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SPORTS, ARTS, CULTURE & COMMUNITY SERVICES COMMITTEE 10 6 JULY 2011

EVENT SUPPORT – PROPOSED A-LEAGUE MATCH 14 DECEMBER 2011

Tim Dendle: 10/2/1-27: #3212863

RECOMMENDATION:

That Council provide In-Kind assistance to the value of $20,000 (ex GST) to the Far North Soccer Zone Inc in support of the Brisbane Roar vs. Wellington Phoenix A-League Match on 14 December 2011 at Barlow Park.

INTRODUCTION:

Cairns has been identified by Football Queensland and the Brisbane Roar Football Club as a potential host destination for one of the inaugural A-League ‘regional rounds’. This report seeks Council’s approval to provide In-Kind assistance to the Far North Queensland Soccer Zone (FNQ Soccer Zone) for venue and other related costs associated with the hire of Barlow Park. This support by Council will mitigate some of the financial risk assumed by FNQ Soccer Zone in their offer to ‘fully underwrite’ the event.

BACKGROUND:

The Hyundai A-League is Australia’s foremost football (soccer) competition and is comprised of ten teams from across Australia and New Zealand. In an effort to heighten community visibility and engagement, the Football Federation of Australia (FFA) has introduced ‘Regional Rounds’ to the regular season fixtures, which will see five games involving all clubs being played at new locations. This will give more areas of Australia a ‘taste of live Hyundai A-League action’.

The Brisbane Roar and Wellington Phoenix game scheduled for 14 December 2011 has been designated as a regional fixture and both clubs have been required to lodge submissions for potential host destinations. In response to this requirement, Council was invited to attend a meeting with the Chief Executive Officers of Football Queensland and the Brisbane Roar as well as key representatives from the local football peak administrative body: the FNQ Soccer Zone. At this meeting a model for delivering the event at Barlow Park was devised and agreed upon, with Brisbane Roar agreeing to prepare the submission to FFA on behalf of the parties.

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The submission is based upon the concept of a ‘fully funded model’, which has necessitated the local zone assuming overall financial responsibility for the event. In order to mitigate some of the costs associated with this decision Council, in good faith, has provided in principle support and a provisional commitment of $20,000 in kind. Evidence of each party’s commitment to the opportunity has been provided in letters of support to the Brisbane Roar and these are provided for Council’s consideration at Attachments 1 and 2.

The following commentary has been developed to inform Council’s decision and to substantiate the recommendation.

COMMENT:

Football/soccer is one of the major sporting codes in Australia and has received a significant boost in popularity since the Socceroos history-making admission into the 2006 World Cup. The development of the Hyundai A-League has also contributed to the improved status of the game. Our region is now presented with the opportunity to host another major national sporting event.

Major sporting events are one way to showcase the richness and diversity of our region, stimulate social pride and accomplish a number of cultural and economic outcomes. Should Council support the recommendation, it could expect the following benefits:

- Improved usage of Barlow Park in what would be considered a traditional ‘shoulder’ period; - Sating the appetite of a hungry sporting public at the end of the local winter rectangular sporting season; and - Galvanising the region’s football community who are currently facing some internal challenges/pressures.

It is understood that the match will be televised by FOX SPORTS who presently hold the broadcasting rights to the Hyundai A-League. Given the broad appeal of this network, the region could expect substantial exposure across a wide range of national and international audiences. The proposed game will feature the reigning A-League champions, the Brisbane Roar and their cross Tasman rivals, the Wellington Phoenix.

In addition to the above mentioned direct benefits, success with this event could position as a platform to the lucrative Asian football market. This is a strategic imperative for the FFA and given our region’s proximity to the South East Asian community and our excellent transportation assets, this could lead to the following future opportunities:

- An ongoing regular season A-League fixture; - Pre season A-League Fixtures (Barlow Park last hosted one of these in 2005 between the then Queensland Roar and Sydney FC); - Asian Football Confederation Champions League training and acclimatisation for participating clubs; - A possible role in the preparations for the 2015 Asian Cup; and - A means to inform the assessment and feasibility of a future A-League team in the region.

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CONSIDERATIONS:

Corporate and Operational Plans:

The recommendation supports Council’s Corporate Plan 2009-2014 with particular reference to:

Goal 2 “To build more creative, innovative and self reliant communities where participation in community life is enabled and encouraged.”

2.2 – Improve the quality and opportunities for public space across the region 2.4 – Provide enhanced arts and cultural activities that add value to the life of residents and visitors alike.

Goal 6 “To ensure that Council is open, accountable, ethical and financially responsible. Recognise that Council plays a leadership role for our immediate communities and for the wider region and will strive to represent our communities needs an expectations.”

Statutory:

The proposed use of Barlow Park is consistent with the designated purpose of Barlow Park under the Land Act 1994.

Policy:

Council is committed to aiding the development of strong, vibrant communities through its grant funding programs and provides a variety of financial and In Kind assistance to groups and organisations offering projects, events and programmes that enrich the wellbeing of the . In 2009, new guidelines and grant streams were introduced to achieve the goal of supporting the community through Council’s grant structure.

The timing and uncertain nature of the proposed event has led to difficulties with matching it to a relevant grant program at this time. It is hoped that should the game become a regular fixture on our sporting calendar that Officers would work with the local peak administrative body to submit a formal application to Council’s major events funding.

Financial:

An indicative budget derived from previous events held at Barlow Park is provided for Council’s consideration at Attachment 3. Under the agreed event model, the FNQ Soccer Zone has assumed full financial responsibility for the event. This conservative budgeting exercise suggests there could be modest surplus for the event. Should this transpire, any revenue will be used to support and promote the game of football (soccer) in our region.

Council’s financial exposure is limited by the provision of $20,000 in In-Kind assistance. The bulk of this support will be from the waiver of venue hire and the ‘absorbing’ of associated expenses. Whilst there will be some external costs (e.g. electricity for lighting, etc) these will be relatively small and can be contained within the normal operating budgets of the Sport and Recreation Unit.

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Financial impact of In Kind Assistance In-Kind assistance for venue hire at Barlow Park includes allowance for:

- Preparation of the playing area (including field line marking) in accordance with NRL standards; - Council officer staffing; - On site electricians and logistical support for the event day; - Establishment of all electrical requirements for catering vans and other event infrastructure; - Corporate room and field hire for team training on the day prior to the event; - All fencing requirements for crowd control inside the venue; and - Pre and post match day cleaning of the facility.

Council also undertakes a number of other housekeeping tasks in the week prior to the event to ensure the venue is in excellent condition, this includes car park, grandstand and lighting maintenance.

Access to Barlow Park is restricted to the public during the days immediately before and after the event to provide major event owners and contractors the opportunity to ‘bump in’ and ‘bump out’. Similarly, Council will ensure that field sports are not played on Main Barlow for eight days leading up to the event to maximise the quality of the playing surface. The hire fee provides allowance for loss of income and community service during this time.

It should be noted that whilst the above arrangements are considered part of Barlow Park’s venue operations (qualifying them as ‘In-Kind’) they do incur an actual cost and as such will have an impact on the operational budget.

Risk

The timing and scheduling of the proposed game presents some risk considerations to the event partners. These include:

- 14 December falls within the school holidays and there is a local trend for families to travel out of the region during this time. Barlow Park staff have observed this trend with previous games held at the venue prior to Christmas; for example, the Rugby League Pacific Cup Trial between Samoa and the Cook Islands. It can be expected that this seasonal trend will impact local attendance at the event. The extent of this impact however, is relatively unknown. Supporting the proposed A-League game will provide a good basis for future assessments of this nature. - The game has been scheduled for a Wednesday evening, which will impact on the attractiveness of the event for ‘out of town’ visitors who may not be prepared to travel the distance to Cairns mid week. - The Brisbane Roar will play a game on the preceding Friday (9 December) and then again on the Saturday (17 December). This will mean that visiting teams will only be in Cairns for a maximum of two days, which will restrict community engagement as well as marketing and promotional activities. - Seasonal wet weather could also be a factor at this time of year.

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Sustainability:

By supporting organisations who are proactive, innovative and deliver strong outcomes to the community, Council will improve the general economic, social and cultural sustainability of our region.

A sustainability assessment of the proposed activity confirms that there will be logical resource and consumption impacts from supporting the event. However, it is provided that these will be adequately offset by the significant community and social benefits.

It is hoped that should the region secure this event, its reputation will be enhanced as a provider of first class sporting infrastructure to complement its already envious natural and cultural assets. This will flow on to further opportunities for sports event tourism, particularly in football, as has been previously noted in this report.

CONSULTATION:

Consultation in the development of this report has occurred with a range of internal and external stakeholders including:

- CEO, Football QLD; - CEO, Brisbane Roar; - FNQ Football; and - Council officers: General Manager Community Sport and Cultural Services, Manager Sport Recreation and Community Development, A/Team Leader Sport and Recreation, Events and Sponsorship Strategist.

OPTIONS:

A listing of the options that exist to Council as well as their relevant considerations is provided below:

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Considerations a) Recommended Option:

That Council provide In-Kind - Consistent with the agreed model between event assistance to the value of partners (CRC, FQ, BR, FNQ Soccer) $20,000 (ex GST) - Shows confidence in local organising committee and empowers them to drive its success.

- Preliminary budgeting exercise provides that there could be modest surplus for the event. Should this transpire, any revenue will be used to support and promote the game of football (soccer) in the region. b) That Council assumes - Inconsistent with the agreed model between event financial responsibility and partners (CRC, FQ, BR, FNQ Soccer) and submission informs the Brisbane Roar that that has been lodged. it will be underwriting the - Removes the stimulus on the event managers to drive event. the profitability of the initiative. - Could be seen by FNQ Soccer Zone as a vote of no confidence in their ability to run the event, given that they have already offered to underwrite and manage. - Council would assume all the risk for the event but would not have a direct role in its delivery. Procurement of outgoings on Council’s behalf could occur without value for money in mind.

- Would require additional staff resources to supervise and manage

- Would be considered inconsistent with other event management models Council has in place with CDRL and CDRU for pre season matches. c) That Council rejects support - Inconsistent with corporate plan objectives of building for the proposed event and supporting self reliant communities where participation in community life is enabled and encouraged.

- Would damage the strong relationships established between the games peak body (Football QLD)and high profile sporting team (Brisbane Roar)

- Would impact the regions chances of future opportunities of this nature (refer to comments section of this report).

- Would ultimately be the determining factor in losing the bid to competing regions.

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CONCLUSION:

The proposed televised A-League football match has the potential to position itself as a regular fixture on the region’s major events calendar. The FNQ Soccer Zone has shown great leadership in its support of the initiative and now has the opportunity to position itself as a professional and capable event coordinator not only to their local constituents but also Football Queensland and the FFA. This will lead to far greater benefits to our region.

It is therefore recommended, as a show of support to the FNQ Soccer Zone and in recognition of their endeavours, that:

Council provides In-Kind assistance to the value of $20,000 (ex GST) to the Far North Queensland Soccer Zone Inc in support of the Brisbane Roar vs. Wellington Phoenix A- League Match on 14 December 2011 at Barlow Park.

ATTACHMENTS:

Attachment 1: FNQ Soccer Zone Fully Funded Proposal Attachment 2: In principle Council support Attachment 3: Indicative Event Budget

Tim Dendle A/Team Leader Sport and Recreation

Alice Heather Manager Sport, Recreation & Community Development

Ian Lowth General Manager Community, Sport & Cultural Services

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Attachment 1: FNQ Soccer Zone Fully Funded Proposal

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Attachment 2: In Principle Council Support

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Attachment 3: Indicative Event Budget

INCOME: Doc # AMOUNT Sales Bar $26,500 Corporate $12,950 Softdrink and Water $5,943 Sponsorship $15,000 Ticketing Ticket Sales ‐ Pre Game $69,500 Ticket Sales ‐ On Game $12,000 IN KIND ASSISTANCE (CRC) Council Resolution # $20,000 SUNDRY Ponchos, Merchandise etc $1,500 TOTAL INCOME $163,393

EXPENDITURE Doc # AMOUNT PLAYERS OFFICIALS AND GUESTS Accommodation & Food $24,500 Airfares $19,000 Bus Transport $1,100 COST OF GOODS SOLD Beer Wine and Spirits $8,800 Catering (Corporate Boxes) $5,100 Catering ‐ Other $929 Gate Staff $1,500 Ice $450 Soft Drink and Water $5,000 Staff Wages $11,000 Entertainment Band $750 Sound $2,990 BARLOW PARK Hire Fee $2,500 Electricians on site $2,000 Match Day Staff $1,500 Line Marking (A‐League Specific) $660 Corporate room and field hire (training and logistics) $314 Temporary Fencing $500 Additional Bins and Skips $250 Pre and Post Match Cleaning Contractor $820 Pressure Clean entire facility $3,000 OTHER Bank Fees & Merchant Fees $1,000 Cleaning $600 Clothing (Volunteers and Officials) $1,245 Game Insurance $5,468 Police $5,285 Security $10,918 Postage $180 Stationery and Printing $1,683 Telephone $1,000 Sundry $3,000 Dinner of thanks $1,000 BARLOW PARK FACILITY COMPLIANCE Equipment Hire $5,580

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TOTAL EXPENDITURE $129,622

Assumptions: 1. Venue meets all A‐League Requirements 2. Delegation. 50 people comprised of 24 for each team (18 players and 6 officials) plus then Geoff (FQ) and Eugenie (BR). 3. Timing: ∙ BRFC flies in Sunday 11th morning and conducts coaching clinics and signing sessions etc ∙ Monday 12th training and media activities ∙ Tuesday 13th BRFC focused on training and then coach, officials and non‐playing players attend Sportsman Dinner ∙ Wednesday 14th match day ∙ Thursday 15th teams fly home in the morning 4. Accommodation: Centralised accommodation with the IHG (Holiday Inn) Assistance from BR offered with negotiation 5. Flights: Qantas BR can assist with ensuring best rates. 6. Revenue: If the costs were to be fully underwritten, Underwriter (FNQ Football) to keep the gate revenue and any receipts from the sportsman dinner etc 7. Appearance fee: For the purposes of this A‐League match, Brisbane Roar are not seeking any appearance fee as focus is on strategic imperatives (community engagement and assessment of Cairns as platform to Asia). 8. Crowd: 6,500 people

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