Bid Overview For Host Cities

England 2018
Applicant Host City Engagement Process

Bid Overview for Applicant Host Cities
Agenda
• Introduction
• FIFA levels of engagement
• Host city deliverables
• Timelines & deadlines
• Cost summary
• Revenue summary
• Economic impact
• Highlights from Germany 2006
• Potential governance considerations
• Conclusion and next steps
Introduction (1/2)
• FIFA engages with a successful World Cup Bidding Nation on three

different levels:
– Central Government
– Host Cities
– Local Organising Committee (LOC)
• At each level there are a series of complex and demanding
undertakings and contracts to be signed
• FIFA insist that these agreements are signed without any changes
being made
• These requirements apply equally to all nations bidding to host the
World Cup in 2018/2022
Introduction (2/2)
• Therefore, at each level there is a simple question: Do we want to
be part of staging the FIFA World Cup or not?
• If the answer is ‘yes’, it is incumbent on the contracting entity to
carry out their own due diligence and convince themselves that they
understand the full implications of signing the necessary
agreements
• Applicant Host Cities need to ensure that they understand the
financial and legal implications of engaging with FIFA
• This document provides the critical information which will feed into
the Applicant Host City decision-making process for individual Host
Cities
• It should be understood however that the timetable set by England
2018 is based on submitting our Bid in terms of FIFA’s timetable.
Any delays would seriously affect the quality of the England 2018
Bid and failure to meet FIFA deadlines would invalidate our Bid
Agenda
• Introduction
• Cost summary
• Revenue summary
• Economic impact
FIFA Requirements
FIFA has issued standard template agreements to all Bidding
nations…
Agreement Executed By
1 Host City Agreement • Applicant Host Cities
• Applicant Host Cities (Stadium

2 Stadium Agreement
owners / operators)
• Applicant Host Cities (Stadium
3 Training Site Agreement
owners / operators)
4 Government Guarantees • Central Government
5 Hotel Agreement • England 2018 and hotel owners
6 Bidding Agreement • England 2018
7 Hosting Agreement • England 2018

FIFA Requirements
• FIFA expect all agreements to be signed unaltered

• Annex 4 of the Bidding Agreement states the following specifically
referring to Host Cities:
“(i) The Host City Agreements are the agreements to be duly executed and initialled by the LOC
and the competent executive authority of a proposed Host City, containing all rights and
obligations of a Host City in relation to Competitions.
(ii) The Host City Agreements duly executed and initialled by the executive authority of a
proposed Host City must fully comply with and shall not deviate in any way from, the template
agreement provided by FIFA…”
• Host Cities and stadiums will not be considered by FIFA unless properly
executed agreements are submitted with the official England bid
In view of this requirement, England 2018 will not include in its Bid Book
Cities and Stadiums that have not complied fully with the FIFA requirement
Agenda
• Introduction
– Host Cities
– Local Organising Committee
• Cost summary
• Revenue summary
• Economic impact
Central Government Contribution
Central Government Requirement Cost Implication

• Central Government is required by • Cost to the Government of signing
FIFA to sign eight Government the guarantees is approximately
Guarantees £300-350m
• To meet FIFA’s timetable, these are • ‘Safety and security’ is the most
to be signed by the relevant significant guarantee as
Secretary of State by 4 December Government is responsible for all
2009 safety and security requirements
relating to the staging of the FIFA
• If the Government Guarantees are
World Cup
not signed as worded then,
England’s bid will be deemed not to
be compliant and consequently
invalid
Central Government Guarantees
Government Guarantee Secretary of State Cost
• Home Secretary • Loss of revenue from issuing of unconditional
and free entry visas to:
Entry and Exit Permits – FIFA delegation, teams, national
associations, fans with valid tickets,
commercial sponsors and media partners
• Secretary of State for Business, • Cost of administrating unconditional work
Work Permits
Innovation and Skills permits for foreign nationals.
• Chancellor of the Exchequer • Loss of tax revenue
Tax Exemption
Legal Issues and • Secretary of State for Justice • Mainly legislative implications
Indemnification
• Home Secretary • Security to provided at no cost with full liability
Safety and Security for any related safety/security incidents to be
accepted by the Government
Bank and Foreign Exchange • Chancellor of the Exchequer • Loss of income through the unrestricted import
Operations and export of currency exchange
Protection and Exploitation of • Secretary of State for Business, • Mainly legislative implications
Commercial Rights Innovation and Skills
Telecommunication and • Secretary of State for Business, • Cost of supplying IT and telecommunications
Information Technology Innovation and Skills infrastructure
Agenda
• Introduction
– Host Cities
• Cost summary
• Revenue summary
• Economic impact
Role of Host Cities
• Fan fests • City management and

planning
• Transportation
• FIFA inspection visits
• City marketing and dressing
• City hospitality
• Competition related events
• Stadium & venue specific
• City volunteers training site delivery
• Tourism • Legacy planning and
• Agency liaison (Traffic / management
Police / Transport) • Environmental sustainability
Agenda
• Introduction
– Host Cities
• Cost summary
• Revenue summary
• Economic impact
Roles of LOC
• Event planning and management • FIFA observer tours

• FIFA inspection visits • IT & T planning and delivery
• Finance and funding • Host broadcaster planning and delivery
• Volunteers • Media liaison and management
• Opening and closing ceremonies • Accreditation
• Marketing • Hotels and team base camp
management
• Communications
• Government and stakeholder
• Ticketing management
• Hospitality • Transportation management and delivery
• Stadium & training site • Staffing
preparation
• FIFA Fan fest planning and management
• Competition related events
• FIFA liaison
• Competition management
Agenda
• Introduction
• Cost summary
• Revenue summary
• Economic impact
Host City Deliverables
Agreement Commentary
• A Host City will not be chosen by FIFA

1 FIFA compliant stadium unless it can deliver a compliant
stadium
• Delivery of elements such as
2 Host City Agreement transport, fan fests and city marketing
and dressing
• Stadium reservation agreement

3 Stadium Agreement Cover
augmented by stadium use agreement
4 Training Site Agreement Cover • Training site reservation agreement

Host City Contract Process
FIFA will not countersign the Host City Dusseldorf, Bremen, Leverkusen and
Agreement until March 2013 in the event Munchengladbach were presented in
England 2008 is successful. Germany 2006’s bid book but did not
ultimately become Host Cities
December 2010 January 2012 March 2013
England 2018 win LOC proposes Stadium FIFA sign Host

Inspection
the right to host Host Cities to selection City
visits
2018 World Cup FIFA confirmed Agreement
FIFA’s Hosting Agreement for the Formal Selection … The final decision must be concluded
Process of the Host Cities no later than 1 March 2013 when the
actual Host Cities will be selected by
8.1.3 (i) – By no later than 1 January 2012 (FIFA World
FIFA.
Cup Host City Bid Process Due Date) the LOC and FIFA
shall agree on a formal final Host City bid selection
process for the FIFA World Cup and Confederation Cup …
Agenda
• Introduction
• Cost summary
• Revenue summary
• Economic impact
Timeline Overview
Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10
Applicant Host Cities final bid submitted 26 Nov
Host Cities submit FIFA Host City Agreement 26 Nov
Host City presentation 14,15 & 16 Dec
Candidate Host City Announcement 16 Dec
England 2018 circulate 1st draft of bid book 18 Jan
England 2018 circulate 2nd draft of bid book 19 Feb

England 2018 circulate final copy of bid book 19 Mar
Bid book signed off 2 Apr
Bid book sent to printers 5 Apr
6 May
Delivery of final bid book to England 2018
14 May
England 2018 submit bid book to FIFA
• Selected Candidate Host Cities and their final bid submission will form an essential component of the Technical
Bid Book around which England’s bid will be built
• In order to produce the best technical bid possible, there is a substantial amount of work to be done by England
2018 once the Cities have been selected and the final May deadline is not moveable
• England 2018 cannot announce Candidate Host Cities until all documentation has been received
• Failure to submit the agreements in accordance with these deadlines will mean that the Applicant Host City is
excluded from the process going forward
Agenda
• Introduction
• Cost summary
• Revenue summary
• Economic impact
FIFA World Cup Staging – Financial Overview
• FIFA accrue all revenue generated from hosting the World Cup except for specific
revenues allocated to Host Cities
– FIFA Fan Fest sponsorship and hospitality
– Rental income for use of the stadium
• No revenue accrues to the LOC with the LOC costs being funded in their entirety by
FIFA
– Over and above the LOC expenditure budget, FIFA will agree a profit or
surplus amount of money with the LOC; the surplus will be used for football
development-related projects
• The expenditure budget agreed by FIFA will exclude all capital costs relating to
stadiums as well as those costs detailed in the host city agreements and central
government guarantees
• England 2018 requested a stadium use agreement from FIFA, FIFA responded by
stating that the stadium use agreement would only be available in 2012 and
provided a sample agreement from the 2011 Women’s World Cup in Germany
• This has been reviewed by England 2018’s legal advisers and is inadequate as
essential information will only be provided by FIFA in 2011. England 2018 will
therefore confirm stadium remuneration by way of a covering letter to contracting
parties.
Funding Overview
Three entities fund a FIFA World Cup…
Entity Area of Expense Estimated

Expenditure
• Safety and security
Government • Government guarantees c.£350m
• Host City obligations

Host Cities (c.£15m per venue) c.£200m
• Stadium overlay
• Staging costs (LOC funded
LOC by FIFA revenue sources) c.£350m
Total c.£900m
Following inspection visits, we have collated the generic Host City cost items;
the following example represents a typical city hosting group matches with a
single stadium (stadium development capital costs excluded)
Stadium Associated Costs (£k) Other City Costs (£k)

Net 40k capacity stadium
Specific costs incurred by each
Stadium Media Centre 795-992
Applicant Host City will vary
Access Control Points (80) Outer 800-960 depending on: the size of each city;
Access Control Points (80) Inner 800-960 the number and size of FIFA Fan 3,000
Fests; the different stages of the
Floodlight Upgrade 800
World Cup matches hosted; and the
Pitch Installation 200-500 hosting of competition related events.
IT infrastructure 300
Temporary Accreditation 220-270
Temporary Merchandising (2x500 m2) 220-260
c.£15m total costs; of 2,000 2,000
Signage 200
which c.£6m is stadium
Giant Screen Rental 200
related
Media Seats w ith desks (300) 150 1,500
Commentary positions (110) 150
Pow er infrastructure 150
Outer Perimeter Fencing (1k metres) 120-175
Temporary Conference 120-140

Overall cost will
Temporary Mix Zone 108-132
change depending
Temporary Offices 100-120 on the stadium
400
Temporary Generator 1000Kva 100-120 presented and the
matches hosted
Temporary Stadium Ticketing Centre 92-113
which require
Outside Broadcast compound offices 80-106 additional facilities
Temporary food concessions 60-80 i.e. c£300k for media
facilities at semi- Venue- Transport Marketing City Dressing Fan Fests (2 x
Outside Broadcast compound fencing 24-35
final and final Specific Concept 20k)
Additional TV platforms (10) 20 venues Training Sites
Storage Containers (400 m2) Other training sites not
16-20 included in host city funding
England 2018 suggests the following allocation of
costs; this may vary from city to city (1/3)
Suggested Allocation of Cost Lines (1/3)
Source of Finance
Cost Line Stadia
City Cost LOC Government
Owner
Stadium Media Centre
Access Control Points (80) Outer
Access Control Points (80) Inner
Floodlight Upgrade
Stadium Associated Costs
Pitch Installation
IT infrastructure
Temporary Accreditation
Temporary Merchandising (2 x 500 m2)
Signage
Media Seats with desks (300)
Commentary positions (110)
Power infrastructure
Outer Perimeter Fencing (1,000 metres)
Temporary Media Conference Facility
Suggest Allocation of Cost Lines (2/3)
Source of Finance
Cost Line
City Cost Stadia Owner LOC Government
Temporary Mix Zone
Temporary Offices
Temporary Generator 1000Kva
Temporary STC
Outside broadcast compound offices
Temporary food concessions
OB compound fencing
Additional TV platforms (10)
Storage Containers
Fan Fests (2 x 20,000)
City Dressing
Other City Costs
Marketing
Transport Concept
Venue-Specific Training Sites
FIFA Family Hotel
Venue Specific Team Hotel
Team Base Camp
Private Security
Suggested Allocation of Cost Lines (3/3)
Source of Finance
Cost Line
City Cost Stadia Owner LOC Government
Volunteers
Stewarding
Hospitality
Other City Costs
Utilities
Cleaning
Waste Management
Emergency blue light services
Legacy
Staffing
Commercial Rights Guarantee
Government Support
I.T. & T. Guarantee

Safety and Security Guarantee
Entry and Exit Permits Guarantee
Work Permits Guarantee
Tax Exemption Guarantee
Legal issues and indemnification G.
Bank and Forex Ops Guarantee
Some costs vary depending on the number of stadiums
used, number of games staged and competition stages
played in the city (1/3)
Nature of Costs (1/3)
Nature of Cost
Cost Line
Fixed Stadium Variable Games Variable*
Stadium Media Centre
Access Control Points (80) Outer
Access Control Points (80) Inner
Floodlight Upgrade
Pitch Installation
IT infrastructure
Temporary Accreditation
Temporary Merchandising (2 x 500 m2)
Signage
Media Seats with desks (300)
Commentary positions (110)
Power infrastructure
Outer Perimeter Fencing (1,000 metres)
Temporary Media Conference Facility
* Minimum 4 group games, maximum 7 games per venue (exc Final)
Nature of Cost
Cost Line
Temporary Mix Zone
Temporary Offices
Temporary Generator 1000Kva
Temporary STC
Outside broadcast compound offices
Temporary food concessions
OB compound fencing
Additional TV platforms (10)
Storage Containers
Fan Fests (2 x 20,000)
City Dressing
Other City Costs
Marketing
Transport Concept
Venue-Specific Training Sites
FIFA Family Hotel
Venue Specific Team Hotel
Team Base Camp
Private Security
Nature of Cost
Cost Line
Volunteers
Stewarding
Other City Costs
Hospitality
Utilities
Cleaning
Waste Management
Emergency blue light services
Legacy
Staffing
Commercial Rights Guarantee
Government Support
I.T. & T. Guarantee

Safety and Security Guarantee
Entry and Exit Permits Guarantee
Work Permits Guarantee
Tax Exemption Guarantee
Legal issues and indemnification G.
Bank and Forex Ops Guarantee
This results in the following total funding requirements
for a typical Host City (with a single venue)
Typical Host City Funding Estimate

£m
£25m
Cost is spread
between now and
2018
£15m
£13m
£2m
Host City Cost Stadium Owner Total Typical Host LOC Cost
City / Stadium Apportioned
Owner Funding Across The Cities
Requirement (as a comparison)
Aggregating host city funding nationally gives a total
requirement of c.£200m
Aggregated Host City Funding Estimate Based on generic city assumptions
£m To be updated when Candidate Host Cities selected
31 200
5 2 9
23 23 27
4 1
146 18
5
17
165
124
Cities with 1 stadium Cities with 2 stadia Cities with 3 or more Total Host City
stadia Funding Requirement
Host City / RDA / County Councils Stadium Owner LOC

Agenda
• Introduction
• Cost summary
• Revenue summary
• Economic impact
There are some direct income opportunities for
certain stakeholders
• FIFA have stated there will be an opportunity for host cities to

generate income :
– Sponsorship at FIFA Fan Fests
Host Cities – Hospitality at FIFA Fan Fests
• FIFA believe Fan Fests could break even on the above revenue
model
• Stadium rental of c.10-15% net ticket revenue to be negotiated

with each stadium
Stadium • Net ticket revenue from the 2010 World Cup in South Africa is
expected to total approximately $400m for 64 games; adjusting
Owners for inflation and market conditions, net revenue at an England
2018 World Cup could be considerably higher
• Training site rental and compliance funded by the LOC

Training Sites
Agenda
• Introduction
• Cost summary
• Revenue summary
• Economic impact
Economic Impact
• An independent review of the Economic Impact of Hosting the 2018 FIFA World
Cup in England has been conducted by PriceWaterhouseCoopers (PWC)
• The nationwide study was then broken down to Host City level using a series of
key parameters
• England 2018 sent to this breakdown Applicant Host Cities; it is a broad tool to
enable Cities to calculate their own economic impact based on their aspirations
as a City
• This report indicated a minimum economic impact of £130m; applicant Host
Cities were encouraged to make their own assessment and many have
commissioned their own report
• England 2018 issued the total Economic Impact Report on 8 September 2009;
these figures reflect a total incremental spend of £5.3 billion associated with
hosting the World Cup with a £3.2 billion impact on GDP
• The Economic Impact Assessment is based on our provisional plans and will be
revised during 2010 once the Candidate Host Cities have been selected and
detailed costs have been refined
Agenda
• Introduction
• Cost summary
• Revenue summary
• Economic impact
Comparative Costs reported by German cities
Host Cities should take some comfort from the level of cost reported by
cities involved in hosting the 2006 FIFA World Cup in Germany
Gelsenkirchen Cologne (Köln) Munich
€10-13m to stage €8-10m to stage World €18-20m to stage

World Cup matches Cup matches World Cup matches
Host Cities in Germany benefited significantly from
being part of the 2006 FIFA World Cup
The World Cup helped to boost the … and consequently tourism and the
City image local economy
• “The FIFA World Cup, and in particular the Fan • “The influx of visitors put a lot of money into local
Fests in Cologne city centre have given a huge businesses in the short term and we hope to see a
boost to the image of Cologne… the sense of rise in tourist numbers in the long term”
excitement has really lifted spirits in Cologne. This
Burkhard Jung, Major of Leipzig
feeling of community, of achieving something
important together as a team will have a lasting • “The FIFA World Cup has given the city a real
effect on all of us” boost, and our citizens can now have a real sense
of pride . This was the biggest and most
Fritz Schramma, Mayor of Cologne
impressive way of advertising the region we
• “Around a million people came to the Fan Fest in could have imagined, and the tourism industry will
the Olympiapark, while eight million fans flocked to reap the rewards from it in the years to come”
the city on match days, including many who simply
Dr. Ulrich Maly, Mayor of Nuremberg
wanted to sample the Munich FIFA World Cup
atmosphere. This has made a lasting positive • “It would be remiss of me not to mention the fact
contribution to the city’s image…” that hosting the tournament brought with it a 150m
Euros investment in infrastructure and
Christian Ude, Mayor of Munich
development projects representing a huge shot in
• “Thanks to the FIFA World Cup, Hamburg has the arm to the local economy and ensuring long
gained a lot of international prestige, a fact that term benefits for our city”
cannot be emphasised strongly enough”
Bernard J Deubig, Mayor of Kaiserslautern
Ole von Beust, Mayor of Hamburg
Agenda
• Introduction
• Cost summary
• Revenue summary
• Economic impact
Host City Governance
• In the event we are successful England 2018 will ensure

Host Cities are represented from a governance
perspective within the overall national staging strategy
• Further discussion is required but Host City
representation is a key objective of England 2018 given
their vital role in the staging of a World Cup
The most likely approach is to create a Host City sub-

committee reporting to the LOC
Agenda
• Introduction
• Cost summary
• Revenue summary
• Economic impact
Conclusion and Next Steps
• England 2018 appreciate the significant involvement and support of all the
Applicant Host Cities throughout the bidding process.
• To assist all Applicant Host Cities over the next six weeks, Colin Roberts,
Former CEO of Greenwich Council has been recruited to assist with final bid
submissions
– Colin can be contacted by email england2018@colinroberts.myzen.co.uk or
by phone 07801560346
• We are in the process of appointing a sports lawyer with in-depth understanding
of club football to assist in the processing of stadium and training site
agreements.
• We understand that this is a demanding and complicated process, placing
stress on the City Councils at a difficult time.
• However we take great comfort from the way in which major stakeholders from
all cities have worked together and worked with the Bid team
• We look forward to receiving your final bid submissions on 26 November and all
signed agreements by 26 November 2009
• Please contact us immediately if you have any questions or comments

Bid Overview For Host Cities

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Bid Overview For Host Cities

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England 2018

Applicant Host City Engagement Process

• FIFA engages with a successful World Cup Bidding Nation on three

1 Host City Agreement • Applicant Host Cities

• Applicant Host Cities (Stadium

4 Government Guarantees • Central Government

5 Hotel Agreement • England 2018 and hotel owners

6 Bidding Agreement • England 2018

7 Hosting Agreement • England 2018

• FIFA expect all agreements to be signed unaltered

Central Government Requirement Cost Implication

• Fan fests • City management and

• Event planning and management • FIFA observer tours

• A Host City will not be chosen by FIFA

• Stadium reservation agreement

4 Training Site Agreement Cover • Training site reservation agreement

December 2010 January 2012 March 2013

England 2018 win LOC proposes Stadium FIFA sign Host

England 2018 circulate 2nd draft of bid book 19 Feb

Entity Area of Expense Estimated

• Host City obligations

Stadium Associated Costs (£k) Other City Costs (£k)

Outer Perimeter Fencing (1k metres) 120-175

Temporary Conference 120-140

I.T. & T. Guarantee

I.T. & T. Guarantee

Typical Host City Funding Estimate

Host City / RDA / County Councils Stadium Owner LOC

• FIFA have stated there will be an opportunity for host cities to

• Stadium rental of c.10-15% net ticket revenue to be negotiated

• Training site rental and compliance funded by the LOC

Gelsenkirchen Cologne (Köln) Munich

€10-13m to stage €8-10m to stage World €18-20m to stage

• In the event we are successful England 2018 will ensure

The most likely approach is to create a Host City sub-

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