The Government of the Isle of Man Department for Economic Development TT World Series Feasibility Study May 2012 DOCUMENT CONTROL Amendment History Version Date File Reference Author Remarks/Changes No. 1 01-05-12 IoMTTWorldSeries-Draft SCM Draft Report Sign-off List Name Position Date Remarks Angus Buchanan Director 01-05-12 Signature Distribution List Name Organisation Date Colin Kniverton Isle of Man Department for Economic Development 01-05-12 Paul Phillips Isle of Man Department for Economic Development 01-05-12 Government of the Isle of Man TT World Series Feasibility Study CONTENTS EXECUTIVE SUMMARY i 1 INTRODUCTION & BACKGROUND ............................................................................ 1 1.1 Our Brief .................................................................................................................... 1 1.2 Background to the Isle of Man TT Race ..................................................................... 1 1.3 Project structure ........................................................................................................ 2 2 THE ISLE OF MAN TT AND THE PROPOSED WORLD SERIES ................................ 4 2.1 Introduction ................................................................................................................ 4 2.2 The Essence of the TT and the opportunity ............................................................... 4 2.3 Distance of courses ................................................................................................... 6 2.4 Number of riders ........................................................................................................ 7 2.5 Race calendar ........................................................................................................... 7 2.6 Duration of each round .............................................................................................. 7 2.7 Categories and classes ............................................................................................. 8 2.8 Time trials versus mass starts ................................................................................... 8 2.9 Number of rounds in the series .................................................................................. 8 2.10 Course requirements ................................................................................................. 8 2.11 Safety considerations ................................................................................................ 9 2.12 Key markets and preferred locations ......................................................................... 9 2.13 Team, manufacturer and competitor involvement .................................................... 10 2.14 Summary ................................................................................................................. 10 3 DELIVERY MODEL .................................................................................................... 11 3.1 Introduction .............................................................................................................. 11 3.2 General considerations ............................................................................................ 11 3.3 Organisational structure ........................................................................................... 12 3.4 Governance ............................................................................................................. 14 3.5 Intellectual property rights ........................................................................................ 14 3.6 Broadcast rights and responsibilities........................................................................ 15 3.7 Commercial rights .................................................................................................... 16 3.8 Selection of host venues .......................................................................................... 19 3.9 Marketing and promotion ......................................................................................... 20 4 POTENTIAL VENUES ................................................................................................ 21 4.1 Introduction .............................................................................................................. 21 4.2 Existing events ........................................................................................................ 21 4.3 Long-list of targets ................................................................................................... 22 4.4 Summary of results .................................................................................................. 23 5 IMPACT & BENEFITS OF THE WORLD SERIES ...................................................... 24 5.1 Introduction .............................................................................................................. 24 5.2 Economic impact ..................................................................................................... 24 5.3 Methodology ............................................................................................................ 25 5.4 Stages 1-3 - spectator numbers ............................................................................... 25 5.5 Stages 4-6 - other attendee numbers ...................................................................... 27 5.6 Stage 7 - leakages ................................................................................................... 29 5.7 Stage 8 – organiser expenditure .............................................................................. 29 5.8 Other benefits .......................................................................................................... 31 Government of the Isle of Man TT World Series Feasibility Study 6 FINANCIAL MODEL ................................................................................................... 33 6.1 Introduction .............................................................................................................. 33 6.2 Income estimation ................................................................................................... 34 6.3 Expenditure estimation ............................................................................................ 36 6.4 Summary of income and expenditure ...................................................................... 39 7 RISK ANALYSIS AND MITIGATION .......................................................................... 40 7.1 Introduction .............................................................................................................. 40 7.2 Identification of risks ................................................................................................ 40 7.3 Summary of key risks and mitigation measures ....................................................... 40 8 NEXT STEPS & IMPLEMENTATION PLAN ............................................................... 43 8.1 Introduction .............................................................................................................. 43 8.2 Outline implementation plan .................................................................................... 43 8.3 Legal and accounting .............................................................................................. 43 8.4 Staffing .................................................................................................................... 43 8.5 Business plan and budgeting ................................................................................... 44 8.6 Brand and marketing ............................................................................................... 44 8.7 Commercial ............................................................................................................. 44 8.8 Team liaison ............................................................................................................ 44 8.9 Race management .................................................................................................. 45 8.10 Summary ................................................................................................................. 45 9 CONCUSIONS AND RECOMMENDATIONS ............................................................. 46 9.1 Introduction .............................................................................................................. 46 9.2 Feasibility of establishing a World Series ................................................................. 46 9.3 Benefits to the Isle of Man ....................................................................................... 48 9.4 Underlying assumptions and risks ........................................................................... 48 9.5 Implementation ........................................................................................................ 49 APPENDIX A: SAMPLE CONSULTEE QUESTIONNAIRE ................................................... II APPENDIX B: LIST OF CONSULTEES.................................................................................. I APPENDIX C: SUMMARY OF CONSULTATION ................................................................ IV APPENDIX D: SPC ORGANISATIONAL STRUCTURE .................................................... VIII APPENDIX E: ECONOMIC IMPACT MODEL ...................................................................