The Cost of Operating a Major Event

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Barry Fox CAN262
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The Cost of Operating a Major Event

Post by Barry Fox CAN262 » 27 Nov 2010, 17:36

There are two attachments here that should provide some good discussion. These are provided to allow you to see what the costs have become for these events.

Some background.

2005 Worlds:
1. Merchandise income includes monies collected for functions.
2. Regatta Costs includes printing costs.
3. Each competitor received a shirt and hat, Officials all were given shirts and hats and lunch supplied
4. Nearly 40 volunteers plus Umpires etc
5. The venue had no infrastructure
6. IOMICA dictated that we use the judging system which had cost us $23,736.75 (made up of the accommodation & travel costs) plus aprox $2500 in catering costs for the officials.
7. IOMICA capped the entry fee at $500 per competitor
8. Little or no help from other clubs as promised.
9. Residual merchandise stock which when sold reduced loss down to about$2k

2010 Euros:
1. About 15 volunteers
2. Some infrastructure in place.

Watch the numbers. The Euros are in . . . . well, Euros. The Worlds are in AUS dollars.

There appears to be a big savings going to places where racing already takes place.

Please don't take shots at the organizers. Compare what they have supplied to what is actually required. Be kind.
Attachments
IOMEuro2010_Budget.pdf
Numbers from the 2010 Euros in FRA
(9.53KiB)Downloaded 469 times
2005 AUS Worlds Financial Report.pdf
Numbers from the 2005 Worlds in AUS.
(13.07KiB)Downloaded 452 times
Barry Fox
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Vancouver Island, BC, Canada

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Olivier Cohen
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Re: The Cost of Operating a Major Event

Post by Olivier Cohen » 27 Nov 2010, 17:39

I would add for Euros : A lot of material was loaned / given by sponsors or city.

Neil Armstrong
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Re: The Cost of Operating a Major Event

Post by Neil Armstrong » 29 Nov 2010, 19:58

This is fantastic, some figures to look at for future hosts to ponder over.

If the regatta makes a profit does the profit go to the host club/Nation?

Before anyone jumps down my throat for daring to even ask the question i completely agree with the hosts airing on the side of caution with the entry fee and being able to keep any profit as long as it is in proportion, alas they have to underwrite any loss.

I imagine we will have Barbados and West Kirby adding there accounts in time and this will give an awful lot of data to future hosts that we did not have 6 weeks ago.

Well done to Alfonso for allowing the data to be shared and also Pierre and David for doing the accounts.

RoyL
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Re: The Cost of Operating a Major Event

Post by RoyL » 29 Nov 2010, 21:05

Doing some rough math, it look like the cost of a continental championship (not including the value of sponsorships or donations) is roughly $50,000 US of which entry fees make up approximately half.

All in all, it seems to me that the class has to find a way to cut these costs significantly if we want to have a healthy system of world and continental championships going forward.

One thought--if IOMICA puts in place a pre-certified sail program that included a fee to IOMICA and/or initiated an annual or semi annual registration fee for boats, there might be enough revenue generated to subsidize major races.

Alfonso
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Re: The Cost of Operating a Major Event

Post by Alfonso » 30 Nov 2010, 13:53

Hi RoyL,

I am really glad that we share the same opinion regarding the idea that IOMICA should change the way to be funded in the future and also one of the possibilities to spend the money.

But, I think that you also will have to agree with me that if IOMICA has to “sponsor” an event then IOMICA will have to audit the final accounts because in that case we can not allow organisers to make any profit.

So I like the idea but still some steps must be done.

Bruce Andersen
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Re: The Cost of Operating a Major Event

Post by Bruce Andersen » 01 Dec 2010, 23:23

Why can't "we" allow the organizers to make profit?

Certainly they are doing a service that benefits the class and the competitors.

Hoteliers and food service folks are making profit.

The panel of judges are being paid, transported, housed, and fed.

Small wonder that IOMICA cannot get the organizers to put in a few more hours of free time after the regatta to type up a final financial report!

If building a library of operating plans and budgets from large regattas is valuable to the class (and I believe it is), let the poor bloke who is producing these reports pocket some $$ for his/her time! Refund 25-50% of the IOMICA levee back to whomever is responsible for the after-action reports and let them do with it what they please.
Bruce Andersen - USA 16

Alfonso
IOMICA Chairman
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Re: The Cost of Operating a Major Event

Post by Alfonso » 02 Dec 2010, 09:31

I might not have explained well. “Only” when the event needs to be financed by IOMICA to be viable we should not allow organizers to make profits.

Bruce Andersen
USA NCA Officer
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Re: The Cost of Operating a Major Event

Post by Bruce Andersen » 03 Dec 2010, 02:33

I see no compelling reason that IOMICA should not contribute financially to its own World Championship irrespective of whether or not the organizers are being paid for their services.

With the high cost of putting together these affairs, one way of decreasing the cost and risk is to include IOMICA as a financial sponsor. Probably better than simply putting the $$ in a savings account! How does that promote the sport?
Bruce Andersen - USA 16

Richard Batchelor
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Re: The Cost of Operating a Major Event

Post by Richard Batchelor » 05 Dec 2010, 21:35

I'm with Bruce on this.I can see no reason IOMICA should not be a contributor to the cost of running these events.After all is said and done if the event fails and the class suffers,numbers decline,the class becomes redundant........IOMICA becomes surplus to requirements.
Obviously a worst case scenario but it has happened in many types of sport in the past.
I see a known amount of money provided by IOMICA to each of these world events.It should be pegged to known expenses.In my opinion this expense should be to pay for the judges and umpires.
The amount would be variable for each event,that is to say that getting all the officials to an event in NZ/Aus would be more costly than central Europe I should think.
If countries organisations know the officials costs are covered they can get on with spending their own monies on making the regatta an EVENT,rather than paying largely unseen officers.
Perhaps World events are not seen as promotional activities....this needs to change if it is the case.
I realise this idea would make it tough for far flung countries to win a bid for the Worlds,however a roster system of all qualifying countries could be set up.If this years rostered host cannot/will not host then the next on the list is approached.This means that forward budgeting of event official costs can be done by IOMICA well in advance.Countries could apply for hosting rights to coincide with special events in their regions,ie centenary celebrations,anniversaries of special events etc.
A cut off date for the potential host to accept or decline their turn should be set well in advance of the actual event so that the next organisation on the list can be approached in a timely manner.
As to making a profit....nothing wrong with that in anyway.In fact it should be encouraged.With the proviso that a percentage of profit(say 33%)is returned to IOMICA to help defray the next events costs.This would allow countries ruling bodies to become financial supporters of local events to a level where real promotion of the class can happen.IOMICA should be the organisation in this that makes no profit or loss on an event cycle basis.
Each and every event ,weather World,Country or local needs to be seen as more than a group of people sailing their model boats.The general public needs to see an EVENT happening not a gathering.
Ask the question...Is IOMICA an organisation set up to police the rules of IOM only....or....is one of their jobs also to PROMOTE and support the class?

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