PARLIAMENTARY COMMITTEE
CAPE TOWN
16 AUGUST 2005
Presentation By Mr Danny Jordaan
CHIEF EXECUTIVE OFFICER FIFA WORLD CUP 2010tm LOC
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
2005 - 2006
Key Activities
Contracts,
Projects and
Resources
• OAA
•
requirements, •
deliverables
• Government •
Guarantees
• Budget
•
• Human
Resources
Requirements •
• Understanding •
what is required
for the project
Compliance
Phase
Strategic
Planning
Vision
Mission
Statement
Goals and
objectives
Venue
Requirement
& Strategy
Key principles
Key activities
2006 - 2007
2008 - 2009
Concept of
Operations
Operating
Plans
• Scope
•
definition
• Levels of
•
service
•
• Roles and
•
responsibilities •
• Delivery
•
method
concepts
• Resources
reconfirmation
• Detailed
budget
• Detailed
milestones
• Risks
Policy and
•
procedures
Timings
Procurement •
Staffing
•
Model venue
Detail, detail, •
detail…based
on previous
stages
Operational
Phase
2010
2009
Test and
Refine
Operational
Readiness
& Operations
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
Debrief
- 2010
• Dissolution
Staff
• Debrief
training
Simulations • Provide
knowledge and
and testing
Refine Plans experience for
2014
Rehearse
Move-in and
set-up
operations
Debrief
Phase
SOUTH AFRICA: A LAND OF INFINITE POSSIBILITIES
Where else can you
•feel nature’s beauty
•experience first-world
technology
•face a fiery passion
for sport, and
•live the world’s only
political miracle
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 Africa’s 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 Mbeki’s letter to Mr Blatter
THE EVENT
OPPORTUNITIES: Mega-Sporting Event Commercial
Opportunities Comprise of Primary and Secondary Revenue
Streams
Secondary Revenue Streams
Primary
Revenue
Streams
MegaSporting
Events
SOUTH AFRICA
2010
BROADCASTING
SPONSORSHIP
Traditional
Revenue
Streams
LICENSING
CORPORATE HOSPITALITY
TICKETING
OTHER INCOME
TRAVEL AND TOURS
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
International Trends – Mega International Events
EXPECTED REVENUE DISTRIBUTION IN SPORT
(ILLUSTRATIVE)
New Media (New Media Multimedia
Rights, Infotainment etc)
Others
Licensing
Others
Licensing
Sponsorships
Gate
Revenues
Broadcasting
Rights
2000
Gate
Revenues
Sponsorships
Broadcasting
Rights
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
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
Total 2002 FIFA World CupTM
Commercial Revenues(1)
Total 2002 FIFA World CupTM
Local Marketing Programme Revenues
(Total = $1,670m)
(Total = $581m)
Other(3)
9%
($149m)
Marketing(2)
20%
$340m
Local
Sponsorship
5%
($80m)
Broadcasting Rights
69%
($1,100m)
$475m
Notes:
$581m
$80m
Local
Sponsorship
Source: FIFA 8 April 2003 Media Conference, A.T. Kearney analysis
$26m(4)
Tickets
Licensing
Total Local
Marketing
Revenue
Source: A.T. Kearney analysis
(1) Converted from CHF using 30 June 2002 conversion date: 1 CHF=0.675 USD.
(2) Represents Official Partners’ sponsorship revenue and excludes CHF 336m (USD 227m) which was securitised and allocated to period
2003-2006.
(3) Includes licensing, adidas brand, levies.
(4) FIFA Marketing, A.T. Kearney Analysis, CPLG
COMPARATIVE INVESTMENT
(Amount in ZAR billion)
25
20
21
15
16
Stadia
Event Budget
10
5
5.2
3.4
2.5
0
Korea-Japan
Germany
SA
3.1
WORLD CUP TICKET SALES COMPARISON
WC
EVENT
# of
MATC
HES
# of
TICKETS
(mn)
PRESTIGE
TICKETS
% of
PRESTIGE
TICKETS
% of
TOTAL
TICKETS
SOLD
AVG
TICKET
PRICE
(CHF)
TOTAL
REVENUE
($ mn)
1994 USA
52
3.60
360,000
10.0%
100%
459
125
1998 France
64
2.6
216,000
8.5%
100%
1,300
186
2002 –
Korea Japan
64
3.2
85,000
3.4%
100%
1,850
150 – 200
(est.)
2006 –
Germany
(proj)
64
3.46
346,000
10.0%
100%
1,926
N/A
2010 –
South
Africa
64
2.78
333,600
12.0%
89%
N /A
N/A
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
SA FOOTBALL BRAND DOMINANCE 2004 - Markinor
35
30
35
25
% 20
Chiefs
24
Pirates
21
Bafana
Proteas
15
Springbok
10
13
12
5
0
Top Sports Brands in SA 2004
SA FOOTBALL REVENUE LAGS BEHIND
160
154
160
150
140
ZARmillions
120
100
100
PSL
SAFA
2010 BID
80
80
70
60
40
20
0
0
5
0
1990
0
12
0
1995
2000
2005
SA SPORT SPECTATORS
Athletics
Swimming
Golf Boxing
Tennis
Netball
Cricket
7.4%
Soccer 54.2%
13 682 000
9.9%
Rugby
• COST
( R BILLION)
• STADIA 2.5
• TRANSPORT
• BROADCASTING
• ICT
• SECURITY
BENEFIT
FIFA 3.1
TO LOC
TAX 9.8
TOURISM 5.7
FOOTBALL
STADIA
PROFIT
GUARANTEE
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 –
USD 467,459,448
ticket sales:
Local sponsors:USD 73,726,103
•Total income for SA:
USD 541,185,551
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/b’casters
*Foreign govts/officials
•Participating teams (32 nations)
*Media
•Officials
*
•Spectators/Fans (350,000)
*
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
THE EVENT: MAJOR MARKETS
#
CONTINENT
COUNTRIES EXPECTED TO
QUALIFY
15
EUROPE
England, France, Italy, Spain,
Germany, Portugal, Sweden,
Denmark, Netherlands, Russia,
Greece, Czech Republic, Turkey,
Croatia, Poland
6
AFRICA
Egypt, Morocco, Nigeria, Cameroon,
Ghana, South Africa (Host)
4
ASIA
Korea, Japan, China, Saudi Arabia
4
SOUTH AMERICA
Brazil, Argentina, Paraguay, Peru
3
NORTH, CENTRAL
AMERICA, CARRIBEAN
USA, Mexico, Jamaica
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
THE EVENT: FANS’ EXPECTED SPEND
•
Licensed merchandise
•
Transport
•
Meals
•
Accommodation
•
Entertainment
TOTAL EXPECTED SPECTATOR SPEND
R9.8 BILLION
The Cities
Johannesburg
Pretoria
Durban
Bloemfontein
Cape Town
Port Elizabeth
Polokwane
Rustenburg
Kimberly
Nelspruit
Orkney
Technical and Socio-economic positioning, with cost of
developing stadia and potential proposed matches
City
Johannesburg
(Gauteng)
Tech
Pos.
2
SocioEcon
Pos.
1
Proposed matches
Stadium
Cost
1st
Round
2nd
Round
Quarter
Final
1
SemiFinal
FNB
R364 m
5
1
Ellis park
R23m
5
1
1
1
Ethekwini
(KZN)
1
2
R48m
5
1
Cape Town
(Western Cape)
3
3
R18 m
5
1
1
Tshwane
(Gauteng)
4
4
R27m
4
1
1
Rustenberg
(North West)
5
6
R13m
4
1
Nelson Mandela
(Eastern cape)
6
5
R250 m
4
1
Bloemfontein
(Free State)
7
7
R33 m
4
1
Polokwane
(Limpopo)
8
8
R250 m
4
Nelspruit
(Mpumalanga)
9
9
R250 m
4
Kimberley
(Northern Cape)
11
11
R250 m
R1,526m
4
48
8
Final
1
1
4
3rd Place
1
2
1
1
MATCH ALLOCATION
1.
2.
3.
4.
Number of World Cup matches
Number of Venues (WC)
Number of Friendly matches
Training Venues ( 4 x 10)
64
10
64
40
STADIA ALLOCATION
RUGBY
KINGS PARK
Newlands
FOOTBALL
Soccer City
Ellis Park
Royal Bafokeng
Nelson Mandela
Polokwane
Nelspruit
Athlone
Kimberley
Free State
TRAINING VENUES
Rugby/ Cricket
Football
Wanderers
Orlando
Rand
Marks Park
Makhulong
George Thabe
Super Stadium
(Atteridgeville)
HM Pitje (Mamelodi)
Caledonian
TRAINING VENUES (CONT)
Rustenburg
Ethekwini
Mafikeng
Olympia
Umlazi
Princess Magogo
Kings Park
(Soccer)
Univ KZN
TRAINING VENUES (CONT)
St George's
Telkom
Cape Town
Oval
Adcock
Wolfson
Vygies Kraal
Langa
Green Point
Kimberley, Polokwane,Nelspruit and Orkney to be
visited 10-14 October 2005


VENUE
Soccer City
NET CAPACITY
94,700
[PMG note: Stadium picture not include]


VENUE
Ellis Park
NET CAPACITY
60,000
[PMG note: Stadium picture not include]


VENUE
Rainbow Junction
NET CAPACITY
41,000
[PMG note: Stadium picture not include]


VENUE
Loftus
NET CAPACITY
45,093
[PMG note: Stadium picture not include]


VENUE
Peter Mokaba
NET CAPACITY
40,080
[PMG note: Stadium picture not include]


VENUE
Oppenheimer Stadium
NET CAPACITY
40,000
[PMG note: Stadium picture not include]


VENUE
Kimberly Stadium
NET CAPACITY
40,010
[PMG note: Stadium picture not include]


VENUE
Kings Park
NET CAPACITY
60,010
[PMG note: Stadium picture not include]


VENUE
Port Elizabeth Stadium
NET CAPACITY
49,500
[PMG note: Stadium picture not include]


VENUE
Mbombela Stadium
NET CAPACITY
40,000
[PMG note: Stadium picture not include]


VENUE
Newlands
NET CAPACITY
40,020
[PMG note: Stadium picture not include]
• VENUE
Royal Bafokeng
Sports Palace
NET CAPACITY
40,010
[PMG note: Stadium picture not include]
CHALLENGES
•
Accommodation
•
Transportation
•
Security
•
Hospitality
•
Information Technology
•
Broadcasting
•
Telecommunication
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
BENEFITS (INTANGIBLE)
•
National unity
•
Pride
•
Promotion of country
•
Infrastructure attracts tourists / investors
THANK YOU