Romil Bahl, A.T. Kearney Global Sports and Entertainment Practice Leader May 13, 2003

2 A.T. Kearney 7/39252 Executive Summary n Mega-sports events deliver substantial economic and social benefits to sports governing bodies and host cities/countries n In the future the stakes are higher — the cost and complexity of hosting a mega-sports event is ever increasing n To succeed, event organizers need to adopt a comprehensive and integrated event-management mind-set through the entire event lifecycle and execute to some best-practices Organization and governance Stakeholder and government collaboration Revenue optimization and cost containment Program management and communication Risk management and contingency planning

3 A.T. Kearney 7/39252 Mega-sports events deliver substantial economic and social benefits to sports governing bodies and host cities/countries Mega-Sports Event Benefits Direct Event Benefits Induced Benefits Indirect Event Benefits Broadcast rights Global and Local Sponsorship Tickets Merchandising/Licensing Infrastructure investment and legacy Domestic and international tourism Other local business revenues (e.g. retail) Government tax revenue Employment (e.g., construction, tourism, and event-related jobs) Multiplier effect of foreign visitor spending Social and cultural benefits

4 A.T. Kearney 7/39252 In the future the stakes are higher — the cost and complexity of hosting a mega-sports event is ever increasing n Spiralling infrastructure costs n Increased technology requirements from media and fans n Higher security demands n Growing number of event participants n Expectations of sponsors/partners n Overall expectation each event will out-do the previous

5 A.T. Kearney 7/39252 To succeed, event organizers need to adopt a comprehensive and integrated event-management mind-set … Marketing, Sponsorship & Media Marketing & advertising Internet Site Public Relations Communications Media operations Hospitality Sponsor Management Licensing and Rights Protection Venues & Infrastructure Stadiums and venues Games village International media center Hotels Airports Rail and bus stations Conversion to municipal use Ticketing & Sales IT, Internet & Telecom Solution Architecture & Integration Event systems Internet Hardware and software Testing & technical rehearsals Event network (voice and data) Network equipment & cabling Wireless Transportation and Logistics Transportation infrastructure Public transportation Transportation planning — —Olympic Family — —General public Transportation operations Warehousing and logistics Materials management Ticketing — —International — —Domestic Merchandise Sales Accommodation sales Comprehensive and Integrated Event Management Mind-set Source:A.T. Kearney analysis Event Coordination Scheduling of events Roster development Competition organization Spectator services Accreditation Volunteer training and coordination Officials and referees Cultural program

6 A.T. Kearney 7/39252 …event organizers need to use a rigorous and comprehensive mindset along the entire event lifecycle Source:A.T. Kearney analysis Size of Event Mega-Sports Event (e.g. Olympic Games) Large-Scale (e.g. Cricket World Cup) Bid Setup & Strategy Conceptual Planning Operational Planning & Build-out Testing & Deployment Hosting Post-Event Management 6 – 12 Months 48 – 60 Months 6-12 Months 36 – 48 Months 6 – 9 Months 1 – 2 Months 6 – 12 Months 3 – 9 Months 18 – 24 Months Months 24 – 36 Months 3 – 6 Months 1 – 2 Months 3 – 6 Months Time

7 A.T. Kearney 7/39252 Revenue Optimisation and Cost Containment Stakeholder and Government Collaboration Organisation and Governance Risk Management and Contingency Planning Program Management and Communications A.T. Kearney experience and research reveals organisers of successful events adopt certain best practices throughout the event life-cycle Event Management Best Practices

8 A.T. Kearney 7/39252 Best practices — organization and governance Best Practices Rapid organisation establishment Evolving structure and size over the event-life-cycle – from a “thinking” to a “doing” organization Balance between process and functional view of organisation, transforming to a venue view Clear roles, responsibilities and accountabilities Obtain the required competencies and skills — use of third-party expertise Staff MOC Venue 1Venue 2Venue N Operating Workforce COO CEO InfrastructureCommercialOperations IT Construction Marketing Image Sponsorship Transportation Sport Accommodation CEO

9 A.T. Kearney 7/39252 Best practices — stakeholder and government collaboration Operational Delivery Communication Support Core Type of Interaction Significance of Activity Standing Committee Discrete Legal Entity Periodic Meetings Staff Integration Best Practices Tight government collaboration – – Specific-purpose government entities – – Full government backing at local and national level Sponsor/supplier staff integration Regular stakeholder communication Proactive public and media relations Consistent issue escalation and resolution approach Approaches for successful interaction with stakeholders

10 A.T. Kearney 7/39252 Best practices — revenue optimisation and cost containment Best Practices Innovative revenue optimisation – – Ticketing – – Digital assets – – … Funding early in the lifecycle Comprehensive budget development and tracking Segmented budget control and accountability Complexity reduction focus Rigorous strategic sourcing Sponsor/partner “value-in-kind” Revenue Expense Operations Capital Sponsor/Licensing TV Rights Ticket Sales Asia USA … Sponsorship Local Sponsorships Lotteries … Sports Facilities Village Media Center … Sports Events Ceremonies & Programs Transport Security …

11 A.T. Kearney 7/39252 Best practices — program management and communications Best Practices Program-wide blueprint Robust program management disciplines On-line collaboration and communication tools Knowledge management Cascading program management approach – – Overall event – – Operational – – Functional

12 A.T. Kearney 7/39252 Best practices — risk management and contingency planning Best Practices Risk management mind-set Consolidated risk capture and tracking Continual re-focusing of resources to highest priority risks Robust escalation and resolution processes Contingency planning and scenario development Crisis management planning Criticality Rating of the Risk Green Amber Red Timing Rating of the Risk Controllability Legend High Medium Low

13 A.T. Kearney 7/39252 A.T. Kearney has developed a mega-scale event management toolkit to support event organizers and sports governing bodies Event Strategy & Structure Strategy, Planning and Implementation Workstreams Venues and Infrastructure IT, Internet and Telecom Solution Marketing, Sponsorship and Media Transportation and Logistics Ticketing and Sales Event Co-ordination Program, Risk and Contingency Management Program Tracking & Risk Management Budget & Financial Management Strategic Sourcing & Asset Tracking Program Communication Program Governance Event Organization Structure Event Strategy, Blueprint & Roadmap Bid Strategy

Romil Bahl, A.T.Kearney Global Sports and Entertainment Practice Leader A.T. Kearney 5400 Legacy Drive MS B1-1A-01 Plano, Texas 75024