games 2018 be awarded to Bromont 592 The World Equestrian Games comprise world championships in 7 disciplines - jumping, dressage and para- equestrian dressage, eventing, driving, endurance, vaulting and reining – and is the most prestigious equestrian event outside the Olympic Games 593 “The Bromont committee now better understand the expectations and requirements for the FEI World Equestrian Games and we feel confident that we can organise and manage the Games in 2018. We are looking forward to presenting to the FEI Bureau in July 2013 and hearing the final decision. Getting the 2018 Games could change the sport forever in our country,” observes Paul Côté, president of the Bromont bid committee

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Quebec City was originally interested in bidding for the 2022 Olympic Games but the city later backed out of its potential bid stating it would instead bid for the rights to host the 2026 Olympic Games.

Venues under construction

Toronto is currently spending approximately half of its GBP0.91bn event budget upgrading the existing, extensive sports facilities ahead of the 2015 Pan American Games.

Ontario Sports Solutions, Dundee Kilmer Developments and Bondfield Construction Company are among winners of contracts to design, build and finance venues for the Toronto 2015 Pan American Games.

The Pan-American Games 2015 venues include:

 the City of Hamilton's football stadium;594  the Town of Milton's velodrome, the host venue of the track cycling competition;595  Pan-American Athletics Stadium, York University's stadium, the host venue for athletics competitions;596  the City of Toronto's tracks at the Toronto Track and Field Centre, Birchmount Park Stadium and Centennial Park Stadium, which will be used as warm-up and training facilities during the Games;  Etobicoke Olympium, a major community aquatics centre in the city of Toronto, is set to undergo a GBP13m upgrade in time for the event;597  Markham Pan Am Centre, a new venue that will host the water polo, table tennis and badminton competitions stadium;598  Aquatics Centre, Field House and Canadian Sport Institute Ontario, to be constructed on the University of Toronto Scarborough Campus;599 and  Pan American Field Hockey Centre, a new venue that will be Ontario’s first international field hockey venue.600

The development of these venues will strengthen the economy in the Greater Toronto Area and after the Pan American Games 2015 will serve as community-based sports and recreational facilities helping to build healthier and more active communities as well as leaving a lasting legacy for athletes from across Ontario.601

The 2015 FIFA Women’s World Cup will involve GBP0.65bn in stadium upgrades in Vancouver, Winnipeg, Ottawa and Halifax.

594 Under construction as at December 2012 595 Under construction as at January 2013 596 Under construction as at December 2012 597 Work will begin in 2013 598 Under construction as at September 2012 599 Under construction as at July 2012 600 Work will begin in 2013 601 Ontario Sports Solutions signed a contract to design, build and finance its part of the project for £134m. The total project budget will include the final design, build and finance contract as well as transaction fees and other ancillary costs that are being finalised

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Appendix 2.15: Current sports events, host bids and construction in USA 2013-22

Table 1: Key sports and current bids to host major events in USA

Events Most popular sports 2014 Gay Games (Cleveland) American Football (NFL and college), 2014 World Fire-fighter Games (Los Angeles) basketball (NBA and college), baseball (MLB), 2015 Special Olympics World Games and hockey (NHL), motorsport, soccer, Summer (Los Angeles) tennis, golf, athletics 2015 UCI Road World Championships (Richmond) 2015 FIS Alpine World Ski Championships (Vail/Beaver Creek) Bids Venues under construction 2017 FISA World Rowing Championships San Jose Earthquakes New Stadium Various USA cities are considering being the Courses for the 2015 FIS Alpine World Ski country’s representative to bid for the 2024 Championships (Vail/Beaver Creek) Summer Games and the 2026 Winter Games Possible 2026 FIFA World Cup bid

Background

There are probably few societies in the world where sport plays such a dominant role in the way of life of that country. In the USA it is no exaggeration to say that sport is an integral part of the American way of life that most games organisers across the world can only marvel at.

The 5 major sports in the USA:

 baseball  American football  basketball  Ice hockey  soccer.

Each sport has its own major league: Major League Baseball (MLB), the National Football League (NFL), the National Basketball Association (NBA), the National Hockey League (NHL) and Major League Soccer (MLS). All enjoy massive media exposure and fan support across the USA.602

With the exception of MLS, the major leagues are considered the pre-eminent competitions in their respective sports and each of these leagues, with the exception of NFL, have teams that play in Canada.

MLS is less popular as a spectator sport in the USA than it is in many other countries, although it has wide amateur participation, particularly among youth and women players.603

602 MLB, NFL, NBA and NHL are among the most lucrative sports leagues in the world 603 The U.S. team won the first ever FIFA Women’s World Cup 1991 and has been a superpower in women's soccer. It is currently ranked 1 by the FIFA Women’s World Rankings and the national team has also won the 1999 Women’s World Cup, 4 Olympic Games Women’s gold medals in 1996, 2004, 2008 and 2012 and 9 Algarve Cups in 2000, 2003-05, 2007-08, 2010-11 and 2013

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Sport is particularly associated with education in the USA with most high schools and universities having teams that compete at a very high standard.604 College sports competitions play an important role in American sporting culture and in many cases college athletics are much more popular than professional sports.605

The US government supports international sports competitions because these events provide a showcase for US culture, promote mutual understanding between nations, generate a sense of national pride and create a significant economic impact.

In the US, 3 cities are pre-eminent for hosting world-class sports events:  New York City  Los Angeles  Chicago.

In New York, the Sports Marketing Department at NYC & Company is responsible for attracting, creating and promoting sporting events throughout New York's 5 boroughs. The organisation facilitates the production of a diverse line-up of high-profile professional and amateur events that excite local sports fans, generates revenue for the region and produces positive exposure for New York City.606

In Los Angeles, the Los Angeles Sports Council is a non-profit, privately-funded organisation that is tasked with bidding for sports events on behalf of Los Angeles and Orange County.

In Chicago, the Chicago Sports Commission607 is the primary public authority responsible for major events in the city, working alongside the Chicago Park District. Chicago Mayor Rahm Emanuel's goal is to increase the number of tourist visitors from 42m to 50m a year.

Annual and on-going events

New York

In addition to being the home of several major sports franchises, New York is also host to some high profile events in the international sports calendar including:

 US Open (tennis)  ING New York City Marathon  NYC Half Marathon  Nautica New York City Triathlon  Big East Conference Men’s Basketball Championship  Belmont Stakes

604 The sport’s governing body is the National Collegiate Athletic Association (NCAA) 605 IMG effectively control most of the commercial rights to college sport in the USA 606 Working with its partners, events and in-house creative teams, NYC & Company creates customised marketing strategies and activation programmes for event sponsors in New York City. It also facilitates permitting and the coordination of inter-agency safety and security plans with the appropriate city, state and federal permitting agencies. NYC & Company is also able to provide unparalleled access to New York City's top venues—whether they are traditional, non-traditional, public or private 607 Founded in late 2011

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 Millrose Games  Adidas Grand Prix  New Balance Collegiate Track and Field Invitational  TD Bank Five Boro Bike Tour  NY Open Judo Championship  Daily News Golden Gloves Amateur Boxing Tournament  numerous international football matches.

Los Angeles

Los Angeles has a solid global track record as a destination for global sports events and anual events held in the city include:

 Los Angeles Marathon  Northern Trust Open  Santa Anita Derby Day  Toyota Grand Prix of Long Beach  Mercedez-Benz Cup  Festival of Martial Arts  ASP World Tour (surfing)  FIM World Championship Motocross  Rose Bowl  NHRA Winternationals.

Chicago

Chicago’s annual calendar includes several major sporting events:

 Chicago Marathon - 45,000 athletes from more than 100 nations take part  Chicago Triathlon  AVP Beach Volleyball Tour  Chicago Cup - an international wrestling invitational hosted by USA Wrestling and World Sport Chicago  Illinois Regional Games – includes athletics, boccia and powerlifting.

These sports events are in addition to hundreds of city and regional university competitions which collectively attract millions of spectators every year to the windy city.

Major sports marketing and consultancy opportunities

Major events that will be held in the USA over the next few years include:

 2013 US National Senior Games (Cleveland)  2014 Gay Games (Cleveland)  2014 World Firefighter Games (Los Angeles)  2015 Special Olympics World Games Summer (Los Angeles)  2015 UCI Road World Championships (Richmond)  2015 FIS Alpine World Ski Championships (Vail/Beaver Creek).

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Colorado

The 2015 FIS Alpine World Ski Championships, to be held in Colorado’s Vail and Beaver Creek resorts, are expected to showcase athletes from over 70 nations with an estimated 1bn worldwide TV audience and an on-site media and broadcast entourage of approximately 1,500 people.608 Plans for the new women’s Downhill course, the Raven Ridge expansion and the Red Tail enhancements have been submitted to the US Forest Service and if approved, the facility will be available by the autumn of 2013.

Los Angeles

In February 2013, Los Angeles’ Mayor Antonio Villaraigosa announced a projected GBP274.6m boon to the local economy when Los Angeles hosts the Special Olympics World Summer Games in 2015.

According to an economic impact report,609 the Special Olympics 2015 will bring more than 500,000 spectators and media representatives, 7,000 athletes and 3,000 coaches representing 170 countries, to the area 24 July-2 August 2015.

Benefits to the Los Angeles economy will include approximately GBP85.9m in expenditures by out- of-town visitors, an additional GBP16.5m in spend in athlete and delegate accommodation, GBP39.7m for production staff and associated production costs and more than GBP132m in related expenditure including GBP18.1m in state and local tax revenues. If local hotels reach 100% occupancy as expected, economic benefits are projected to spill over into surrounding communities in Ventura, Orange County and Riverside County.

The Special Olympics 2015 will be the largest single event to be staged in the city since the 1984 Olympic Games and are projected be the largest sports and humanitarian event held anywhere in the world that year.610

Meanwhile, the 2015 UCI Road World Championships are estimated to generate a significant economic impact in the Greater Richmond region. Staging the event is estimated to generate GBP14m cumulative economic impact in the region 2012-15, with visitor spending generating GBP85.4m in the region in 2015.

The UCI Road World Championships are a 9-day event from which Richmond can expect to draw more than 450,000 on-site spectators from around the US and the world. The Championships will also attract approximately 6,000 accredited representatives, including 1,000 athletes, 600 support staff, journalists, UCI delegates and other officials. Members of this group are expected to spend, on average, 9.4 nights in Virginia and spending by European visitors is typically higher than that of domestic visitors.

608 The competitions will officially get underway on a Tuesday and conclude on a Sunday, covering 13 days, including two weekends, in the process. The event will showcase five men’s and five women’s individual races, along with the Nation’s Team event, featuring a parallel Giant Slalom format. Vail will serve as the hub of all World Championships’ ceremonies and festival events, while Beaver Creek will play host to all of the racing action 609 Published by Micronomics, a US-based national economic research and consulting firm 610 It features 26 Olympic-style events at venues throughout Los Angeles County, including USC, UCLA, the Los Angeles Convention Centre and Griffith Park, as well as locations in Long Beach, Los Alamitos and the San Fernando Valley

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Bidding opportunities

After losing the right to host the 2022 FIFA World Cup to Qatar, the USA has been linked with a possible bid for FIFA World Cup 2026 bid.

The US Olympic Committee (USOC) said that it would not support a bid for the 2022 Olympics, but would support a 2024 or 2026 bid. By 2024, it will have been 28 years since the US staged the Summer Olympic Games in Atlanta in 1996.

New York City bid to host the 2012 Summer Olympic Games and lost to London. Chicago made a bid for the 2016 Games but lost to Rio. The US did not bid for the 2020 Olympic Games.

In July 2012, the USOC ruled out bidding for the 2022 Winter Olympic Games and is focusing on bidding for the 2024 Summer Olympic Games or the 2026 Winter Olympic Games.

In addition to the cities listed below that are actively exploring a potential bid, Chicago, New York City, San Diego, Minneapolis – Saint Paul, and Philadelphia have been mentioned as potentially being interested in bidding, but have not yet formally announced their intentions to explore potential bids.

On 19 February 2013, the USOC sent out letters to the mayors of 35 cities to gauge their interest in hosting the 2024 Olympics. Some of the cities included were Atlanta, Boston, New York City, Chicago, Philadelphia, Austin, San Antonio, Houston, Memphis, Pittsburgh, Jacksonville, Miami, St. Louis, Sacramento, Seattle, Charlotte, Portland, Phoenix, Columbus, Nashville, Rochester and Indianapolis.

Dallas

In August 2012 the Dallas 2024 committee were firming up plans for a Dallas 2024 Olympic Games bid.611The current plan calls for Fair Park to be transformed into an Olympic Village with housing for 20,000 people and which would later be converted to apartments. The existing Cotton Bowl would be heavily renovated for track and field events in order to serve as an Olympic Stadium. American Airlines Centre, Cowboys Stadium, and FC Dallas Stadium have also been mentioned as potential venues for other events.

Los Angeles

Los Angeles hosted the 1932 and 1984 Summer Olympic Games and bid to become the US applicant city for the 2016 Summer Olympics although USOC selected Chicago instead.

In November 2011, a delegation from Los Angeles attended a seminar at the IOC headquarters in Lausanne for cities interested in bidding on future Olympic Games.

In February 2012, Los Angeles hosted the 5th IOC World Conference on Women and Sport. At the conference, Los Angeles mayor Antonio Villaraigosa and IOC Member Anita DeFrantz stated that that the city would be interested in hosting for a 3rd time.

In August 2012, Councillor Tom LaBonge announced that he would introduce a motion that would get the ball rolling on a bid to host the Summer Olympic Games in Los Angeles. The motion would call on the Southern California Committee for the Olympic Games to gather and explore a future bid, potentially in 2024.

611 Matt Wood, involved in the successful Sydney 2000 Olympic Games bid, is leading the effort for Dallas 2024

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In March 2013, mayor Villaraigosa officially sent a letter to the USOC stating that the city is interested in bidding to host the Summer Olympic Games 2024.

Baltimore-Washington

In August 2012, it was reported that Dan Knise, president and CEO of the Washington-Baltimore 2012 Regional Coalition was scoping the level of interest for a joint DC-Baltimore bid for the 2024 Summer Olympic Games.

Tulsa

The Tulsa Olympics Exploratory Committee is currently exploring a bid for the 2024 Summer Olympic Games and is expected to place an official bid in 2015 with USOC consent. The Tulsa Olympics Exploratory Committee is currently suggesting an American Indian theme for 2024.

2026 Winter Olympics

Salt Lake City, Utah, host of the 2002 Winter Olympic Games, announced a bid in December 2012 to host the 2026 Winter Olympic Games. Other US cities that are considering bids include Denver, Colorado, Boston, Massachusetts, and Lake Tahoe, Nevada.

2017 FISA World Rowing Championships

Sarasota in Florida could be home to the largest rowing event outside of the Olympic Games if a bid to host the World Rowing Championships 2017 is successful. Florida’s Manatee County Commission has already approved a bid plan for the rowing championships at Nathan Benderson Park while Sarasota commissioners have provided GBP162,000 in additional sports marketing for the event. It is estimated that the economic impact of the 13-day championships could be GBP16.5m.612

The 2017 championships are estimated to cost GBP3.9m to stage and a significant portion of this budget is likely to be raised through ticket sales, merchandise, hotel room rebates and commissions and corporate sponsors.

Sarasota and Manatee County is likely to benefit by GBP8.59m in direct spending by athletes, coaches, officials and visitors to the championships that is estimated to attract 42,000 visitors, about 1,200 athletes and 973 coaches from 62 countries.

Venues under construction

2015 FIS Alpine World Ski Championships

Construction on this major international ski racing venue commenced in July 2012, as Beaver Creek’s Mountain Operations crew began work on the new ladies’ Downhill course for the 2015 FIS Alpine World Ski Championships. The new track will host the women’s Downhill, Combined Downhill and Super-G competitions during the 2015 Championships, sharing similar terrain with its renowned men’s counterpart. In addition to the new ladies’ course, crews will also begin the process of reconfiguring the current Red Tail finish arena, with work including re-grading the finish and moving

612 The bid for the 2017 FISA World Rowing Championship is being submitted by the Suncoast Aquatic Nature Centre Association, a non-profit also responsible for fundraising £13.2m to build a new rowing stadium

224 the existing timing building to the east side of the finish area. The snowmaking system on the women’s course will also be installed. The new racecourse is scheduled to make its international race debut in December 2013 as the World Cup women travel to Beaver Creek for Downhill and Super-G competitions. Along with the ladies’ speed course, Beaver Creek will also construct a new track on Raven Ridge to host the women’s Giant Slalom and Slalom competitions during the Championships. These technical races will also finish in the Red Tail arena.

San Jose Earthquakes New Stadium

The New Earthquakes Stadium will become home of MLS San Jose Earthquakes. The Earthquakes first proposed the construction of a new stadium in 2007, and shortly after the club selected the Airport West site613 as its preferred location. The first stadium designs were first presented in 2009 and had to overcome several rounds of local objections before construction commenced in late 2012. It is expected that the stadium will be ready for the start of the 2014 MLS Season. The project has a budget of GBP39.6m which will be completely privately financed. The stadium will have an 18,000-seat capacity divided over stands on three sides of the pitch, leaving one end open with just the scoreboard.

613 Located south-west of San Jose’s International Airport

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Appendix 2.16: Current sports events, host bids and construction in South America 2013-22

Brazil

Table 1: Key sports and current bids to host major events in Qatar

Events Most popular sports 2013 FIFA Confederations Cup Football, motorsports, volleyball, mixed 2014 FIFA World Cup martial arts, basketball 2016 Rio Summer Olympic Games Bids Venues under construction No current bids at time of writing Multiple stadiums and venues relating to the 2014 FIFA World Cup and 2016 Rio Olympic Games

Background

Football is the country’s most popular sport; Pelé is its most famous son and arguably the Brazilian national football team the most famous on the planet.

Rio de Janeiro raised the bar for the Pan American Games in 2007 when it delivered the highest attendance and TV audience in the games’ history614 and looks likely to pull this off again when it hosts the FIFA World Cup 2014 and then the Olympic Games 2016.615

The engine powering Brazil’s dominance on the global sport’s stage 2014-16 is the Programa de Aceleração do Crescimento616 (PAC); a major infrastructure programme funded by the federal government. Launched in 2007, PAC consists of a set of economic policies and investment projects with the objective of accelerating economic growth in the country.

The initial PAC programme 2007-10 consisted of more than 1,500 individual infrastructure projects, and had a total budget of GBP217.38bn of which GBP179.1m was scheduled to be spent 2007-10. However, as a result of delays and slippage on the infrastructure programme, 82% of the budget (GBP146.8bn) had been used by 2010.

The programme has continued under the project name PAC 2 since then and over 2011-14 the federal government will invest around GBP347.9bn in energy, infrastructure and housing priority projects while the country also prepares to host both FIFA 2014 World Cup and the 2016 Olympic Games.

Local and foreign investment is now building a new Brazil equipped with proper airports, ports, roads and infrastructure to avoid growth bottlenecks and maintain its remarkable growth-rate as a super-global economy.

614 At a cost of £1.32bn 615 The International Olympic Committee (IOC) elected Rio as the host city of the Games of the XXXI Olympiad in 2016 during its 121st Session in Copenhagen, Denmark on 2 October 2009 616 Translated in English means Growth Acceleration Program

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Annual and on-going sports events

Rio de Janeirio

Rio hosts a large number of global annual sports events including:  Grande Premio Rio de Atletismo  Brazilian Moto GP  Class 1 World Powerboat Championship.

San Paulo

Annual events held in Sao Paulo include:

 F1 Brazilian Grand Prix  Sao Silvestre Race.

Major sports marketing and consultancy opportunities

A study by the University of Sao Paulo estimated that the infrastructure outlays in Brazil ahead of the 2014 FIFA World Cup will be about GBP11.9bn and the expected outlays devoted to hosting the Olympic Games 2016 will be an additional GBP9.92bn resulting in a total outlay of GBP21.8bn for both events.

According to the survey, the overall gross economic impact of 2016 Olympic Games is expected to be GBP33.7bn and according to a study by Ernst & Young617 the overall impact of the 2014 FIFA World Cup is expected to be GBP46.3bn from both direct and indirect investments. That is a total of more than GBP79.3m in gross economic impact from hosting the two events.618

It is clear that infrastructure investments in Brazil will be a driving force for economic growth in the long-term. The country will take quite a few steps towards modernisation by becoming more efficient and attract increased foreign investment. With improved roads, railways and marinas the country will increase its efficiency, making it more attractive to do business with in the future.

The FIFA World Cup Rio 2014 will be the 2nd time the country has hosted the competition619 and 12 Brazilian cities have been selected to host the FIFA World Cup matches:

 Belo Horizonte  Brasilia  Cuiabá  Curitiba  Fortaleza  Manaus

617 Ernst & Young ‘Attractiveness Survey - Brazil: UK investors' perspectives’ published 2012 618 “There is a lot of targeting of Brazil for both the FIFA World Cup 2014 and for the next Olympic Games 2016 because big events are seen as big sources of income. So you’ll find that most of our members in the consultancy area and indeed in the sports marketing area have sought partners in Brazil already, in Rio,” says Karen Earl, chairman of the European Sponsorship Association 619 The first time was the 1950 FIFA World Cup. Brazil will become the 5th country to have hosted the FIFA World Cup twice, after Mexico, Italy, France and Germany. It will be the first FIFA World Cup to have been held in South America since the 1978 FIFA World Cup in Argentina and the first time consecutive FIFA World Cups have been staged in the Southern Hemisphere

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 Natal  Porto Alegre  Recife  Rio de Janeiro  Salvador  São Paulo.

Challenges

Public sector projects in Brazil are particularly challenging as there is always the risk of litigation that can cause significant project delays as well as undermine the commercial value of such projects.620

Those who have experience of doing business in Brazil advise UK companies to check that their market offer is appropriate as there have been instances where a lot of companies have turned up in Brazil without knowing if what they offer is actually right, required or even understood.621

Brazilian business practice is to award contracts on the basis of a trusted individual or company and the Government pursues a policy that all lead headline contractors for major projects must be Brazilian.

Given the position of politicians and the influence they hold in Brazil, it is essential that UK sports marketing and consultancy firms have a local partner or team on the ground that understand the language, culture, politics and the customs associated with doing business in Brazil.622

Understanding the feasibility of investing in Brazil is also challenging. UK sports marketing and consultancy firms should be aware of the current high cost of living in Brazil, bureaucracy and a punitive tax regime.623

Depending on the type of products and services being delivered, local taxes can become deal- breakers. It is of utmost importance for UK companies to choose the appropriate advisors in order to

620 Some of the litigious risks that beset many previous public sector projects in the past have been avoided because of the acute importance of the FIFA World Cup 2014 and the Olympic Games 2016 and the fear of attracting negative media headlines if companies need to resort to litigation to resolve their difficulties 621 “We are seeing a lot of UK companies just wandering around Brazil aimlessly at the moment, not even able to speak basic Portuguese,” observes David Mills, Chief Executive, Major Events International 622 “The Brazilian market certainly favours local companies and the tax regime can make it hard for overseas companies to make a return. Opening an office is often too far down a path that not be right for you, so it’s much better to seek local advice first. A lot of people try and skip that process which is a mistake as a good amount has to be done before they can even think about approaching the end-client. Sometimes in Brazil you have to go more slowly in order to get there more quickly. Our experience has proven that without a local presence, such as that offered by Major Events International, success in Brazil is extremely unlikely. It’s all about relationships and working with local people on the ground,” advises David Mills, Chief Executive, Major Events International 623 “From a UK basis we’re doing limited work in South America because of the tax restrictions. It’s crudely something like 40% tax we end up paying if we do work through local taxes and our taxes here. Larger global companies that have a local presence are able to do the work and whether they’re doing it externally they’re still able to basically hold the contract in that location and are subject to localised taxes. They’re able to distribute the revenue from that project within their company a lot easier. A lot of smaller companies are chasing work in South America are finding themselves having to work as sub consultants to larger, what you may call international firms who have a bigger organisation, to structure contracts and deals,” explains Nicholas Reynolds, director, Populous

228 mitigate the risks presented by these barriers as well as to navigate their way in commercial negotiations.624

Venues under construction

2014 FIFA World Cup

Brazil is committed to organising an environmentally-friendly FIFA World Cup 2014. According to the demands of the local organising committee, the stadiums must be certified according to the criteria of the US Green Building Councils LEED.

Location choice, transportation infrastructure, primary energy concentration of the construction materials, energy and water management, photovoltaic roofs, waste disposal and operation monitoring and a considerable number of other criteria are assessed.

A dozen stadiums throughout the country will play their part in hosting the 2014 FIFA World Cup in Brazil. From the Arena Amazonia in Manaus in the far northwest of the country to the Estadio Beira- Rio in Porto Alegre in the south, all 12 will have a share in hosting the 64 matches that will make up the 20th edition of football's greatest tournament.

At the time of writing, Brazil was struggling to get stadiums ready to hand over to FIFA, stating they will not be ready until at least 4 weeks past the 15 April 2013 deadline.

FIFA has warned that the hosts cannot afford any further delays in getting the venues ready.

In June 2013, Brazil will host the 8-nation FIFA Confederations Cup 2013 which is a dress-rehearsal for the FIFA World Cup 2014.625

Table 2: Stadiums to be used for Confederations Cup 2013

City Stadium Estimated cost Recife São Lourenço da Mata Stadium GBP174m. Brasilia Mané Garrincha Stadium GBP0.39bn Rio de Janeiro Maracanã Stadium GBP265m Salvador Estádio Otávio Mangabeira GBP194m Fortaleza Castelão Stadium GBP170m Belo Horizonte Mineirão Stadium GBP228m

624 “These barriers are not insurmountable but understanding the cultural and trading environment before entering the market is key to success. When it comes to actually doing business with Brazilians, stay away from informality, choose the appropriate partners to deal with, be aware of bureaucracy, and understand the different way Brazilians deal with time. In Sao Paulo and Rio de Janeiro it’s often the case that guests arrive a little late to an invitation, regardless of whether it’s a professional or personal event,” advises Madeleine Blankenstein, business development and marketing partner, Grant Thornton Brazil 625 FIFA twice agreed to push back the handover deadline of 4 of the 6 stadiums to be used in the Confederations Cup 2013

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Table 3: Stadiums to be used for the FIFA World Cup 2014 - Brazil

City Stadium Capacity New or Renovation? Estimated cost Rio de Janeiro Maracanã Stadium 76,000 Renovation GBP265m Belo Horizonte Mineirão Stadium 75,783 Renovation GBP228m San Paulo Arena Corinthians 48,000 New GBP269m Fortaleza Castelão Stadium 60,000 Renovation GBP170m Salvador Estádio Otávio 55,000 New GBP194m Mangabeira Porto Alegre Estadio Beira Rio 56,000 Renovation GBP108m Cuiaba Arena Pantenal 43,000 New GBP170m Recife Arena Pantenal 46,000 New GBP174m Brasilia Estádio Nacional de 71,000 New GBP0.39bn Brasília Natal Arena das Dunas 33,000 New GBP137m Manaus Arena da Amazônia 44,000 New GBP169m Curitiba Arena da Baixada 42,000 Renovation GBP60m

Table 4: Temporary works to be carried out at venues to be used for the Olympic Games 2016

Venue Sport Works Start Works Finish Riocentro – Pavilion 2 Boxing 2015 2016 Riocentro – Pavilion 3 Table tennis 2015 2016 Riocentro – Pavilion 4 Badminton 2015 2016 Rio Olympic Arena Gymnastics 2015 2016 Maracanãzinho Arena Volleyball 2015 2016 Maracanã Stadium Ceremonies, 2015 2016 football Mané Garrincha Stadium (Brasília) Football 2015 2016

Minerão Stadium Football 2015 2016 (Belo Horizonte) Fonte Nova Stadium (Salvador) Football 2015 2016

Morumbi Stadium (São Paulo) Football 2015 2016

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Table 5: Permanent works to be carried out at venues to be used for Olympic Games 2016

Venue Sport Works Start Works Finish

Rio Olympic Velodrome Cycling (track) 2013 2015 Maria Lenk Aquatic Centre Diving, Water Polo 2010 2011 Sambó-dromo Marathon, Archery 2013 2015 Athletics (Track and 2013 2015 João Havelange Stadium Field) National Shooting Centre Shooting 2010 2011 National Equestrian Centre Equestrian 2010 2011 Rowing, Canoe/ 2014 2015 Lagoa Rodrigo de Freitas Kayak 2014 2015 Marina da Glória Sailing

New permanent venues to be built for Olympic Games 2016

The completely new permanent venues will be constructed at the Olympic Training Centre in Barra and at the X Park in Deodoro. Both of these centres will be important legacy projects for sporting infrastructure in Rio and Brazil. In total, 9 new competition venues will be developed as permanent legacy venues at an estimated cost of GBP446m.

Table 6: New permanent venues to be built for Olympic Games 2016

Venue Sport Works Start Works Finish

OTC – Hall 1 Basketball 2015 2016 OTC – Hall 2 Judo, Taek-wondo 2015 2016 OTC – Hall 3 Wrestling 2015 2016 OTC – Hall 4 Handball 2015 2016 Modern Pentathlon 2015 2016 Deodoro Arena Fencing Olympic Tennis Centre Tennis 2015 2016 Swimming 2015 2016 Olympic Aquatics Stadium Synchronised swimming 2015 2016 Olympic Whitewater Stadium Canoe/ Kayak 2015 2016 Olympic BMX Centre Cycling (BMX) 2015 2016 IBC -

MPC -

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New temporary venues to be built for Olympic Games 2016

Where additional venues will not be part of the Olympic Games 2016 legacy, they will be constructed as temporary venues and dismantled at the end of the Games. These venues represent a significant investment of around GBP51.5m.

Table 7: New temporary venues to be built for Olympic Games 2016

Venue Sport Works Start Works Finish Copacabana Stadium Beach Volleyball 2015 2016 Marathon 2015 2016 Copacabana Fort swimming, Triathlon Race walking, Road 2015 2016 Flamengo Park cycling Riocentro – Pavilion 6 Weightlifting 2015 2016 Olympic Hockey Centre Hockey 2015 2016 Olympic Mountain Bike Park Mountain biking 2015 2016 2015 2016 Deodoro Modern Pentathlon Park Modern Pentathlon

Argentina

Table 8: Key sports and current bids to host major events in Argentina

Events Most Popular Sports 2013 125th IOC Session Buenos Aires Football, motorsports, basketball, boxing, golf, field hockey, rugby union, polo, tennis, horseracing Bids Venues under construction 2018 Youth Summer Olympic Games 2019 Pan American Games 2023 or 2027 IRB Rugby World Cup

Background

Football is the most popular sport in Argentina, followed athletics, auto racing, basketball, boxing, cycling, field hockey, fishing, golf, handball, mountaineering, polo, roller hockey, rowing, rugby union, sailing, skiing, swimming, tennis and volleyball.

According to research by the International Congress and Conventions Association (ICCA), the capital Buenos Aires tops the rankings for North and South American Cities that have organised business conferences and events over the last decade which has boosted the city’s chances of hosting the 2018 Youth Olympic Games.

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Annual and on-going events

The capital city Buenos Aires has a long history as a centre of sport within Argentina and 6 of country’s major football teams are based in the city:

 Club Atlético River Plate  CA Boca Juniors  Club Atlético San Lorenzo de Almagro  Argentinos Juniors  Huracán FC.

Buenos Aires is also host to other major sports events, including the Argentine Open Polo Tournament,626the Buenos Aires 21K and 42K international marathons and the ATP Cup,627one of the most important competitions in South America.

Other events include the TC 2000 touring car championship628 as well as horse racing at the Hipódromo Argentino de Palermo, an iconic Buenos Aires venue built in 1876.

In September 2013, Buenos Aires will host the 125th Session of the IOC where the host city of the 2020 Summer Olympics will be elected.

Bidding opportunities

Buenos Aires has made a bid to host the 2018 Youth Olympic Games and although it is the first bid it has made, it is optimistic of its chances of success and has stated that it wants to help build on the legacy of the Olympic and Paralympic Games 2016 and spread the message of Olympism to the youth of South America.629

Buenos Aires has made several bids in the past for the main Summer Olympic Games and most recently for the 2004 Summer Olympic Games where it lost to Athens in the first round of voting. The city was tied with Cape Town in the first round and IOC members voted to keep the African city in the second round of voting.630

Argentina has also made a bid to host Pan American Games 2019631 and is considering making a bid to host the 2023 or 2027 IRB Rugby World Cup.

Venues under construction

In 2012, CA Boca Juniors football team revealed plans to develop a new 75,000-seat stadium close to the club’s iconic Estadio Alberto J Armando home. The Buenos Aires club announced that president

626 The sports event has been held for over 100 years and includes competition between the best 8 high- handicap internationally renowned polo teams 627 International tennis championship 628 Last held in Buenos Aires in 2012 629 Highlights of the Buenos Aires Concept and Games Plan for the 2018 Youth Olympic Games includes a commitment of £44m by the government of the city of Buenos Aires; 2 main sports zones for the primary sites of the Games; 26 venues with only 2 permanent venues to be built and no temporary venues required. The majority of venues are within a 30-minute drive of the Youth Olympic Village and Olympic Family hotels 630 Buenos Aires also bid for the 1968 Summer Olympic Games losing to Mexico City and the 1956 Summer Olympic Games losing to Melbourne, Australia by just one vote 631 Other countries also in the frame include Peru, Venezuela and Chile

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Daniel Angelici had held talks with potential investors in Spain with a view towards completion for the 2015-16 Season.

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Appendix 2.17: Current sports, host bids and construction in Mexico 2013-22

Table 1: Key sports and current bids to host major events in Mexico

Events Most popular sports 2017 FINA World Championships Football, boxing, baseball, basketball, bull fighting, wrestling, motorsport Bids Venues under construction Possible bid for 2024 Summer Olympic Estadio de Fútbol Monterrey Games Possible bid for 2026 FIFA World Cup

Background

Football is the most popular sport in Mexico, followed by boxing, baseball, basketball, golf, wrestling, bullfighting, and charrería632.

Guadalajara has organised international events in 9 Olympic sports and one major international multi-sport event (XVI Pan American Games in 2011) in the last 10 years.

Around 6,000 athletes from 42 countries competed in 36 sports at the 2011 Pan American Games, making it the biggest multisport event Mexico had hosted since the 1968 Olympic Games in Mexico City.

Major sports marketing and consultancy opportunities

A legacy for Guadalajara from the 2011 Pan American Games is the ultra-modern Scotiabank Aquatics Centre. In July 2011, FINA announced that the city would host the 2017 World Swimming Championships.

Bidding Opportunities

During his speech at the closing ceremony of the 2011 Pan American Games, Emilio Gonzalez Marquez, the president of the Guadalajara 2011 Organising Committee and governor of Jalisco, revealed the city will put forward a bid for the Olympic Games following the hosting of the Pan- American Games.

A bid for the 2024 Olympic Games is now likely which would be the first time Mexico has hosted the Olympic Games since Mexico City in 1968.

Mexico is also rumoured to be preparing a bid to host the FIFA World Cup 2026 and is expecting tough competition from the USA.

632 An equestrian sport

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If successful, it would be the 3rd time in history that a Central American country has hosted the tournament after staging the 1970 and 1986 FIFA World Cups. No other country has ever hosted the finals of the FIFA World Cup three times.

Venues under construction

Estadio de Fútbol Monterrey will be the new home of Monterrey CF. The current plans for the construction of a new stadium were first presented in 2008 but were delayed over concerns regarding the impact on the surrounding area including the Parque La Pastora, a park that is located just over 5 kilometres east of Monterrey’s city centre. Apart from several park and forest areas, Parque La Pastora also holds the city’s zoo. After legal issues delayed the project for almost 3 years, it finally received planning permission and excavation work commenced in May 2012.

The new stadium has been designed by architecture firm Populous633 and is said to be inspired by the mountains that surround the city. The roof structure has also been compared to the body of an armadillo. The stadium will have a capacity of about 50,000 seats. It has an asymmetric design in which the stands at one end are lower than at the others. The distance between the stands and pitch is the minimum allowed by FIFA. The project is estimated to cost about GBP0.12bn which will be completely privately financed by the club and its owner FEMSA, one of the largest companies in Mexico.

633 See Appendix 1.3

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Appendix 2.18: Current sports events, host bids and construction in Africa 2013-22

Nigeria

Table 1: Key sports and current bids to host major events in Nigeria

Events Most Popular Sports None planned at time of writing Football, basketball, boxing, athletics Bids Venues Under Construction Rumoured bid for the 2019 African Cup of Various Nations

Background

Like the vast majority of African countries, football is the predominant sport in Nigeria, followed by basketball, boxing and athletics where people descended or from the continent have dominated the world as athletes in their respective sports.

The 8th All Africa Games 2003 were successfully held in Abuja, Nigeria and gave the African country experience of what it was like to bask in the international sports spotlight. Nigeria’s National Sports Commission (NSC) has been in existence since 2006 with the vision and purpose to develop the sports sector in Nigeria to a world-class standard where it would provide continuous improvement of quality of life for all of its citizens and give Nigeria the global recognition it desired as being one of the world’s leading sporting nations.

In 2012, the Nigerian government adopted the theme of ‘Rural Sports Development’ with a new sports policy administered by the NSC to take sports to where it belongs at the grassroots level.

To ensure that sports is effectively developed and participated in at the state and local government levels, in 2011 the NSC increased its existing network of zonal sports offices from 6 to 12 to ensure that sports activities, training and development touched every community in the country.

Previously, zonal officers had been middle-ranking civil servants who often found it difficult to get access to very senior state officials who could influence decision on sports-related matters within the states. This changed when in 2012 director-level managers were introduced with the appropriate experience, training and capacity to the zonal and sports development network of centres in order to strengthen and make these centres much more effective, efficient and productive.

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The 12 centres across Nigeria are located in:  Jos  Benin  Kaduna  Bauchi  Enugu  Ibadan  Minna  Sokoto  Damaturu  Akure  PortHarcourt  Nguru.

It is the duty of these centres to ensure that states key into federal government sports development programmes for overall progress at all levels of governance.

In January 2013, the Nigerian government released a new report on the success of its 4-year international Olympic Legacy programme634 highlighting its plan to ensure the programme continues to impact thousands of young people across the country. The Nigerian government has also created partnerships with sports federations, led by UK Sport in partnership with UNICEF and the British Council.

Bidding opportunities

Nigeria's Football Federation (NFF) announced it would bid for the 2019 Africa Cup of Nations after missing out on hosting the 2013 tournament635 which its team ended up winning in February 2013, showing that there every cloud has a silver lining!636

Venues under construction

As part of efforts to ensure grassroots sports development, the Federal Government through the National Sports Commission (NSC) set up a network of sports centres and other facilities at various locations across Nigeria.

Contracts have been awarded for:

 construction of 43 miniature sports complexes in different states;  associated sports facilities in 14 locations across the country;  restoration/upgrading of facilities at the various stadia under the control of the federal government; and  construction of 6 zonal offices in the geo-political regions of the country.

634 ‘International Inspiration’ 635 The 2013 Africa Cup of Nations event was taken from Libya and given to South Africa. Nigeria had been interested in taking on the tournament having been named as standby hosts when Libya was originally chosen. South Africa and Libya had already agreed a swap deal for the 2013 event however, with Libya taking on the 2017 tournament 636 NFF president Aminu Maigari told the BBC that Nigeria wanted to take on another Nations Cup - having co- hosted with Ghana in 2000 and been full hosts in 1980. "We want Nigeria to host because we are capable - we did it before and we want to do it better next time round.” At the time of writing however, Nigeria was yet to seek national approval for its bid

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South Africa

Table 2: Key sports and current bids to host major events in South Africa

Events Most popular sports None planned at time of writing Football, cricket, rugby, tennis, golf Bids Venues Under Construction Possible South African bid for the 2024 or None planned at time of writing 2028 Summer Olympic Games with Durban a likely candidate

Background

Football is the most popular sport in South Africa, followed by cricket, rugby, boxing, hockey, tennis, golf, surfing, netball and running.

The sports ministry in South Africa co-ordinates sports activities to ensure that there is neither duplication nor conflict in the bidding for events by South African cities and that all government services can be integrated and provide appropriate assistance to games organisers.

For example, the ICC Cricket World Cup 2003was a joint effort between the Department of Trade and Industry, Sport and Recreation South Africa, the provincial government of Gauteng, the Tshwane Metropolitan Council, the United Cricket Board of South Africa, the Northerns Cricket Union, the Eersterust community and its cricket club, the Cricket World Cup Legacy Project, and the commercial sponsors - SA Breweries, Standard Bank, PPC Cement and the National Lottery.

At a national level, South Africa has invested almost GBP35.5m in bringing sport to the community by building basic outdoor and indoor facilities on the doorsteps of people's homes in the townships and rural areas, whilst at the provincial and local level, many millions more have been spent in pursuit of the same goal although more development of the infrastructure is required.

A high point for the country was when South Africa hosted the FIFA World Cup 2010, the largest event ever to be held on the African continent to date.

The matches were played in 10 stadiums in 9 host cities around the country, including Cape Town and Durban, with the final played at the Soccer City stadium in South Africa's largest city, Johannesburg. South Africa also stepped in to take over the 2013 African Cup of Nations from war- stricken Libya.

As part of its legacy investment, South Africa disbursed the first GBP3.98m of its 2010 FIFA World Cup legacy fund in January 2013 to a variety of projects involving teenage players, coaches and administrators.

A total of about GBP31m was handed to South Africa by FIFA in late 2010 as profit from hosting the finals. Then money was placed in a trust and development projects seeking funding were invited to submit applications from the fund.

The trust board, including FIFA general secretary Jerome Valcke, distributed the first allocation of the money to projects such as the establishment of boys and girls’ league at under-13 and under-15 levels and a programme to train coaches, referees and administrators.

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Johannesburg

Johannesburg is home to the headquarters of football in South Africa. The South African Football Association (SAFA) has its home at local football's flagship stadium, Soccer City, near Soweto. And FIFA, the world football body, and the 2010 FIFA World Cup Local Organising Committee set up camp alongside SAFA. Sports events in the city are generally funded by the city of Johannesburg’s budget in partnerships with sports bodies/federations and sponsorship partners.

There are several bodies responsible for managing sport in Johannesburg:

 Community Development Department working with sport federations  Johannesburg Public Liaison/Events Management team.

Sport in South Africa’s 2nd largest city Cape Town is under the remit of the Department of Cultural Affairs and Sport in the provincial government of the Western Cape.

The all-embracing objective of the directorate of sport and recreation is to get more people to participate in sport and recreation to benefit society.

Durban

Durban is the 3rd largest city in South Africa and also a major host city of sports events in the country. Durban is famous for being the busiest port in South Africa and it is also seen as one of the country’s major centres of tourism because of the city's warm subtropical climate and extensive beaches.

Durban hosted matches in the 2003 ICC Cricket World Cup. In 2007 the city hosted 9 matches, including a semi-final, as part of the inaugural ICC World Twenty20. The 2009 IPL season was played in South Africa and Durban was selected as a venue. 2010 saw the city host 6 matches, including a semi-final, in the 2010 Champions League Twenty20. Durban was also one of the host cities of the 2010 FIFA World Cup and hosted the 123rd IOC Session in July 2011.

Annual and on-going events

Durban

Durban is home to 2 closely related rugby union teams: the Natal Sharks637 and the Sharks638 that both sell-out to capacity crowds at the 56,000-seat Kings Park Stadium locally referred to as the ‘Shark Tank’. Durban is also host to the Dolphins, the provincial cricket team that plays at Sahara Stadium Kingsmead. The city is also home to Greyville Racecourse639, a major thoroughbred horseracing venue that annually hosts a number of prestigious races including the country's premier event, the July Handicap as well as the Gold Cup.

A professional tennis venue is located at Westridge Park near The Berea and an Olympic-standard swimming pool is found in the Kings Park Sporting Precinct. In addition to these venues, Durban has facilities for water polo, hockey and numerous other sports, most notably on its outstanding beach front that has played host to numerous water sports events such as the Gunston 500 surfing competition and the related Ocean Action festival.

637 They compete in the domestic Currie Cup competition 638 They compete in the international Super Rugby competition 639 Another well-equipped racecourse is located at Clairwood, just south of the city centre and not far from Durban International Airport

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Beach volleyball is regularly played on local beaches and powerboat racing has taken place in the harbour. Durban and surrounding areas are also well used by professional and amateur golfers, with a well-known golf course at Durban Country Club.

Cape Town

Annual events in Cape Town include:

 South Africa Rugby Union Home Games  South Africa Test Cricket Home Games  Super 12 Rugby Union  Cape Argus Pick 'n' Pay Cycle Tour  Two Oceans Marathon  Mykonos Offshore Race  Cape Town International Kite Festival  Toy Run (motorcycling)  South African Open (golf).

Johannesburg

Annual events in Johannesburg include:

 Swimming galas  Equestrian championships  94.7 Annual cycling challenge  Joburg Open Annual Golf Tournament  WesBank Soweto Street Race  Nedbank Soweto Marathon  Nebank Joburg Marathon  702 Walk the talk.

Bidding opportunities

After the FIFA World Cup 2010, Durban was the most likely South African candidate to host the Summer Olympic Games 2020 before the country withdrew its bid and the possibility of a fresh bid for the 2024 or 2028 Summer Olympic Games was a possibility. In August 2012, the South African Olympic Committee (SAOC) announced that it had commissioned a feasibility study ahead of any bid to stage the Summer Olympic Games 2024 that included evaluating which city would be best suited to host the Olympic Games. The study is expected to be completed in 2-3 phases by the end of 2013.

Venues under construction

The South African Football Association (SAFA), recognising it has a huge task to improve the game of football in the country at a grassroots level and its playing facilities, is seeking to raise GBP20m a year for the next 10 years to help develop the sport in the country.

Its plans include the aim of building one good all-weather football pitch in each of South Africa's 52 regions and a coherent infrastructure for playing the game and the project will be part-funded by the FIFA World Cup legacy trust.

In terms of immediate incremental new business for UK sports marketing and consultancy services firms is very limited but prospects for future business looks a lot brighter over the next decade and beyond and the UK sector should keep Africa on its radar as consumer buying power in that continent is set to surge.

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Appendix 2.19: Current sports events, host bids and construction in China 2013-22

Table 1: Key sports and current bids to host major events in China

Events Sport 2014 Youth Summer Olympic Games Football, table tennis, swimming, martial 2014 FIG Artistic Gymnastics World arts, basketball, badminton Championships 2015 ISU World Figure Skating Championships 2015 ITTF World Table Tennis Championships 2015 IAAF World Championships in Athletics (Outdoor) Bids Venues under construction 2019 FINA World Swimming Championships Olympic Village (for Youth Olympic Games in 2014)

Background

The most popular sports in China are football, table tennis, swimming and martial arts640. Interest in basketball has grown largely as a result of the popularity of Yao Ming who became a national hero when drafted by the NBA as its tallest player at that time.641

A positive turning point for China in its relations with other sporting nations was the Summer Olympic Games in Beijing 2008642 where the Chinese hoped it would lead to an increase in the country’s international prestige and standing as well as project an image of national strength and unity both domestically and internationally.

Annual and on-going events

Annual events held in Beijing include:  China Open (Men/Women) – Tennis  China Masters – Badminton  Beijing ITU World Cup – Triathlon  A1 Grand Prix Series – Motor Racing  Crown Plaza Open – Golf  China Open - Snooker  Cup of China – Figure Skating Grand Prix.

640 In particular Kung-Fu 641 Yao Ming played for the NBA Houston Rockets and was the tallest active player in the NBA at 2.29 m (7ft 6) before retiring in 2011 642 A total of 11,028 athletes from 204 National Olympic Committees (NOCs) competed in 302 events in 28 sports. The bid for the 2008 Olympic Games was fully supported by the Chinese government which has been extremely proactive in promoting the Olympic spirit in China and improving the state of public health of its citizens. "Beijing and Shanghai are very motivated in how they stage events - they are like headmasters standing over and grading them. However, a big concern surrounded how venues after the Olympic Games would be utilised and that seems to still be the case." The identity of the commentator has been kept confidential on request

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Annual events held in Shanghai include:

 F1 Chinese Grand Prix  ATP Masters Cup  ATP Asian Masters Series tournament – 2009 onwards  Asian X-Games  IAAF Diamond League  RSA Jinqiao 8K  Shanghai Marathon  Tour of Chongming Island Women International Cycling Race  Shanghai Sevens  Shanghai Masters Snookers Tournament.

Major sports marketing and consultancy opportunities

New research published in March 2013 shows that 70% of marketers across Asia Pacific are more optimistic about new business levels in 2013 compared with 2012643 and that global budgets in the region are on an upward trajectory.644

There is evidence that opportunities for doing more business in China will accelerate over the next decade as a result of urbanisation within the country coupled with the growth of the middle class that has an increasing appetite for Western products and services.645

As a result, Western brand owners need to be fast and flexible in the Chinese market as well as realign their business models to take account of the demographic changes occurring within the country.646

Social media is also becoming increasingly important in this context and brand owners that align themselves with top European football clubs could fast-track their way to success in China, according to a new report by the Mailman Group.647

643 2013 Marketers’ Outlook study, conducted by Campaign Asia-Pacific and Ipsos surveyed 372 marketers in China, Hong Kong, Taiwan, India and Singapore. Those working in the automotive sector were the most positive about business prospects (82%) followed by those working in finance (77%), healthcare/pharmaceuticals (74%), and consumer products (72%) and retail (52%). Marketers were also more likely to use consultants for developing a media strategy than developing it in-house, with 58% seeing the development of an integrated marketing strategy as being important for their business 644 WARC’s Global Marketing Index (March 2013) combines trends observed in marketing budgets, trading conditions and staffing levels, with Asia Pacific registering the greatest month-on-month rise, with headline GMI rising to 56.2 from 53.8 in February 2013, the first rise in marketing budgets since October 2012 645 This is also happening in reverse as the Chinese flat-screen and cloud technology brand TCL has paid for product placement rights in the recent Iron Man 3 Hollywood movie to be launched in May 2013. TCL also recently paid for the naming rights of Los Angeles’ iconic Grauman’s Chinese Theatre. The ‘TCL Chinese Theatre’ already has a Twitter feed and in Iron Man 3 there is a scene where the TCL Chinese Theatre is destroyed. TCL is the world’s 4th largest LCD TV manufacturer 646 Those brand owners that are succeeding in penetrating the Chinese market are moving away from traditional media and are using multi-channel platforms such as digital, point of sale, personality endorsement, sports sponsorship and branded content to reach consumers 647 The research, published in February 2013, analysed the social media accounts of 14 leading European football teams across a number of factors including total follower numbers, official presence, engagement rates, localization and popularity. It concluded that brands signing on with these football clubs would gain access to 15.6m fans on social media in China, 30% of whom are women. Although 57% of these football clubs have an official account on both Sina Weibo and Tencent, the number of followers and levels of engagement

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What all these research studies demonstrate is that China is fertile ground for new business development for the UK sector as brands increase their prospects of engaging with Chinese consumers through leveraging the region’s growing passion for sport.

Sports marketing gives brands a unique opportunity to have a conversation with consumers by engaging their hearts and minds as well as providing an opportunity to build personal relationships and brand loyalty through the power of sport.

Several factors are driving the interest in sport in China:

 increased government investment for sports programmes and infrastructure;  international sports events such as the Beijing Olympic Games 2008 that has created a sporting legacy in China;  a new generation of Chinese sports stars that are inspiring children to follow and participate in sport;  mobile devices that have made sharing sports content much more easily accessible to a larger number of sports fans; and  sport is increasingly being marketed as entertainment, making it attractive to younger consumers.

Over the next few years China will host:

 Youth Summer Olympic Games 2014648  FIG Artistic Gymnastics World Championships 2014649  ISU World Figure Skating Championships 2015650  World Table Tennis Championships 2015651  IAAF World Championships 2015 in Athletics (Outdoor).

varies widely. For example, Manchester City had the highest number of fans on social media at 4.35m but ranked last in terms of engagement with fans. In contrast, Manchester United had 400,000 social media fans in China but generated the highest engagement levels with over 200 comments and forwards per post 648 The Nanjing 2014 Summer Youth Olympic Games (YOG) takes place 16-28 August 2014 and includes 26 sports across 15 venues in 3 themed zones: the Olympic Centre Zone, where the sporting competitions will take place; the Cultural Scenic Spot Zone, that will provide a pleasant atmosphere for leisure and cultural exchange activities; and the College Pavilion Zone, where the YOG educational activities will take place. With all these facilities are already in place, it will not be necessary to build new venues for the YOG other than an Olympic Village. Most of these venues have held high-level domestic sports games like the 10th National Games 649 The competition arena will be the Guangxi Sports Centre Gymnasium that has recently been constructed for the event. The training gymnasium will be located at Ling Ning Sports Park 650 In March 2015, the event will be hosted for the first time in China in Shanghai. The Chinese Skating Association prefers to host more events in Shanghai, not only because of the excellent Oriental Sports Centre venue, but also due to the desire to promote winter sports in the southern part of China. In the past decades, almost all Chinese figure skaters have come from northern areas like Harbin and Changchun 651 The 2015 ITTF World Table Tennis Championships will take place in the city of Suzhou 26 April-3 May 2015. The city is host to one of the most prestigious tournaments on the ITTF Pro Tour (now known as the ITTF World Tour) since 2009, the Harmony Open. This will be the 5th time that China has hosted the ITTF World Championships, but the first time in the city of Suzhou. The Championships were previously held in Beijing (1961), Tianjin (1995), Shanghai (2005) and Guangzhou (2008). Beijing was selected to host the 2015 IAAF World Athletics Championships in late 2010. The selection of the Chinese capital to host the 15th edition of the Championships will bring athletics back to the ‘Bird’s Nest’ Stadium, the centrepiece of the 2008 Olympic Games

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Challenges

There are formidable challenges facing the UK sector in doing business in China that transcend distance from the UK as well as linguistic and culture difficulties that can expect to be encountered.

China is not a market to enter and exit with a quick win. To succeed in China requires careful business planning and execution. Foreign companies need to take time to build up their business network and credentials and to demonstrate their commitment. Often this requires some sort of presence in the marketplace, whether directly through their own business operation, or indirectly, working through a strategic partnership such as an agent or distributor.

Although it is possible to be represented through agents or distributors, many foreign companies progress to the establishment of a permanent presence in China as their experience and confidence both grow.

A particular obstacle that UK companies must overcome is the reluctance of many Chinese business partners to submit to thorough due diligence as would be expected in the West.

Failure to gain a full understanding of a potential partner’s credit history and professional background can spell serious trouble and financial loss. It is possible to reduce local concerns over due diligence checks through a patient and polite business approach and by stressing the reciprocal nature of the arrangement but UK companies should expect this stage of negotiations to be lengthy and at times difficult. It is advisable to seek good quality consultancy and technical assistance from experienced firms resident in China that have been down this particular road many times before.

When conducting business in China, UK firms should do as their Chinese hosts do. They should expect to spend a lot of time at meetings and banquets with their potential Chinese partners.

UK firms might think this is a slow progress, but the Chinese are using this time to establish whether they will make a suitable and trustworthy partner and whether they want to enter into a long-term business relationship with those companies. It is wise to do the same.

In China, getting to know someone face to face is often regarded as the only way of finding out whether a person is trustworthy. In general, the Chinese set great store on building personal relationships before entering into a business partnership, often saying, “Let’s first become friends, then do business”.

Westerners normally build transactions and, if they are successful, a relationship will ensue. However, the Chinese believe that prospective business partners should build a relationship and, if successful, commercial transactions will follow.

This fundamental difference underlies many misunderstandings arising from business negotiations. Virtually all successful transactions in China result from careful cultivation of the Chinese partner by the overseas one, until a relationship of trust evolves. And a commitment to physically make the effort to be in China is the minimum that is expected in such a situation. On this basis alone, doing business in China could be prohibitively expensive and beyond the financial reach of many small- medium size sports marketing and consultancy firms.

The Community Party, government officials such as city mayors and party secretaries are the real powerbase in China as no commercial enterprise is permissible without some form of government interest at its core.

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Good personal relationships are key to successful business in China and taking the time to get to know key officials, particularly the local mayor, is fundamentally important and a precursor to any future successful business relationship that may be contemplated.652

Those with substantial experience of working in China comment on the lack of strategic event planning that often accompanies projects in the region.653

Bidding opportunities

In December 2012, the vice mayor of Zhangjiakou confirmed plans for a joint bid with Beijing to host the 2022 Winter Olympic Games. China last bid for the Winter Olympic Games in 2010 when Harbin failed to become a candidate city.

Venues under construction

In January 2013, International Olympic Committee (IOC) president Jacques Rogge visited the Nanjing 2014 Youth Olympic Games Organising Committee (NYOGOC) declaring that ‘impressive progress’ had been made.

The development of the Youth Olympic Village is currently well ahead of schedule and is being built according to global environmental standards.

Following the end of the Games, the Youth Olympic Village will become a local neighbourhood community with apartments, a school and kindergarten.

Elsewhere in the world the Chinese are expanding their influence in developing countries by offering them investments in infrastructure in return for access to their raw materials. These infrastructure projects regularly involve building new stadiums in Africa. For example, Malawi's national team will soon have a new home in the capital, Lilongwe. The last three hosts of the African Cup of Nations - Angola, Equatorial Guinea, and Gabon - all had venues built for them by the Chinese. And the new National Stadium commissioned in Zambia in 2011 was also funded and built by Chinese money.

652 However, a change of local government officials might affect the incentives or agreements offered by the previous administration. Officials are also occasionally arrested for corruption in China which has a zero tolerance policy and some of the harshest deterrents of any country for white collar crime, including the death penalty 653 “They tend to waste a lot of time with irrelevant details such as meetings, meetings, reports and more reports. There’s a lack of systematic and detailed planning. But when the date comes near and a lot looks like disaster to strike, they mobilise everybody, improvise and at the last minute it more or less works out. Of course they can always count on the government to come to the rescue if the event is ‘important’,” observes Gilbert van Kerckhove, Managing Director of Beijing Global Strategy Consulting

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Appendix 2.20: Current sports events, host bids and construction in India 2013-22

Table 1: Key sports and current bids to host major events in India

Events Most popular sports 2016 ICC World Twenty20 Cricket, badminton, field hockey, tennis, football, golf, motorsport Bids Venues under construction Summer Olympic Games bid possible in the future

Background

The official sport of India is field hockey but the most popular remains cricket. The latter is also the most popular sport for gambling in the country despite the practice being illegal. The only sport that can be wagered on legally is horseracing, a legacy of the days of the British Empire.

The Commonwealth Games Delhi 2010 was intended to have launched India on the world stage as the next emerging superpower and the newest sporting nation; instead it kick-started a national anti-corruption campaign that threatened to topple the Indian government. A report into alleged corruption and maladministration by India's auditor-general estimated the Commonwealth Games’ final bill at more than GBP3.96bn was nearly 100 times the original budget.654

In 2011, India was co-host of the 2011 ICC Cricket World Cup alongside Bangladesh and Sri Lanka655 where the final match took place in Mumbai and this year it was host of the 2013 ICC Women’s World Cup. The whole event was initially set to be in Mumbai, but protests against Pakistan's presence in the city led to half the tournament being shifted to Cuttack, about 1,000 miles away. The result was Pakistan and South Africa playing all of their matches in the eastern city, while back in Mumbai, women's matches were evicted from the Wankhede Stadium to accommodate two men's domestic games.

Annual and on-going events

Outside of cricket there are several other sports fixtures on the annual sports events calendar including:

 The Mumbai Marathon656  The Indian Derby657  F1 Indian Grand Prix.658

654 At the time of writing, sports information company Infostrada is still owed £408,000 from the Delhi Organising Committee and other suppliers have faced similar problems in getting invoices paid 655 The ICC Cricket World Cup 2010 took place 19 February-2 April 2011 656 Established in 2004 in a bid to bring athletics to a wider Indian public 657 Staged at the Mahalakshmi Race Course, it is the highlight of Mumbai's horseracing calendar. Traditionally run on the first Sunday of February, the race is known as the ‘Crown Jewel of the Triple Crown’. It is restricted to 4 year-old horses, both colts and fillies but is almost of secondary importance to the activities surrounding the event. Mumbai's Mahalakshmi Racecourse hosts the famous Gool S Poonawalla Million Race annually where 12 Mumbai and Bangalore horses compete for a prize of nearly £25,000 (Rps2m). The event comes towards the end of Mumbai's racing season that lasts throughout the winter until late April

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Major sports marketing and consultancy opportunities

The 400m consumers that broadly make up the ‘middle class’ in India have acquired sophisticated tastes in consuming Western products and services with the result that brand owners will increasingly look to use sports and entertainment content as a way of engaging with this valuable customer segment.

This provides potentially significant new business opportunities for the UK sector over the next decade.

Where recent gains with India consumers have been made, these have tended to have come about as a result of pursuing brand marketing and communication strategies that are culturally compatible and relevant to local communities.659

For example, PepsiCo believes that its sponsorship of the Indian Premier League (IPL) will provide it with a significant return on its GBP47.5m investment.660

The popularity of cricket is such that brand owners such as PepsiCo, Godrej, Panasonic, Usha and Samsung regard it as an essential sports event to be involved with.

Within this context, social media is increasingly important in connecting with fans and consumers as it is often the start of the consumer’s journey as they seek to be heard as well as being kept better informed.

From this perspective, when India hosts the ICC World Twenty20 in 2016 many sponsors will require support in using the sports event as a way of deepening their relationships with fans and consumers and the UK sector expertise and experience in cricket would be very valuable in this regard.

There is also a trend towards brands in India seeking celebrity endorsement from both Indian and international sports stars and potentially this is another area for business development.

For example, cricket stars currently account for around 55% of all brand endorsements but increasingly brand owners are seeking non-Indian sports stars from F1, football and golf (45%) to endorse their consumer products.661

658 This is currently held at the Buddh International Circuit in Greater Noida near New Delhi. The first event took place on 30 October 2011 as the 17th race of the 2011 F1 season. PRISM has an office in India that was responsible for brokering the sponsorship deal for AirTel to become F1 race sponsor as well as bringing Mercedes on board as sponsor with Force India racing team 659 India’s consumer and cultural diversity is huge but it is already rapidly evolving and was given a boost when in 2012 the Indian government decided to allow foreign direct investment in multi-brand retailers such as supermarkets. Mass grocery and apparel are 2 categories that are expected to benefit most from these changes 660 PepsiCo paid £47.5m to sponsor the IPL for the next 5 seasons and anticipates its Pepsi brand of cola will increase sales during a period that traditionally accounts for around half of consumption of cold drinks. “We are confident that we will be able to derive tremendous value from Pepsi IPL which will be multiple times our investment. The timing of the tournament is ideal as it gives us a powerful platform to activate our brands at retail in ways that drive sales,” explained a spokesman for the company to the Financial Times (March 2013) 661 “Sports are a key communication platform for brands in our portfolio, whether it’s cricket for Pepsi and Lay’s or action sports for Mountain Dew. Specifically with cricket, the sheer popularity of the sport in India makes it an exciting property to reach out to our target audience, specially youth,” explains Homi Battiwalla, senior director of marketing, PepsiCo India

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Bidding opportunities

There is a growing recognition that India, a country of 1.2bn people, will one day stage the Olympic Games. However, the circumstances around the Commonwealth Games 2010 will need to be addressed if India is to make a successful future bid to host a global sports event of the magnitude of the Olympic Games.

Venues under construction

A consortium of private companies led by Capita Symonds and Populous662 was appointed in late 2011 by the Maharashtra State Road Development Corporation (MSRDC) to investigate the possibility of a F1 grand prix circuit development in Mumbai.

According to the MSRDC web site663 the project concept, land suitability and demand and market assessment reports have all been submitted and the feasibility report is currently work in progress, due to be completed December 2013.

662 The consortium is that delivered proposals for the London 2012 Olympic Stadium and Olympic Park, as well as for Silverstone. See Appendix 1.3 for a short description of Populous 663 See https://www.msrdc.org/Site/proposedProjects/formula1RacingTrack.aspx

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Appendix 2.21: Current sports events, host bids and construction in Japan 2013-22

Table 1: Keys sports and current bids to host major events in Japan

Events Most popular sports 2014 ISU World Figure Skating Baseball, sumo, football, martial arts, golf Championships and motorsport (mainly motorcycling) 2014 ITTF World Table Tennis Championships 2017 Asian Winter Games 2019 IRB Rugby World Cup Bids Venues under construction 2019 FINA World Swimming Championships Kasumigaoka National Stadium (Tokyo) 2020 Summer Olympic Games (Tokyo)

Background

The most popular sports in Japan are baseball, sumo, football and rugby.

The capital Tokyo is home to 2 professional baseball clubs - Yakult Swallows664 and Yomiuri Giants;665 the Japan Sumo Association;666 and 2 football clubs - FC Tokyo and FC Tokyo Verdy 1969.667

There is no central government department that oversees bids for major sports events in Tokyo. However, local government support for hosting major sports events is strong and most of Japan’s national sports federations are based in Tokyo that creates a highly positive atmosphere for sport.

Annual and on-going events

Annual events in Tokyo include:

 Tokyo International Women’s Marathon  Badminton Yonex Open Japan  Tennis AIG Japan Open  Gymnastics Aeon Cup  Rugby Microsoft Cup  Rugby Japan National Championship  Judo Kodokan Cup All Japan Championship  Martial Arts K-1  Japan National Triathlon Championship  American Football, Japan X Bowl  Japan National Triathlon Championship  WRC Rally

664 The team is based at the Meiji-Jingu Stadium 665 The team is based at the Tokyo Dome 666 Ryogoku Kokugikan sumo arena where 3 official sumo tournaments are held annually in January, May and September 667 Both teams play at Ajinomoto Stadium in Chofu

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 The January Basho (sumo)  Yabusame (Horseback Archery) Festival  NHK Mile Cup  The Yushun Himba (the Japanese Oaks)  The May Basho sumo)  The Tokyo Yushun (Japanese Derby)  The Yasuda Kinen Horse Race  Toray Pan Pacific Tennis Tournament  The September Basho (sumo)  Japan International Cycle Show  Emirates World Series: Japan Cup.

Major sports marketing and consultancy opportunities

Since the start of 2013, household spending in Japan has risen 6 times faster than predicted at a growth rate of 2.4%668. This in turn has generated a higher level of consumer optimism and what economists refer to as ‘optional consumption’ on sports and entertainment by Japanese consumers.

These are encouraging signs that more new business opportunities for UK sports marketing and consultancy firms should start to open up in Japan and by far the biggest opportunity for the UK sector in the region is the IRB Rugby World Cup 2019.

Japan made history by being the first Asian country to be awarded the rights to host the tournament in 2019 which is expected to increase the popularity of the sport in the country. The Japanese government, through the National Agency for the Advancement of Sports and Health, has pledged GBP29m in order to cover operating costs of the Japan Rugby Football Union (JRFU) should there be a financial shortfall. The total cost to host the tournament is estimated at GBP145m to stage.

In December 2012, the tournament organiser, Japan Rugby 2019 (JR 2019) announced details of the policy and timeline for the selection of venues in Japan to host the matches for the tournament.

All planning and preparation for IRB Rugby World Cup 2019 is proceeding well and laying the foundations for the successful delivery of Rugby's premier international competition that will further boost the attractiveness of the sport across the whole Asia-Pacific region.669 The process has been delivered after detailed consultation and collaboration with tournament owners, Rugby World Cup Limited (RWCL) and comprehensive meetings with the England Rugby 2015 (ER 2015) organising body to ensure the best-possible process for venue selection.

With excitement building in Japan and venues expressing strong interest in hosting matches, the JR 2019 Board confirmed the selection of venues will be announced in May 2015.670

668 Research by Japan Consuming, published March 2013 669 Details of the key process were announced following a highly-productive meeting of the JR 2019 Board where delegates heard that preparation was on track with 7 years to go until Japan welcomes the world for what will be the largest-ever single sport event hosted in the country 670 This follows a rigorous process in which local hosting authorities will observe at close quarters the Rugby World Cup 2015 in the UK in order to ensure the delivery of an exceptional experience for the teams and domestic and international fans for IRB Rugby World Cup in 2019

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The JR 2019 match venue selection policy contains the following objectives:

 prepare stadia and facilities where a vibrant 'Rugby and Football culture’ can develop  popularise, develop and invigorate the sporting culture of hosting regions  provide dreams, happiness and great memories to all people  contribution to regional development  consideration for regional balancing as a broader national project  spread of excitement of hosting Rugby World Cup so that benefits can be felt throughout Japan.

There are likely to be opportunities for UK sports marketing and consultancy firms to advise the Japanese sports rights holders and sponsors on how best to leverage the value of the tournament in order to achieve these and other brand building, communication and commercial objectives.

Elsewhere in Japan, the country will host the ISU World Figure Skating Championships 2014671, the World Table Tennis Championships 2014672 and the Asian Winter Games 2017.

The Olympic Council of Asia decided that the Japanese cities of Sapporo and Obihiro will co-host the 2017 Asian Winter Games673 at an estimated cost of GBP245m.674

Bidding opportunities

Tokyo is currently bidding for the 2019 FINA World Swimming Championships and the 2020 Summer Olympic Games and a decision is expected in July 2013 prior to the start of the 15th FINA World Championships in Barcelona, Spain.

Tokyo was selected by the Japanese Olympic Committee in July 2011 as Japan's bidding city for the 2020 Summer Olympic Games in the wake of the terrible earthquake and tsunami that affected much of eastern Japan in March 2011.

In May 2012, Tokyo advanced to the candidate stage of its bid to host the 2020 Olympic Games promising a Games that will be based on the infrastructure and innovation of Tokyo and which aims to embody the shared values of the Olympic Movement and the people of Japan, for whom excellence, friendship and respect are a way of life.675

671 Japan was awarded the 2014 ISU World Figure Skating Championships three months after giving up the 2011 event following a devastating earthquake and tsunami 672 Tokyo will host the 2014 ITTF World Team Table Tennis Championships, which will be the 6th time the country has hosted the tournament. The competition, the biggest event in the world of table tennis, will take place at the Yoyogi National Stadium 673 The OCA General Assembly approved them as there were no other candidates. There will be 11 disciplines in 5 sports: biathlon, curling, ice hockey, skating and skiing 674 Sapporo initially said it would carefully consider hosting the event due to the financial constraints of such an undertaking, but the JOC later offered support of £7m and the city agreed it could help promote commercial tourism. Sapporo could expect about £5.6m from corporate sponsors and from ticket sales and would shoulder about £119m of the costs 675Tokyo previously bid for the 2016 Summer Olympics but lost to Rio de Janeiro. Tokyo's first Olympic bid was for the 1940 Summer Olympics. Tokyo won the bid but the Games were cancelled due to World War II. The city later bid for the 1960 Summer Olympics and lost to Rome. Tokyo made a successful bid for the 1964 Summer Olympics and Tokyo became the first Asian city to host the Summer Olympics. Tokyo's 2020 bid is the city's 5th bid for the Games. If selected to host the 2020 Olympics, Tokyo would become the 4th city to host the Summer Olympics twice

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Within the official bid document to host the Summer Olympic Games 2020, Tokyo has committed to:

 building a new 80,000-seat Olympic Stadium, Kasumigaoka National Stadium, on the site of the 1964 Olympic Stadium and for it to be one of the most advanced sports and entertainment stadiums in the world, capable of being used for the opening and closing Ceremonies as well as competitions including athletics  an enhanced plan for the Olympic Village, relocated to a magnificent waterfront setting at the very centre of the venue plan, at the intersection of the Heritage Zone and Tokyo Bay Zone. Almost all venues are within an 8km radius of Village. Following the Olympic and Paralympic Games 2020, the village site will become the Tokyo International Exchange Plaza, a residential and mixed-use development that will become a major cultural and education centre housing facilities for international students and global institutions  the modernisation and development of a number of iconic legacy facilities from the acclaimed Tokyo 1964 Olympic Games, combined with the construction of new world-class sports facilities. The cluster of new permanent venues will be located in the developing Sea Forest Park overlooking Tokyo Bay  live sites, fan trails and other entertainment points integrated into the Olympic Plan and the City to enhance the community and visitors' unique experience of the Olympic Games 2020  an Olympic Games plan in close alignment with new and extended urban planning and development strategies for Tokyo, with venues and facilities connected by one of the world’s most efficient public transport systems undergoing constant and integrated improvement.

Fuelled by the city’s dynamic atmosphere and youth-driven culture, the bid has an additional important role to play in the process of Japan’s spiritual and physical recovery efforts following the 2011 national earthquake tragedy.

Venues under construction

Critically acclaimed London-based architect Dame Zaha Hadid, who also designed the iconic Aquatics Centre used at the London 2012 Olympic Games, has won the international contest with a futuristic vision for the national stadium that will take centre stage at the 2019 Rugby World Cup Final.676

It is estimated that the national stadium will be re-built at a cost of GBP1.04bn, with officials also hoping that it will form the centre piece of a successful bid to host the Summer Olympic Games 2020.677

676 The new stadium will eventually replace the current venue in Tokyo that is also known as the Kasumigaoka National Stadium that was originally built as the main venue for the 1958 Asian Games and was also used for the 1964 Olympic Games 677 The new national stadium will also be a source of immense pride for the Japanese people. "Japan's newly refurbished stadium will be the best of the best,” claims Tsunekazu Takeda, the president of Tokyo 2020 and Japanese Olympic Committee

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Appendix 2.22: Current sports events, host bids and construction in South Korea 2013-22

Table 1: Key sports events and current bids to host major events in South Korea

Events Most popular sports 2013 Asian Indoor and Martial Arts Games Football, baseball, golf, basketball, bowling, 2013 FISA World Rowing Championships table tennis, taekwondo, badminton 2014 Asian Games 2015 Universiade – Summer 2015 Military World Games 2018 PyeongChang Winter Olympic Games Bids Venues under construction 2019 FINA World Swimming Championships 23 new venues for the 2014 Asian Games in Incheon 2 new venues for Gwangju 2015 Summer Universiade 6 new venues for 2018 PyeongChang Winter Olympic Games

Background

The most popular sports in South Korea are football, baseball, basketball, ice hockey, badminton, volleyball, golf, F1, taekwondo and fishing.

South Korea has a strong history of hosting global sports events such as the Summer Olympic Games 1988, the Asian Games 1986 and 2002 and the Asian Winter Games in 1999. South Korea also co- hosted the highly successful FIFA World Cup 2002 with Japan and the first F1 Grand Prix in 2010.

According to the research for this Report, South Korea is the 4th top country for incremental new business opportunities in the region over the next decade as the potential value of contracts is estimated at GBP481m.678

UK companies involved in the construction of the 2012 Olympic Park in East London have already been involved in trade missions to the country organised by UK Trade and Investment (UKTI) in an attempt to secure lucrative contracts ahead of the 2014 Asian Games in Incheon679; 2015 Summer Universiade in Gwangju; and the 2018 Winter Olympics in PyeongChang.

South Korea is the world's 13th and Asia's 4th largest economy and one of the world’s manufacturing and technology powerhouses with one of the highest per capita broadband usages in the world.680

678 It ranks above France, where the potential value of new business for the UK sector is £276m but below Qatar (£1.6bn), Russia (£1.3bn) and Brazil (£1.2bn). See also Section 2.3 679 The total budget for the 2014 Asian Games in Incheon is £1.07bn, of which around £0.92bn is to be spent on construction. Around £66.1m is going on road projects, £35.7m on private venue construction, £7.2m on training venues, with other costs accounting for £39m. Meanwhile, the budget for the infrastructure development of PyeongChang 2018 amounts to a total of £4.1bn and another £330m will be invested from 2012-18 in the ‘Drive the Dream’ legacy programme 680 It is also home to Samsung, one of the world’s leading technology companies and the second most valuable brand in the world, according to the Brand Finance Global Top 500 brands research (February 2013)

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PyeongChang, a county in Gangwon province and located in the Taebaek Mountains, is the setting for the Winter Olympic Games 2018 and receives strong support from central and local governments in South Korea as well as from the Korean Olympic Committee (KOC).681

In addition, the KOC and the national federations have provided various levels of support, such as the provision of referees and operation managers, to ensure that the technical aspects of the events run smoothly.

Whilst participation in winter sports is still lower in Asia than in other continents, it is growing at a significant pace. PyeongChang is fast becoming a popular world-class winter sports destination and winter sports are becoming more popular among the 1bn Asian people living within a 2-hour flight of PyeongChang.

The winter sports market in Asia is rapidly becoming more popular with Europeans and the Organising Committee for the Winter Olympic Games 2018 is committed to making all-out efforts to see winter sports realise their full potential in the region.

Major sports marketing and consultancy opportunities

South Korea is an Asian Tiger economy with vast potential for new business for the UK sector over the next decade.

According to the Organisation for Economic Co-operation and Development (OECD) the country’s economy grew by 3.5% in 2012682 and is set to make the 10th-largest contribution to world growth in the next 5 years.683

There is also a strong relationship between the UK and South Korea that has endured for nearly half a century. The UK is the 2nd largest EU investor in South Korea in cumulative terms684 and there have been frequent trade missions organised by the UK Trade and Industry685 that have helped to strengthen personal relationships as well as form new ones that has helped the UK sector in its business development activities.

681 PyeongChang hosted 12 international sporting events between 2008 and 2012 with central and local governments providing financial support. The Gangwon Provincial government also provided manpower in the organisation of the events 682 OECD Economic Surveys Korea (April 2012) 683 To put this into context, this is as much as the UK and more than France or Italy 684 Tesco and Standard Chartered are among the country’s largest foreign investors, investing £2bn-£3bn each. Other major UK investors include: HSBC, Prudential, Barclays, Fidelity Asset Management, Diageo, Burberry, Unilever, BAT, AMEC, Rolls-Royce, AstraZeneca, GSK, Edwards, Shell and BP 685 There are strong new business opportunities for UK sports marketing and consultancy firms that worked on the temporary overlay at the London 2012 Olympic Games, according to UKTI and the games organisers of the Winter Olympic Games PyeongChang 2018 are interested in replicating some of the temporary structures in Stratford – such as the basketball arena – to keep costs down. “London 2012 was the first time people had seen venues that were temporary but didn’t look or feel temporary,” observes Douglas Barrett, Head of UKTI at the British embassy in Seoul. The London 2012 Olympic Games also delivered a significant boost to UK retail brands in South Korea as ‘Brand Britain’ was a highly successful promotional campaign

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Over the next few years, South Korea will host the 2013 Asian Indoor and Martial Arts Games, the 2013 FISA World Rowing Championships, the 2014 Asian Games, the 2015 Summer Universiade, the 2015 Military World Games and the 2018 PyeongChang Winter Olympics. The 2013 World Rowing Championships will be held at Tangeum Lake, Chungju in South Korea.686

The 2014 Asian Games687 is the largest sporting event in Asia governed by the Olympic Council of Asia (OCA). It is scheduled to take place in Incheon688, South Korea.689

The total budget for the 2014 Asian Games in Incheon will be GBP1.07bn and nearly GBP0.92bn will be spent on venue construction.

Around GBP66m will be spent on road projects, GBP35.7m on private venue construction, GBP7.2m on training venues, and with other costs accounting for GBP39m. The South Korean government will cover 20% of the budget with the Incheon government covering 80% of the other costs.

Another new business opportunity is the Summer Universiade held in Gwangju in 2015.

Table 2: Key phases for hosting the Summer Universiade 2015

Key phases of the project Notes Phase 1 (2010-11) Establish a base for the Universiade by creating a master plan and action plan. In addition, organisers created a slogan, emblem and mascot as a general framework to operate the Universiade. Phase II (2012-13) Games organisers completed the Venue Operational Plan at an early stage and began individual action manuals to carry out project plans by area. As a pre-event of the Universiade, Gwangju successfully hosted the 2012 World University Badminton Championships.

From 2013, the games organisers will make full-fledged international promotions including a joint project with the UN. After Summer Universiade in Kazan 2013 will launch full-scale marketing initiatives to invite companies as sponsors.

686 25 August-1 September 2013 687 Officially known as the XVII Asiad 688 Incheon is the 3rd city in South Korea after Seoul (1986) and Busan (2002) to host the Asian Games 689 This takes place 19 September-4 October 2014, with 437 events in 36 sports and disciplines set to feature in the Asian Games 2014

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Phase III (2014-15) Games organisers will complete all the competition facilities and launch the operation system so that the employees involved in each sport event may work hand- in-hand.

As volunteers play a core role in any successful Universiade, organisers have operated a Foreign Language School since 2010. Gwangju plans to expand it to have online and offline classes to systematically train 120,000 volunteers composed of college students throughout the nation as well as Gwangju citizens and improve their quality and build practical capacity.

One of South Korea’s main aims is to develop PyeongChang and the Gangwon Province as the winter sports hub of Asia and the Korean government passed the Special Act to Support the 2018 PyeongChang Olympic Winter Games in December 2011.

The Special [etc.] Act 2011 provides a legal platform to establish facilities and services that will contribute to the legacy of the city.690

The budget for the infrastructure development of PyeongChang 2018 amounts to a total of GBP4.1bn with an additional GBP330.7m invested from 2012-18 for the ‘Drive the dream’ legacy programme.

The vast sums involved in staging these sports events show the potential for UK sports marketing and consultancy firms to secure new business with venue operators in South Korea as well as other infrastructure companies in the region.

Challenges

Direct sales into South Korea can be difficult. For most UK companies, it is more effective to approach the market through local business partners (agents and distributors) who have the ability to distribute and provide locally based technical support. Licensing and franchising are also increasingly popular options with UK companies looking to do business in the region but under a known South Korean brand.

Having a permanent presence in the market can have several benefits including:  demonstrating long-term commitment  cutting out the ‘middle man’  providing direct access to the end customer/supplier  giving direct control over corporate strategy and activities  enabling trading in the local currency and easing the conduct of business transactions  fulfilling a legal requirement to have a permanent presence (relevant in certain business activities and sectors).

690 For example, there are plans to establish foreign education facilities, an international medical centre, a casino, an international conference hall, and a winter Olympic-related industrial complex

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In the past, overseas investors that wanted to do business in South Korea were required to have a South Korean partner.

However, this requirement has been relaxed by the South Korean government in order to encourage more inward investment. It is now possible for overseas companies to establish a business in South Korea, even as sole traders, providing they follow the correct guidelines and procedures and set themselves up as an appropriate legal entity. The company must also be compliant with South Korean legal and tax requirements.

Korean is the official business language of South Korea although English is widely spoken among senior business people and government officials.691

It is important to spend time establishing a good working relationship and building trust with South Koreans.

Sport, families and hobbies are all good topics of conversation. South Koreans may enquire about the personal lives of people they do business with, in an attempt to establish age and status, and to build relationships. These questions should be answered honestly and openly, but without being boastful.

UK companies will find that being introduced to a company by a trusted third party, such as the British Embassy, is a more effective of being introduced to potential clients in the region.

Bidding opportunities

Gwangju is bidding to host the FINA World Aquatics Championships 2019 in order to enhance the brand value of the city through sport and to deem it a “sport-loving city”. A final decision on the bid is due to be made in Barcelona, Spain in July 2013.

Venues under construction

With 437 events in 36 sports at the 2014 Asian Games in Incheon, games organisers will use 49 competition venues, of which 26 are already in existence and 23 venues will need to be constructed. Currently, 16 venues are already under construction and 7 at the design stage at the time of writing. In addition, there will also be 54 training venues that need to be built.

The main 61,000-seat Incheon Asiad Main Stadium is estimated to cost GBP257m was designed by Populous692 and is expected to be completed by April 2014.

691 Whilst high-level business meetings may be conducted mainly in English, the Korean hosts will appreciate it if UK companies use their language whenever possible. When speaking in English, businesses should remember to talk slowly and repeat key points. In order to save face, Korean hosts will not necessarily say that they do not understand something, so it is courteous to check that back that they do not have any questions or points of clarification that will assist them 692 See Appendix 1.3 for a description of the company

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Table 3: Selected new venues for the Incheon Asian Games 2014

Venue Sport Seat capacity Dream Park Stadium Golf, swimming, shooting, 1,000– 1,500 equestrian Ganghwa Stadium Taekwondo, wushu, BMX 1,010– 4,026 Gyeyang Stadium Badminton, archery Munhak Aquatics Centre Swimming 3,004 Namdong Stadium Gymnastics, rugby 5,200– 8,100 Seonhak Stadium Field hockey, judo, wrestling 2,050– 5,010 Sipjeong Stadium Tennis, squash 1,207– 5,061 Songrim Gymnasium Volleyball 5,010 Incheon Football Stadium Football 20,000

Gwangju needs a total of 73 venues for the 2015 Summer Universiade. Only 2 venues (swimming and gymnastics) will be newly constructed and the rest will be used after being remodelled.

Meanwhile Winter Olympic Games PyeongChang 2018 will utilise a total of 13 competition venues.

Most of the 7 existing venues were built for the Gangwon Asian Winter Games 1999 and were upgraded during PyeongChang’s bid for the Winter Olympic Games 2014 that were awarded to Sochi, Russia. The remaining 6 venues will be configured through a collaborative effort between experts in the areas of urban planning, architectural design and the environment. This group will design the venues to ensure they remain as sustainable Olympic legacies and construction is expected to be completed by 2016.

The 7 existing venues have already hosted various international winter sporting events and have been certified by each International Federation and outfitted to meet IOC standards.

Transportation at the Winter Olympic Games 2018 will consist of a state-of-the-art multi-modal network of highways and railroads that connect to venues and the Olympic Stadium as well as to Incheon International Airport.

The cutting-edge Yeongdong Expressway and the Dongseo Expressway will split the transport demand to handle the large influx of foreign visitors through Incheon International Airport as well as spectators from the Seoul Metropolitan Area during the Winter Games 2018.

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Appendix 2.23: Current sports events, host bids and construction in Australia 2013-22

Table 1: Key sports and current bids to host major events in Australia

Events Most popular sports 2015 ICC Cricket World Cup (with New Australian Rules Football, rugby union, rugby Zealand) league, basketball, cricket, golf, soccer, 2015 Asia Cup tennis, motorsports, swimming, cycling 2017 Rugby League World Cup (with New Zealand) 2018 Commonwealth Games

Bids Venues under construction Possible 2024 or 2028 Olympic Games bid by Several new venues and renovations for the Melbourne 2018 Gold Coast Commonwealth Games

Background

The most popular sports are Australian Football League (Aussie Rules), National Rugby League (NRL), cricket, golf, football, tennis, basketball, motorsports and cycling.

Sport in Australia is a way of life for millions and the country is able to punch above its weight in international sport - from swimming to cycling - as a result of excellent and extensive training facilities that support its athletes and players.

In addition to strong financial support from both state and local government, Australia offers event rights holders a winning combination of world-class infrastructure; a collaborative network of event stakeholders that partner with rights holders to deliver exceptional events; and a passionate and enthusiastic sporting public. Australia’s main cities for hosting international sports events are Melbourne, Sydney and Brisbane.

Brisbane’s neighbour, the Gold Coast is host of the Commonwealth Games 2018, an event that was previously hosted by Melbourne in 2006.693

Melbourne’s proven track record in hosting events that are handed on better and stronger than ever before is evidenced in the city’s long term and on-going relationships with events and sports governing bodies such as the UCI694, PGA TOUR695, ISAF696 and FINA.697

Melbourne’s world-class sporting facilities are within easy walking distance of the city and accessible by a public transport system of trams, trains and buses.

The Victorian government’s on-going commitment to major events is matched by investment in key

693 At the Commonwealth Games 2006, around 80% of the contracts were awarded to local companies including 4 major infrastructure projects 694 Union Cycliste Internationale is the world governing body for sports cycling and oversees international competitive cycling events 695 Organizer of the main men's professional golf tours in the US and North America 696 International Sailing Federation 697 International governing body of swimming, diving, water polo, synchronized swimming and open water swimming

261 sporting infrastructure – from redevelopment of the iconic MCG and Melbourne Park precinct to developing new state-of-the-art facilities such as AAMI Park; Melbourne’s 31,000-seat rectangular stadium.

Meanwhile, sport is an important part of the identity and culture of Sydney and New South Wales (NSW).

Sydney has been host to some of the world’s biggest international sports events on the planet including the Olympic and Paralympic Games 2000, Gay Games 2002, Rugby World Cup 2003, Asia Pacific Economic Cooperation Forum (APEC) 2007, World Youth Day 2008 (including a Papal visit), FIFA Congress 2008 and the World Masters Games 2009.

Each year, hundreds of sports events are held in Sydney and throughout regional NSW698 which showcase the expertise, facilities, creativity, energy and professional excellence which all make Sydney a world-class city for sports.699

Annual and on-going events

Some of the most motivated and passionate sports fans in the world are to be found in Melbourne. For example, in 2011 more than 7.5m people - close to double the city’s population of 4m - attended major sports events including the Australian Open Tennis, Australian F1 Grand Prix, the Australian Motorcycle Grand Prix, Melbourne Cup Carnival and national league matches in football, rugby league, netball, and Australian football.

In addition to the many major sports events on Melbourne’s sporting calendar, the city is also home to a growing number of professional sports teams in football, rugby, basketball and cricket that attract thousands of fans and supporters to their games every week.

Sydney also supports a number of teams involved in national and international sports competitions in football (men, women and youth), rugby league, rugby union, Australian Rules football, cricket, netball, basketball, hockey and ice hockey.

Annual events in Melbourne include:

 One Day International series cricket  Festival of Sails Sailing  Australian Open Tennis (Grand Slam)  Superbike World Championships (to 2014)  Women’s Australian Open Golf  Twenty20 International (from 2010) cricket  Grand Prix Athletics  Australian Formula 1 Grand Prix (to 2015)  Ironman Asia Pacific Championships (to 2014) I

698 NSW Sport and Recreation runs a number of programmes to assist the people of NSW to use sport and recreation to improve health and well-being under the theme of ‘More people. More active. More often.’ Its facilities include 11 sports and recreation centres across NSW and include the Sydney Academy of Sport and Recreation 699 Sydney is also foundation partner of events like the Street Football Festival that embraces community engagement and inclusion, builds self-esteem and increases participation in sport particularly amongst younger age groups

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 Rip Curl Pro Surfing  Australian Goldfields Open- World Snooker Tour (to 2013)  Australian Football League Finals  Spring Racing Carnival  Jayco Herald Sun Tour Road cycling  Australian Motorcycle Grand Prix  Melbourne Cup Carnival  Australian Masters (to 2013)  ISAF Sailing World Cup  Boxing Day Test Cricket  Australian Dancesport Championships.

Annual events in Sydney include:

 National Rugby League (NRL)  Australian Football League (AFL)  18 foot skiff sailing  Hyundai A-League (football)  Westfield Women’s League (football)  National Youth League (football)  Super Rugby  International Rugby Union Test matches  Sheffield Shield Cricket (interstate competition)  Ryobi Cup (interstate competition – one day matches)  KFC Big Bash (Twenty20 cricket – interstate competition)  Trans-Tasman Netball League (ANZ Championship)  National Basketball League  Women’s National Basketball League  Australian Hockey League  Australian Ice Hockey League  Horse Racing  Harness Racing  Greyhound Racing.

Major sports marketing and consultancy opportunities

Over the next few years, Australia is co-hosting with New Zealand the ICC Cricket World Cup 2015 and Rugby League World Cup 2017.

Separately, Australia is also host to the Asian Cup 2015 and the Commonwealth Games 2018 in Queensland’s Gold Coast area.

Bidding opportunities

Melbourne is considering making a bid to host the 2024 or 2028 Summer Olympic Games. The only major venue that would need to be constructed would be a rowing and canoeing course. The city previously hosted the 1956 Summer Olympic Games and the Commonwealth Games 2006. The MCG served as the main stadium of both events, placing Melbourne in the situation of already having a high capacity main arena ready for any future Olympic Games.

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Venues under construction

 At the time of writing, venues have as yet to be selected for the ICC Cricket World Cup 2015.

 The 4 host cities for the AFC Asian Cup 2015 - Melbourne, Sydney, Brisbane and Canberra will use existing venues to stage the event.

 For the Rugby League World Cup 2017, the participating nations will possibly be split up into 4 groups of 4. With New Zealand co-host with Australia, it is more than likely 2 groups will play in New Zealand while the other 2 groups play in Australia.

 The Commonwealth Games Infrastructure Authority’s (CGIA) aim is to achieve a simple, sensible, coordinated approach to developing infrastructure for the 2018 Gold Coast Commonwealth Games.

 The CGIA will facilitate the planning and development of essential major infrastructure projects such as the Athletes Village at Parklands and the Gold Coast Aquatic Centre upgrade, by providing advice and performing delegated functions such as planning and assessment.

 In relation to the Gold Coast Aquatic Centre, the government is examining the possibility of accelerating the upgrading of the facility, in partnership with the Gold Coast City Council, to host the 2014 Pan Pacific Swimming Championships. Irrespective of the outcome of these deliberations, the centre will be upgraded well before the Commonwealth Games 2018 and aquatic events will be held on the Gold Coast.

 In relation to shooting, the former Gold Coast City Council has endorsed the use of Belmont Shooting Centre in Brisbane, given its capacity to host multiple shooting disciplines. This represented significant financial savings rather than develop shooting facilities on the Gold Coast.

 In relation to cycling and a velodrome, the Australia government examined the history of the financial viability of such facilities around Australia. It was found that a velodrome on the Gold Coast would have had significant on-going operational costs and it was agreed by all parties that a velodrome at Chandler in Brisbane, as part of a state cycling centre, would be the most cost-effective option.

 In relation to basketball and gymnastics, the Gold Coast City Council was asked whether the region needed another sport and entertainment centre (8,000-10,000-seat capacity) that could be used to host Commonwealth Games’ gymnastics and basketball events. The council undertook a study and informed the bid company that no such facility was needed and signed off on the final facility plan that saw gymnastics relocated to a facility on the Gold Coast and basketball preliminary rounds being conducted in Townsville and Cairns.

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Gold Coast venues to be used for the Commonwealth Games 2018

Broadbeach

The 5,000-seat Gold Coast Convention and Exhibition Centre will host both the netball competition and be home to the main media centre. The centre provides an ideal venue for the netball competition and the main media centre will be located in the exhibition area of the venue and is ideally located close to the Broadbeach accommodation, retail and entertainment precinct with good access to the competition venues.

The lawn bowls competition will be held at the Broadbeach Bowls Club. The venue currently has 4 greens for competition purposes and will be upgraded to meet the Commonwealth Games competition standards. In competition mode the venue will provide seating for 2,500 spectators. The bowls main club house building will undergo major refurbishment ahead of the Games to ensure the highest quality services and facilities.

Southport Broadwater Parklands

The Southport Broadwater Parklands will provide a unique hub for a variety of sports throughout the Commonwealth Games 2018. At the northern end of the Parklands a temporary venue will be constructed. The venue is designed to seat a minimum of 7,500 spectators to accommodate the sport of gymnastics and to host either the finals of the basketball or netball competition. Following the Games and due to its modular capacity the venue will be deconstructed and relocated to provide for a variety of community activities within Gold Coast City.

Moving south along the Southport Broadwater Parklands, the Gold Coast Aquatic Centre will undergo a major redevelopment to provide for both the swimming and diving competitions. Redevelopment will include the construction of a new 50 metre, 10 lane swimming pool for competition purposes, while the existing 50 metre pool will become the warm up pool. Seating for 10,000 spectators (swimming) and 2,500 spectators (diving) will be provided on a temporary basis. In legacy mode this venue will include additional change rooms, meetings rooms, permanent seating for 1,000 spectators and the flexibility for Gold Coast City Council to incorporate a variety of community sport and leisure activities.

South of the Aquatic Centre and still in the Southport Broadwater Parklands will be the sites for the start and finish of the marathon event, road walks and triathlon. The Southport Broadwater Parklands will also be the location for one of the Games’ live sites where people can visit and watch the action on the screens provided while enjoying the atmosphere of the event.

Carrara

The recently completed 25,000-seat Carrara Stadium is home to the city’s Australian Football League team, Gold Coast Suns. This venue will be enhanced with temporary seating to provide for 40,000 spectators and will host the opening and closing ceremonies for the Commonwealth Games 2018 and the athletics competition. To facilitate the athletics programme, a temporary track will be located within the main stadium and a new track with associated facilities will be constructed adjacent to the main stadium as the warm up track. The warm up track will remain as a permanent legacy for Gold Coast City community and will become the city’s premier athletic facility.

A new indoor sports venue will also be constructed to host the badminton competition, located near the athletics warm up track and will accommodate 2,500 spectators. The Carrara Sport and Leisure

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Centre will replace the current indoor sports facility and provide a valuable legacy venue for Gold Coast City providing for elite competition and training as well as community sports groups.

Robina

The Robina Stadium (Skilled Park) will host the Rugby 7s competition. The stadium requires minimal overlay to meet the competition needs of the International Rugby Board. The stadium has a current capacity of 27,400 spectators and is considered one of the best regional stadiums in Australia. It is well equipped with multiple player change rooms and corporate, hospitality and media facilities.

Coomera

A new indoor multi-sport sport and leisure facility will be built at Coomera and will host the wrestling. The venue will accommodate the event requirements and include spectator seating for 2,500. The Coomera Sport and Leisure Centre aligns with the Gold Coast City Council’s long term planning and will be a permanent legacy for the community.

Oxenford

The existing sound stages of the Village Roadshow complex at Oxenford will play host to boxing and table tennis. The venue will be enhanced to provide for the International Sporting Federation technical venue requirements and provide spectator seating of 3,000 (boxing) and 3,200 (table tennis). The use of this unique facility provides a very cost effective means of delivering the respective Games competition venues for these sports and maximises the use of existing infrastructure in Gold Coast City.

Runaway Bay

The existing Runaway Bay Sport and Leadership Excellence Centre will be upgraded and extended to host the squash and weightlifting competitions. A permanent extension of the current squash facility will incorporate 6-single and 4-double courts. A show court for finals matches will also be provided for the Games with temporary seating for 3,000 spectators. The extended venue will become a permanent legacy for the residents of Gold Coast City.

Located adjacent to the Runaway Bay Sport and Leadership Excellence Centre a temporary venue for weightlifting will be constructed. The venue will meet the technical event requirements of the International Weightlifting Federation and provide seating for 2,500 spectators.

Labrador

The existing home of the Gold Coast Hockey Centre at Keith Hunt Park, Labrador will be upgraded to host the hockey competition. The redevelopment of the venue will provide for 3 all-weather synthetic pitches and will include seating for 5,000 spectators. The redevelopment will establish the Centre as Queensland’s premier hockey venue, providing a valuable, world-class competition and training venue for current and future athletes and the Gold Coast City community.

Hinze Dam

This will be the location for the mountain bike competition and a new course will be constructed to meet international competition requirements with temporary seating for 2,000 spectators. After the Games, the venue will provide a valuable community asset for international, national and local riders.

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Elanora / Currumbin Valley

The area provides a scenic location for the road racing elements of the cycling programme. Commencing and finishing at the Merv Craig Sporting Complex the road race looped circuit provides for a range of areas where spectators will be able to view the event.

Chandler

Track cycling will be held at the Sleeman Sports Complex where a new indoor cycling velodrome (Queensland State Velodrome) will be built. The Velodrome will seat 4,000 spectators and will remain as a permanent legacy with reduced seating capacity for the sport of cycling following the Games.

Belmont

Clay target, pistol, small and full bore shooting disciplines will be held at the Belmont Shooting Centre that provides a unique opportunity to host all disciplines on one site and will be upgraded to meet the requirements of the International Shooting Sport Federation. It will have seating for 3,000 spectators.

Regional areas of Cairns and Townsville

The preliminary rounds of the men’s and women’s basketball competition will be held at the Cairns Convention Centre and the Townsville Entertainment and Convention Centre respectively. Both Centres offer seating capacity for up to 5,000 spectators and are currently home to the Cairns Taipans and the Townsville Crocodile, National Basketball League teams.

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Appendix 2.24: Current sports events, host bids and construction in New Zealand 2013-22

Table 1: Key sports and current bids to host major events in New Zealand

Events Most popular sports 2015 ICC Cricket World Cup (with Australia) Rugby union, football, cricket, sailing, rugby 2015 FIFA Under-20 World Cup league and netball 2016 World Bowling Championships 2017 Rugby League World Cup (with Australia) 2017 World Masters Games Bids Venues under construction None at time of writing None at time of writing

Background

The most popular sports in New Zealand are rugby union (the national sport), netball, rugby league, cricket (national summer sport), football, sailing and motor racing. Other sports include in-door and out-door bowling, basketball, golf, tennis, rowing, water sports including sailing and winter sports such as skiing and snowboarding.

The New Zealand government works in partnership with the country’s event sector to support New Zealand’s growing reputation as an attractive destination for major global sports.

In 2009, the Minister for Economic Development sought Cabinet agreement for a new strategic approach to government investment in major events. This approach outlined a shift in government’s role from being seen mainly as a source of operational funding for events to becoming an integral partner with the events sector in helping to attract, retain, grow and deliver high quality major events, and in ensuring the delivery of lasting benefits for New Zealand from hosting events.

In 2011, the annual major events development fund was increased to GBP5.5m to better resource New Zealand’s strategic shift.

In August 2012, New Zealand Major Events completed the signing of a memorandum of understanding (MOU) with EventScotland.

New Zealand Major Events has a common interest with EventScotland in many areas of major event strategy and the agreement has been designed with the purpose of improving the capability and enhancing the reputation of both Scotland and New Zealand as international sport and entertainment event destinations.

Both countries are similar in terms of geography and population and there will be a number of opportunities to share information on events such as the UCI Juniors Track World Championships, which took place in New Zealand in 2012 and in Scotland in 2013.

Areas of collaboration outlined in the MOU include, information sharing; event bidding and prospecting; impact measurement; delivery capability, and strategy development.

Scotland is already recognised as a world leader in the events industry, with New Zealand generating some exciting new ideas. Particular areas of crossover are, adventure sports; food and drink; and golf, with both organisations committed to helping the other to grow and develop experience.

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In 2011, New Zealand hosted the IRB Rugby World Cup. Economically and socially, the event was successful for New Zealand, with a marked boost in economic activity. An independent assessment put the short-term (2006-12) economic impact of the tournament at around GBP0.95bn, with the equivalent of nearly 30,000 jobs sustained for 1 year.

The tournament attracted over 133,000 international visitors – nearly twice initial estimates. The legacies of RWC 2011 include positive visitor experiences, new business connections, improved infrastructure, and greater interest in volunteering as well as greater expertise for major event bidding and hosting.

Successes on the infrastructure front include stadia works in Auckland, Dunedin, Whangarei, Taranaki and Nelson, and road infrastructure projects in Auckland and Dunedin. Transport infrastructure performed very well across the country – despite Auckland suffering major transport problems on opening night as a result of a larger than expected influx of people at the city’s waterfront.

Annual and on-going events

Annual events held in Auckland include:

 ASB Classic & Heineken Open - international men’s and women’s tennis at Stanley St Tennis Centre in Auckland  Auckland Anniversary Day Harbour Festival - a celebration of the ‘City of Sails’ its anniversary, history, cultures, people and the unique harbour  Russell Boating Club Tall Ships Race - an annual event for tall ships and classic yachts, visual spectacle for onlookers  'Round the Bays' Run - thousands of athletes set of on a fun run staged for Aucklanders around Tamaki Drive and Mission Bay  Auckland Cup Week – a week long horse racing carnival at Ellerslie featuring the prestigious Auckland Cup  Coastal Classic Yacht Race - the Lindauer Coastal Classic - an annual yacht race that departs Auckland for Russell in a race up the eastern coast to the Bay of Islands  NZ Golf Open - the country's premier golf tournament.

Major sports marketing and consultancy opportunities

Over the next few years, New Zealand is the co-host of the ICC Cricket World Cup 2015 (with Australia), the FIFA Under-20 World Cup 2015, the World Bowling Championships 2016, Rugby League World Cup 2017 (with Australia) and the World Masters Games 2017. The latter event is expected to contribute GBP29.6m to New Zealand’s economy and GBP20.4m to host city Auckland’s local economy. The return on regional investment for this event is estimated to be 226%, a greater return than on any other major event held in Auckland.

Bidding opportunities

At the 2011 IRB Rugby World Cup, International Olympic Committee president Jacques Rogge tipped New Zealand as a future Olympic Games host, referring to the fact that Finland organised a Summer Olympic Games in Helsinki in 1952 with a population of 5m and Norway (with the same population as New Zealand) hosted the Winter Olympic Games in Lillehammer in 1994.

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Venues under construction

At the time of writing, venues are yet to be selected for the ICC Cricket World Cup 2015.

The Blake Park Cricket oval in Mount Maunganui which is widely regarded as one of the best cricket grounds in New Zealand requires GBP1.43m to upgrade the stadium.

Lighting facilities, an electronic scoreboard and new broadcast centre are all required to bring the facilities up to world class standards. Lighting is essential because night games can be televised to northern hemisphere audiences like India.

For the 2017 Rugby League World Cup, the participating nations will possibly be split up into 4 groups of 4: 2 groups will play in New Zealand while the other 2 groups play in Australia for the tournament.

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Appendix 2.25: Research methodology

Background

The analysis used in this Report focuses on opportunities for UK sports marketing and consultancy firms for getting new business from one-off major sports events outside of the UK that are held between 2012 and 2022. Annual sports events that are already established in a city or country such as the English Premier League, F1, grand slam tennis and major golf tournaments have been excluded from consideration because these and other annual sports events are more likely to already have long-term supplier relationships in place, although ad hoc new business opportunities may arise from time to time.

The best opportunities for new business for the UK sector are major, one-off sports events such as the Winter Olympic and Paralympic Games 2014 in Sochi, Russia; the Summer Olympic and Paralympic Games 2016 in Rio, Brazil; the FIFA World Cup 2014 in Brazil and Qatar in 2022.

In this regard, Central, Eastern and Southern Europe markets, like Turkey, are growing in importance given the ambition of that country to claim its seat at the top table of global sports and to make its presence felt on the global stage. Where significant new sports venues are planned or are to be renovated, details have also been included in the country overviews in the Appendices to this Report that can inform business development planning.

Outline methodology for selecting sports events to analyse

The Report analysed the top 55 one-off major global sports events taking place over the next decade that provide incremental new business opportunities for the UK sector.

Each opportunity was evaluated using a proprietary tier-based system developed by Rachael Church- Sanders and applied in the SportBusiness Ultimate Sports Cities Reports series, the leading work in this area. There are 2 inputs to this evaluation process:  the number of major sports events within a particular geographic Region ranked by importance; and  the countries that offer the greatest new business potential based on the value of operational and infrastructure budgets and the likely spend on sports marketing and consultancy services over the next decade and beyond.

Based on this evaluation process, the Olympic Games and the FIFA World Cup are the top-scoring one-off sports events globally, scoring 5 points each. The next tier below this are the Winter Olympic Games and UEFA European Football Championships with 4 points and so on (see table). These events are estimated to comprise 70% of all budgets globally that are allocated to hosting one-off sports events.

In terms of deciding which events are awarded higher points than others (for example the difference between 1-5 points) a number of factors are taken into account:

 global reach  value of organising committee budgets  sponsorship and TV rights fees  status of sports event  size/scale of the sports event.

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Sport Competition Points awarded Aquatics FINA World Championships (25m) 1 Aquatics FINA World Championships 2 Archery Outdoor Archery World Championships 1 Athletics IAAF World Championships in Athletics (Outdoor) 3 Athletics IAAF World Championships in Athletics (Indoor) 2 Athletics European Athletics Championships 1 Athletics European Athletics Indoor Championships 1 Basketball FIBA World Championship 3 Cricket ICC Cricket World Cup 3 Cricket ICC World Twenty20 3 Cricket Women's Cricket World Cup 2 Cycling UCI Road World Championships 1 Cycling UCI Track World Championships 1 Equestrian FEI World Equestrian Games 1 Golf Ryder Cup 1 Gymnastics FIG Artistic Gymnastics World Championships 1 Gymnastics FIG World Championships in Rhythmic Gymnastics 1 Ice Hockey IIHF World Hockey Championships 2 Modern Pentathlon World Modern Pentathlon Championships 1 Multi-sports All Africa Games 1 Multi-sports Asian Games 1 Multi-sports South East Asian Games 1 Multi-sports Commonwealth Games 3 Multi-sports Asian Winter Games 1 Multi-sports Gay Games 1 Multi-sports World Firefighter Games 1 Multi-sports Summer Olympic Games 5 Multi-sports Mediterranean Games 1 Multi-sports Military World Games 1 Multi-sports Pan American Games 1 Multi-sports Winter Olympic Games 4 Multi-sports Special Olympics World Games Summer 1 Multi-sports Special Olympics World Games Winter 1 Multi-sports World Masters Games 1 Multi-sports Youth Winter Olympic Games 2 Multi-sports Youth Summer Olympic Games 2 Rowing World Rowing Championships 1 Rugby IRB Rugby World Cup 3 Rugby League Rugby League World Cup 2 Skating ISU European Figure Skating Championships 1

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Skating ISU World Figure Skating Championships 1 Skiing FIS Alpine World Ski Championships 1 Soccer FIFA World Cup and Confederations Cup 5 Soccer African Cup of Nations 1 Soccer UEFA European Championship 4 Soccer FIFA Women's World Cup 2 Sport for the Deaf Deaflympics 1 Squash World Open Squash Championships 1 Table Tennis World Table Tennis Championships 1 Triathlon ITU Triathlon World Championship Series 1 University Sports Universiade - Summer 1 University Sports Universiade - Winter 1 Volleyball Volleyball Men's World Championship Finals 1 Volleyball Volleyball Women's World Championship Finals 1 Water skiing World Championship 1

Points were also awarded to bidding cities in this analysis, indicating that there are opportunities related to those bids for UK sports marketing and consultancy firms. If the cities or countries are successful in winning their bids, the UK sector is likely to have strong new business opportunities in securing future work across all areas of these events.

The points were totalled for each event by country and by region in order to arrive at a view as to which countries and regions offer the most potential for UK sports marketing and consulting firms in terms of importance of events.

Outline methodology for valuing contracts and assumptions

Analysing the budgets of the major sports events globally is problematic in that not all the hosting cities and countries are transparent with their budgets. Some do make details known but there are many instances where they do not separate operational budgets from infrastructure budgets.

Where details of contract valuations are in the public domain, they have been included in the spread sheet. Where they are not known, estimations have been made using budgets of related events in terms of size and importance or based on the costs of the same event being held in a different year where the budget is known.

However, using this method has to incorporate the assumption that all host cities or countries spend the same amount on an event as the host of the same event in a different year when in fact all cities and countries have different levels of infrastructure in place already. The estimated figures therefore can only be used as a guide.

The details of specific contracts relating to marketing or consultancy are not always divulged publicly and tenders vary from event to event so assumptions have been made based on information provided anecdotally by industry sources based in securing contracts of this nature.

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The main assumption for valuing the share of major event operational budgets spent on sports marketing and consulting services is that 30% of budgets are spent on these areas. This figure of 30% has been applied across the board, but for some events it will be higher and for some it will be lower based on the experience of the host nation or city.

The main assumption for valuing the share of major event infrastructure budgets spent on sports marketing and consulting services is that 10% of budgets are spent on these areas. This figure of 10% has been applied across the board, but for some events it will be higher and for some it will be lower based on the experience of the host nation or city.

The valuations are based on events that have known hosts to date for the period 2013-22. As 2022 approaches, more host cities and countries will be announced, so these valuations are not exhaustive but based on opportunities to date.

It should also be noted that for global sports events taking place in 2013 and 2014 in particular, contracts may have already been taken and opportunities for new business may be limited.

Opportunities also exist for UK sports marketing and consulting firms to work directly with host cities of annual events and bidding cities. These deals tend not to be in the public domain, but industry sources indicate that sports marketing firms can earn GBP 5000 per day for experienced consultants working on a major sports host city contract or bidding city contract down to GBP500 per day for less experienced/admin staff. As some contracts can be in place for around five years, this can add up to a considerable sum.

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