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World Cup 2018 UK bid overview document for host cities
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England 2018Applicant Host City Engagement Process
Bid Overview for Applicant Host Cities
Agenda
• Introduction
• FIFA levels of engagement
• Host city deliverables
• Timelines & deadlines
• Cost summary• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
Introduction (1/2)
• FIFA engages with a successful World Cup Bidding Nation on three different levels:
– Central Government
– Host Cities
– Local Organising Committee (LOC)
• At each level there are a series of complex and demanding • At each level there are a series of complex and demanding undertakings and contracts to be signed
• FIFA insist that these agreements are signed without any changes being made
• These requirements apply equally to all nations bidding to host the World Cup in 2018/2022
• Therefore, at each level there is a simple question: Do we want to be part of staging the FIFA World Cup or not?
• If the answer is ‘yes’, it is incumbent on the contracting entity to carry out their own due diligence and convince themselves that they understand the full implications of signing the necessary agreements
• Applicant Host Cities need to ensure that they understand the
Introduction (2/2)
• Applicant Host Cities need to ensure that they understand the financial and legal implications of engaging with FIFA
• This document provides the critical information which will feed into the Applicant Host City decision-making process for individual Host Cities
• It should be understood however that the timetable set by England 2018 is based on submitting our Bid in terms of FIFA’s timetable. Any delays would seriously affect the quality of the England 2018 Bid and failure to meet FIFA deadlines would invalidate our Bid
• Introduction
• FIFA levels of engagement
• Host city deliverables
• Timelines & deadlines
• Cost summary
Agenda
• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
FIFA Requirements
FIFA has issued standard template agreements to all Bidding nations…
Agreement Executed By
1 Host City Agreement • Applicant Host Cities
2 Stadium Agreement• Applicant Host Cities (Stadium
2 Stadium Agreement• Applicant Host Cities (Stadium
owners / operators)
3 Training Site Agreement• Applicant Host Cities (Stadium
owners / operators)
4 Government Guarantees • Central Government
5 Hotel Agreement • England 2018 and hotel owners
6 Bidding Agreement • England 2018
7 Hosting Agreement • England 2018
• FIFA expect all agreements to be signed unaltered
• Annex 4 of the Bidding Agreement states the following specifically referring to Host Cities:
“(i) The Host City Agreements are the agreements to be duly executed and initialled by the LOC
and the competent executive authority of a proposed Host City, containing all rights and
obligations of a Host City in relation to Competitions.
FIFA Requirements
(ii) The Host City Agreements duly executed and initialled by the executive authority of a
proposed Host City must fully comply with and shall not deviate in any way from, the template
agreement provided by FIFA…”
• Host Cities and stadiums will not be considered by FIFA unless properly executed agreements are submitted with the official England bid
In view of this requirement, England 2018 will not include in its Bid Book Cities and Stadiums that have not complied fully with the FIFA requirement
• Introduction
• FIFA levels of engagement– Central Government– Host Cities– Local Organising Committee
• Host city deliverables
Agenda
• Timelines & deadlines
• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
Central Government Contribution
Central Government Requirement
• Central Government is required by FIFA to sign eight Government Guarantees
• To meet FIFA’s timetable, these are
Cost Implication
• Cost to the Government of signing the guarantees is approximately £300-350m
• ‘Safety and security’ is the most • To meet FIFA’s timetable, these are to be signed by the relevant Secretary of State by 4 December 2009
• If the Government Guarantees are not signed as worded then, England’s bid will be deemed not to be compliant and consequently invalid
• ‘Safety and security’ is the most significant guarantee as Government is responsible for all safety and security requirements relating to the staging of the FIFA World Cup
Central Government Guarantees
Government Guarantee Secretary of State Cost
Entry and Exit Permits
• Home Secretary • Loss of revenue from issuing of unconditional and free entry visas to:
– FIFA delegation, teams, national associations, fans with valid tickets, commercial sponsors and media partners
Work Permits• Secretary of State for Business,
Innovation and Skills• Cost of administrating unconditional work
permits for foreign nationals.
Tax Exemption • Chancellor of the Exchequer • Loss of tax revenue
Tax Exemption • Chancellor of the Exchequer • Loss of tax revenue
Legal Issues and Indemnification
• Secretary of State for Justice • Mainly legislative implications
Safety and Security
• Home Secretary • Security to provided at no cost with full liability for any related safety/security incidents to be accepted by the Government
Bank and Foreign Exchange Operations
• Chancellor of the Exchequer • Loss of income through the unrestricted import and export of currency exchange
Protection and Exploitation of Commercial Rights
• Secretary of State for Business, Innovation and Skills
• Mainly legislative implications
Telecommunication and Information Technology
• Secretary of State for Business, Innovation and Skills
• Cost of supplying IT and telecommunications infrastructure
• Introduction
• FIFA levels of engagement– Central Government– Host Cities– Local Organising Committee
• Host city deliverables
Agenda
• Timelines & deadlines
• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
Role of Host Cities
• Fan fests
• Transportation
• City marketing and dressing
• City management and planning
• FIFA inspection visits
• City hospitality• Competition related events
• City volunteers
• Tourism
• Agency liaison (Traffic / Police / Transport)
• City hospitality
• Stadium & venue specific training site delivery
• Legacy planning and management
• Environmental sustainability
• Introduction
• FIFA levels of engagement– Central Government– Host Cities– Local Organising Committee
• Host city deliverables
Agenda
• Timelines & deadlines
• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
Roles of LOC
• Event planning and management
• FIFA inspection visits
• Finance and funding
• Volunteers
• Opening and closing ceremonies
• FIFA observer tours
• IT & T planning and delivery
• Host broadcaster planning and delivery
• Media liaison and management
• Accreditation
• Marketing
• Communications
• Ticketing
• Hospitality
• Stadium & training site preparation
• Competition related events
• Competition management
• Hotels and team base camp management
• Government and stakeholder management
• Transportation management and delivery
• Staffing
• FIFA Fan fest planning and management
• FIFA liaison
Agenda
• Introduction
• FIFA levels of engagement
• Host city deliverables
• Timelines & deadlines
• Cost summary• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
Host City Deliverables
Agreement Commentary
1 FIFA compliant stadium
• A Host City will not be chosen by FIFA unless it can deliver a compliant stadium
• Delivery of elements such as 2 Host City Agreement
• Delivery of elements such as transport, fan fests and city marketing and dressing
3 Stadium Agreement Cover• Stadium reservation agreement
augmented by stadium use agreement
4 Training Site Agreement Cover • Training site reservation agreement
Host City Contract Process
England 2018 win the right to host
Inspection visits
Stadium selection
FIFA sign Host City
Dusseldorf, Bremen, Leverkusen and Munchengladbach were presented in Germany 2006’s bid book but did not
ultimately become Host Cities
December 2010
LOC proposes Host Cities to
January 2012 March 2013
FIFA will not countersign the Host City Agreement until March 2013 in the event
England 2008 is successful.
the right to host 2018 World Cup
visitsconfirmed
City Agreement
FIFA’s Hosting Agreement for the Formal Selection Process of the Host Cities
8.1.3 (i) – By no later than 1 January 2012 (FIFA World Cup Host City Bid Process Due Date) the LOC and FIFA shall agree on a formal final Host City bid selection process for the FIFA World Cup and Confederation Cup …
Host Cities to FIFA
… The final decision must be concluded no later than 1 March 2013 when the actual Host Cities will be selected by FIFA.
• Introduction
• FIFA levels of engagement
• Host city deliverables
• Timelines & deadlines
• Cost summary
Agenda
• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
Timeline Overview
Applicant Host Cities final bid submitted
Host Cities submit FIFA Host City Agreement
Host City presentation
Candidate Host City Announcement
England 2018 circulate 1st draft of bid book
England 2018 circulate 2nd draft of bid book
England 2018 circulate final copy of bid book
Bid book signed off
Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10
26 Nov
26 Nov
14,15 & 16 Dec
16 Dec18 Jan
19 Feb
19 Mar
2 Apr
England 2018 submit bid book to FIFA
• Selected Candidate Host Cities and their final bid submission will form an essential component of the Technical Bid Book around which England’s bid will be built
• In order to produce the best technical bid possible, there is a substantial amount of work to be done by England 2018 once the Cities have been selected and the final May deadline is not moveable
• England 2018 cannot announce Candidate Host Cities until all documentation has been received
• Failure to submit the agreements in accordance with these deadlines will mean that the Applicant Host City is excluded from the process going forward
Bid book signed off
Bid book sent to printers
Delivery of final bid book to England 201814 May
2 Apr
5 Apr6 May
• Introduction
• FIFA levels of engagement
• Host city deliverables
• Timelines & deadlines
• Cost summary
Agenda
• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
FIFA World Cup Staging – Financial Overview
• FIFA accrue all revenue generated from hosting the World Cup except for specific revenues allocated to Host Cities
– FIFA Fan Fest sponsorship and hospitality
– Rental income for use of the stadium
• No revenue accrues to the LOC with the LOC costs being funded in their entirety by FIFA
– Over and above the LOC expenditure budget, FIFA will agree a profit or surplus amount of money with the LOC; the surplus will be used for football surplus amount of money with the LOC; the surplus will be used for football development-related projects
• The expenditure budget agreed by FIFA will exclude all capital costs relating to stadiums as well as those costs detailed in the host city agreements and central government guarantees
• England 2018 requested a stadium use agreement from FIFA, FIFA responded by stating that the stadium use agreement would only be available in 2012 and provided a sample agreement from the 2011 Women’s World Cup in Germany
• This has been reviewed by England 2018’s legal advisers and is inadequate as essential information will only be provided by FIFA in 2011. England 2018 will therefore confirm stadium remuneration by way of a covering letter to contracting parties.
Funding Overview
Three entities fund a FIFA World Cup…
Entity Area of Expense
Government• Safety and security
• Government guarantees
• Host City obligations
Estimated Expenditure
c.£350m
Host Cities• Host City obligations
(c.£15m per venue)
• Stadium overlay
LOC• Staging costs (LOC funded
by FIFA revenue sources)
Total c.£900m
c.£200m
c.£350m
Following inspection visits, we have collated the generic Host City cost items; the following example represents a typical city hosting group matches with a single stadium (stadium development capital costs excluded)
Net 40k capacity stadium
Stadium Media Centre
Access Control Points (80) Outer
Access Control Points (80) Inner
Floodlight Upgrade
Pitch Installation
IT infrastructure
Temporary Accreditation
Temporary Merchandising (2x500 m2)
Stadium Associated Costs (£k) Other City Costs (£k)
3,000
795-992
800-960
800-960
800
200-500
300
220-270
220-260 c.£15m total costs; of
Specific costs incurred by each
Applicant Host City will vary
depending on: the size of each city;
the number and size of FIFA Fan
Fests; the different stages of the
World Cup matches hosted; and the
hosting of competition related events.
Temporary Merchandising (2x500 m2)
Signage
Giant Screen Rental
Media Seats w ith desks (300)
Commentary positions (110)
Pow er infrastructure
Outer Perimeter Fencing (1k metres)
Temporary Conference
Temporary Mix Zone
Temporary Off ices
Temporary Generator 1000Kva
Temporary Stadium Ticketing Centre
Outside Broadcast compound off ices
Temporary food concessions
Outside Broadcast compound fencing
Additional TV platforms (10)
Storage Containers (400 m2)
Fan Fests (2 x
20k)
City DressingMarketingTransport
Concept
Venue-
Specific
Training Sites
2,0002,000
1,500
220-260
200
150
150
150
120-175
120-140
108-132
100-120
100-120
92-113
80-106
60-80
24-35
20
16-20
c.£15m total costs; of which c.£6m is stadium
related200
400
Other training sites not included in host city funding
Overall cost will
change depending
on the stadium
presented and the
matches hosted
which require
additional facilities
i.e. c£300k for media
facilities at semi-
final and final
venues
England 2018 suggests the following allocation of costs; this may vary from city to city (1/3)
Cost Line
Source of Finance
City CostStadia Owner
LOC Government
Stadium Media Centre
Access Control Points (80) Outer
Access Control Points (80) Inner
Floodlight Upgrade
Suggested Allocation of Cost Lines (1/3)
Sta
diu
m A
ss
oc
iate
d C
os
ts
Floodlight Upgrade
Pitch Installation
IT infrastructure
Temporary Accreditation
Temporary Merchandising (2 x 500 m2)
Signage
Media Seats with desks (300)
Commentary positions (110)
Power infrastructure
Outer Perimeter Fencing (1,000 metres)
Temporary Media Conference Facility
Sta
diu
m A
ss
oc
iate
d C
os
ts
Cost LineSource of Finance
City Cost Stadia Owner LOC Government
Temporary Mix Zone
Temporary Offices
Temporary Generator 1000Kva
Temporary STC
Outside broadcast compound offices
Temporary food concessions
Suggest Allocation of Cost Lines (2/3)
Sta
diu
m A
ss
oc
iate
d C
os
ts
England 2018 suggests the following allocation of costs; this may vary from city to city (2/3)
Temporary food concessions
OB compound fencing
Additional TV platforms (10)
Storage Containers
Fan Fests (2 x 20,000)
City Dressing
Marketing
Transport Concept
Venue-Specific Training Sites
FIFA Family Hotel
Venue Specific Team Hotel
Team Base Camp
Private Security
Sta
diu
m A
ss
oc
iate
d C
os
tsO
the
r C
ity C
os
ts
Cost LineSource of Finance
City Cost Stadia Owner LOC Government
Volunteers
Stewarding
Hospitality
Utilities
Cleaning
Waste Management
Suggested Allocation of Cost Lines (3/3)
Oth
er
Cit
y C
os
ts
England 2018 suggests the following allocation of costs; this may vary from city to city (3/3)
Waste Management
Emergency blue light services
Legacy
Staffing
Commercial Rights Guarantee
I.T. & T. Guarantee
Safety and Security Guarantee
Entry and Exit Permits Guarantee
Work Permits Guarantee
Tax Exemption Guarantee
Legal issues and indemnification G.
Bank and Forex Ops Guarantee
Oth
er
Cit
y C
os
tsG
ove
rnm
en
t S
up
po
rt
Some costs vary depending on the number of stadiums used, number of games staged and competition stages played in the city (1/3)
Cost LineNature of Cost
Fixed Stadium Variable Games Variable*
Stadium Media Centre
Access Control Points (80) Outer
Access Control Points (80) Inner
Floodlight Upgrade
Nature of Costs (1/3)
Sta
diu
m A
ss
oc
iate
d C
os
ts Pitch Installation
IT infrastructure
Temporary Accreditation
Temporary Merchandising (2 x 500 m2)
Signage
Media Seats with desks (300)
Commentary positions (110)
Power infrastructure
Outer Perimeter Fencing (1,000 metres)
Temporary Media Conference Facility
Sta
diu
m A
ss
oc
iate
d C
os
ts
* Minimum 4 group games, maximum 7 games per venue (exc Final)
Cost LineNature of Cost
Fixed Stadium Variable Games Variable*
Temporary Mix Zone
Temporary Offices
Temporary Generator 1000Kva
Temporary STC
Outside broadcast compound offices
Temporary food concessions
Sta
diu
m A
ss
oc
iate
d C
os
ts
Nature of Costs (2/3)
Some costs vary depending on the number of stadiums used, number of games staged and competition stages played in the city (2/3)
Temporary food concessions
OB compound fencing
Additional TV platforms (10)
Storage Containers
Fan Fests (2 x 20,000)
City Dressing
Marketing
Transport Concept
Venue-Specific Training Sites
FIFA Family Hotel
Venue Specific Team Hotel
Team Base Camp
Private Security
Sta
diu
m A
ss
oc
iate
d C
os
tsO
the
r C
ity C
os
ts
* Minimum 4 group games, maximum 7 games per venue (exc Final)
Cost LineNature of Cost
Fixed Stadium Variable Games Variable*
Volunteers
Stewarding
Hospitality
Utilities
Cleaning
Waste Management
Oth
er
Cit
y C
os
ts
Nature of Costs (3/3)
Some costs vary depending on the number of stadiums used, number of games staged and competition stages played in the city (3/3)
Waste Management
Emergency blue light services
Legacy
Staffing
Commercial Rights Guarantee
I.T. & T. Guarantee
Safety and Security Guarantee
Entry and Exit Permits Guarantee
Work Permits Guarantee
Tax Exemption Guarantee
Legal issues and indemnification G.
Bank and Forex Ops Guarantee
Oth
er
Cit
y C
os
tsG
ove
rnm
en
t S
up
po
rt
* Minimum 4 group games, maximum 7 games per venue (exc Final)
This results in the following total funding requirements for a typical Host City (with a single venue)
£25m
£15m
£13m
Typical Host City Funding Estimate£m
Cost is spread between now and
2018
£2m£13m
Host City Cost Stadium Owner Total Typical HostCity / Stadium
Owner FundingRequirement
LOC CostApportioned
Across The Cities
(as a comparison)
Aggregating host city funding nationally gives a total requirement of c.£200m
18
23
17
4
5
27
92
5
1
31
23
146
Aggregated Host City Funding Estimate
£m
200
Based on generic city assumptions
To be updated when Candidate Host Cities selected
17
124
165
Cities with 1 stadium Cities with 2 stadia Cities with 3 or morestadia
Total Host CityFunding Requirement
Host City / RDA / County Councils Stadium Owner LOC
Agenda
• Introduction
• FIFA levels of engagement
• Host city deliverables
• Timelines & deadlines
• Cost summary• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
There are some direct income opportunities for certain stakeholders
• FIFA have stated there will be an opportunity for host cities to generate income :
– Sponsorship at FIFA Fan Fests
– Hospitality at FIFA Fan Fests
• FIFA believe Fan Fests could break even on the above revenue model
Host Cities
• Stadium rental of c.10-15% net ticket revenue to be negotiated with each stadium
• Net ticket revenue from the 2010 World Cup in South Africa is expected to total approximately $400m for 64 games; adjusting for inflation and market conditions, net revenue at an England 2018 World Cup could be considerably higher
Stadium Owners
• Training site rental and compliance funded by the LOC
Training Sites
Agenda
• Introduction
• FIFA levels of engagement
• Host city deliverables
• Timelines & deadlines
• Cost summary• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
Economic Impact
• An independent review of the Economic Impact of Hosting the 2018 FIFA World Cup in England has been conducted by PriceWaterhouseCoopers (PWC)
• The nationwide study was then broken down to Host City level using a series of key parameters
• England 2018 sent to this breakdown Applicant Host Cities; it is a broad tool to enable Cities to calculate their own economic impact based on their aspirations as a Cityas a City
• This report indicated a minimum economic impact of £130m; applicant Host Cities were encouraged to make their own assessment and many have commissioned their own report
• England 2018 issued the total Economic Impact Report on 8 September 2009; these figures reflect a total incremental spend of £5.3 billion associated with hosting the World Cup with a £3.2 billion impact on GDP
• The Economic Impact Assessment is based on our provisional plans and will be revised during 2010 once the Candidate Host Cities have been selected and detailed costs have been refined
Agenda
• Introduction
• FIFA levels of engagement
• Host city deliverables
• Timelines & deadlines
• Cost summary• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
Comparative Costs reported by German cities
Host Cities should take some comfort from the level of cost reported by cities involved in hosting the 2006 FIFA World Cup in Germany
Gelsenkirchen Cologne (Köln) Munich
€10-13m to stage World Cup matches
€8-10m to stage World Cup matches
€18-20m to stage World Cup matches
Host Cities in Germany benefited significantly from being part of the 2006 FIFA World Cup
… and consequently tourism and the
local economy
• “The influx of visitors put a lot of money into local
businesses in the short term and we hope to see a
rise in tourist numbers in the long term”
Burkhard Jung, Major of Leipzig
• “The FIFA World Cup has given the city a real
boost, and our citizens can now have a real sense
The World Cup helped to boost the
City image
• “The FIFA World Cup, and in particular the Fan
Fests in Cologne city centre have given a huge
boost to the image of Cologne… the sense of
excitement has really lifted spirits in Cologne. This
feeling of community, of achieving something
important together as a team will have a lasting
effect on all of us” boost, and our citizens can now have a real sense
of pride . This was the biggest and most
impressive way of advertising the region we
could have imagined, and the tourism industry will
reap the rewards from it in the years to come”
Dr. Ulrich Maly, Mayor of Nuremberg
• “It would be remiss of me not to mention the fact
that hosting the tournament brought with it a 150m
Euros investment in infrastructure and
development projects representing a huge shot in
the arm to the local economy and ensuring long
term benefits for our city”
Bernard J Deubig, Mayor of Kaiserslautern
effect on all of us”
Fritz Schramma, Mayor of Cologne
• “Around a million people came to the Fan Fest in
the Olympiapark, while eight million fans flocked to
the city on match days, including many who simply
wanted to sample the Munich FIFA World Cup
atmosphere. This has made a lasting positive
contribution to the city’s image…”
Christian Ude, Mayor of Munich
• “Thanks to the FIFA World Cup, Hamburg has
gained a lot of international prestige, a fact that
cannot be emphasised strongly enough”
Ole von Beust, Mayor of Hamburg
Agenda
• Introduction
• FIFA levels of engagement
• Host city deliverables
• Timelines & deadlines
• Cost summary• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
Host City Governance
• In the event we are successful England 2018 will ensure Host Cities are represented from a governance perspective within the overall national staging strategy
• Further discussion is required but Host City representation is a key objective of England 2018 given representation is a key objective of England 2018 given their vital role in the staging of a World Cup
The most likely approach is to create a Host City sub-committee reporting to the LOC
Agenda
• Introduction
• FIFA levels of engagement
• Host city deliverables
• Timelines & deadlines
• Cost summary• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
Conclusion and Next Steps
• England 2018 appreciate the significant involvement and support of all the Applicant Host Cities throughout the bidding process.
• To assist all Applicant Host Cities over the next six weeks, Colin Roberts, Former CEO of Greenwich Council has been recruited to assist with final bid submissions
– Colin can be contacted by email [email protected] or by phone 07801560346
• We are in the process of appointing a sports lawyer with in-depth understanding of club football to assist in the processing of stadium and training site agreements.
• We understand that this is a demanding and complicated process, placing stress on the City Councils at a difficult time.
• However we take great comfort from the way in which major stakeholders from all cities have worked together and worked with the Bid team
• We look forward to receiving your final bid submissions on 26 November and all signed agreements by 26 November 2009
• Please contact us immediately if you have any questions or comments