13 th / 14 th FINA World Swimming Championships (25m) 2016 / 2018 - - PowerPoint PPT Presentation

BUDGETING

13th / 14th FINA World Swimming Championships (25m) 2016 / 2018

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

• wn 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

• fficial 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

• ther 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

• perational 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

OC Operating Expenses

Flight tickets and accommodation for teams and FINA Family

 For Teams

• 750 economy flights
• 375 twin rooms with full board for 8 nights

 For FINA Family (Bureau, Committees, Officials, etc.)

• as specified in P&P

 Reports & Presentations

• to FINA
• to Public authorities
• Sponsorship Sales and Servicing

OC Operating Expenses

Contingency

 The Budget shall include a contingency amount  Establishing and managing a contingency against financial risks and uncertainties is an important component of the Budget  The contingency is designed to provide a financial cushion against revenue shortfalls and/or over-spends

OC Operating Expenses

 Construction, installation and equipment costs of a permanent nature for new sports facilities, MPC, IBC, if financed by OC  Costs of updating existing sports facilities of a permanent nature and not only limited to the period of the World Swimming Championships

 In Summary all Capital investments which will to a large degree remain after the Championships