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Coining it in
London is preparing for a mass visit. If the city
gets the Olympics right and global visitors enjoy
the event, the capital will ride on that wave for
years to come. But to be fair, the whole thing has been
met by a degree of ambivalence elsewhere in the
country, particularly up north. Plans to build a
Velodrome in London has put some Mancunian noses
out of joint, but Midlands companies know that
business doesn’t always come to your doorstep,
sometimes you have to go to meet it.
Sure, Birmingham desperately needs an international sport stadium, but first the region must prove its expertise in the sector. And the opportunity that 2012 brings is not in the legacy of the permanent buildings that will appear in London, but in the overlay.
Lance Taylor heads the 2012 team at property adviser Rider Levett Bucknall and meets weekly with the London Organising Committee of the Olympic Games (LOCOG). He is adamant the Midlands is geared up to take advantage of the number of temporary facilities that London will need. He says: “There are only a handful of permanent buildings being built but there is a huge requirement for overlay projects, which presents a tremendous opportunity for the rest of the country. The Midlands is famous for mobilising quickly and going where the work is.”
The huge demand for facilities such as portaloos, cabins, tarmac and temporary fences will create work 100 miles up the road. Taylor says: “There are countless opportunities for us to help. Our businesses need to be ready to manufacture and supply, and then be ready to re-hire the equipment again. The next is the Rugby League World Cup in 2013 and the Commonwealth Games in Scotland in 2014, where they procured the event in a recession. Scotland will undoubtedly focus on the temporary side.”
The Midlands’ flagship sports college at Loughborough University will benefit from 2012 without having to mobilise because the Japanese Olympic team will be based there in the run-up to the Olympics. Emma Boynton, head of sales and marketing at Imago, the university’s conference brand, says: “This is a great accolade because it associates us with the Olympic name and provides an instant recommendation of our hospitality services. Being host to an Olympic team also affects how the business is run and means that other services need to be outsourced, often from within the region.”
With alumni such as Sebastian Coe and Paula Radcliffe, as well as the England Rugby Union team using the campus for training, Loughborough was an obvious choice for East Midlands Sports Personality of the Year in 2009. And Imago will be hosting the UK Corporate Games in 2011. Boynton says: “This event is a fantastic profile raiser and brings the possibility of business from further afield.”
We have the UK’s best academic facility in sport but Taylor of RLB insists that the region still lacks a world-class stadium, and this is a priority if the Midlands is to attract major events in the future. He says: “A debate rages about the value an international event brings to a city because sport often doesn’t cover its costs. But just look at Cardiff, the Millennium Stadium has put that city on the map.”
London still has a monopoly on sporting events, and Taylor thinks Birmingham needs to follow the lead of Manchester in upgrading. “We’ve moaned about Manchester and getting behind in the race to be the second city, but the advantage we have is that Manchester’s stadium is built. Now is our chance,” he says. “We need to show that we can put on an event and become famous again for being a global hub for a variety of sectors. So why can’t sport be one of them?”
Law of the Game
Lord Steven’s 2007inquiry into football corruption raised concerns about issues involving 17 player transfers, five clubs, three managers, plus numerous agents and other third parties. They were identified “only as a consequence of the outstanding issues the inquiry has with the agents involved”. He expressed frustration that some agents refused to open their books. He proposed greater transparency but his insider JANUARY 2010 31 The requirement for overlay prrecommendations remain largely unheeded. Football missed its opportunity to detox.
A Report on Money Laundering by the Financial Action Task Force (FATF) stated: “Money laundering through football is deeper and more complex than previously understood…related to the ownership of football clubs, transfer market, betting activities, image rights and sponsorship”.
Kevin Harris-James, head of the sports law group at law firm Irwin Mitchell in Birmingham, says: “The Premier League is the holy grail of the UK sports industry, offering untold riches for the fortunate few. But with such lucrative financial rewards football is vulnerable and exposed to exploitation. Players are traded like commodities and the concept of loyalty diminished in the pursuit of personal gain. The agent culture, viewed with concern by the FATF and Lord Steven, is allegedly central to this.
“Fans who struggle to fund a ticket gawp at the astronomical sums of money changing hands. Manchester United sold Ronaldo to Real Madrid for a purported £80m while tabloids suggested his agent was paid as much as £10m. And salaries appear stratospheric, witness talk of Wayne Rooney being offered £170,000 per week. The league must cleanse its image.”
Harris-James works closely with clubs, players and agents who would welcome enforcement of the recommendations of Lord Steven and the FATF Code of Practice governing money laundering. He says: “These clients recognise my team’s reputational value. We can represent a club or player in a transaction, charging hourly rates or agreed fees. And our expertise has built-in compliance and professional obligations to the Solicitors Regulatory Authority, which are more stringent than the FA rules and regulations for agents.
“The sport must detox speedily and voluntarily or see the government running on to the pitch as referee, awarding harsh penalties.”
Advantage Nottingham
Following the success of the Nottingham Tennis Masters in 2009, organiser Northern Vision is bringing the event back for a second year. The tournament relies on financial support from local companies buying sponsorship deals and corporate hospitality packages.
The Masters engaged the talents of players such as Ilie Nastase, who charmed the crowds last summer with his tricks on court. Retired stars Greg Rusedski, Richard Krajicek and Mats Wilander also competed in the main singles event. And the tournament showcases young tennis talent such as Laura Robson, the winner of Junior Wimbledon in 2008.
Tennis is striving to close the gap on golf as the third-biggest sport economy behind football and horse racing, and Northern Vision is appealing to local companies to get behind the tournament. The calibre of the players should ensure that the event attracts visitors from outside the region, too.
Sponsorship and corporate hospitality packages for 2010 have been launched with prices frozen from the 2009 tournament. They offer value for money and a platform for companies to promote themselves or entertain clients. As well as structured packages, ‘build your own’ packages are also available.
Anders Borg, managing director of Northern Vision, says: “There are plenty of opportunities for local companies to get involved in the Masters and I encourage local businesses to get more involved. We are investing heavily in Nottingham now and, in return, urge businesses to get involved as well.”
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