13 th / 14 th FINA World Swimming Championships (25m) 2016 / 2018 BUDGETING
Guarantee The candidate City shall provide a written financial guarantee to FINA’s satisfaction The guarantee may be given by the City or local, regional or national government authorities The guarantee shall cover any eventual budgetary shortfall of the World Swimming Championships, protecting the national federation
Budgeting A realistic budget forms the heart of the bid The bid budgets should be prepared based on the prevailing market prices and economic conditions at the time of the bid preparation The bid budget comprises 2 parts: OC Budget Non-OC Budget
OC and Non-OC Budgets OC Budget The operational budget needed by the OC for all aspects of organising and staging the Championships Non-OC Budget Covers capital infrastructure (venue and sports facilities) development costs that will be a lasting legacy for the Host City/Country • The financing of such projects should be undertaken by public authorities or the private sector
OC Revenue Sources National Marketing Programme Cash revenue and/or Budget relieving value-in-kind (VIK) products and/or services Received in exchange for marketing and promotional rights granted by the OC, as approved by FINA, from: • National sponsors • National suppliers
OC Revenue Sources FINA Partner & Supplier VIK Budget relieving value-in-kind (VIK) products and services provided to the OC through FINA’s agreement with its Partners & Suppliers • Possible examples: Sportswear uniform for officials and volunteers Timing & data services Pool equipment
OC Revenue Sources Ticket Sales • World Championships events Competition session tickets Corporate Hospitality packages • Special Opening Ceremonies • Other Programmes, including any cultural programme • OC Budget should reflect gross revenue expectations • Ticket prices should be realistic to achieve sell-out status • The OC retains all ticket revenues: none is taken by FINA
OC Revenue Sources Licensing & Merchandising Revenues from the sale of souvenir items (excluding the products of any sponsors) • Primarily novelty items (pens, mugs, pin badges etc.) OC retains all revenues, no royalty payment to FINA Other Sales • Official programme • Commemorative coins & stamps OC retains all revenues, no share is due to FINA
OC Revenue Sources Licensing & Merchandising Sponsors retain the licensing rights within their own product category Clothing Items • FINA’s Sportswear Partner is granted all clothing merchandise rights • The OC may receive a negotiated royalty through this • The Partner may choose to relinquish some of its rights to the OC • The OC Budget should however assume no benefit
OC Revenue Sources Grant Aid & Subsidy Grants received from Government or quasi- Government bodies for the staging of events such as World Championships • Bids should provide tangible evidence of the commitment of these authorities to provide such grants or subsidies OC retains all revenues, no share is due to FINA
OC Revenue Sources Accommodation OC share of gross room revenue from all paying customers in the World Championships official hotel network • Dependent on the rates negotiated by the OC or its appointed agent with the hotels, and subject to the capping of hotel charges to be set out in the HCA Candidates commit to a maximum full-board room rate in the HCA, which they predict will be realistic at the time of the event’s staging
OC Revenue Sources Lotteries Revenue from national or other lotteries where the World Championships is a beneficiary • OC retains all revenues, no share is due to FINA Donations Philanthropic donations received from third parties without any attached sponsorship or marketing rights • OC retains all revenues, no share is due to FINA
OC Revenue Sources Concessions & Franchises Revenue from sales of food & beverages and other non-licensed items to spectators at the Championships venue • Fee from the OC-appointed concession operator(s) and/or • OC share of appointed concessionaires’ gross income OC retains all revenues, no share is due to FINA
OC Revenue Sources Rate Card Revenue Revenue generated from the provision of goods and services to sponsors, broadcasters, media, etc., which are in excess of their entitlement as set out in the Host City Agreement • Examples: Hospitality catering, furnishing & decoration Power and utilities Commentary position construction
OC Operating Expenses Competition & Training Venues Facility hire costs Venue dressing Sports presentation Videoboards & Scoreboards Staffing costs Other operational venues Main Press Centre TV Compound/IBC Uniform storage and distribution centre Accreditation Centre Hospitality lounges
OC Operating Expenses Venue operational costs Installation of temporary swimming pools, water treatment and heating Temporary venue fit-out and facilities Furniture, fixtures and equipment Power and other utilities Cleaning & waste management Event services – spectator management
OC Operating Expenses Host Broadcasting Operations Production of international signal in HD Rental of specialised cameras Virtual graphics enhancements Production of daily highlights programme Rightsholder services FINA TV consultant costs ($80’000)
OC Operating Expenses OC Insurance Event cancellation Public liability Staff insurance & pensions • FINA also has its own insurance policies in place
OC Operating Expenses Technology Information management systems Timing and data-processing system In-venue data distribution PC hardware + software licenses Photocopying & printing Lines (phone, ISDN, ADSL), mobile phones/SIMs & 2-way radios Networks: wireless network and CAT5-cabled Venue lighting & PA systems, video-boards & Scoreboards TV monitors
OC Operating Expenses Ceremonies & Protocol Opening ceremonies Closing ceremonies Medals and diplomas, podium victory ceremonies National flags and anthems Pre-session entertainment programme Sports presentation Cultural and social programme
OC Operating Expenses Medical Services First Aid care at all venues • Teams, media, etc. • Spectators Ambulances/emergency services on stand-by Local hospital arrangements Doping Control measures • Urine and blood testing according to FINA Rules
OC Operating Expenses Catering All food and beverage requirements • Athletes – Beverages & snacks at venue • VIP Hospitality - beverages, light food / snacks • Officials Lounge - beverages, light food / snacks • OC & FINA/Agent staff • Volunteers • Media & Broadcasters
OC Operating Expenses Transportation Airport-Hotel transfers and Venue-Hotel transport • Requirements specified in P&P FINA Bureau - Cars Teams FINA Committees & Commissions Officials, Judges & Referees Media & Broadcasters FINA Staff, FINA’s Agent and FINA Partners • Costs of vehicles (cars, minibuses, coaches) Delivery Fleet management Drivers Fuel & insurance Cleaning, parking
OC Operating Expenses Security Accreditation system for all participants Security personnel and checks at venues Security of equipment and facilities • Timing & Data equipment • TV compound & facilities • Other equipment Any special security arrangements necessary for particular national teams
OC Operating Expenses Publications, Advertising & Promotion International and domestic media advertising Publication of posters, brochures and reports Logo & Mascot development and registration City decoration programme Marketing/Sales & Licensing programmes Ticket marketing and promotion Ticket sales order processing & distribution Communications & Media relations Domain name registration, website development and maintenance
OC Operating Expenses Administration Includes all costs incurred for the effective management and co-ordination of OC operational activities • Executive office (CEO, COO & Directors) • Corporate administrative services • Headquarters / office rental • OC operating costs • Office furniture and equipment • Telephone, fax, E-mail, postage/courier • Uniforms for OC staff, volunteers & FINA officials • Programme planning & Project Management • Finance – Accounting • Risk Management
OC Operating Expenses Administration Includes all costs incurred for the effective management and co-ordination of operational activities • Legal Services • Volunteers recruitment, training, etc. • Language Services • Logistics management • Accommodation • Accreditation systems • Services & Coordination • Customer services
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