As we reflect on a Uefa European Championship in France, rights holders across the globe are wrestling with a new question. What is the best hosting model for their major events?
The organisers of France 2016 hosted 51 matches across ten stadiums – eight of which were either new or significantly upgraded. In return, the nation and host cities received unparalleled media impact – only Rio will enjoy more this year – and an estimated €1.2 billion in economic impact.
But, for Uefa at least, this model is set to change. In 2020, the Euros will be truly European. Uefa have adopted a multi-host model for the 16th edition of their event – with 13 different European countries playing host.
As with all innovations, the multi-host model creates both opportunities and challenges. Undoubtedly, the event becomes far more feasible to deliver, to far more potential hosts. No longer is there a need for a single country to provide the infrastructure, services, accommodation and marketing investment required to host 24 teams, 2.5 million fans and the world’s media for a month. For the rights holder, as the number of potential hosts increases, the bidding process becomes increasingly competitive and ultimately delivers increased commercial opportunity. The 2020 model will also benefit from being able to truly engage the whole of Europe. Ticketing, marketing and sponsorship strategies will have direct access and undivided attention in all of the major European markets.
But the challenges of a multi-host model impact stakeholders across the event landscape.
Firstly, spectators, who already grumble at the need to take a TGV the length of France to see their team play in consecutive rounds, will no doubt balk at the idea of their team playing in Copenhagen one week, Munich the next and London the week after that. A sophisticated ticketing strategy will be required to address all the possible permutations. The second challenge is one of identity. How will a tournament dispersed across 13 countries generate a single brand, and how will hosts benefit from the media showcase? Will hosts simply blend into one another, diluting the anticipated marketing impact?
The Sports Consultany’s general counsel, Ashley Blake, also highlights the potential legal minefield ahead. “Any rights holder will have first hand experience of securing public sector guarantees, protecting rights and enforcing obligations in a new jurisdiction,” he says. “A multi-hosting model requires rights holders to think far more creatively to implement a robust but flexible multi-jurisdictional contracting and rights protection solution.”
The final challenge is one of sheer operational complexity. Yes, hosts benefit from a smaller, more compact delivery model. But for sponsors, broadcasters and the media, life has just got much more complicated – and, potentially, more expensive. And Uefa now have the headache of having to wrangle 13 local organising committees.
Major event owners are at a crossroads. For some, such as the fledgling European Championships, consolidation is the ambition. Its inaugural event will see most sports co-located in Glasgow, with the exception of athletics that will be in Berlin. The future model, we are led to believe, is to find a single host – providing a single activation and broadcast platform for partners.
Fiba, on the other hand, are thinking more flexibly. Their recently launched World Cup model gives bidders the option to bid for the entire event, just a group stage, or a group stage and the finals. Their hope is that this model, already successfully deployed for EuroBasket, will broaden the pool of potential hosts, the impact of the event and the benefits to them, their stakeholders and the future value of their most prestigious asset.
For some rights holders, investigating a multi-host model is a matter of necessity. The size, complexity and cost of their events are forcing them to consider split hosts. But the one party set to capitalise on this shift in mindset are the prospective host cities. Events that previously seemed out of reach due to their size and cost now become far more feasible to far more potential hosts.
For the sports fan, it is time to renew our passports – because the world just got a whole lot bigger.
Written by Matthew Wilson, Director of Consulting at The Sports Consultancy.
