Major Sporting EventsGlobal Credentials

Global Infrastructure

KPMG InternatIonal

Wherever they may be, cities and countries that host major international sporting events make substantial financial commitments to capital projects that must be planned, financed, and completed within a specified and immovable timeframe.

Hosting global sporting events is often a catalyst for major infrastructure and urban re-development that can go well beyond the sports facilities. Such additional infrastructure projects may include improvements to highways, urban transportation systems (e.g. light rail and inter-city rail lines) and airports, as well as commercial construction such as hotels and upgrades in technology and telecommunications systems.

Financing major sporting events and their related infrastructure is a highly capital intensive effort that can often exceed municipal and government budgets. As a result, many of these types of projects involve public-private financing initiatives that reallocate some of the financing costs and project management responsibilities to help ensure that the host country can manage the overall scope of the project.

Meeting the ChallengeStaging major sporting events is no small feat and requires planning and execution to take place within the context of rigid demands that include:

• Noelasticityonthetimeframeforevents—thedatesareimmoveable.

• Allconstructionprojectsmustbecompletedpriortotheevents—sportfacilitiesand venues, athletes’ village, and all infrastructure and ancillary projects such as new hotels.

• Allaspectsoftheplanning,staging,andhostingoftheeventsareaninternationalmediaevent—anymistakesonthepartofthehostcity/nationwillbeseenandjudged both globally and instantaneously.

These factors mean that governance, transparency, and process controls all become increasingly important during the planning and staging of major sporting events.

Additional challenges may also come from complex interdependencies as exponential growth occurs in:

• Thecomplexityofthemultipleinterdependentprojects,includingrefinementofdesigns, requirements, costs and changes in project priorities;

• Thenumberofstakeholdersinvolvedinmakingdecisions,managingrisk,and creating deliverables; and

• Trackingrevenueandvenueprogress,includingdependenciesbetweenvenuesandinfrastructureprojectsand/orvenueprojectsandeventsoperations.

Sport VenueConstruction

EventsOperations

Infrastructure

IncreasedComplexity

Planning Interdependencies

typical Issues• Construction and operations cost

and/orscheduleoverruns;

• Multiple sub-projects that lack consistency in project manage-ment and reporting;

• Multiple layers of risk arising from:

– Unclear or competing stake-holder interests;

– Pressures on costs due to unclear specifications, scope changes, sub-optimal procure-ment processes, inflation;

–Design/constructionissues,including interfaces between sports venue and infrastructure projects; and

– Delays in obtaining approvals or decisions.

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How Can KPMG Firms Help?KPMG’s Major Sporting Events practice professionals have extensive local and global experience advising government organizations, contractors, and investors in the fol-lowing areas:

• Planning,structuring,andmanagementofnewinfrastructureinvestments

• Procurementandfinancingsupport

• Improvementandmonitoringofconstructionandoperations

• restructuringofdistressedprojects

• Investmentduediligenceassistance

• Infrastructurerelatedtoaudit,tax,accounting,andcomplianceissues.

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Why KPMG?objective advice. Our advice is objective regarding project outcomes.

established track record: KPMG firms are among the global leaders in infrastructureadvisory and providing feedback on the financial health and status of construction projects.

broad Perspectives: Our diverse team combines backgrounds in municipal finance, banking, government, engineering, construction management, law, and consulting. KPMG firms’ professionals can help you navigate through complex and compet-ing stakeholder issues to strike a balance between key policy protections and their financialimplications,scheduleextensionandreporting,quality/scopeadjustments,and project risk management.

Wide range of services: KPMG firms can offer advice through the lifecycle of complexinfrastructureprograms—fromprogramformationtoprojectexecution,toongoing performance monitoring though a risk-based approach to assessing pro-cesses embedded in your construction program. Our services are designed to assist project owners to successfully navigate their construction projects through multiple challenges.

extensive network: Our member firm teams extend globally and includes senior resources who have advised on groundbreaking infrastructure projects around the world. With “on call” access to our network, you receive the latest innovative thinking available anywhere.

Deep bench: KPMG has a deep bench of experienced professionals. We can rapidly scale project resources up or down according to your specific needs.

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Transfer Asset(s) Develop Detailed

Project Plans Construct Facilities Analyze Options Conduct Detailed

Feasibility Assessment(facilities & operations)

Close Out Program Establish Program

Delivery Team Implement Operational

Readiness Plans Establish Bid Organization Establish Organizing

Committee Host & Stage Event

Conduct Post ProjectReview

Establish ProcurementProcess

Identify PotentialPartnering Arrangements Prepare Business Case

Assess Risk Manage Bidding Process Refine Project Costs

Conduct Market Sounding

Finalize Funding Agreements

Develop Financial/Funding Strategy Negotiate Contract(s)

Identify Project Costs Develop Risk Mitigation

Strategy

Establish Risk,Performance & QA

Framework Identify Funding Sources

Develop PartneringAgreements

Develop and Submit Bid Develop Program Plan

Define ProjectRequirementsAssess Scope

Execute LegacyCommitments

Select Project Option(facilities & operations)

Implement ProjectManagement Process

Program Plan Successful Event Post Project Report Detailed Project Plans,

Contracts in Place,Monitoring Plan

Business Case/Bid Book

Completed Venues &Operational Readiness

Approved Program Plan Mandate-Local/Decision

to Proceed Readiness Acceptance Completion of Event Approved Project &

Monitoring PlansDecision to Award

Operate TransitionEstablish

KeyInputs

KeyActivities

KeyOutputs

ImplementDefineAppraise

MajorSportingEventslifecycleandKeyActivitiesKPMG understands the lifecycle of major sporting events, and KPMG’s practice is designed to provide support across the key activities for all phases of the lifecycle.

Transfer Asset(s) Develop Detailed

Project Plans Construct Facilities Analyze Options Conduct Detailed

Feasibility Assessment(facilities & operations)

Close Out Program Establish Program

Delivery Team Implement Operational

Readiness Plans Establish Bid Organization Establish Organizing

Committee Host & Stage Event

Conduct Post ProjectReview

Establish ProcurementProcess

Identify PotentialPartnering Arrangements Prepare Business Case

Assess Risk Manage Bidding Process Refine Project Costs

Conduct Market Sounding

Finalize Funding Agreements

Develop Financial/Funding Strategy Negotiate Contract(s)

Identify Project Costs Develop Risk Mitigation

Strategy

Establish Risk,Performance & QA

Framework Identify Funding Sources

Develop PartneringAgreements

Develop and Submit Bid Develop Program Plan

Define ProjectRequirementsAssess Scope

Execute LegacyCommitments

Select Project Option(facilities & operations)

Implement ProjectManagement Process

Program Plan Successful Event Post Project Report Detailed Project Plans,

Contracts in Place,Monitoring Plan

Business Case/Bid Book

Completed Venues &Operational Readiness

Approved Program Plan Mandate-Local/Decision

to Proceed Readiness Acceptance Completion of Event Approved Project &

Monitoring PlansDecision to Award

Operate TransitionEstablish

KeyInputs

KeyActivities

KeyOutputs

ImplementDefineAppraise

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KPMG Firms’ Major Sporting Events QualificationsKPMG understands the business of major sporting events, having provided a wide range of professional services to organizations responsible for planning and staging major global sporting competitions. Examples include over a dozen Olympic Games (summer and winter), Commonwealth Games, and other significant sporting events. KPMG’s typical services include:

• businesscasedevelopment,projectplanning, risk analysis and procure-ment strategy for infrastructure

• Developmentofbusinesscases and business plans for sport facilities/venues

• Evaluationofprivatesectorproposalsto build, own, operate and transfer sportfacilities/venues

• Developmentandimplementationofevents safety and security program

• Developmentofecologicalstrategy

• Projectandfinancialissues management

• Analysis/definitionofoperating processes

• Costduediligence

• Post-eventsuseofsportfacilities(business planning, governance options, financial projections)

• Developmentofstrategiesfor “legacy land” post-event

• Developmentofcostedsecurityplans

• ITsourcingoptions

• Taxadvisoryandauditservices

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KPMG Firms’ Major Sporting Events Experience

Calgary, Alberta, Canada

Vancouver, BC, Canada

Salt Lake City, Utah, USA

Atlanta, Georgia, USA

Los Angeles, California, USA Lake Placid, New York, USA

Cape Town, South Africa

Sydney, Australia

Nagano, Japan

Athens, Greece

Albertville, France

Manchester, England

London, England

Sochi, Russia

Torino, Italy

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KPMG’s Major Sporting Events Professionals KPMG’s Major Sporting Events are part of KPMG’s Global Infrastructure practice. KPMG’s Global Infrastructure professionals can provide objective advisory support to our member firm clients throughout the lifecycle of complex infrastructure projects.

KPMG member firms are global leaders in advising on infrastructure. With some of the largest and most experienced teams around the world, we support infrastruc-ture contractors, operators and investors, and government organizations through the lifecycle of complex projects and programs by providing strategic, financial, and commercial advice to public and private sector clients on infrastructure transactions.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such informationisaccurateasofthedateitisreceivedorthatitwillcontinuetobeaccurateinthefuture.Nooneshouldactonsuch information without appropriate professional advice after a thorough examination of the particular situation.

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