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Sport Events: Cash Cow for Entrepreneurs 1 events ContentsSport Entrepreneur/ship The new entrepreneurial sport events https://toughmudder.com.au/events/what-is-tough-mudder Dr Gayle Mayes – University of the Sunshine Coast Definitions Sport events …an individual or group activity pursued for exercise or pleasure, often involving the testing of physical capabilities and taking the form of a competitive game such as football, tennis, etc. (Collins Dictionary) Entrepreneurship …a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk The new wave entrepreneurial events and national to global success stories Tough Mudder – a global phenomenon https://toughmudder.com.au/mudder-nation/videos Neon Run - http://www.neonrun.com.au/ Color Run - http://thecolorrun.com.au/ Fun Runs - http://runcalendar.com.au/brisbane Tough Mudder is a 16–20 kilometer obstacle course designed to test all-around strength, stamina, teamwork, and mental grit. Tough Mudder is Probably the Toughest Event on the Planet. Probably. https://toughmudder.com.au/events/what-is-toughmudder It’s a $70 million dollar turnover business in just 2 years 5 What is tough mudder? Tough Mudder is more than a fitness challenge, it's a set of values lived out on the course, and in everyday life. The Mudder Pledge I understand that Tough Mudder is not a race but a challenge. I put teamwork and camaraderie before my course time. I do not whine – kids whine. I help my fellow mudders complete the course. I overcome all fears. "The teamwork and camaraderie out there was amazing." -Lynn Gruber, Fortune 6 Tough Mudder How did it begin? "Every professor at Harvard Business School told me this was a terrible idea," he said. "They told me I should take that job at Bain." The Tough Mudder Story and Entrepreneurial Business Model http://www.inc.com/tim-donnelly/tough-mudder-conqueringobstacles-to-build-70-million-business.html 7 http://www.neonrun.com.au/ 8 The Color Run http://thecolorrun.com.au/ 9 What is the color run? http://thecolorrun.com.au/gallery/ Gallery Colour explosions Very contemporary, cool, colourful and clever marketing But, like I said, our local business people had a great day, and the neon corn starch-covered people that I came in contact with were all nice. Still, something seems odd about it… Maybe I’m just jealous that it didn’t occur to me to commoditize an Indian religious ritual. http://markmaynard.com/2012/07/the-color-run-why-wouldanyone-pay-50-to-have-people-throw-shit-in-their-faces-asthey-jog/ 10 Color Run Business Model $1m a day So, here’s the math as I figure it… The last official count that I heard was that 17,500 had registered for today’s run. According to their site, registration, depending on how big of a team you to have, runs from $45 to $55. For the purposes of this exercise, we’ll be conservative, and assume $45. 17,500 people, paying $45 a piece, would yield a whopping $787,500. Assuming my source was right, and our local charities received $13,000, that means the received considerably less than 2% of the total take. And, for that $13,000, they not only got a lot of publicity, but they also got a great deal of free labor… Not a bad business model, huh? 11 Fun Runs – huge hit http://runcalendar.com.au/brisbane Runs Fun runs Marathons Half marathons Obstacle courses Stair climbing events So how will you know? Entrepreneurship …a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk (courage and bravery) Leaving you with the questions: Will schools adopt/adapt Tough Mudder? What type of event will be the next wave of success? 13 Sport Events: Cash Cow for Entrepreneurs 14 15 Readings Beyond the Games: regeneration legacies and London 2012, Larissa E. Davies, Sport Industry Research Centre, Sheffield Hallam University, Sheffield, UK Olympic Environmental Concerns as a Legacy of the Winter Games, Jean-Loup Chappelet, a Swiss Graduate School of Public Administration (IDHEAP), Maximizing Olympic Impacts by Building Up Legacies, Chris Gratton a & Holger Preuss, a Sheffield Hallam University, b Johannes Gutenberg-Universität Mainz, Seeking (and not seeking) to leverage mega-sport events in non-host destinations: The case of Shanghai and the Beijing Olympics, Lisa G. Beesley a & Laurence Chalip, Department of Tourism, Leisure, Hotel, and Sport Management, Griffith University, Brisbane, Australia, Sport Management Program, University of Texas at Austin, Bellmont Hall 222, Austin, TX, 78712, USA Sport, tourism and the Olympic Games: Lessons from and blind spots among the research community, Graham Brown, a School of Management, University of South Australia, Adelaide, Australia 16 Impacts of the London Olympic Games Marketing at the Olympics, the attraction and the rewards The Value of Sports Marketing in Creating Successful Brands Who will profit from the London Olympics (VIEW) http://www.youtube.com/watch?v=JPUkiMo3Zac The Olympic Games is unquestionably the greatest sporting event on earth, with television audiences measured in billions of viewers. By what process did the Olympics evolve into this multi-national phenomenon? How can an understanding of the Olympic Games help us to better understand international sport and society? And what will be the true impact and legacy of the London Olympics in 2012? 17 Model Economic Study ESTIMATING THE ECONOMIC IMPACTS OF FESTIVALS AND EVENTS: A RESEARCH GUIDE By Ben Janeczko, Trevor Mules and Brent Ritchie http://www.crctourism.com.au 2002 Copyright CRC for Sustainable Tourism Pty Ltd Review of basic principles of economic impact and apply them to a series of four special events held at Thredbo in Kosciuszko National Park. The events are all held in summer-autumn and are part of a strategy by local tourism managers to develop a non-winter tourism season in an area where snow skiing has been the traditional attraction. 1. Australian Mountain Bike Association Cup 2. National Runners Week 3. Shakespeare Festival 4. Thredbo Jazz Festival 18 EXISTING LITERATURE 2008 • Economic development and economic impacts of events (26 articles) • Sponsorship and event marketing from the corporate perspective (14 articles) • Marketing including segmentation (11 articles) • Other management topics (9 articles) • Visitor or participant motives (7 articles) FOCUS is ON THE POSITIVE ECONOMIC IMPACTS & Tend to IGNORE NEGATIVES! See the LOR at the end of the article by Jones et al 2008 • Education, training, accreditation, research, professionalism (7 articles) • Community impacts, resident attitudes and perceptions of event impacts (6 articles) • Descriptive analysis of the festival sector (seasonal, spatial, calendars) (5 articles) • Attendance estimates and forecasts (5 articles) • Volunteers (4 articles) • Politics, policy and planning (4 articles) • Urban renewal (2 articles) • Law (1 article) • Benefits to consumers (1 article) • Arts and culture (1 article). 19 Event Impact Dimensions Impacts can be positive, negative or neutral 20 Social Impacts A key positive aspect of sports and events is involvement in a healthier lifestyle. Sports provide: That ‘feel good’ factor Heightened interest in sports, events and the outdoors Physical and mental wellbeing from a healthier, more connected population Increased role model identification 21 Social Impacts Positive • • • • Increased interest in the types of activities involved in the event Increased sense of community Revitalisation of traditions Expansion and understanding of cultural perspectives Negative • Community alienation • Manipulation or neglect of community • Hooliganism, alcohol abuse • Racism • Negative community image • Host/visitor hostility 22 Economic Impacts Negative • Localised inflation • Undesirable opportunity costs • Host community resistance • Financial mismanagement • Financial loss • Loss of Authenticity • Commercialisation Positive Increased expenditure Creation of employment Increased investment Increased commercial opportunities Increased tax revenue 23 Political Impacts Positive • • • • • International prestige Improved profile Increases in skills among planners and policy development Builds social cohesion Confidence and leadership • Peace and collaboration Negative • • • • • • • THE GREEN GAMES THE “not so green” GAMES Distortion of event to reflect political values Failure to cope Increased admin costs Use event to legitimise unpopular political decisions Misallocation of funds Lack of accountability Loss of community ownership and control 24 Environmental Impacts Physical and Built environments Negative • Environmental damage • Pollution – Noise Litter Air Visual Waste • Overcrowding • Interruption of wildlife habitats and behaviours Positive • • • • • Showcasing the environment Increase appreciation for the environment Development of new facilities Conservation of heritage Improved visitor management strategies 25 Recommended Readings Jones, Pilgrim, Thompson & Macgregor (2008) “Assessing the Environmental Impacts of Special Events”, CRC for Sustainable Tourism Pty Ltd, Brooke Pickering, Gold Coast QLD. Research Methodology, Data Collection, Literature Review of Event Management & Social, Economic & Environmental Impacts of Events • • • • • • • • • Australia Day Skyworks The Big Day Out Margaret River Pro RSPCA Million Paws Walk Albany Car Classic Rally Half Ironman Avon Descent Perth City to Surf Brusselton Iron Man Triathlon ENCORE EVENT EVALUATION KIT SUSTAINABLE TOURISM CRC 2005 DEMOGRAPHICS ECONOMIC BENEFITS MARKET RESEARCH EVENT EVALUATION Copy in library FYI 26 Environmental Impacts Of Events Willingness of event organisers & hosts to assess & minimise environmental impacts Ability & desire to achieve outcomes Focussed on transport use, power & water consumption, waste & disposal Traffic counts, number of toilets, noise levels, air transport, etc YOU MUST READ, TAKE NOTE OF, USE MODELS AND PROCEDURES FROM this article FOR your proposal Indicators • Where, What, How, Duration, Frequency, • Instruments for recording the data 27 Ecological Footprint FIFA WC 04 Cardiff’s Millenium Stadium in Wales Energy & resources used on the day EF (the area of land required to support the use of the resources involved) 3051 hectares or equivalent of 305 Rugby fields > 50% generated by 73,000 people travelling to WC Provision & consumption of food = 1381 hectares Tend to disregard damage or costs Focus on traffic congestion & parking 28 Impacts of Mega Events Larger events = broader range & greater magnitude of Environmental Impacts Lillehammer 1994 – “green games” Sydney 2000 – named the green games • energy conservation • water conservation • waste avoidance and minimisation • pollution management • the protection of significant natural and cultural environments Sydney's 'green Games' strategies have been praised in audits by overseas ecologists. But Sydney eco-design specialist Dr Tony Fry argues that the Games concept itself is unsustainable. 29 SYDNEY 2000 OLYMPICS GREEN GAMES ENVIRONMENTAL MANAGEMENT guidelines • high spectator and workforce use of public transport on the newly constructed train lines; • the diversion of considerable amounts of waste from landfill; • energy efficiency and water conservation improvements; • the adoption of measures to protect valuable ecological habitats at Olympic sites. All tenders for services to the Games were required to demonstrate how they would address the environmental guidelines, eg: emphasis on recycling of materials. 30 SYDNEY 2000 OLYMPICS GREEN GAMES public transport access; use of solar power; Environmentally selective building material use; recycling of construction waste; environmentally sensitive tendering policies; energy and water conservation; SYDNEY 2000 GREEN GAMES POSITIVES AND NEGATIVES wetland protection and restoration. inadequate community consultation; government-approved removal of threatened vegetation; use of unsustainably sourced turpentine; Insufficient and short-term public transport access to western Sydney venues; failure to provide the promised LPG (Liquid Petroleum Gas) vehicles failure of the 3800 Olympic bus fleet to include any more than 24 CNG (Compressed Natural Gas) buses; environmentally irresponsible Olympic merchandise; use of PVC plastics; failure to clean up dioxin-polluted Homebush Bay sediments; unsafe dioxin storage under plastic sheets; unclear post-Olympic management responsibility for the Millennium Parklands and toxic landfill areas 31 Delhi “Green Games” Organising Committee Commonwealth Games 2010 Delhi committed towards ensuring zero carbon footprint NEW DELHI 17 February 2010: The landmark ecological code for the XIX Commonwealth Games 2010 Delhi, which aims to ensure reasonable consumption of electricity and water in all the stadiums, was unveiled today. Releasing the ecological code along with Delhi Chief Minister Smt. Sheila Dikshit, Mr. Suresh Kalmadi, Chairman Commonwealth Games 2010 Delhi Organising Committee, said, “this measure would go a long way to limit the carbon footprint in Delhi and would strive to make the XIX Commonwealth Games pollution free.” 32 Key initiatives include: Launch of city forest plantations in Delhi Plans being finalised for plantations across India linked to the Queens Baton Relay 2010 domestic leg Thyagaraj Stadium – emerging as the model green sporting venue not just in the country but also one of its kind in the world Commonwealth Garden to be established by New Delhi Municipal Council (NDMC) at Africa Avenue Multiple sensitisation and communications campaigns such as Cleaner Delhi campaign, Energy conservation Campaign, Water Day Celebrations, Sustainable Transport Promotion Campaign Partnering with United Nations Environmental Programme (UNEP) Green Games Environment Sub Committee 33 Olympics in London in 2012 POTENTIAL IMPACTS land/water/air; biodiversity/ecology; energy use; waste; culture/heritage/built form; amenity; transport; housing; and support for environmental services 34 IMPACTS OF AQUATIC EVENTS America’s Cup • • • • • • Litter & pollution Noise & exhaust emissions from 2000 -3000 spectator craft & vessels Glass litter & broken beverage glass Strikes on wildlife (Penguins, Bottlenose & Common dolphins), Brydes Whales Increase in fishing & entanglement & ingestion by seabirds & marine mammals Increased sewage discharge from recreational vessels 35 Traffic & Transportation Congestion Parking Pressure on road infrastructure Seen by host communities as the single most important negative environmental impact of events Influences decision where to site events Integrated approach: bus, rail, car, taxi, ferry, air, walkers, park & ride, management issue 36 UK given final warning over London air quality The UK has been issued a written warning by Europe to clean London's air or face fines of up to £300m Britain has been given a second and final written warning by Europe to clean up London's air or be taken to the European court of justice and face fines of up to £300m. The warning, sent today by the Environment commissioner Janez Potočni refers to minute airborne particles known as PM10s which are emitted by traffic and factories and can lead to heart attacks, strokes, asthma and lung diseases. According to the Mayor of London's Air Quality Strategy, particle pollution is responsible for over 4,300 premature deaths a year in London at an annual cost of up to £2bn. http://www.guardian.co.uk/environment/2010/jun/03/ukwarning-london-air-quality (Viewed 27 August 2010) London's air pollution levels rank as the worst in the UK and also among the worst in Europe. John Vidal and Hélène Mulholland guardian.co.uk, Thursday 3 June 2010 14.52 BST 37 Energy use 38.5 million kilowatt hours of energy consumed in delivering the Sydney 2000 Olympic Games • passive solar building designs wherever possible • use of insulation and natural ventilation • the widest possible use of renewable sources of energy • high efficiency lighting systems with maximised use of natural light • use of energy efficient appliances • sophisticated building management and control systems to assist management engineering services at each venue to minimise energy requirements • mechanical ventilation zoned to allow ventilation flow to be switched off when spaces are unoccupied 38 Energy Use Few options: power grid or generators Solar cells and wind generators “no go” Bio fuel in diesel generators LPG gas Energy efficient devices for lighting, cookers, washing machines, heaters, photo copiers, etc can reduce energy consumption by 50% 39 Food Consumption Accounts for ~ 50% of overall impact Energy consumption in preparation Excessive loading on landfills for waste disposal Use of disposable plastic plates/utensils Should use local markets Use organic seasonal produce Donate unused foods to local food banks/shelters Compost food scraps where possible 40 Waste Management Events produce large quantities of municipal waste (paper, cardboard, glass, aluminium) Need to reduce packaging & non-recyclable materials, eg bottles, cans Reuse materials and Recycle waste Litter clean up during and after event 41 Water Use– Water consumption use the local supply • • • • • • • Dual flush toilets Roof fed water tanks Recycle water from toilets (fields/gardens) Human consumption reduced Water saving shower heads Low water use appliances Treating water locally is prohibitive $$$ 42 Water Use Water pollution • Grey water – washing machines, dishwashers, sinks, showers • Black water – toilet effluent Temporary influx = Portaloos • Chemical toilet waste • Hosts’ landfills or local sewage treatment Runoff from sites to waterways • Contamination • Eutrophication from excessive nutrients Offshore Pollution from pleasure boats • Motors, toilets, exhaust hydrocarbon emissions 43 Air Pollution 2006 FIFA World Cup expected 100,000 tons of greenhouse emissions Offset by investing in renewable energy and energy efficient technology NASCAR competitors used leaded fuel 2008 – change over to unleaded fuel Studies found elevated blood lead levels among mechanics & crew - Neurotoxicant – lowers IQ in humans Requirements for 4 stroke motors on boats used in competitive events for management and competition 44 Ecological Impacts Completely ignored in events literature Vehicle & 4WD damage in sensitive areas • • • • • • Trail widening Tread incision Tree roots damaged & exposed by tyres Dune degradation & soil break down Track erosion Trampling of vegetation & landform erosion Weeds spread by vehicles & people 45 Noise Pollution Large crowds gather in residential areas Traffic congestion, crowds & noise Significant with motor sport events Australian Formula One Grand Prix (F1GP), Gold Coast Indy, Bathurst, Phillip Island. Most negative attitude amongst residents living in the immediate vicinity of the sporting venues and race tracks Noise levels set by local government Curfews set for night music events 46 Positive Environmental Impacts Barcelona 1992 Olympic Games • public spaces enhanced and improved • coastal area of Barcelona rejuvenated with a marina, recreation facilities and sandy beaches • beneficial to tourists and local residents 2002 World Cup - Korean government made a number of positive community investments including • • • • • reclaiming a landfill site around the main stadium; embarking on a city beautification program that involved repairing shop signs; increasing the controls for food and sanitation at street stands, and, an improvement of night lighting and waste management Seoul municipal government also raised awareness of environmental issues through its website homepage and through various information channels. 47 Environmental Impact Management of Sports & Events monitoring and controlling of on-site and offsite impacts differentiate between event-specific impacts from others that might normally take place event manager should take responsibility to ensure all the external costs associated with running an event are internalised and so fully costed need for more complete cost-benefit analysis processes where the ‘intangible’ costs (e.g. inconvenience, overcrowding, crime, noise pollution, waste generation and damage of various kinds) are included need for environmental impact assessments both before and after events 48 Pressure-State-Response Model adopted for establishment of sustainable development indicators by the UN Commission on Sustainable Development and the UN Department for Policy Coordination and Sustainable Development (Li 2004). Environmental pressure Caused by event PRESSURE Event activities & their Impacts on environment Carrying capacity Event environment & resources STATE The environmental state Of event destination Information feedback Response on decision making Response on decision making RESPONSE Local govt’s response To the changes Caused by event Regulations, controls, Standards set by local govt 49 Pressure-State-Response Model PRESSURE • • • • reflect the event activities and their impacts on the environment Indicate whether the event activities exceed the limits of carrying capacity at the site effectiveness of the efforts that the managers take to protect the site’s environment human pressure i.e. the number of visitors the event attracts, the increase in garbage collection, the increase in water consumption, the increase in power consumption STATE • environmental state of an event destination • key factor determining the extension and degree of event development at the site • increases in atmospheric or water pollution, pollution of sea water, increased traffic and pressure of parking, amenity, impacts on beach environments or parks and natural areas, and possible noise levels RESPONSE • reflect the regulations, controls and standards that the municipal authority use to prevent degradation of the local environment • Urban planning adjustments, protection measures for natural areas, adjustments to the municipal budget, increasing garbage collection and processing (e.g. recycling), street cleaning, treatment of waste water, and environmental monitoring and controls 50 Sport/Events Ecological Footprints Wong (2005) applied ecological footprint methodology to calculate the environmental impacts of an annual music festival, Splendour in the Grass, held at Byron Bay on the New South Wales north coast. Ecological footprints can be reduced through better management of sports, festivals & events Require the participation of, and cooperation between, organising committees, host organisations (often local government), and other stakeholders 20% of all environmental impacts have technological solutions The remaining 80% call for social and organisational solutions – that is: doing things differently 51 Managing and/or Reducing Negative Environmental Impacts 1. Planning • Quality management and marketing can reduce negative environmental impacts. 2. Determine • Purpose and location of the event • What activities may cause environmental damage – construction and deconstruction of temporary facilities; transport; volume of waste. • Assess the Preparation; Construction; Operational phase; Dismantling; Debriefing; for the whole event 3. Timing • Seasonality http://www.epa.qld.gov.au/environmental_management/impact_assessme nt/ 52 Balancing Sport & Event Impacts Economic TOURISM Environmental Socio-cultural Political 53 Impacts of Events and More Sustainable Practices An increasingly important Aspect of event management A marketing advantage for astute Event promoters 54