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Report on the Major Event Commission to Finance Scrutiny

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Report on the Major Event Commission to Finance Scrutiny Manchester City Council Item10 Finance Scrutiny Committee 18 October 2012 Manchester City Council Report for Information Report To: Finance Scrutiny Committee – 18 October 2012 Subject: Major Event Commission – MTV Crashes Manchester Report Of: The Chief Executive Summary Finance Scrutiny have requested a report on the financial support provided by the City Council for the MTV Crashes Manchester event - including information on the contracts, sponsorship and funding support provided, a breakdown of the expenditure by the Council, and the source of the funds used to support this event. This matter was referred to the Finance Scrutiny Committee by the Council at its meeting on 10 October 2012. Recommendations 1) Members are asked to note the contents of this report 2) A further report is bought back to Finance Scrutiny Committee when a full evaluation has been completed. Wards Affected: City Centre Contact Officers: Name: Sir Howard Bernstein Position: Chief Executive Telephone: 0161 234 3006 E-mail: [email protected] Name: Richard Paver Position: Treasurer Telephone: 0161 234 3564 E-mail: [email protected] Name: Sara Tomkins Position: Assistant Chief Executive, Communications, Customer & ICT Telephone: 0161 234 3706 E-mail: [email protected] Name: Mike Parrott 9 Manchester City Council Item10 Finance Scrutiny Committee 18 October 2012 Position: Head of Events Telephone: 0161 234 3706 E-mail: [email protected] Background documents (available for public inspection): The following documents disclose important facts on which the report is based and have been relied upon in preparing the report. Copies of the background documents are available up to 4 years after the date of the meeting. If you would like a copy please contact one of the contact officers above. Revenue Outturn Report - June 2012, Executive Christmas Performance – January, 2012 Executive 10 Manchester City Council Item10 Finance Scrutiny Committee 18 October 2012 1.0 Introduction 1.1 The City Council’s event strategy is geared primarily to capture the maximum economic benefits for the city and to enhance its global reputation although many events are also designed to celebrate the diversity of the city, secure the active participation of residents and capture other benefits such as community cohesion, skill development and promote volunteering, individual and collective self-esteem. 1.2 The established Calendar of Events include: Community Events such as St George’s Day, Chinese New Year, Mela’s and carnivals Intermediate Events – Manchester Day that attracted 50,000 spectators, £770k in direct economic impact, a 51% uplift in footfall and 150 news articles equating to a media value of £1.1m as well as supporting community cohesion and celebrating pride in Manchester Signature Events e.g. Jazz and Literature Festivals and the Christmas Festive Programme which reported to Executive in January 2012 with markets and events attracting more people (1.5m visitors) with a higher average basket spend achieving a total gross impact of £74.31m and an overall media campaign worth £1.2m and £2m worth of PR value Considerable effort is expended to attract large scale commercial events of national and international value that are either at no direct cost to the City Council (e.g. the 2011 Vodafone Formula 1 demonstration event) or generate significant income opportunities (e.g. Major Concerts at Heaton Park). 1.3 The Council is also responsive to ‘one off’ activity that is appropriate for the City with recent examples being Football Parades, the Diamond Jubilee, Royal Visits or Olympic activity. 1.4 Finally, there is what is usually described as Major Event Commissions which require the City to bid to host an event which because of its scale means that significant financial support is normally required. This report is focused on Major Event Commissions and details how we assess and prioritise applications to the City, and determine funding and delivery. This has particular relevance to the recent MTV event. 1.5 In 2011/12 over 600,000 people attended events funded or part-funded and organised by the Council’s Events Unit. These events contributed over £17m to the local economy with each £1 invested in events generating £3.72 in economic impact. These events also gave 6,975 hours of volunteering opportunities to the residents of Manchester. 2011/12 Event Summary MCC Investment (Apr – March): £0.881m External Funding Leveraged (Apr- March): £3.674m Economic Impact (Apr – March): £16.953m (est) Volunteer Hours (Apr – March): 6,975hrs 11 Manchester City Council Item10 Finance Scrutiny Committee 18 October 2012 Each £1 spent invested in Events leveraged £4.17 For every £1 Manchester City Council and its partners invest delivers a return of £3.72 For every £1 the Council invests delivers £19.24 as a return into the economy Major Event Commissions 1.6 Major Event Commissions are the result of identified opportunities or approaches made to the city which provide additional opportunities to expand the existing portfolio of events incorporated into the City Council’s Business Planning and funding process – and require the City Council to express an interest in bidding for (or working in partnership with an external agency/ governing body or event promoter) to develop, promote and deliver. 1.7 A clear assessment criteria and evaluation determines which Event opportunities are progressed. These relate to the priorities of the Council generally, and in particular what economic outcomes they are expected to deliver, what contribution the event will make to Manchester's international and national profile, and whether the event will enhance the cultural offer of the city for residents and will attract visitors. The assessment weights economic impacts more heavily than any other criteria. Appendix A shows how the MTV event was evaluated to demonstrate the best economic return and value for money. 1.8 The changing funding environment has resulted in Major Events seeking alternative funding support. Previously, Major Events were supported and funded by the City Council in partnership with commercial event partners or regional bodies such as the North West Development Agency (NWDA). The NWDA investment to support major events in Manchester between 2007 and 2009 averaged £1.097m per annum via their Major Events budget. This funding is no longer available. 1.9 Withdrawal of the NWDA funding has resulted in Marketing Manchester and the Council becoming the only point of approach for major events in Manchester; this has underlined the importance of exploring wherever appropriate other Council mainstream budgets, such as the Economic Regeneration Fund (ERF), to secure event delivery and maximising economic outcomes. The Subvention Fund managed by Marketing Manchester is also considered although there are at present restrictions for using this fund as it is primarily for conference/convention projects only. 1.10 Appendix A highlights three Major Event Commissions which were evaluated for 2012/13 against the defined criteria. 12 Manchester City Council Item10 Finance Scrutiny Committee 18 October 2012 2.0 Major Event Commission – MTV Crashes and MTV European Music Awards Project Development 2.1 Manchester City Council has been discussing opportunities with MTV since August 2010 when MTV Networks Europe (MTVNE) approached Manchester to develop a partnership for the delivery and development of two priority televised global events – MTV Crashes and the MTV European Music Awards (EMAs). From the Council’s position the events have been viewed as a package with one a precursor of the other. The full sequence of activity can be reviewed in Appendix B. 2.2 The MTV Crashes event model delivers a special-staged, for TV concert attracting a ‘Triple A’ global performer to Manchester and a 30-minute Surround Show programme showcasing Manchester, its musical heritage and current vibrant music scene to attract tourists and visitors that drive economic value. The broadcast, as part of MTV’s global Friday night live will air in 161 countries across the globe – available to up to 640 million households. In addition, the live recording generates an unique opportunity for residents and fans to see an exclusive performance in their city and unprecedented worldwide media coverage for the city. Previously hosted in Glasgow in 2010 – the event delivered a media value (Press, TV Online, social networks and partnership coverage) in excess of £6.6m. 2.3 Ongoing discussion with MTV resulted in a briefing note presented to the Executive Member for Culture and the Leader of the Council in August 2011 outlining the scope of the potential MTV Crashes project in conjunction with the MTV European Music Awards (EMAs) and requesting authorisation to continue to advance discussions. 2.4 In November 2011 the MTV Crashes and EMA’s was assessed in line with the Major Events Commission Framework and scored 94 out of the maximum 100 (appendix C). An outline funding model was identified based on existing budget resources plus ERF and the detailed business planning processes commenced. 2.5 In December 2011 an ERF Expression Of Interest for MTV Crashes Manchester was submitted that identified the proposed event model to be developed with MTVNE and the host city funding requirement (£425k – comprising of £250k ERF, £125k Events Budget 2011 (from additional Wheel Income) and £50k Events Budget 2012. 2.6 In January 2012 the initial ERF Application for the MTV Crashes and EMA event was submitted.
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