Africa Cup of Nations, South Africa 2013 and CHAN, South Africa 2014

CELEBRATING FOOTBALL CELEBRATING AFRICA

PRESENTATION BY MVUZO MBEBECHIEF EXECUTIVE OFFICER

16 MAY 2012

STRATEGY

Celebrating Football – Celebrating Africa

• Opportunity to thank Africa for the FIFA World Cup support.

• AFCON – Celebration of African Football

• Chan – Thank you Africa, Thank you CAF (coincides with 20years of South Africa’s democracy)

Objectives

• Deliver seamless high quality event(s) South Africa is accustomed to.

• Reposition positively SAFA locally and in African football

• Get the Nation and Continent behind the events

• Enhance the Football Brand in Africa in general and South Africa in particular

• Create a platform to enhance brand SOUTH AFRICA on the continent

• Deliver net profits for SAFA

Critical Success Factors

• FULL STADIUMS! FULL STADIUMS! FULL STADIUMS!

• Performance of and public support for Bafana Bafana leading to 2013/2014 and during AFCON/CHAN

• Flexible and appropriate OAA – CAF agreement

• Integrity, corporate governance and transparency

• Governments total support and commitment

• Football stakeholders and institutions acting in unison

• LOC being seen to be and act as distinct persona

• Support of corporate South Africa

• Focused and timeous implementation

• AFCON and CHAN - one integrated planning and create a two year platform

Critical Successful Factors Cont…

Time and resources are limited

• AFCON and Chan one integrated planning and budgeting

• Excellent liaison with CAF, SAFA, Ministry of Sport and Host Provinces and cities

• Football stakeholders act in unison in the presentation of these events

• Good and proper corporate governance and structure

• Government support at all three tiers and across critical Ministries

• Cost management and revenue maximization

• Flexible procurement processes but geared towards BBBEE and current football industry players

Critical Successful Factors Cont…

• Create various touch points for in key Languages and culture for everyone who wants to be involved

• Mobilise ambassadors and High Commissions on a consistent basis

• Targeted communication for African Diaspora in South Africa

• Trophy Tour – from Zambia to South Africa

• Partnership with AFCON Commercial partners in their own programmes and initiative

• Every CAF event must be made a communication platform for AFCON & CHAN

• Targeted communication for African Diaspora in South Africa

• Continental friendly ticketing platform

• Targeted ticket sales to AFCON Commercial partners and companies doing business in Africa

GOVERNANCE STRUCTURES

Governance

• CAN List of Requirements per CAF (LoR)• Commercial Regulations• Africa Cup of Nations Regulations• Other CAF Directives• Technical Annexure• Host City Agreement, Stadium Use Agreement, Roles and Responsibility Matrix

CAF

CAF Organising Committee

SAFA 100% Shareholder

AFCON 2013 NPC

National, Provincial, Local Government

StructuresOther Stakeholders

CAF Venue Functional Areas

Marketing Venue Manager

Marketing Venue Manager

Media Officer TSG

TSG

Security

Media Officer

Website Editors

Website Editors

Protocol

Protocol

Event Management & Coordinator

Assistant

CAF Assistant General Coordinator

CAF Head of Delegation (AFCON OC Member)

AFCON OC Member

AFCON OC Member

AFCON OC Member

AFCON OC Member

CAF General Co-ordinator

Medical/Doping

Governance - Institutional

SAFA 100% Shareholder

AFCON CEO

AFCON Board Sub - CommitteesAFCON LOC BOARD

Operations Commercial

HOSTING ASSOCIATION OBLIGATIONS in OAA

OBLIGATIONS

OAA Clause Category

STAGING COSTS

2.2 Inspection Visits Covering travel and accommodation costs

2.3 Stadiums Provision of stadiums that meet the technical specifications to stage matches of international level. These stadiums to be available for exclusive use of the tournament from 1 Dec 2012 to 17 Feb 2013

2.4 CAF / VIP Hospitality Covering catering and decor costs at match venues

2.5 Commercial Hospitality

2.6 Matches Staging of the match

2.7 Draw Covering travel and accommodation costs, venue hire, catering and all staging costs – inclusive of broadcast production costs

2.8 Ceremonies Creative, production and executing of both ceremonies

OBLIGATIONS

OAA Clause Category

STAGING COSTS

2.11 Infrastructure / Costs Where required, such as Media centres etc

2.12 Power Supply Ensuring that we have sufficient to satisfy the needs of the event

OBLIGATIONS

OAA Clause Category

HOSTING COSTS

3.2 Accommodation (CAF) Provision of accommodation on a bed and breakfast basis for the duration of the tournament

3.3 Team Hotels Provision of accommodation on full board basis for the duration of the tournament

3.4 Transportation Provision of transport for CAF Delegation, Teams for the duration of the tournament

3.6 Official Training Sites 1 site per team for the duration of the tournament, fully equipped

OBLIGATIONS

OAA Clause Category

General Provisions

4.1 Security Guarantee a safe and secure tournament for all participants, inclusive of spectators at matches and within the country

4.2 Accreditation Provision of devices and vetting by the relevant government agencies

4.4 Stadium Media Centres Working space for the media during the tournament

4.6 Medical Services Support the CAF Delegation, Teams and Referees during the tournament

4.9 Permits and Confirmations Provide guarantees for all participants (and spectators) to be allowed entry to South Africa

4.10 Health Requirements Identification of Hospitals and related services

OBLIGATIONS

OAA Clause Category

Marketing

5 CAF owns the marketing rights but there is an obligation on the LOC to obtain certain consents and approvals from GovernmentCAF Sponsors CAF have their own sponsors for the

event, who have exclusive rights to various naming elements and categories .

National Partners CAF make provision for South African based companies to be involved, with the current split to LOC being 20% of cash value.

Branded Licensees, Merchandise and Concessionaires

CAF holds the rights to these, but under separate agreement cede these to the LOC on 80/20 spilt of net revenue in favour of the LOC

5.9 Clean Sites All sites that are used for the event must be free of any branding

5.16 Broadcast Production Costs Cover the technical production costs for worldwide distribution of the signal

OBLIGATIONS

OAA Clause Category

Ticketing

6.1 Ticket Sales / Distribution Unlike the World Cup, LOC responsible for all costs related to establish the ticketing network

6.5 Ticket Design and printing As above, to develop the design and related matters

OBLIGATIONS

OAA Clause Category

Insurance

7.1 Liability Insurance To have event insurance

OBLIGATIONS

OAA Clause Category

Taxes

9.2 Tax Ruling Guarantee import and re-export of various items – free of taxes

OBLIGATIONS

OAA Clause Category

Indemnification

10.1 Indemnification

Mobilizing Resources – approximate R300m LOC costs

CAF Commerci

al splits

Host Provinces and Cities

National Governm

ent

Local commercial revenues

and Ticketing

CAF CONTRIBUTIONS

Document Reg No Description % Value Rand Value

Regulations 94.5 TV & Broadcast Rights and publicity• 40% Pool (all participating countries)• 20% Host (South Africa)• 20% CAF• 20% Technical Development Fund

20% R44 000 000,00

Document Description % Value Rand Value

Ticketing Revenue• 25% Host Cities• 5% SAFA Structures• 10% SAFA• 10% FIFA / CAF

50%

Commercial Agreement (Merchandise, Commercial Hospitality) 80%

Commercial Agreement (National Partners, Branded Licensees) 65%

Revenue Streams for LOC

Its not the SWC – commercial opportunities limited

• All Sponsorship and TV (excluding local FTA) – 20% on net income of CAF (2010 Angola LOC – usd 3.1 m)

• Ticketing net revenue to LOC 50% (25% to Host cities at Group stages, find an equitable system for knockout stages)

• Merchandising and Hospitality – proposing 50% of this LOC (subject to CAF negotiations)

• Limited National suppliers programmes – value in kind

Filling the stadiums – 500 000 tickets

Its not the SWC – will not sell itself

• Secure but accessible and affordable tickets• Choice of venue • Where possible match team placement with Diaspora profile• Incentives for local football structures• Targeted ticket sales to companies doing business in Africa• Focused tiered hospitality programme• One ticketing platform for AFCON and CHAN• Promise of friendly, organised and secure venues• Promise of exciting and unique match day experience -partner with the

Ministry of Arts and Culture• Media promotions and partnerships• Commercial partners programmes and promotions

OVERVIEW OF SUPPORT REQUIRED FROM GOVERNMENT

GOVERNMENT GUARANTEES

• A

• B

• C

ACTIVITY DEPT DETAIL

Medical services and campaigns

DOH Health and Medical services at all spheres for event and for CAF delegation, HIV / Aids, Malaria

Safety and security SAPS / NATJOINTS

National and event security, accreditation, ticket data and risk management, close Protection for CAF President + 7

VIP Services DIRCO & SRSA Government is requested to sign a guarantee for access to State Protocol Lounge, Courtesies to Heads of State & Embassy liaison, invitation and ticket management

Visas and borders DHA Government is requested to sign a guarantee for work permit for CAF staff & dedicated lanes and ports of entry and visas for accredited persons

Tax, Imports and customs

NATIONAL TREASURY

Government is requested to sign a guarantee for tax relief for import and re-export of CAF goods and Volunteer stipends. Import and Export of Forex and no currency restrictions

GOVERNMENT GUARANTEES

• A

• B

• C

ACTIVITY DEPT DETAIL

Telecommunications DOC Guarantee of telecommunication infrastructure and assist with the Media Centres

Accommodation TOURISM Ensure that the Hotel Rates are not unduly inflated

Marks DTI Protection of marks and IP Rights, marketing Rights and Anti –Ambushing programme. No restrictions on sale and distribution of sale of merchandising

Transport DOT Government is requested to sign a guarantee for efficient airport operations mass movers and guest support services

GOVERNMENT SUPPORT

• A

• B

• C

ACTIVITY DEPT DETAIL

School Programmes DBE Educational programs - schools to adopt one of the 4 teams in each Host City, One Goal, My School Programme

Global marketing Dept of Tourism & SA Tourism

Marketing globally, media tours, spousal program

African continent Various Departments

Spectator services, PMA training within SADC, marketing

Mass participation and campaigns

SRSA , DAC & GCIS

Mobilisation, communication, popular programs

Social Responsibility LOC and Govt Green Games, Child Welfare, Xenophobia

Special / Official events LOC and Govt Final Draw, Countdown , Host City / Province Exhibitions Banquets, Flag Hoisting (SAFA House and host city / province)

THE TOURNAMENT

About the Tournament

• Participating Teams• 16 (FIFA World Cup – 32)

• Dates and number of matches• 19 January 2013 to 10 February 2013• 32 Matches (FIFA World Cup – 64)

• 24 Group Stages (6 matches in each group)• 8 Knock Out matches• 17 match days• 24 match sites• 2 Matches per day (Group Stages) in same venue in the same City (FIFA World Cup – 2

Matches per day, in different Cities at different times)

• Host Cities / Stadiums• Between 4 to 7 (FIFA World Cup - 9 Cities 10 Stadiums)

About the Tournament

• Training Sites• 1 per team (4 per Host City)• 1 for Referees (HQ)

• Team Base Camps• None (FIFA World Cup - 32)• All group matches for a single team is played in the same City ie: team is based in a City for all

its group matches – save for the final group match (FIFA World Cup - a team played its group matches in 3 different Cities)

• Final Draw• End September, early October 2012

BIDDING PROCESS

CAF AND LOC HOSTING STRATEGY

• The CAF hosting strategy lists a minimum number of 4 host cities for the Africa Cup of Nations 2013 which can be increased to a maximum of 7 host cities.

• The LOC’s hosting strategy is to ensure a minimum of 4 match days in each host city to ensure an appropriate return on investment for the host city and the host province and cost effectiveness for the LOC. Each group will be based in a single host city.

• The optimal number of host cities for the tournament is 5. Beyond this number it becomes too risky, too costly and will not achieve the objectives of the LOC’s strategy. A higher number of host cities complicates the tournament’s logistics and project management.

OVERVIEW OF BIDDING PROCESS

• The process began with a briefing session that was held between the Local Organising Committee and the 8 candidate host cities at SAFA House on 13 March 2012. During this presentation they were given the hosting strategy for the tournament which included the criteria for selection as a host city.

• The candidate host cities were presented with a set of tournament requirements on 13 March 2012. These tournament requirements set out the detailed requirements for the hosting of matches and events within the host city.

• The candidate host cities were provided with a presentation template on 19 March 2012 which set out the format of the host city bid presentations to be delivered on 26 March 2012.

• The candidate host cities were provided with the unsigned host city agreements on 20 March 2012.

• The candidate host cities were also provided with the responsibilities matrix on 20 March 2012.

• The candidate host cities presented their bids on 26 March 2012 at SAFA House to an LOC panel comprising the LOC Evaluation Panel and the LOC Management Team.

PROCESS

• The process commenced with a presentation by each of the candidate host cities on Monday 26 March 2012. The LOC Evaluation Panel considered each of the presentations, irrespective whether candidate host cities signed a Host City Agreement or not. The LOC Evaluation Panel considered each of the presentations. Their scoring amounted to 70% of the overall score.

• The LOC Management Team similarly evaluated each of the candidate host city bids. Their scores amounted to 30% of the overall score.

• A higher weighting was given to the LOC Evaluation Panel’s consideration of the host city’s readiness to accept the obligations associated with hosting matches which will feed into the LOC’s hosting strategy and the mobilisation plan which will seek to increase stadium attendances. Unlike the 2010 FIFA World Cup South Africa™, the Africa Cup of Nations 2013 requires higher levels of promotional activity to drive ticket sales.

• The LOC appointed a team of Transaction Advisors from Edward Nathan Sonnenburg to ensure that the process was in accordance with the demands made to the candidate host cities. The Transaction Advisors kept the scores of each evaluator and aggregated theses scores in respect of each candidate host city.

• At the end of each candidate host city presentation the members of the LOC Evaluation Panel and the LOC Management Team gave their independent scores to the Transaction Advisors without discussing their individual scores or sharing with other members of their respective panels.

PROCESS

• No member of the LOC Evaluation Panel and the LOC Management Team had access to the aggregate scores or kept an official copy of their own scores. The aggregate scores were presented to the chief executive officer at 16h00 on Sunday 1 April 2012, who subsequently tabled these recommendations to the LOC Board on the same day – who approved for onward submission to the Honourable Minister of Sport for submission to Cabinet for their consideration

VENUE SELECTION RATIONALE

Venue Selection - Rationale

• Focus on the use - primarily – of 2010 World Cup Stadiums for AFCON 2013• Consideration of all other venues for CHAN 2014

• Using 4 fixed venues for the Group Stages minimizes the overall logistics and mitigates against venue hopping for the teams – which would increase our operational staffing requirements (Travel and Accommodation) to manage the venue hopping

• Also allows for the Host Cities (and local supporters) to develop closer relationship with the team/s based there

• It is noted that with the matches as double headers and no two venues used on the same day, the OC will then venue hop, but far easier to manage ONE group than all 16 Teams AND the OC.

Venue Selection - Rationale

• Criteria for final selection of host cities, amongst other things:

• Demonstrate ability to fill stadiums especially football Games• Present a mobilization plan to ensure that we have full stadiums for each series of matches in the relevant Host City and also

to evaluate the engagement of the respective Provincial Government and their support.

• Structure of event• Headquarters, 4 venues to host group matches and consideration around the knock out matches to possibly utilize a 5th venue

• Cost• Host City preparedness to cover costs based on their budget projections and to confirm its commitment to underwrite the

costs related to the hosting of the teams in its city. In addition, to evaluate the engagement of the respective Provincial Government and their support.

• Legacy benefits• What the benefit are to the residents of the Province / City / Local Football post AFCON. This did not involve infrastructure

legacy, but rather “soft legacy” elements, such as the utilization of local training sites and related facilities to be used by teams

• Accessibility• Of spectators to the venue, travel and accommodation elements – inclusive of spectator experience in the Province / City

• Government strategic requirements• How candidate host cities linked their bid to government strategies in the medium to long term – at both a Provincial and

National level.

• Current infrastructure• Ability to host with minimal or no additional infrastructure costs. Effectively utilizing the infrastructure and resources of the

2010 FIFA World Cup

THE HOST CITIESFinal Ranking and Selection

LOC Evaluation Panel (Board) - Scorecard

LOC Management Team - Scorecard

Final Rankings

Rank Candidate Host City Selected Signed HCA at Bid Signed HCA post Bid

1 eThekwini √ No Yes

2 Nelson Mandela Bay √ Yes N/A

3 Rustenburg √ Yes N/A

4 Mbombela √ Yes N/A

5 Johannesburg √ No Yes

6 Cape Town X No No

7 Polokwane X No No

8 Mangaung X No No

• The above ranking and selection required no further intervention, since it adequately deals with a balance between :• Inland and Coastal venues• small and big cities

THE HOST CITIESAfrica Cup of Nations, South Africa 2013

as confirmed by the Cabinet of The Republic of South Africa

eThekwini – Moses Mabhida Stadium

Nelson Mandela Bay – Nelson Mandela Bay Stadium

Rustenburg – Royal Bafokeng Sports Palace

Mbombela – Mbombela Stadium

Johannesburg – FNB Stadium

WAY FORWARDwith Host Cities

• Host City / Host Province Inspections for verification and engagement on any outstanding issues• Week of 20 to 25 May 2012

• Signing of the Guarantees with National Government• Meeting with Cabinet appointed Inter Ministerial Committee (IMC)

• Other cities that had bid – including Kimberly - and did not succeed in being announced as AFCON 2013 Host Cities, are given the first option for CHAN 2014• Kimberly• Mangaung• Cape Town• Polokwane

• CHAN 2014 Host City / Host Province Inspections for verification and engagement on any outstanding issues• Week of 4 to 8 June 2012

• FINAL DRAW• 26 October 2012 Venue TBC

Way Forward – Short Term Key Milestones

FACTS and FIGURES

Facts and Figures - Infrastructure

Host Cities

Host Cities 5

Stadiums 5

Training Sites 21

Hotels 27

Facts and Figures – Human Resources

Human resources

LOC Staffing 90

Support Staff 9890

Venue Staffing 90

Volunteers 2500

Stewards 3000

Static Security Guards 2000

Interns 30

Community Safety Stewards 1000

MAJOR TIMELINES

Major Timelines

MAY 2012• Tenders for Ticketing, Hospitality and Merchandise• RFI for suppliers• Launch Countdown and marketing Campaigns

JUNE 2012• Tenders for Final Draw and Ceremonies• Awarding of the Ticketing and Hospitality agents• Determination of the Final 30 Teams for AFCON 2013

JULY 2012• Opening window for Media Accreditation for S. Africa only• Ticketing structure and Education Campaign• Awarding of the concession and merchandising agents• CAF Inspection visit• Launch of the Mascot

Major Timelines

AUGUST• Launch of the Theme Song• Awarding of the Draw and Ceremonies Agents

SEPTEMBER • Opening window for Media Accreditation for all

OCTOBER 2012• AFCON 2013 INSPECTION VISIT + WORKSHOPS (PMA/SEC/MEDICAL/MEDIA)• AFCON 2013 OFFICIAL DRAW• FAMILIARIZATION VISIT OF PMA'S• Close of Media Acc. for S. Africa only

NOVEMBER 2012• Closing of Window for Media Accreditation• Deadline for list Accredited Written press to the LOC

DECEMBER 2012• Commencement of the Exclusive Use Period (1st)• Deadline for teams to require extra training

Major Timelines

JANUARY 2013 • Early arrivals of CAF Staff• Latest arrivals of teams (13th)• Opening Match (19th)

FEBRUARY 2013 • FINAL Match AFCON 2013 (10th) • Operations focus on CHAN 2014 (11th)

ESTIMATED COSTS – CONTRIBUTION REQUESTED FROM GOVERNMENT

Department of Sport and Recreational Support

Amount Requested Actual cost

Accommodation for CAF Delegation 10,048,000 20,096,000

International transportation of teams and CAF delegation 7,129,000 14,258,000

Public mobilisation 25,193,235 25,193,235

Volunteer support 9,992,250 26,067,750

52,362,485 85,614,985

ADDITIONAL SUPPORT TO LOC

• A

• B

• C

ACTIVITY DEPT & cost DETAIL

Opening & Closing ceremonies,

DACR80 000 000.00

Production and creatives & support with artists

Country and City dressing

Brand SAR10 000 000.00

Dressing at Host City /Province

Training Higher EducationR30 720 000.00

SETA training for stewards, internships and volunteers

Host Cities Contribution to LOC Budget

Total Per City Total cost to LOC

Teams accommodation 26,186,200 6,546,550 26,186,200

Local transport for teams and referees 3,179,700 794,925 7,685,700

Accommodation for referees on match days 480,000 120,000 2,319,000

Events security (stadium) 10,343,600 2,585,900 14,444,800

VIP Hospitality 10,400,000 2,600,000 20,580,000

Medical, Disaster management and insurance 6,830,000 1,707,500 15,686,000

Tournament branding 10,000,000 2,500,000 15,750,000

Equipment 10,000,000 2,500,000 14,135,604

Volunteers 8,150,000 2,037,500 26,067,750

85,569,500 21,392,375 142,855,054

Final Draw 6,000,000.00 10,000,000.00

FINAL

Host City/Province Own Cost

Overlays (if any and will vary per venue) 6,000,000.00 1,500,000.00 6,000,000.00

Stadium Hire and operational cost -

City initiatives -

Marketing -

Public viewing / Fan parks

Cultural events

Ceremonies

Public mobilisation

Community safety volunteers

Host city beautification and protocol routes

• The above cost lines should be the additional areas of budget to their normal services like Metro police, Waste management, Electricity, Water and Related Costs

• The cities must also budget for overtime costs, if any.

CHAN 2014

INTRODUCTION

• The Confederation of African Football realised over time that it needs to provide greater focus on the development of the continental game, noting in particular the fact that there are many continental players plying their trade off the continent.

• The decision was then taken to introduce a tournament for all national teams, with a limitation that they were only permitted to select players who play their football in their own domestic competitions.

• This tournament was then linked directly to the hosting of AFCON – meaning that any country that bids and win the right to host AFCON would be obligated to host CHAN in the subsequent year.

• Noting this, CHAN is thus scheduled to take place in South Africa in 2014, the year after AFCON 2013.

THE TOURNAMENT

• It is not expected to play CHAN in any of the World Cup Stadiums (with the exception possibly of the opening / closing matches), since the stadium capacities would be too great for CHAN (It desirable to use stadiums in the 15 000 seater range).

• It does however therefore present good opportunities to utilise additional World Cup legacy facilities to stage these matches with possibly some minor infrastructure adjustment in terms of ensuring these have proper draining and quality pitches, four team dressing rooms and two referees dressing rooms.

• Tournament is scheduled for January 2014 – in terms of CAF requirements, but no later than March 2014

• Format is similar to the AFCON, with 16 teams

• Greater marketing scope than AFCON, for local companies

THE TOURNAMENT

• Participating Teams• 16 (AFCON – 16)

• Dates and number of matches• January 2014• 32 Matches (AFCON – 32)

• 24 Group Stages (6 matches in each group) (AFCON is the same)• 8 Knock Out matches (AFCON is the same)• 17 match days (AFCON is the same)• 24 match sites (AFCON is the same)• 2 Matches per day (Group Stages) in same venue in the same City (AFCON is the same)

• Host Cities / Stadiums• Between 4 (AFCON 5 Cities/Stadiums)

THE TOURNAMENT

• Training Sites• 1 per team (4 per Host City) (AFCON is the same)• 1 for Referees (HQ) (AFCON is the same)

• Team Base Camps• None (AFCON is the same)• All group matches for a single team is played in the same City ie: team is based in a City for all

its group matches – save for the final group match (AFCON is the same)

THANK YOU

Q & A