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

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 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.

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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. – however this was not advanced for draw down following discussion with MTV delaying the event until September 2012 to maximise the opportunities from the event.

2.7 The ERF application was revised and resubmitted in July 2012 (Appendix C)

2.8 In return for the level of investment on the MTV Crashes event the following components would be delivered:

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 MTV Crashes Manchester Surround Show - 22 minute show that promotes the city, musical history, legacy, aspirations & talent endorsements  AAA talent – MTV to source and manage world stage talent  MTV Crashes - 44 minute UK and Europe show of the live event performance  MTV World Stage – global broadcast of the live event performance  Full MTV Crashes Manchester Event Production  Management of the Ticket Mechanic  MTV Crashes Manchester Creative - MTV creation of a 360 style guide for the event and on-air promotion using iconic imagery of the city  On-Air Promotion - 30 second spots across 9 channels to promote tickets to the event  PR Campaign - Consumer & Corporate  Marketing - Bespoke partnerships, media and competitions to expand the promotion of Manchester’s key messages

2.9 The partnership with MTV to deliver MTV Crashes has been projected to deliver the following target economic values: £2m MTV event delivery value £8m media value

For clarification, the event delivery value incorporates the following assigned values based on commercial sponsorship costs for the MTV broadcast and event production elements: MTV UK/Europe Promotional Airtime £250k MTV Film and Event Production £200k MTV Surround Show £80k MTV World Stage Broadcast £1.5m £2.03m

2.10 An additional £1m direct economic impact was forecast subject to artist confirmation and the installation of an outdoor screen event.

2.11 The EMA’s (in line with the initial published findings from the Belfast MTV EMA’s 2011 evaluation) was projected to deliver £10m+ direct economic impact and realise over £130m of media value (AVE). Therefore the combination of MTV events were projected deliver an overall estimated economic impact of £11.6m and a media package value worth in excess of £140m (AVE).

2.12 In August Heads of Terms with MTV were signed for the event. The contract detailed the £425,000 “fee” and the package commitment MTV was obliged to provide to Manchester and the schedule of payments - £125k on signature of heads of terms, £150k on confirmation of artist and £150k seven days prior to the event.

2.13 The City is still in active dialogue with MTV regarding the European Music Awards in Manchester and any proposals will be bought forward for determination in accordance with present agreements. It will not be possible to report a final post event evaluation until some time after the broadcast has taken

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place.

3.0 MTV Crashes Manchester – 2012 Event Delivery

3.1 In line with a recommendation from MTV to postpone the recording until September 2012 – to maximise the potential to attract a major high value artist with worldwide broadcast appeal – the City Council funding package was incorporated into the Communications Business Planning process with £125k carry forward on the Events Budget and a resubmission to ERF in July 2012. The Council’s June Executive in it’s appendix 1 detailed the carry forward as part of the Revenue Outturn Report – here’s the extract from that report,

CEX – MTV crashes – Special Events project £125,000 This income has come from the Manchester wheel in 2011/12 and was to have been allocated to as a direct payment to MTV to facilitate the project development. The project will now be delivered in Sept 2012 and this payment made in April 2012. Delivering this event will put Manchester in a positive position to secure the European Music Awards in 2014.

3.2 In August 2012, MTV confirmed that they had secured interest from Alicia Keys to perform at the MTV Crashes Manchester recording – and that Manchester Cathedral was to be the host venue on Monday 24th September with a capacity of 1,000.

3.3 MTV created a free ticket mechanic for the recording based on the following allocation: 750 General public via media run competitions on the MTV website, Manchester Evening News, Key 103 and Manchester Confidential. 250 MTV guests and media

3.4 In addition to the 1,000 attendees at the venue, over 200 people were employed in roles to support the production and delivery of the event. An outdoor screen was provided so the live concert could be broadcast in Cathedral Gardens to non-ticket holders however, this was severely impacted by the poor weather.

3.5 The first stage of the MTV Crashes project was successfully delivered and the performance recorded. The next stages incorporate:  The production and broadcast of the MTV Crashes Manchester Surround Show (w/c 22nd October date tbc)  The MTVNE premier broadcast of MTV Crashes Manchester on Sunday 28th October  The MTV World Stage broadcast of MTV Crashes Manchester (transmission date to be finalised by MTV NE).  Post broadcast media evaluation

3.6 Given the profile of the event and the artist it is anticipated that the MTV Crashes Manchester programme will be broadcast in excess of 20 times across the MTV channel platforms.

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3.7 It is too early for full economic and media evaluation. However, the proactive PR was focussed on promoting the event and to date has achieved over 100 positive pieces of coverage across local, national and international media channels with an estimated value of £395k but significant further coverage is expected particularly in magazine reviews and broadcasts via MTV. There have been 18 articles on the cost of the event, mostly local.

4.0 Conclusion

4.1 The Major Event Commission is wholly consistent with the Council's approved policy to deliver major economic outcomes and global enhancement of the City's reputation. The MTV Crashes event and the EMA’s had a combined projected economic impact of £11.6m and a overall media package value worth in excess of £140m (AVE).

4.2 The resources deployed on behalf of the Council to deliver the MTV Crashes Event were based on an established cost and benefit analysis; and the analysis which was undertaken of the event demonstrated it to be good value in accordance with this criteria.

4.3 The funding comprised of additional Wheel income £125k that was earmarked to support a Major Event Commission and carried forward from the Events budget 2011/12 as highlighted in June’s Executive Report, £250k allocated from ERF and £50k from the Event’s Development Budget.

4.4 All proper processes involving finance regulations, assessment, budgeting and planning have been fully adhered to.

4.5 If the Scrutiny Committee wishes to receive the future report on the actual economic and media impact of the event it is recommended that this is presented when a more detailed evaluation can be completed following the completion of future work that is now underway.

16 Manchester City Council Appendix A – Item10 Finance Scrutiny Committee 18 October 2012

Appendix A – Major Events Commission Strategy Document (August 2011)

Briefing Note: Major Event Commissions – 2012 – 2013 Sent To: Sir Richard Leese, Cllr Amesbury From: Sara Tomkins Mike Parrott

Purpose i) To outline a Major Event Commissions strategy and process that will enable the City Council to forward plan investment in line with ambition and market opportunities.

ii) To establish assessment model to standardise evaluation of major event applications / proposals – to inform political and senior management decision making.

1. Background.

Outside of the established City Council Calendar Events Programme for Culture and Sports, whilst a significant level of change has been undertaken to attract large scale commercial events of national and international value that are either at no direct cost to the City Council (eg the Vodafone F1 demonstration event) or generate significant income opportunities to support business planning (eg Major Concerts at Heaton Park), there remains a strand of Major Event Commissions that require the City to bid to host and whose scale means that significant financial underpinning is more often than not required.

If it remains the ambition of the City Council to attract such events, a clear strategy and appraisal process has to be implemented so that finances can be identified going forward and clarity is brought to the marketplace.

2. Major Event Commissioning

Major Event Commissions are the result of identified opportunities or ad-hoc approaches that are out with of the existing portfolio of events incorporated into the City Council’s Business Planning process and existing departmental mainstream budget management systems – 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 and deliver.

The key characteristics of Major Event Commissions:  Not unique – Manchester the identified host  Have an existing track record of delivery  Deliver significant International and national profile  Generate significant Direct Economic impact to the City Region  Enhance the sense of connection to place.  Define key elements of the City’s cultural make up and serve to inspire and enhance the quality of life  Require public sector finance to secure and deliver – not commercially sustainable.

The City Council and Marketing Manchester are the primary recipients of such

17 Manchester City Council Appendix A – Item10 Finance Scrutiny Committee 18 October 2012 approaches and are working together to standardise how such requests are assessed so that a strategic and equitable evaluation can be made and support targeted at projects that the City wishes to develop.

As a general rule, commissioned Major Events have previously been pump-primed by the City Council and funded in partnership with commercial event partners and national bodies with significant financial support from the North West Development Agency.

The changing economic and regional investment environment has removed significant funding channels from the process. The NWDA investment to support major events in Manchester between 2007 and 2009 – prior to notification that they were to be disestablished – averaged £1.097m per annum via their Major Events budget, and at present there is no alternative source for such support funding.

NWDA Major Events Investment - Manchester 2007/8 £979k 2008/9 £824k 2009/10 £1.49m 2010/11 £400k (capped following notification of disestablishment)

The City Council - in the short term at least – is thus identified as the primary point of approach and the primary source of support funding for major event approaches to Manchester. Whilst it is anticipated that in the future a level of visitor generation or economic regeneration funding from regional or national sources could become available – the reality is that reliance on accessing such funds presents a risk at this stage for forward planning.

Whilst it is anticipated that the City Council retains an appetite to attract high profile and high return major events to Manchester – it is also appreciated that there is limited scope for the allocation of increasingly stretched designated investment funds or contingencies.

As such, to enable the City Council to be able to capitalise on opportunities in 2012 and 2013 that deliver fit with political and corporate priorities, maximise economic benefits and deliver against the City’s positioning and profile agenda – without putting unrealistic pressure on stretched financial resources – a standardised assessment process has been utilised to provide support information to aid the decision making process and identify additional asks against major events.

In order to facilitate any required funding for Major Event Commissions – it is identified that at present the realistic sources are: - ERF - Allocation of % of existing City Council Events mainstream budget (on the assumption that the full Wheel income is achieved generating £100k potential funds) - Allocation of a % of existing Subvention fund (with a caveat around restrictions on use to support primarily conference/convention projects only) - Assignment of % of commercial events income (assuming this exceeds the

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income stretch in the budget which at present it is on track to deliver to budget and not exceed)

3. Major Event Opportunities - Assessment Criteria a) Puts Manchester on the Global Map. Any major event opportunities must first be assessed to be in line with the political priorities identified for the Executive Member for Arts and Leisure to deliver the overarching ambition of World Class Culture, World Class Sport, World Class Manchester and specifically to: - continue to build upon the success of the Manchester International Festival, World of Sport and the City Games and attract other national and international sporting and cultural events in the City to maintain world-class status - make sure that we continue to support the cultural economy – the music scene including Manchester’s musical heritage, the Northern Quarter, new media & creative industries in the City. b) The strategic value of the Council realising the ambition to host the event and investing in the activity must also be identified so that Commissioned Major Events are prioritised to support the strategic objectives of the Manchester Community Strategy and the corporate objectives of the Council. c) Adds and doesn’t detract from existing events offer. The core premise of a Commissioned Major Event has to be that it cannot be delivered as a commercially viable activity – i.e. without Host City / Public Sector funding there is no market rationale for it to exist. In addition, to benefit the Host City, it has to in effect be an event that ‘money can’t buy’ and/or an event that does not compete with other commercial activity in the marketplace or sector. - Justification for Host City / Public Sector investment - Level of investment required and ROI - Potential for leverage from commercial and public sector funding streams - Potential to spread investment over more than one financial year d) And finally the event must support the growth priority for the city. The commission of national/international calibre major events has been identified and proven to provide significant incremental benefit to the city, generally in terms of immediate economic benefit through jobs, overnight stays, spectators or participants spend, or longer term economic impact through media exposure for the city.

As such, key criteria for assessment must include: - visitor numbers, origin and associated spend and economic impact - value and reach of television and media coverage - opportunity for impact on city region business supply chain

In addition, the following criteria will be incorporated into the assessment: - Status, capability and track record of the event delivery partner - Potential to act as catalyst to attract other major events activities - Added benefits – wider engagement opportunities - Risk mitigation – financial stability of organiser, reputational risk to the City

The identified assessment criteria have been incorporated into the attached draft

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Major Event Commission Assessment (Appendix 1) – which would be the first stage of assessment prior to submission for consideration of funding support. On the completion of the assessment, the ‘scorecard’ will provide an indicative position as to the ‘value’ of the event to the City – and along with the assessment template will facilitate strategic level discussion as to whether the City Council wishes to engage financially with the event organiser to deliver.

Scorecard Value: 75 + High value event that delivers strongly against all key criteria and would deliver significant benefits to the city. Would be recommended for support as per identified model subject to available finance. 50 - 74 Robust event model – with a number of areas of weakness identified. If strategic level support in place – discussion to be facilitated to identify if the weak areas of the proposal can be strengthened or model of engagement with the City Council redefined. 20 – 49 Significant weakness in event model proposed. Event organisers to be advised of shortcomings and initial application for support to be rejected. < 20 Does not meet key criteria and organisers to be advised that the event will not be taken forward by the City Council,

4. Opportunities – 2012 /13

Subject to member instruction, it is envisaged that the core calendar of events will be retained at a standstill level of investment. The Event Unit manages the investment of £1.31m (including a £187k commercial income target) to create a portfolio of 20 cultural and community festivals, events and projects ranging from neighbourhood and city region impact events such as the Mela, Caribbean Carnival and Chinese New Year, to major projects such as the city centre Festive Lighting scheme, Manchester Day and Political Party Conferences.

Marketing Manchester have a business sector support programme that includes the Soccerex, the Labour Party Conference and a number of high profile conferences and conventions. It is anticipated that all existing Subvention funding will be allocated to deliver the 2012 programme and the majority of the 2013 programme.

The identified Major Events that could at present be added to this portfolio of events in 2012 and 2013 are as follows: o Option A - MTV Crashes (May 2012) + MTV European Music Awards (Nov 2013/2014) o Option B - redacted o Option C - redacted

Utilising the Major Event Commission Framework, the three events have been individually assessed against the strength of their offer against the identified criteria.

The assessment creates a scorecard that provides an initial indicator of the project viability – providing a robust and uniform analysis of the strength of the offer, which in turn serves to inform the strategic decision making process that will identify which – if any – would be supported to be developed if the required level of finance can be

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(Nb:The final assessment scorecard for MTV is contained in Appendix C – ERF Application)

- Option 1 - MTV Crashes + MTV EMA’s (Scorecard Value - 94/100) ERF Requirement: 2011 Q4 – £125k 2012 Q1 – £150k 2013 0r 2014 – circa £800k* (subject to negotiation) * Please reference change in later document Appendix C. Key Stats: Attendees: 28,500 Bednights: 15,000 TV Audience: 500m + Economic Impact:£10.6m Media Value: £45.6m

- Option 2 (Scorecard Value – 68/100) ERF Requirement: 2012 – £1.35m Key Stats: Participants: 2,000 Attendees: 28,000 Bednights: 28,000 Media coverage: Worldwide Economic Impact:£12.9m Media Value: unknown

- Option 3 (Scorecard Value - 58/100) ERF Requirement: 2012 – £250k Key Stats: Attendees: 8,000 Bednights: 1,000 TV Audience: 5m (BBC) Economic Impact: £2m Media Value: £6m

In addition a number of event approaches are in the proposal development stage – and will be brought back for consideration once a viable model and level of investment required has been confirmed.

o City/Urban Royal Horticultural Show (RHS) following Chelsea o Fashion Event 2012 following London Fashion Week o Hyundai/Kia Fan Park – UEFA Euro’s 2012 o Dance World Cup (2013)

5. Recommendation

21 Manchester City Council Appendix A – Item10 Finance Scrutiny Committee 18 October 2012 i) That the standardised model and process of assessment is confirmed as appropriate. ii) Feedback is sought on the information provided on the level of support for the development and financing of the assessed major projects:

- MTV Crashes and MTV EMA’s – Recommended to be advanced if finance available. High value, world class event, strong economic return- overnight stays, spectators and participant spend, global profile and longer term economic impact through media exposure for the city.

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Appendix One: Major Event Commission Assessment Template

Event Title Date

Major Event Commission – Assessment Event: Score 5 - Strong 3 - Good 1 - Average 0 - Weak Lead Partner / Global National Regional Local Organiser Organisation Organisation Organisation Organisation (5) (3) (1) (0) Rationale + Excellent Good Average Weak Strategic Fit (15) (9) (3) (0) (weighting x 3)

Financial < £50k £50k – £500k - £1m >£1m Requirement – (5) £500k (1) (0) per annum (3)

Financial £1m £500k - £1m £50k – < £50k Leverage (5) (3) £500k (0) (1) Participants + 10,000 5,000 – 1,000 – <1,000 / Attendees (5) 9,999 4,999 (0) (3) (1) Visitors – + 5,000 1,000 – 100 – 999 < 100 Overnight (5) 4,999 (1) (0) (3) Visitors - Day + 5,000 1,000 – 100 – 999 < 100 (5) 4,999 (1) (0) (3) Total Bed nights + 10,000 5,000 – 1,000 – < 1,000 (5) 9,999 (3) 4,999 (1) (0)

Economic > 1:10 1:5 – 1:9 1:2 – 1:4 < 1:1 Impact (20) (12) (4) (0) (weighting x 4)

Media Reach Global European National City Region (weighting x 2) (10) (6) (2) (0)

Media Value £10m £1m – < £1m < £100k (weighting x 2) (10) £9.9m (2) (0) (6) Additional Excellent Good Average Weak Impacts (5) (3) (1) (0)

Risk Factors Acceptable Low Medium High

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(5) (3) (1) (0)

100 60 20 0 Max Available 100 PROJECT TOTAL

Partnership Organiser / Lead Partner Status and Track Record of the lead Event Partner Other partners Partnership Rating Weak / Average / Good / Strong

Event Overview Event Synopsis

Event Partner Event Value Event Overview Rating Weak / Average / Good / Strong

Rationale and Strategic Fit How will the event help to deliver the City Council’s Political and Strategic objectives What other strategic objectives will the event contribute towards? Why is public sector funding justified for this event? Would the event happen without MCC support? Event Calendar Fit - Does the event compete with other similar events or other events taking place in same period? (recognition of events taking place in key times of year – when city is less busy (e.g. Summer) Rationale Rating Weak / Average / Good / Strong

Evidence Base Is there a track record of previous delivery of the event model or similar? Previous event information.

Evidence Rating Weak / Average / Good / Strong

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Finance Total cost of the event (£) – Event Delivery Value Public sector funding (£) Private sector / commercial funding (£) Ticket / other income (£) Proposed MCC contribution (£) (incl. annual breakdown of funding) ‘Robustness’ of budget MCC £ as a percentage of total cost (%) Leverage - To what extent is MCC funding the catalyst for other funding streams? Financial Rating Weak / Average / Good / Strong

Economic Impact Total visitors (day / overnight) and profile (participants/visitors/ demographic/ origin) Visitors from outside the city (day / overnight) Number of bed nights Total visitor spend (£) Spend by visitors from outside the region (£) Spend by event organiser in local economy. (£) Return On Investment: Economic Impact Rating Weak / Average /Good / Strong

Television & Media Coverage Scale and reach of the media profile which will be generated – television, print, online coverage- Media Value Media Coverage Rating Weak / Average / Good / Strong

Additional Impacts What other qualitative outcomes can be expected (e.g. sporting, cultural, social, environmental)? To what extent will the event impact on the supply chain within the city region? What Strategic Added Value might result, e.g. - Buy in from local stakeholders

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- Prospect of catalysing partnerships - Prospect of future events Additional Impacts rating Weak / Average / Good / Strong

Risk Factors: Are there any potential negative impacts (e.g. environment, equality)? If yes, what plans in place to mitigate these impacts? Any significant reputational risks to the City Council ? Does the event organiser have the relevant capability to deliver the event to the required standard? If a bid, is the City confident of a high quality submission with a good chance of success? Risk Rating High / Medium / Low / Acceptable

Recommendations Recommendations and comments Signed: Date: Head of Events

Endorsement and/or comments Signed: Date: Director of Communications

26 Manchester City Council Appendix B – Item10 Finance Scrutiny Committee 18 October 2012

APPENDIX B – MTV CRASHES AND EMA’S TIMELINE OF ACTIVITY.

Sequence of decision making and funding process

21st Jul 2010 Initial meeting with MTV Networks Europe following approach made to Marketing Manchester and MCC Events Unit. Outline provided of live event broadcast opportunities that MTV were looking to develop with host city partners in the UK – MTV Crashes and MTV European Music Awards. Glasgow (MTV Crashes Glasgow with Diddy Dirty Money) and Belfast (MTV Presents – Mark Ronson) were current city partnerships in development for Autumn 2010.

Sept-Oct 2010 First briefing note developed outlining potential MTV events collaboration subject to City Council support and funding. Identifies core funding requirement and authorisation to continue to discuss and develop without any financial commitment.

14 Feb 2011 Margaret Stephenson, the then Head of Events sent an email with a proposal to Sara Tomkins, the Director of Communications.

March 2011 Major Events Assessment framework developed with Marketing Manchester to enable assessment of approaches made to the city that are out with existing base of Events Funding – including MTV project development.

12 May 2011 Sara Tomkins sends Exec member for Culture the 11/12 events strategy that refers to MTV Crashes and the EMA’s event.

June 29 2011 Events Update Briefing with Exec member for Culture incorporating update on MTV project and process in development to enable a standardised assessment of Major Event opportunities.

1 Aug 2011 Sara Tomkins sent the Leader a brief note regarding MTV due to ERF request.

8 Aug 2011 Similar briefing note to the one discussed with the Leader was shared with the Executive Member for Culture. Briefing notes detailed the strategy, assessment model and criteria, an overview of three events that had been evaluated and their scores (MTV Crashes and EMA's are evaluated together with a score of 94/100). The briefing notes detail costs expectations at that time and the full MTV evaluation with full costings.

7 Sept 2011 Sara Tomkins catch up with the Leader – MTV on agenda

16 Sept 2011 MTV site visit supported by Marketing Manchester and Manchester Central to review options for MTV Crashes and EMA’s. Progress updated to Exec Member for Culture.

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1 Nov 2011 Briefing to Exec Member - Events Matrix 2012/13 inclusion of outline of developments on MTV opportunity - agreement to continue to advance discussions.

18 Nov 2011 Updated briefing note - continued development and incorporation into Business Plan

22 Dec 2011 Expression of Interest submitted for ERF Funding

23 Dec 2011 Confirmation of Approval For Funding from ERF expression of interest (by the Leader)

29 Jan 2012 ERF Application submitted– Confirmation email of offer via ERF on 14th Feb.

Jan 2012 Confirmation from Marketing Manchester that Subvention Funding not available to support Manchester Crashes.

Feb/Mar 2011 On advice from MTV – staging of MTV Crashes Manchester was agreed to be postponed until September 2012 to enable realisation of a major artist to support the event - thus maximising return. Adjustments incorporated in to Events Unit budget for 2012/13 - £125k carry forward from 2011/12 and £50k assigned from 2012/13. ERF Funding put on hold until 2012/13.

12 June 2012 First meeting with new Executive Member for Culture and Sara Tomkins and Mike Parrott to review upcoming Events with detailed briefing note including MTV Crashes and costs

26 June 2012 June Exec– Revenue Outturn Report - appendix 1. Events carry forward (additional wheel income not budgeted for) shown and highlighted to be used for MTV Event

30 July 2012 Waiver for £425k approved by Chief Executive and the Treasurer on acceptance of Heads of Terms.

31 July 2012 Resubmission of revised and final ERF

6 Aug 2012 Heads of Terms on MTV Crashes Contract signed with support from legal.

15 Aug 2012 Confirmation of approval of ERF Funding

29 Aug 2012 ERF Approval Letter for funding

24 Sept 2012 MTV Crashes Event in Manchester

W/c 21st Oct Surround Show, Manchester – a city united in music aired at 21:30.

28 Oct 2012 MTVNE premier broadcast of the MTV Crashes Manchester event

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7 Dec 2012 (Tbc)MTV World Stage broadcast of MTV Crashes Manchester

Tbc Full Evaluation for MTV Crashes Event including actual number of times MTV Crashes Manchester is aired across the MTV global network and post media evaluation.

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APPENDIX C – ERF Application July 2012

Economic Regeneration Fund Project Proposal 2012/13

Project Title: MTV Crashes ….. Manchester Location/Address of project: Manchester City Centre

Project officer: Mike Parrott - Head Of Events Telephone Number: 800 5242 Length of project (years): One (ERF Funding required Q2 2012/13) (2014 EMA’s project included in application for information)

Sponsoring Department: Communications

Total Project Costs: £425k

ERF Funding requested: 2012/13 Q2 £250k

1. PROJECT DESCRIPTION:

1.1 Which City Council Corporate Objective(s) does the project contribute towards?

Corporate Objectives - Economic Growth and promotion of cultural activities.

To contribute to the development of Manchester as a City of national and international significance, promoting Manchester on the world stage as an attractive and exciting multicultural city to encourage people to live, and settle here, to invest here and to visit.

1.2 Project Description - Identify and describe all key elements.

To deliver the MTV Crashes Manchester project to initiate a partnership with MTV Networks Europe that will create the opportunity to realise a number of global broadcast events that will support Manchester City Council strategic and corporate objectives

MTV Networks Europe are seeking city partnerships for the development and delivery of two priority televised global events in the coming years and have approached Manchester City Council to confirm interest in Manchester being the host to these activities.

The MTV events to be initially developed in Manchester would be: 2012 MTV Crashes Manchester (confirmed) 2014 MTV Europe Music Awards (subject to bid) a) MTV Crashes …… the free live performance in the host city of a ‘Triple A’ Global

30 Manchester City Council Appendix C – Item10 Finance Scrutiny Committee 18 October 2012 music performer which will be broadcast to the UK and Europe across MTV channels and then in 161 countries as part of MTV’s global Friday night live – available to up to 640 million households. Previously hosted in Glasgow in 2010 – the event delivered a media value in excess of £6.6m. The core added-value element outside of the main concert broadcast is a 22 minute Surround Show programme for the host city which is an exploration of the city’s music assets and offer - carried on the MTV platforms. b) MTV EMA’s – the MTV European Music Awards is an iconic branded event that has been hosted by major cities for the past 16 years including Paris, Berlin, Milan, Barcelona, Rome, Copenhagen etc. In 2010 the event was hosted by Madrid and aired live to 214m homes in over 40 countries. Via MTV’s global network of 65 channels, the potential reach through additional highlights broadcast packages is 1.2 billion. Copenhagen in 2006 was estimated to have had a TV viewing audience in excess of 500 million in Europe and the USA. The event was hosted in Belfast in November 2011 and first stage evaluation has revealed an Advertising Value Equivalent of £132m from media coverage from the event across 13 key markets in Europe, the USA, Japan, Argentina and Mexico. Based on Economic Impact reports from Edinburgh (2003) and Copenhagen (2006) and initial media evaluation from Belfast (2011) this investment would secure an event that has a projected direct economic spend impact of £10m and a media value of £132m.

Both events are partnerships between the host city and the broadcaster and their sponsors - with the ambition to maximise benefits to the city region in line with economic growth and positioning and profile agendas. MTV’s global reach provides the ultimate vehicle to engage with young people in a targeted and powerful way through broadcast TV and websites, mobile services and interactive TV platforms.

1.3 What are the Aims and Objectives of the Project? • delivering the City Council's corporate objectives • attracting investment into the City • building Manchester's image as a City of international significance • building a partnership with a global media brand

In line with the Major Event Commissions Strategy, MTV Crashes and MTV EMA’s have been identified to deliver against the key assessment criteria:

MTV Crashes Manchester: a) Puts Manchester on the Global Map. The MTV Crashes event delivers against the political priorities for the Executive Member for Arts and Leisure – with an overarching ambition of World Class Culture, World Class Sport, World Class Manchester and specifically: - MTV Crashes continues to build upon the success of the Manchester International Festival, World of Sport and the City Games and attract other national and international sporting and cultural events in the City to maintain world-class status - supports the cultural economy – specifically the music scene including Manchester’s musical heritage and the new media & creative industries in the City.

31 Manchester City Council Appendix C – Item10 Finance Scrutiny Committee 18 October 2012 b) The strategic value of the Council realising the ambition to host the MTV events and investing in the activity supports the strategic objectives of the Manchester Community Strategy and the corporate objectives of the Council. c) Adds and doesn’t detract from existing events offer. MTV Crashes cannot be delivered as a commercially viable activity – ie without Host City / Public Sector funding there is no market rationale for it to exist. In addition, to benefit the Host City, it has to in effect be an event that ‘money can’t buy’ and/or an event that does not compete with other commercial activity in the marketplace or sector. d) The MTV event supports the growth priority for the city. The commission of national/international calibre major events identifies and provides significant incremental benefit to the city, generally in terms of immediate economic benefit through jobs, overnight stays, spectators or participants spend, or longer term economic impact through media exposure for the city.

The outcomes of the MTV Crashes Manchester project cannot be delivered by any other broadcast partner and the benefits to be realized are unique to the nature of the partnership.

MTV Networks is the largest television network in the world and a leading creator of programming and content across all media platforms. MTV remains one the most potent iconic global youth brands and presents the opportunity for the City of Manchester to engage with a targeted European and global audience to portray the city’s future, its vibrancy, its heritage and contemporary cultural heartbeat through music.

MTV Networks' brands are seen globally in 642 million households in 163 countries and 34 languages via 168 locally programmed and operated TV channels and more than 300 digital media properties. The company's diverse holdings also include interests in television syndication, digital media, publishing, home video, radio, recorded music, licensing & merchandising and two feature film divisions, MTV Films and Nickelodeon Movies. MTV Networks is a unit of Viacom Inc.

In addition to its 56 TV channels globally, MTV has 47 websites, 19 broadband services and 17 mobile TV channels and mobile video-on-demand services, including distribution to most of the world’s video-enabled mobile handsets.

As a partnership, MTV’s global reach, combined with Manchester’s cutting-edge reputation, will ensure the MTV Crashes Manchester event is delivered with great effect to a world-wide audience and that Manchester’s music pedigree and brand values are showcased on the international stage in a way that has not been achieved before.

MTV confirm that delivering the Crashes event in 2012 will position Manchester positively to secure the EMAs in 2014. An initial site visit with the Executive Producer has confirmed that Manchester Central and city centre support venues would be suitable to stage the event – and that MTV are planning to bring the EMA’s to the UK in 2014.

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The partnership between MTV and Belfast commenced with an MTV Crashes event in 2010, and resulted in the city securing the MTV EMA’s in November 2011 and a further major outdoor broadcast event to launch the Titanic Museum in April 2012.

1.4 Describe what the funding actually pays for – e.g. Assets, works, staff, resources, services, training etc.

The ERF funding is allocated to the core funding payment to MTV to secure the broadcast event partnership – MTV is seeking partnership funding of £425k to secure a bespoke MTV Crashes Manchester project for September 2012. The funding would be directed to:

The MTV Crashes Fee Package:  MTV Crashes …. Manchester - 44 minute MTVNE show of the live event performance  The production and management of the live event  The contracting of AAA talent - world stage talent  World Stage – global broadcast of the concert  Broadcast development of the Surround show - 22 minute show that promotes the city, history, legacy, aspirations & talent endorsements  Creative - MTV to create 360 style guide for the event and on-air promotion using iconic imagery of the city in partnership with Marketing Manchester and MCC  On-Air Promotion - 30 second spots across 9 channels to promote the event  PR - Consumer & Corporate campaign in partnership with Marketing Manchester  Marketing - Bespoke partnerships, media and competitions to expand the promotion and Manchester’s key messages

The payment schedule for the fee is as follows: £125k on signature of the Heads of Agreement £150k on confirmation of artist, date and venue £150k on completion of the Long Form Agreement

The MCC funding for the project has been identified from: £175k Communications – existing budget provision £250k ERF Application

Dependent on artist confirmation and production realisation, the event delivery value for the event would be estimated at this stage to be £2m including visitor spend and Media value realised through the event would be estimated to be in the region of £8m.

Total Event Value £10m

1.5 How will the project be managed?

The project is a partnership with MTV Networks Europe and will managed by the MCC Events Unit within Communications with support from Marketing Manchester

33 Manchester City Council Appendix C – Item10 Finance Scrutiny Committee 18 October 2012 and venue management assistance from Manchester Cathedral if confirmed.

1.6 Justification for the Project – Please provide evidence of need/demand and how the project will meet this need/demand.

The attached Major Event Commission Assessment for the MTV projects provides the indicative evidence of the needs /demands and how the project meets those needs / demands – Appendix 1.

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2. PROJECT COSTS

2.1 Quarterly cost breakdown

Current Year Future Years (projects will need to apply each year for funding) Q1 Q2 Q3 Q4 2012/ Total Total Total Total All 2012/ 201 2012/ 2012/1 13 2013/ 2014/ 2015/ Years 13 2/13 13 3 Total 14 15 16 ERF 250 Revenue £250k £ k Costs ERF Capital £ £ Costs Total ERF £ £ Project Costs

Nb: The MTV Crashes event is stage one of a process to develop a partnership with MTV which will secure the MTV EMA’s in 2014. Work is underway with Marketing Manchester and Manchester Central to develop a comprehensive bid for the 2014 EMA’s but provisional estimate would be a £375k City Council funding requirement out of circa £800 (subject to negotiation) project funding target.

2.2 Budget headings - Provide below a cost breakdown of the major elements of the project, e.g. salaries, equipment purchased, payments to contractors.

REVENUE Cost (£) a) MTV Services Package – incorporates as below £350k - AAA Artist costs - Surround Show Costs - Global Broadcast Costs - Event TV and Digital Brand Development costs - Global TV and Digital Marketing Campaign costs - Ticketing Mechanic costs b) Live Show – Event production (managed by MCC) £75k - Show Production (stage, pa, lighting etc) 47.5k - Show Management (Production Mgt, stage mgt, security, First Aid 12.5k etc) - Venue costs (toilets, cabins, etc) 10k - Venue services costs ( on site facilities) 5k

Total £425,000

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2.3 Salary costs – If the project includes salary costs, please provide details: No salary costs

2.4 Other funding – Detail all other funding contributing to the project:

Core Manchester …… Crashes Project: MCC Communications Revenue Allocation 2011/12 - £125k MCC Events Unit Revenue Allocation 2012/13 - £50k

Additional Elements : Outdoor screening To be funded by Sponsor income as below Additional Marketing In kind by Marketing Manchester Venue In kind by Manchester Cathedral

Is non-ERF funding secure? If not please specify current status and timetable for resolution.

Core project Other Funding secure – on confirmation of total core project funding, MTV to engage with potential sponsors to fund project additionality.

2.5 Sponsorship – Will the project be attracting sponsorship? If yes, please provide details:

On confirmation of core funding MTV will target commercial sponsors.

3. KEY INDICATORS AND OUTPUTS

3.1Please state below outputs for Year 1 and total all years.

Key Outcomes Year 1 – MTV Crashes: To host a world-class music event in partnership with MTV Networks – positioning and profiling Manchester globally as a vibrant music city. - To create an event of £1m value and drive £1m of direct economic impact to the city. - To gain the equivalent of £8million media coverage for Manchester aimed primarily at young adults. - To showcase and strengthen Manchester’s position on the world stage as a primary destination for music, entertainment and culture. - To increase the profile of Manchester as an exciting weekend break destination to young adults as well as a place to study, work and live. - To enhance Manchester’s global profile on all new media platforms via MTV

Key Outcomes Both Projects – MTV Crashes + MTV EMA’s: - To host world-class music events in partnership with MTV Networks – positioning and profiling Manchester globally as a vibrant music city. - To attract 11,000+ venue audience to Crashes and EMA’s with 50% out of region visitors plus 18,000+ external viewing area audience. - To drive £11.6m of direct economic impact to the city.

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- To gain the equivalent of £140million + media coverage for Manchester aimed primarily at young adults. - To showcase and strengthen Manchester’s position on the world stage as a primary destination for music, entertainment and culture. - To increase the profile of Manchester as an exciting weekend break destination to young adults. - To enhance Manchester’s profile on all new media platforms via MTV

4. PARTNERS

4.1 Name of Partner(s) and their respective roles within the project.

MTV Networks Europe - global broadcast and event partner Marketing Manchester - Marketing and Visitor Experience support Manchester Cathedral - Host venue Sponsors - tbc

4.2 Will the project be entering into any contracts? If yes, please provide details:

An event specific Heads of Agreement for services put in place between MCC and MTV

Please detail any procurement processes used:

5. MONITORING Projects will be required to report on spend when deviating from the forecast given in Section 2.

5.1 Name of the officer responsible for monitoring the project spend on a day-to-day basis:

Mike Parrott MCC Head of Events

5.2 Name of the officer responsible for approving payments:

Jennifer Walker MCC Events Project Coordinator

Name of Project Sponsor: Sara Tomkins

Signature Date 30.07.2012

Signed, hard copy to be sent to David Birch, RPG, Room 216, Town Hall. Regeneration Programmes Officer Processing Application

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Appendix One – Major Events Assessment – MTV Crashes and MTV EMA’s

Event Title MTV Crashes and MTV European Music Awards Date 2012 – MTV Crashes 2014 – MTV European Music Awards Bid

Major Event Commission – Assessment Event: MTV Crashes + MTV European Music Awards Score 5 - Strong 3 - Good 1 - Average 0 - Weak Lead Partner / Global Organiser Organisation (5) Rationale + Excellent Strategic Fit (15) (weighting x 3)

Financial £50k – Requirement – £500k per annum (3)

Financial Estimate Leverage > £1m (5) Participants + 10,000 / Attendees (5)

Visitors – + 5,000 Overnight (5)

Visitors - Day + 5,000 (5)

Total Bed nights + 10,000 5,000 – (5) 9,999 (3)

Economic > 1:10 Impact (20) (weighting x 4)

Media Reach Global (weighting x 2) (10)

Media Value > £10m (weighting x 2) (10)

Additional Good Impacts (3)

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Risk Factors Acceptable (5)

100 60 20 0 85 9 0 0 Max Available 100 PROJECT 94 TOTAL

Partnership Organiser / Lead MTV Networks Partner Status and Track MTV Networks is the largest television network in the world Record of the lead and a leading creator of programming and content across all Event Partner media platforms. MTV remains one the most potent iconic global youth brands and presents the opportunity for the City of Manchester and its partners to engage with a targeted European and global audience to portray the city’s future, its vibrancy, its heritage and contemporary cultural heartbeat through music. 65% of MTV’s adult viewers in Europe are aged 15-34.

Other partners Major International Commercial Sponsor Partners tbc

Partnership Rating Strong

Event Overview

Event Synopsis MTV Networks UK and Europe are seeking city partnerships for the development and delivery of their two priority televised global events over the next three years – MTV Crashes and the MTV European Music Awards (EMA’s) - and have approached Manchester City Council to confirm interest in Manchester being the host to these activities.

The events are viewed by the City Council as a combined package with the MTV Crashes event in 2012 being utilised to leverage the highly coveted EMAs in 2014. a) MTV Crashes …… the free live performance in the host city of a ‘Triple A’ Global music performer which will be broadcast to the UK and Europe across MTV channels and internationally to 161 countries as part of MTV’s global Friday night live – available to up to 640 million households. The core added-value element outside of the main concert broadcast is a 30 minute Surround Show programme for the host city which is an exploration of the city’s music assets and offer - carried on the

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MTV platforms.

The concert would be broadcast via MTV’s platforms and the package would also include a two week promotional broadcast campaign around the event and a two week host city promotional campaign (based on a 20 minute presenter led guide to music and youth culture of Manchester).

The MTV Crashes Package:  Surround show - 22 minute show that promotes the city, history, legacy, aspirations & talent endorsements  AAA talent - world stage talent  MTV Crashes - 44 minute UK and Europe show of the live event performance  MTV World Stage – global broadcast of the concert  Event Production - MTV will work alongside Manchester City Council to produce a 1 off event  Ticket Mechanic - free event – ticketing details to be confirmed  Creative - MTV will create a 360 style guide for the event and on-air promotion using iconic imagery of the city  On-Air Promotion - 30 second spots across 9 channels to promote tickets to the event  PR - Consumer & Corporate  Marketing - Bespoke partnerships, media and competitions to expand the promotion and Manchester’s key messages

b) MTV EMA’s – the MTV European Music Awards is an iconic branded event that has been hosted by major cities for the past 16 years including Paris, Berlin, Milan, Barcelona, Rome Copenhagen etc. The awards ceremony has been held each year since 1994. Past performers at the event include Britney Spears, Justin Timberlake, Madonna, Beyoncé, Coldplay, Green Day, Muse, Jay-Z and U2.

Via MTV’s global network of 65 channels, the potential reach is 1.2 billion. In 2010 the event was hosted by Madrid and aired live to 214m homes in over 40 countries. Copenhagen in 2006 was estimated to have had a TV viewing audience in excess of 500 million in Europe and the USA. A large scale venue that can accommodate upwards of 8,000 people is required – and the option to expand the event across the city is a feature that can be developed – eg with the main event taking place within a 10,000 capacity O2 World auditorium in Berlin in 2009 and a simultaneous outdoor event featuring U2 at the Brandenburg Gates for an additional 10,000 people.

Manchester would develop the bid for the event with Manchester

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Central as the primary venue for the EMA’s with an audience of 10,000 and develop an outdoor site in Castlefield and/or Albert Square for an additional 8,000 to 16,000 attendees. Event Partner MTV is the world’s largest television network, the leading multimedia brand for youth and are experts at staging international music concert events. It reaches over 213 million households in Europe through 28 different MTV channels and they receive 8 million unique visitors each month to MTV Music websites. 65% of MTV’s adult viewers in Europe are aged 15- 34.

MTV Networks' brands are seen globally in 642 million households in 161 countries and 34 languages via 168 locally programmed and operated TV channels and more than 300 digital media properties. The company's diverse holdings also include interests in television syndication, digital media, publishing, home video, radio, recorded music, licensing & merchandising and two feature film divisions, MTV Films and Nickelodeon Movies. MTV Networks is a unit of Viacom Inc.

As a partnership, MTV’s global reach, combined with Manchester’s cutting-edge reputation, will ensure that both the MTV Crashes and MTV EMAs are delivered with great effect to a world-wide audience and that Manchester’s music pedigree and brand values – as well as those of its delivery partners - are showcased on the international stage in a way that has not been achieved before.

Event Value MTV Crashes …… Manchester Previously hosted in Glasgow and Belfast in 2010 – the Glasgow event delivered a media value in excess of £6.6m , whilst Belfast identified an direct economic impact of £1.6m through hosting the event, whilst the real value of staging the event – with leveraged added value via MTV – would be in excess of £1m. Securing the right AAA global artist would significantly increase this return.

Projected Total Event Value - £10m (£8m media value + £2m event value including economic impact)

MTV EMA’s - Based on Economic Impact reports from Edinburgh (2003) and Copenhagen (2006) and the media evaluation from Belfast (2011) this investment would secure an event that has a projected direct economic spend impact of £10 m and a media

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value of £130m +. For the event hosted in Belfast in November 2011 and first stage evaluation has revealed an Advertising Value Equivalent of £132m from media coverage from the event across 13 key markets in Europe, the USA, Japan, Argentina and Mexico.

Total Event Value £140m+

Combined MTV Projects - For an investment by the City and its partners of approx £1.2m (circa £800k MCC) over three years – the return would be in excess of £11.6m in direct economic impact and £140m + media value.

Event Overview Strong Rating

Rationale and Strategic Fit How will the event MTV Crashes and MTV EMA’s continue to build upon the help to deliver the success of the Manchester International Festival World of Sport City Council’s and the City Games and deliver against the City Council’s Political and ambition to attract other national and international sporting and Strategic cultural events in the City to maintain world-class status. In objectives addition they ensure that the City Council continues to support the cultural economy – the music scene including Manchester’s musical heritage, new media & creative industries in the City.

Both events are partnerships between the host city and its partners and the broadcaster and their sponsors - with the ambition to maximise benefits to the city region in line with economic impact and positioning and profile agendas.

The MTV events serve to reinforce the positioning that music events are an integral part of Manchester’s unique selling point and form a central part of the City’s UK and overseas positioning and profile – and target the next generation of students and visitors, assisting to build a destination relationship with a new audience.

Key Objectives: - To host world-class music events in partnership with MTV Networks – positioning and profiling Manchester as a vibrant music city. - To attract 11,000+ venue audience to Crashes and EMA’s with 50% out of region visitors plus 18,000+ external viewing area audience. - To drive £11.6m of direct economic impact to the

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city. - To gain the equivalent of £140million + media coverage for Manchester aimed primarily at young adults. - To showcase and strengthen Manchester’s position on the world stage as a primary destination for music, entertainment and culture. - To increase the profile of Manchester as an exciting weekend break destination to young adults. - To enhance Manchester’s profile on all new media platforms via MTV.

Built around the delivery of MTV Crashes and MTV EMA’s, it would be intended to create a number of music related products to ‘show-off’ the city’s cultural music base. These would include, but would not be limited to: the creation of one-off unique support events; the promotion of Manchester’s music sector websites and other digital and social media opportunities, and international showcasing and marketing of Manchester musicians.

In order for Manchester to stay competitive it must nurture those sectors which can create high value-added products and bring new wealth to the city. The Music sector in Manchester plays a key role in the overall economic development of the city. All in all the hosting of the MTV Crashes and EMAs will underpin all this activity and provide a truly international platform for the city.

Why is public MTV Crashes and MTV EMA’s are both event models that sector funding require partnership between the host city and the primary justified for this partner MTV. event? Each attracts a significant level of commercial funding via MTV – Would the event however, they would not be delivered as a purely commercial happen without event – as the significant leverage of the artiste and airtime MCC support? would be commercially prohibitive.

Event Calendar Fit MTV Crashes – Sept 2012. Post key London 2012 period – - Does the event would add international cultural profile to a period when Sports compete with events are key component of Manchester offer. Is also in ‘down’ other similar year of Manchester International Festival. events or other MTV EMA’s – November 2014. Prior to main festive period – in events taking ‘down year of MIF. place in same period?

Rationale Rating Strong

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Evidence Base Is there a track MTV Crashes record of previous MTV Crashes is a recent event development for the delivery of the broadcaster. The event model is based on the staging of a event model or major world exclusive and unique concert by a Triple A global similar ? artist in the host city. It was first staged in Glasgow in September 2010 with the first appearance in the UK for 5 years of Sean ‘Diddy’ Combes and Diddy - Dirty Money – and will draw in international media and visitors as well as a national and international TV audience.

MTV EMA’s The EMA’s are the jewel in MTV Europe’s broadcasting crown. Created with the single aim of honouring the music and artists – established and up-and-coming – the MTV European Music Awards takes place in a different European city every year. The awards ceremony has been held each year since 1994. Past performers at the event include Britney Spears, Justin Timberlake, Madonna, Beyoncé, Coldplay, Green Day, Muse, Jay-Z and U2 – past host cities include Madrid, Paris, Milan, Edinburgh, London, Rome, Berlin, and Munich.

Previous event MTV Crashes information. Previously hosted in Glasgow and Belfast in 2010 – the Glasgow event delivered a media value in excess of £6.6m, whilst Belfast identified an economic impact of £1.6m through hosting the event.

The 22 minute Surround Show for MTV Crashes…Glasgow featuring interviews with Diddy –Dirty Money plus a look at the city’s nightlife and musical heritage, was broadcast 6 times. MTV Crashes…Glasgow aired in the UK on 8 October at 9pm with 3 repeats on MTV and a further 10 repeats on MTV Base. The MTV World Stage Programme aired on 29 October via MTV channels in 161 countries and to more than 640 million households as part of its global Friday night live music programming. EMA’s In 2003, Edinburgh hosted the 10th annual MTV Europe Music Awards. Watched by an estimated one billion people from 28 countries, the event featured performances by artists such as Beyoncé, Pink and the Black Eyed Peas and generated a total net additional expenditure of £8.9 million. The figures take into account displacement and multiplier effects. When the economic returns are compared with the investment of 750,000 made by the public sector agencies, a return rate of 1:11.9.

The MTV Awards were acknowledged as being not only successful in bringing in additional expenditure to Edinburgh

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and Scotland's economy, but put Edinburgh 'on the map', with the Awards receiving 77 hours of coverage on MTV. The authorities reported that heightened profile of the city had the potential to provide opportunities for tourism (especially with young people) and showed that Edinburgh was capable of successfully hosting a major world class event, raising the profile of the city as home to some innovative creative businesses.

With a live broadcast to a potential 214m homes in over 40 countries and an anticipated live viewing audience on the night of 25m and an overall viewing audience of 465m – the reach and appeal of the event significantly outperforms the Brits (5.8m UK viewers in 2009) and the MOBO’s (4.8m UK viewers)

EMA’s Economic & Media Studies: Edinburgh 2003 Economic impact £8.9 million Return on investment £1:£11.9 Total airtime coverage 77 hours

Copenhagen 2006 Economic impact £6.1million Return on investment £1:£8.13 Viewing figures 465 million Total airtime coverage 55 hours Web visits 29 million Evidence Rating Strong

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Finance Total cost of the MTV Crashes: MTV have identified that Host City event (£) – Event investment of £425k would be required to secure the Delivery Value Crashes event.

Given the additional ‘in-kind investment by MTV – and the leveraged added value that the broadcaster can bring – a conservative additional event delivery value of circa £1.1m (subjected to negotiation) as assigned to the project.

The event delivery value is thus estimated at £1.5m.

MTV EMA’s: Difficult to put a delivery cost to the event – as artist cost leverage and broadcast values across the platforms via MTV is significant. MTV attract significant levels of international commercial sponsorship to assist to deliver the event.

The identified host City contribution required to secure the EMAs is in the region of £800k. Investment by the City of Madrid and national partners in 2010 was reported to be 1m euros. Edinburgh identified that host city funding and national government support in 2003 totalled £750k.

Belfast have secured the 2011 EMA’s for £750k investment + venue – with City Council investment of £320k, regional and government funding of 390k, and localised private sector sponsorship of £40k.

Public sector funding MTV Crashes – MCC Funding (£) MTV EMA’s – funding model in development with Marketing Manchester to leverage national / regional public sector funding support. Private sector / MTV Crashes – MTV costs not disclosed at this stage commercial funding (£) MTV EMA’s – significant international sponsorship + MTV investment (to be identified)

Ticket / other income MTV Crashes would be free to access (£) MTV EMA’s would have a % of paid tickets available to the public.

Proposed MCC Total MCC Funding Package – circa £800k (subject to contribution (£) (incl. negotiation)– over three years. annual breakdown of funding) Host City Contribution MTV Crashes - £425k

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MTV EMA’s - £375* Other funding Required - £425*

Financial Assignment: MTV Crashes: 2012/13 Q1 ERF £250k Communications £125k Events Unit £50k

MTV EMA’s 2014 ERF £375* Other sources £425*

* Estimated and Indicative costs at this stage – detailed bid submission to be worked up with Marketing Manchester and identification of opportunities to be sourced via National / regional funding support streams. And subject to negotiation. ‘Robustness’ of Proven level of finance requirement from previously staged budget MTV events

MCC £ as a Unknown – full event cost not calculated but identified as percentage of total per existing benchmarked information. cost (%) Leverage - To what The event staging is totally contingent on Host City financial extent is MCC underpinning. funding the catalyst for other funding streams? Financial Rating Good

Economic Impact Total visitors (day / MTV Crashes overnight) Event Staff 100 and profile Guests / VIP’s 500 (participants/visitors/ Venue Audience 1,000 demographic/ origin) Outdoor Audience 8,400 * subject to additional sponsor funding

Total 10,000

MTV EMA’s Event Staff 500 Guests / VIP’s 4,000 Venue Audience 6,000 Outdoor Audience 10,000

Total 20,500

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Visitors from outside the MTV Crashes – Projected city (day / overnight) Number of bed nights Visitors: - 100 staff - 250 Guest / VIP - 800 venue audience - 5,000 screen site audience * subject to additional sponsor funding

Local Audience – 3,450 70% day City Region Visitor – 4,305 30% overnight stay – 1,845 Average 1.5 nights =–- (2,767 bednights)

MTV EMA’s – Projected

Visitors: Local Audience – 3,500 Day Visitor – 10,000 Overnight stay – 7,000 Average 1.5 nights =–- (10,500 bednights)

Visitor Spend (£) Based on existing post event economic impact evaluation:

MTV Crashes - £1.6m MTV EMA’s - £10m

Total £11.6m Spend by event Information not available at present. organiser in local economy. (£) Return On Investment: 1:14.5 Strong Economic Impact Rating

Manchester City Council Appendix C – Item10 Finance Scrutiny Committee 18 October 2012

Television & Media Coverage Scale and reach of MTV’s global reach provides the ultimate vehicle to engage the media profile with young people in a targeted and powerful way through which will be broadcast TV and websites, mobile services, interactive TV generated – (the convergent programming and content for both events television, print, will reach an expanded interactive community via MTV's online coverage- 300+ digital media properties around the world) Media Value Based on existing evaluation data:

MTV Crashes - £6.6m (anticipated to be higher dependent on artist) MTV EMA’s - £132m

Total £138.6m Media Coverage Strong Rating

Overall Return On Investment City Council Estimated £800k (over 3 years) – subject to negotiation Investment

Economic Impact £11.6m

Media Value £138.6m

Combined ROI Strong

Additional Impacts What other qualitative To be confirmed outcomes can be expected (e.g. sporting, cultural, social, environmental)? To what extent will Opportunity for city region services and supplies: the event impact on - Accommodation and hospitality the supply chain - Event infrastructure suppliers within the city region? - Event support services eg security, crew etc What Strategic Opportunity for local stakeholders to engage with a world Added Value might class event. result, e.g. Prospect of future partnership with MTV to draw in other - Buy in from local major music events activity. stakeholders Promotion of key facilities in the city to increase market - Prospect of opportunities – Manchester Cathedral and Manchester catalysing Central. partnerships - Prospect of future events

Manchester City Council Appendix C – Item10 Finance Scrutiny Committee 18 October 2012

Additional Impacts Good rating

Risk Factors: Are there any No potential negative impacts (e.g. environment, equality)? If yes, what plans in place to mitigate these impacts? Any significant Crashes - Impact of Controversial headline artiste reputational risks to Mitigated by City Host and Cathedral having veto on final the City Council ? choice. Does the event Yes – major global broadcast organisation organiser have the relevant capability to deliver the event to the required standard? If a bid, is the City Yes - MTV have confirmed that EMA’s will return to the UK confident of a high in 2014 and have assessed Manchester Central as a quality submission suitable venue – and that hosting the MTV Crashes event with a good chance will position Manchester favourably to host the EMA’s of success? subject to the right funding package being put together by MCC and partners. Risk Rating Acceptable

Recommendations Recommendations MTV Crashes and MTV EMA’s is an extremely strong event and comments series – that delivers against all the key criteria - World class events, high value partner, strong economic impact and global profile and broadcast reach to generate significant return on investment. Kudos and quality of the MTV events would deliver position and profile for the city that will leverage longer term economic impact through media exposure and sectoral buy in. Ability to spread investment over three years reduces per annum request on finance to potentially deliver two major global music TV broadcast events – and makes the financial viability more attractive. Recommended to be advanced if finance available. Signed: Date: 21.12.11

Mike Parrott - Head of Events

Manchester City Council Appendix C – Item10 Finance Scrutiny Committee 18 October 2012

Endorsement High value event that delivers strongly against all key criteria and/or comments and would deliver significant benefits to the city. Would be recommended for support as per identified model subject to available finance.

Signed: Date: 21.12.11

Sara Tomkins - Assistant Chief Executive – Communications, Customer and ICT