TSC: Gap between host cities' and rights-holders' thinking growing wider
The vast majority of host cities for major sporting events do not rate them highly in terms of providing a return on their investment, according to new research out today.
Just 11 per cent of host cities rank sporting events higher than any other type of large event in terms of ROI, The Sports Consultancy, the specialised London-based sports and events agency, has revealed.
The report, compiled by a new TSC unit, Sports & Entertainment - Evaluation and Research (SEER), surveyed over 70 rights-holders and hosts of major sporting events, and found that “government and host cities’ objectives from hosting major sports events have significantly changed in the last decade.”
The report, entitled ‘Disconnected - Misalignment in sport’s most important relationship’, found that while 71 per cent of rights-holders claimed to be aware of their host’s objectives, only 2 per cent of hosts agreed with this statement.
This stance does not reflect the amount hosts are currently investing in high-profile sporting events. The report claimed that during the next half-decade, the hosts of the five largest sporting events (including the Summer and Winter Olympics, and men's soccer's Fifa World Cup), will invest over $244 billion in these games’ and tournaments. This will significantly outstrip investment by other bodies such as media and corporate sponsors.
Revenue from sponsors and broadcasters for these same events would be in the region of $25 billion.
TSC also found disparity between rights-holders and host cities in terms of what type of events each are looking for - while esports is currently the sport with the biggest capacity to grow (in terms of events) according to rights-holders, the host cities surveyed only ranked it 15th out of all available sports, in terms of its importance to them.
In terms of costs, 76 per cent of rights-holders said they expected the costs of hosting events to rise, with 77 per cent stating that high fees are already one of the biggest challenges for staging major events.
The two sides were also far apart on how they saw events in terms of their environmental sustainability - 56 per cent said they saw this as one of their most important considerations, while only 17 per cent of rights-holders said they felt they delivered on that front.
Rights-holders that contributed to the report included the International Olympic Committee, World Rugby, International Rugby League, women’s tennis’ WTA Tour, and the International Cricket Council.
Host cities and regions to contribute meanwhile included bodies from Dubai, Singapore, London, Texas, and Denmark.
Angus Buchanan, TSC’s managing director, said: “Since 2005 we have been working with rights holders and host cities around the world focusing on this central relationship, which we believe is overlooked in terms of the importance of this key investor group.”
He added: “We have created… SEER to examine and address some of the key challenges affecting the sports and entertainment industry. We want to use SEER to challenge assumptions and provide solutions to fundamental issues facing the sector.”
To access and read the full report, click here.