Select Committee on Culture, Media and Sport Appendices to the Minutes of Evidence


APPENDIX 21

Memorandum submitted by Helen Day Consulting

1. I have already written to the Committee on behalf of the association of which I am Vice Chairman, the European Sponsorship Consultants Association (ESCA), particularly emphasising the economic effects in terms of sponsorship and support for sport, should the Olympics be staged in London. However, I wanted to add a few further points from my own perspective.

2. As background, I am an independent freelance consultant, specialising in advising on the staging of major sports events. Having been solely responsible for staging the 1995 World Skating Championships in Birmingham (one of the very few events in recent memory to have actually made a profit of over £0.5 million), I gave evidence before the Committee as part of its consideration on the Staging of International Sports Events in 1998.

3. Recently, I have provided expert advice on event management to a number of major sporting events. Employed either by Sport England or UK Sport on behalf of the Lottery, I have provided pre­event advice to World or European events in judo, modern pentathlon, netball, and the Millennium Youth Games, as well as assessing the bid documents and business plans for athletics, boxing and basketball. Additionally, I have undertaken detailed post­event Monitoring and Evaluation reports for Disability Athletics, World Football for Players with Learning Difficulties, World Senior Boxing, the World University and Commonwealth Rowing Championships and am currently working on the World Indoor Athletics to be held in Birmingham this March.

4. Most relevantly, last summer I was contracted by KPMG as their sports expert to provide input regarding all the sporting aspects of the Commonwealth Games in Manchester, working on behalf of the DCMS, Manchester City Council and Sport England to assess the Lessons Learned from the Games. My report was supplied to KPMG for incorporation into their document, which I understand the Committee has recently considered. Hence, from my above experience, and the fact that I am a member of London Sport, I wish to comment on the potential bid for the 2012 Olympics, based on the commercial aspects of organising such as major sporting event.

  • The staging of major sports events is virtually always a catalyst for public interest and enthusiasm in sport, as well as for economic impact and regeneration. The goodwill created, and the business generated as a result of a major sporting event is unquestionable. Additionally, the incentive to élite participants, and to the grass­roots participants is incalculable in the long run, in terms of results, and of health and social aspects.

  • Britain has a long history of staging highly successful sporting events, in terms of administration, media coverage and organisational ability, such as Euro '96. While the international sporting reputation of the UK is not high at the moment, particularly due to the cancellation of the World Athletics Championships and the long delay in the planning of Wembley.

  • It is a very costly exercise to put on a major international one­off event, since the scale of the organisation is vastly bigger and the costs in terms of financial commitment and cashflow, facilities needed and the higher quality of delivery that is required, than any other national event that a sport will have run before. Prior to the essential support of the Lottery, many national sports federations could not even consider staging major sports events, and even so, they will virtually always run at a loss. Additionally, the extra time and effort put in to organising the event can take a major toll on the resources of sport, at a time when it should be gaining extra benefit from having the event on home soil.

  • At the Commonwealth Games, from my investigations, it is clear that the early planning was done without sufficient research into the budgets needed and the potential cost. Most of the plans put together by Manchester were based on a break­even budget put together by people with no previous experience on staging sports events, whereas in reality, it proved to be a much more costly exercise.

  • While the Commonwealth Games were an undoubted success in terms of impact, new facilities, regeneration of a deprived area, economic income, sporting success and local community benefit, the longer term sporting benefits are much harder to measure. In organisational terms, not enough money within the budget was put aside to support the sporting administration within the Games, with too few people of limited experience, so that in future, there is not the legacy from Manchester that there ought to have been to put that knowledge to good use in future for sports event organisation in the UK.

  • The initial report into staging the Olympics was written before the experience of the Commonwealth Games, and there is now a great deal more background information available upon which to base a realistic budget and to develop plans. It is suggested that more time is spent immediately to go into greater depth in looking at the strengths and weaknesses of staging the Olympics, using wider expertise and more relevant information—so that the problems that arose in Manchester of under­funding and changes in organisational direction and the scale of the event, are not repeated in the case of an Olympics.

  • I cannot comment on whether London is the only suitable venue in the UK to attract an Olympic Games to the UK, but while there are some advantages of staging in the capital city, there are distinct problems in terms of the massive size of the city in terms of transport and communication. Manchester proved a wonderful sized city, in that it could cope with the influx of people but it was accessible and had a great atmosphere throughout the city.

  • If the UK wishes to bid of an Olympic Games, it is only viable if this has the whole­hearted support of the Government, both vocally and in financial terms. The experience of Australia over three successive campaigns, where the first bid came from a city, followed by one supported by the state, and finally the successful bid which was undertaken by the national government for Sydney. Unless the Government (and all parties) agree to give full backing for the bid, it will not be successful—and even if it was, then the event could never be staged without the 100 per cent backing of the Government. Not least, since London does not have a metropolitan authority, but is made up of many local councils, it requires the national government to pull all the stakeholders together into a cohesive group, in order to be able to deliver a highly successful and co­ordinated Games.

  • While the proposal to bid for an Olympic Games is being put forward by the British Olympic Association, there are many other bodies that have an interest in this, notably UK Sport as the recognised co­ordinating agency for major sports events, and Sport England, from the facilities and Commonwealth Games experience. It is imperative that these, and the sports federations, work closely together on any bid, and that they utilise the existing expertise within the public and private sector, to give the UK the best advantage to secure the Games.

  • If there is not across­the­board support of a bid to stage the Olympic Games in the UK, and if the Government do not give unequivocal support at this stage, then it is my view that the relevant agencies cannot risk staging the Games themselves, and should not enter the bidding.

  • However, the benefits to the UK from staging an Olympic Games are so enormous, to the sporting world, to the community of London, to the economy, and to the wider national public interest in major sport, that it is definitely worth bidding to stage the Games in the UK.

  • In conclusion, it is proposed that the Culture, Media and Sport Committee use its best efforts to persuade the government to give full, unequivocal support and financial backing to a bid from the UK to stage the Olympic Games in London in 2012.

8 January 2003



 
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