It’s how you play the game Matching a region’s priorities with the right mega—or not so mega—event April 2014 The appeal of marquee sports mega-events such as the Olympics and football’s FIFA World CupTM is undeniable. Cities the world over jockey to host these high-profile events, undeterred by the substantial costs, extensive planning, and inflexible timelines. What motivates the fierce competition to host these events? Are the risks worth the rewards? In fact, these marquee global events do possess inherently singular features that are not easily replicated: • Their attendant deadlines mandate discipline and commitment. • They offer rare opportunities for positioning in the spotlight of intense media attention. • They necessitate collaboration between the various levels of government. • They require the public and private sectors to cooperate. • They mobilize national pride toward a common goal. • They celebrate human achievement.1 However, not every city or region is ready or able to host a marquee mega-event. Smaller cities and regions may not have the resources, the infrastructure, or the capacity. Hosting the Olympics, for example, requires more than 30 competition venues and 90 training sites as well as housing for some 15,000 athletes, not to mention 40,000 hotel rooms as well as transportation, logistics, telecommunications, and entertainment facilities.2 The appeal of marquee sports mega-events such as the Olympics and football’s FIFA World CupTM is undeniable. Cities the world over jockey to host these high-profile events, undeterred by the substantial Any trademarks included are trademarks of their respective owners and are not affiliated with, nor endorsed by, PricewaterhouseCoopers LLP. Assess long-term priorities In our analysis, a similar type of hierarchy Mega-events can be a force for applies to cities and their needs. A city Instead, cities and regions are better must first fulfill basic requirements for served by assessing their long-term its residents before moving up the positive priorities for development and then hierarchy. For more on this analysis, bidding on the events that best correlate see page 2. In the realm of mega-events, change with those priorities. Smaller scale cities are best served by focusing on the events—mega in their own right—range when they are organized event that best fulfills their objectives, from the Commonwealth Games and effectively. depending on where they are on the the Rugby World Cup to the Universiade development continuum. (World University Games) and Formula TM One racing. The United Nations cites five fundamental factors essential to a prosperous city: Hosting one of these smaller scale events productivity, infrastructure development, fulfills similar objectives by converging quality of life, equity and social inclusion, public, private, and community support and environmental sustainability.3 around the event; establishing clear deadlines that galvanize action; serving To capture attention on the world stage, as a springboard for new infrastructure PwC research has found that a city or that will last well into the future; and region should excel in four essential shining the spotlight of national or dimensions: quality services to residents international attention on a host city and businesses, sustainable development, or region. visionary leadership, and consistency of image. Cities and regions already Proprietary PwC analysis indicates poised to achieve transformation in these that evaluating a city’s or region’s dimensions are best suited to use an event assets and priorities is the first step such as the Olympics to accelerate that toward determining which type of transformation. event it is best suited to host. We have created a framework (see page 2) that Rio de Janeiro offers an excellent example allows cities and regions to assess of the transformation resulting from their strengths and weaknesses, then the vast preparation required to host a match their objectives for long-term mega-event, ranging from security to development with the criteria required transportation to urban regeneration. In to host a particular event. the case of Brazil, that’s two mega-events almost back-to-back, with football’s Hierarchy of city needs 2014 FIFA World Cup™ followed by the PwC analysis illustrates that this kind of Summer Olympics in 2016. assessment can be compared to Maslow’s While rapid development, massive hierarchy of needs, a theory introduced investment, and media spotlight can by psychologist Abraham Maslow in sometimes highlight issues that cause 1943 which posits that human beings concern for organizing committees, must first fulfill basic physiological needs ultimately, mega-events can be a force such as food and water before they move for positive change when they are on to higher levels of self-actualization organized effectively. encompassing morality and creativity. It’s how you play the game 1 Playing to win How does a city or region decide which event to host? Matching regional priorities with the right event Overall readiness Venue/s Legacy Supporting infrastructure Intellectual capital What are the city’s Does the city or region What type of legacy is Does the city or region Does the city or region possess the venues and the city or region seeking possess the supporting possess the intellectual or region’s top 3 to 5 facilities required to host from this event? infrastructure— capital to plan, finance, objectives a sports event of scale, transportation, temporary build for, and host an If raising the national in hosting this event? be it the Olympics, the housing, utilities, sanitation, event of this scale? or international profile Commonwealth Games telecommunications— of the city or region Has the city or region or the Universiade? required to host an What are the is the objective, how attempted to host event of the scale top 3 to 5 main If not, would city and will this event achieve an event of this under consideration? advantages state (and in some cases that objective? scale before? this particular city national government) What kind of long-term If not, would city and If that bid was successful, or region has to officials be willing to development goals is state (and in some cases what can be duplicated offer as a host city, invest in such the city or region seeking national government) from that effort? region, or country? an undertaking? to accomplish with officials be willing to invest in making the If not, what lessons How best could this event? can that attempt offer? financing be handled? required improvements? Why is a good How best can the city now How closely would these What kind of external time to embark on What role would public- or region plan ahead improvements reflect the advisors would the city this initiative? private partnerships play to ensure that the or region need to call in this undertaking? facilities and supporting city’s or region’s long- term development plan? upon to plan, finance, How likely would the infrastructure can be build, and host an What metrics used beyond the event? How best could the will city or regional business community event of this scale? be to support this What modifications will event serve as a catalyst officials use to for accelerating the city’s measure success? initiative? What have to be made to the incentives would they stadia, housing facilities, or region’s longterm plan need to get on board? and other infrastructure that’s already in place? How likely would the local to ensure that they can How likely would the and regional communities successfully evolve business community be to support such an from event-based be to support the initiative? What kind to long-term use? construction of of public opinion effort What legacy of sports supporting infrastructure? would it take to get is the city or region What role would public- them on board? seeking to deliver to private partnerships play the community from in this undertaking? this event? How likely would the local What legacy of and regional communities intellectual capital be to support can the city or region such infrastructure leverage for future improvements? What events from having kind of public opinion planned, financed, built effort would it take to infrastructure for, and get them on board? hosted this event? What metrics will the city or region use to measure the success Source: PwC analysis of its legacy? 2 PwC Barcelona provides World-class transformation seminal template For the 1964 Olympics, Tokyo spent The historical role of a mega-event in 3.6 percent of its Gross National urban transformation—accompanied by Product on urban renovation, including an enduring boost in property values— harbor expansion, housing, sanitation, is well documented, back to Rome in tourist facilities, and a massive 1960, which developed a new water transportation network.8,9 supply system, new hotels, improved transportation, and urban landscaping That transportation network included for the Olympics.4 eight new expressways, 45 miles of subway, 8 miles of monorail, and a Barcelona continues to provide the seminal template for how a city was able to redefine itself within the space The historical role of a mega-event in urban transformation of a generation. According to Stephen — accompanied by an enduring boost in property values — Essex, associate professor at the UK’s is well documented. University of Plymouth who researches infrastructure implications of the Olympic Games, the 1992 Olympics “simply speeded up the renewal