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

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

2. Executive Summary • Mega-sports events deliver substantial economic and social benefits to sports governing bodies and host cities/countries • In the future the stakes are higher — the cost and complexity of hosting a mega-sports event is ever increasing • 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. 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. In the future the stakes are higher — the cost and complexity of hosting a mega-sports event is ever increasing • Spiralling infrastructure costs • Increased technology requirements from media and fans • Higher security demands • Growing number of event participants • Expectations of sponsors/partners • Overall expectation each event will out-do the previous

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

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

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

8. Best practices — organization and governance Best Practices CEO • 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 Infrastructure Commercial Operations Transportation Marketing IT Sport Image Construction Sponsorship Accommodation CEO Staff COO MOC Venue 1 Venue 2 Venue N Operating Workforce

9. Best practices — stakeholder and government collaboration Approaches for successful interaction with stakeholders 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 Core Discrete Legal Entity Standing Committee Significance of Activity Staff Integration Periodic Meetings Support Communication Operational Delivery Type of Interaction

10. Best practices — revenue optimisation and cost containment Best Practices Asia TV Rights USA • 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” … Sponsorship Revenue Sponsor/Licensing Local Sponsorships Lotteries … Ticket Sales Sports Facilities Village Capital Media Center … Expense Sports Events Ceremonies & Programs Transport Operations Security …

11. 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. 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 Red Criticality Rating of the Risk Amber Green Timing Rating of the Risk Controllability Legend High Medium Low

13. A.T. Kearney has developed a mega-scale event management toolkit to support event organizers and sports governing bodies Event Strategy & Structure Bid Strategy Event Organization Structure Event Strategy, Blueprint & Roadmap 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 Governance Program Tracking & Risk Management Budget &FinancialManagement Strategic Sourcing & Asset Tracking Program Communication

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