PARLIAMENTARY COMMITTEE CAPE TOWN 16 AUGUST 2005

1
PARLIAMENTARY COMMITTEECAPE TOWN16 AUGUST 2005
2
Presentation By Mr Danny Jordaan CHIEF EXECUTIVE
OFFICER FIFA WORLD CUP 2010tm LOC
3
The planning and set-up of 2010 FIFA World CupTM
is currently in a compliance phase. The
operational phase will begin after 2006 FIFA
World CupTM
Today
2006 - 2007
2008 - 2009
2010
2005 - 2006
2009
Contracts, Projects and Resources
Strategic Planning
Concept of Operations
Operating Plans
Test and Refine
Operational Readiness Operations
Debrief - 2010

• Dissolution
• Debrief
• Provide knowledge and experience for 2014

• OAA requirements, deliverables
• Government Guarantees
• Budget
• Human Resources Requirements
• Understanding what is required for the project

• Scope definition
• Levels of service
• Roles and responsibilities
• Delivery method concepts
• Resources reconfirmation
• Detailed budget
• Detailed milestones
• Risks

• Vision
• Mission Statement
• Goals and objectives
• Venue Requirement Strategy
• Key principles
• Key activities

• Policy and procedures
• Timings
• Procurement
• Staffing
• Model venue
• Detail, detail, detailbased on previous stages

• Test Event plan must be the yardstick of standard
  delivery
• Test Event delivery
• Contingency Planning
• Lessons learnt from Test Event plan with 8 months
  for improvement leading up to 2010 FIFA World
  CupTM
• Identify the divisions which will be tested in
  advance, whether it is full test or not this
  exercise in itself must be planned for, failing
  which the entire purpose shall be defeated

• Staff training
• Simulations and testing
• Refine Plans
• Rehearse
• Move-in and set-up operations

Key Activities
Operational Phase
Compliance Phase
Debrief Phase
4
SOUTH AFRICA A LAND OF INFINITE POSSIBILITIES

• Where else can you
• feel natures beauty
• experience first-world technology
• face a fiery passion for sport, and
• live the worlds only political miracle

5
2010 FIFA WORLD CUPtm
The foundation of this Bid lies in our resolve
to ensure that the 21st century unfolds as a
century of growth and development in Africa. The
new Partnership for Africas Development (NEPAD)
was launched to open new space for the economic
progress of the continent. There remains work to
be done, but the Successful hosting of the FIFA
World Cup in Africa will provide a powerful
irresistible momentum to this resolute African
Renaissance. Extract from President Mbekis
letter to Mr Blatter
6
THE EVENT
32 Teams
64 Matches
28 43 Days
200 Viewing Hours
40 billion TV Audience
2.78 million tickets
13 Stadia proposed
7
OPPORTUNITIES Mega-Sporting Event Commercial
Opportunities Comprise of Primary and Secondary
Revenue Streams
SOUTH AFRICA 2010
Mega-Sporting Events
Primary Revenue Streams
SPONSORSHIP
BROADCASTING
Traditional Revenue Streams
CORPORATE HOSPITALITY
TICKETING
LICENSING
Secondary Revenue Streams
TRAVEL AND TOURS
OTHER INCOME
NEW MEDIA
Non- Traditional Revenue Streams
Significant commercial growth opportunities exist
for Mega-Sporting Events by optimising
Traditional Revenues and exploring
Non-Traditional Revenue streams
8
International Trends Mega International Events
EXPECTED REVENUE DISTRIBUTION IN
SPORT(ILLUSTRATIVE)
New Media (New Media Multimedia Rights,
Infotainment etc)
Others
Licensing
Others
Licensing
Gate Revenues
Gate Revenues
Sponsor-ships
Sponsorships
Broadcasting Rights
Broadcasting Rights
2000
2010
As there are a multitude of platforms for revenue
growth, specific platforms and their related
benefits should be in line with the Mega-Event
strategy
Source A.T.Kearney analysis
9
Broadcasting Rights of 1.1b remained the most
lucrative revenue stream for the FIFA World CupTM
while the Local Marketing Programme generated
ticketing income of 475m in 2002
Local Sponsorship 5 (80m)
Other(3) 9 (149m)
Marketing(2) 20 340m
581m
26m(4)
475m
Broadcasting Rights 69 (1,100m)
80m
Local Sponsorship
Tickets
Licensing
Total Local Marketing Revenue
Source A.T. Kearney analysis
Source FIFA 8 April 2003 Media Conference, A.T.
Kearney analysis
Notes (1) Converted from CHF using 30 June 2002
conversion date 1 CHF0.675 USD. (2) Represents
Official Partners sponsorship revenue and
excludes CHF 336m (USD 227m) which was
securitised and allocated to period
2003-2006. (3) Includes licensing, adidas brand,
levies. (4) FIFA Marketing, A.T. Kearney
Analysis, CPLG
10
COMPARATIVE INVESTMENT(Amount in ZAR billion)
11
WORLD CUP TICKET SALES COMPARISON
12

• TICKETS AND SPONSORS
• FIFA controls ticket sales and tour packages
  through Match
• -1/3 tickets international (including Africa)
• -1/3 tickets to FIFA family and commercial
  partners
• -1/3 tickets host country
• -In total 2,78 million tickets will be sold
• Hospitality, reserved unreserved tickets,
  Africa Ticket proposed
• Confirmed financial support and commitment from
  multinational corporations

13
SA FOOTBALL BRAND DOMINANCE 2004 - Markinor

Top Sports Brands in SA 2004
14
SA FOOTBALL REVENUE LAGS BEHIND
ZARmillions
15
SA SPORT SPECTATORS
7.4
9.9
54.2 13 682 000
16

• COST ( R BILLION) BENEFIT
• STADIA 2.5 FIFA 3.1 TO LOC
• TRANSPORT TAX 9.8
• BROADCASTING TOURISM 5.7
• ICT FOOTBALL STADIA
• SECURITY PROFIT GUARANTEE

17

• BUDGET
• The inspection report reveals the following
  budgetary implications for SA
• Expenditure Infrastructure USD 112,000,000
• Operations USD 364,054,993
• Total expenditure USD 476,054,993
• Income ticket sales USD 467,459,448
• Local sponsorsUSD 73,726,103
• Total income for SA USD 541,185,551

18

• IMPACT
• 350,000 visitors projected
• 2,78 million tickets to be sold (18,500 visitors
  Cricket World Cup)
• 40 billion viewers in 204 countries
• Sectors of 2010 tourists
• FIFA Exec, Congress Del., Staff (1,200)VIP
  Guests
• Commercial partners/bcasters Foreign
  govts/officials
• Participating teams (32 nations) Media
• Officials
• Spectators/Fans (350,000)

19

• ECONOMIC IMPACT
• Direct expenditure of R12,7 billion
• R21,3 billion contribution to GDP
• Will generate 129,000 jobs
• Additional R5.7 billion to be paid in Government
  taxes
• Spectator spend R9,8 billion

20
(No Transcript)
21
THE EVENT MAJOR MARKETS
22

• CHALLENGES TOURISM
• 2,78 million tickets to be sold
• 40 billion viewers in 204 countries
• Sectors of 2010 visitors (2002 Korea-Japan)
• FIFA Exec, Congress Del., Staff, VIP Guests
  3,000
• Commercial affiliates other rights holders
  25,000
• Foreign governments officials 1,000
• Participating teams (32 nations) 3,000
• Media 15,000
• Spectators/Fans 200,000
• TOTAL (2002) 247,000
• EXPECTED IN 2010 350,000

23

• THE EVENT FANS EXPECTED SPEND
• Licensed merchandise
• Transport
• Meals
• Accommodation
• Entertainment
• TOTAL EXPECTED SPECTATOR SPEND
• R9.8 BILLION

24
The Cities

• Johannesburg
• Pretoria
• Durban
• Bloemfontein
• Cape Town
• Port Elizabeth
• Polokwane
• Rustenburg
• Kimberly
• Nelspruit
• Orkney

25
Technical and Socio-economic positioning, with
cost of developing stadia and potential proposed
matches
R1,526m
26

• MATCH ALLOCATION
• Number of World Cup matches 64
• Number of Venues (WC) 10
• Number of Friendly matches 64
• Training Venues ( 4 x 10) 40

27

• STADIA ALLOCATION
• RUGBY FOOTBALL
• KINGS PARK Soccer City
• Ellis Park
• Royal Bafokeng
• Nelson Mandela
• Polokwane
• Nelspruit
• Newlands Athlone
• Kimberley
• Free State

28

• TRAINING VENUES
• Rugby/ Cricket Football
• Wanderers Orlando
• Rand
• Marks Park
• Makhulong
• George Thabe
• Super Stadium (Atteridgeville)
• HM Pitje (Mamelodi)
• Caledonian

29

• TRAINING VENUES (CONT)
• Rustenburg Mafikeng
• Olympia
• Ethekwini Umlazi
• Princess Magogo
• Kings Park (Soccer)
• Univ KZN

30

• TRAINING VENUES (CONT)
• St George's Oval
• Telkom Adcock
• Wolfson
• Cape Town Vygies Kraal
• Langa
• Green Point
• Kimberley, Polokwane,Nelspruit and Orkney to be
  visited 10-14 October 2005

31

• VENUE
• Soccer City
• NET CAPACITY
• 94,700
• PMG note Stadium picture not include

32

• VENUE
• Ellis Park
• NET CAPACITY
• 60,000
• PMG note Stadium picture not include

33

• VENUE
• Rainbow Junction
• NET CAPACITY
• 41,000
• PMG note Stadium picture not include

34

• VENUE
• Loftus
• NET CAPACITY
• 45,093
• PMG note Stadium picture not include

35

• VENUE
• Peter Mokaba
• NET CAPACITY
• 40,080
• PMG note Stadium picture not include

36

• VENUE
• Oppenheimer Stadium
• NET CAPACITY
• 40,000
• PMG note Stadium picture not include

37

• VENUE
• Kimberly Stadium
• NET CAPACITY
• 40,010
• PMG note Stadium picture not include

38

• VENUE
• Kings Park
• NET CAPACITY
• 60,010
• PMG note Stadium picture not include

39

• VENUE
• Port Elizabeth Stadium
• NET CAPACITY
• 49,500
• PMG note Stadium picture not include

40

• VENUE
• Mbombela Stadium
• NET CAPACITY
• 40,000
• PMG note Stadium picture not include

41

• VENUE
• Newlands
• NET CAPACITY
• 40,020
• PMG note Stadium picture not include

42

• VENUE
• Royal Bafokeng
• Sports Palace
• NET CAPACITY
• 40,010
• PMG note Stadium picture not include

43

• CHALLENGES
• Accommodation
• Transportation
• Security
• Hospitality
• Information Technology
• Broadcasting
• Telecommunication

44

• BENEFITS (TANGIBLE)
• Sport itself and global competitiveness
• 360 Billion US Dollars
• Our objective Secure a greater share of the
  global football economy
• Economic considerations for SA
• R16,9 billion direct investment At least
  122, 800 jobs
• 350 000 visitors
• Human resources and capacity-building
• Demands highly skilled organisers,
  professional individuals and world-class
  technology
• Taxes R5,6 Billion

45

• BENEFITS (INTANGIBLE)
• National unity
• Pride
• Promotion of country
• Infrastructure attracts tourists / investors

46
THANK YOU