the bidding process for the 2018 ryder cup - eigca · the bidding process for the 2018 ryder cup...

The Bidding Process for The

2018 Ryder Cup

• Why we did it

• How we did it

• When we did it

• What we asked for

• Who won and why

• The Ryder Cup Legacy

Aims

PROPERTIES

DESTINATIONS, COURSES

& HOSTS

CONTENT &

TV PRODUCTIONS

THE PRODUCT

SEASON & TOURNAMENTS

12 Elected Tour Members

Tournament Committee (15 players)

European Tour Board of Directors

PROMOTERS

OF

ET EVENTS

Celebrating Golf. Worldwide.

THE EUROPEAN TOUR

The Game’s Global Tour

Since its inception in 1971, The European Tour has expanded to become widely recognized as the game’s Global Tour.

This is evident by the countries visited on our schedule, the rich diversity of our Members and the global reach of our broadcast partners.

Lee Westwood (Eng) : European Tour Member 2009 Race to Dubai Champion World No. 3

A Global Footprint

50 events per year…

…Across 30 countries.

More than any other Professional Tour

Global Reach

North America:

69,500,000 Asia & Oceania:

293,541,000

Africa & Middle East:

5,800,000

Europe:

71,972,000

Source: Extrapolated from 2011 Repucom International European Tour Event Evaluation Reports

Cumulative Global Household Reach now exceeds

440 million

Graeme McDowell (N. Ire) : European Tour Member 2010 US Open Champion World No. 14

A unique opportunity A Unique Set of Assets in our Control

With the assets we have available, we can develop individual solutions to any stakeholder objective.

We can deliver global solutions or local ones, and anywhere in between.

3 Tours

Our own TV Production

Golf Course Design

World Class Venue Network

Tour Events &

The Ryder Cup

A Unique Set of Assets in our Control

Encompassing The Race to Dubai with 50 events across 29 Destinations

The Senior Tour: +50 Age Group 20 events per year across 15 countries with unique access to the true Legends of the game

The Challenge Tour 25 events per year across 18 countries with unique access to the European Tour

A Unique Set of Assets in our Control

A Network of World Class golf venues Located in key strategic golf markets Providing access to businesses and golf consumers in market

European Tour Productions Largest producer of golf programming in the world Unique control over programme content

A Joint Venture Company with IMG Delivering world class golf courses around the world With unique access to European Tour “signature” designers

A Unique Set of Assets in our Control

A Network of World Class golf venues Located in key strategic golf markets Providing access to businesses and golf consumers in market

European Tour Productions Largest producer of golf programming in the world Unique control over programme content

A Joint Venture Company with IMG Delivering world class golf courses around the world With unique access to European Tour “signature” designers

A Unique Set of Assets in our Control

A Network of World Class golf venues Located in key strategic golf markets Providing access to businesses and golf consumers in market

European Tour Productions Largest producer of golf programming in the world Unique control over programme content

A Joint Venture Company with IMG Delivering world class golf courses around the world With unique access to European Tour “signature” designers

A Unique Set of Assets in our Control

A Network of World Class golf venues Located in key strategic golf markets Providing access to businesses and golf consumers in market

European Tour Productions Largest producer of golf programming in the world Unique control over programme content

A Joint Venture Company with IMG Delivering world class golf courses around the world With unique access to European Tour “signature” designers

EUROPEAN TOUR WEBSITE – One of the World’s Most Visited Golf Websites

Visited by an average close to 1 Million unique users each month in 2010, europeantour.com is the most trafficked golf website in Europe and it continues to increase its traffic numbers as illustrated on the graph.

More info:

• Only source of Live Scoring data for all European Tour events

• Can reach up to 1.7 million unique users in a month

• Up to 30 million page views per month

The Top 4 in the Official World Rankings

are European Tour Members

World No 3 Lee Westwood

World No 1 Luke Donald

World No 2 Rory McIlroy

Official World Golf Ranking – as of 1st March 2012

A Foundation for Success

As are 20 of the Top 50…

Spanning 8 nationalities

World No 4 Martin Kaymer

Powerful Title Sponsors

European Tour Destinations:

London Golf Club

Belek Golf Club

Le Golf National

Terre Blanche

The Dutch

European Tour Courses:

Quinta do Lago

PGA Golf de Catalunya

Kungsangen

Fleesensee

Estonian G&CC

Linna Golf

CURRENT PORTFOLIO – MARCH 2012:

Estonian Golf and Country Club

Terre Blanche

PGA Catalunya Resort

THE RYDER CUP TODAY

• The Ryder Cup is one of the top ten sporting events in the world,

matching soccer’s World Cup, American Football’s Super Bowl,

Wimbledon tennis and the Ashes Tests in cricket

• Attendance - 300,000 spectators and guests.

• Media Coverage – 2,000 journalists, photographers

• Television Coverage – Coverage available to 495 million homes across

180 countries, through 44 broadcasters.

• Internet - 2 million people logged onto the official Ryder Cup website -

www.rydercup.com – during the week of the 2006 Event.

• Economic Impact - €240 million of impact on the Irish Economy (2006

Ryder Cup - source: Deloitte).

• PGA European Tour

– Managing Partner

– 60%

• PGA of GB & I

– Founding Partner

– 20%

• PGAs of Europe

– Manager of Ryder Cup Development Trust

– 20%

Shareholder Roles

SELECTION OF VENUE

‘The parties agree that the venue for the Ryder Cup Matches played in

Europe shall be proposed by the Managing Partner (European Tour) in

consultation with the other Members. The Managing Partner agrees to

act in good faith and in the interests of the LLP when determining each

venue for the Ryder Cup Matches’

Source: Members Agreement 2004

SIX CANDIATES

PROJECT ‘LEVEL PLAYING FIELD’

H O S T C A N D I D A T E S

Step One – The Bid Briefing

Document – November 2008

The Launch:

• All six Bidding Nations in a single room….

• Key ET Executives: Sales and Marketing, Media,

Operations etc

• Partner representatives: PGA, PGAEs etc

• Three external Advisors:

– Michael Payne - International Olympic Committee

– Jaime Byrom – FIFA

– Nick Bitel – London Marathon

Step Two - The London Symposium

– January 2010

1. Commitment to the development of a world-class golf facility

(new or existing) to host The 2018 Ryder Cup

2. Provision of ancillary facilities, suitable access and

infrastructure commensurate with the staging of an international

sporting event

3. Demonstrable Government, Golfing Community and Private

Sector support

4. Commercial opportunities available to The Ryder Cup

5. Contribution of the Bid Country to the development of golf

THE FIVE KEY BID CRITERIA The Balanced Scorecard

• Bid Format Requirements

– 400 detailed questions to be answered

– Building on original five Criteria

– To enable Bids to be evaluated fairly

• Bidding Rules

– Probity

– Ethics

– Gifts

– Hospitality

– Dos and Donts

Step Three - The Rules of Engagement

Documents – March 2010

Step Four – Submission of the Bids

– 30 April 2010

Step Five – Presentation of the Bids

- June 2010

• Bids reviewed against detailed Bid Format Requirement

questions:

– Golf course

– Infrastructure

– Commercial

– Government and private sector support

– Legacy

• Meeting with Bidding Nations to feedback on Bid and identify

areas to re-assess:

– Bids can’t be altered other than in respects identified by

RCE

Step Six – Bid Evaluation and Bid

Review – August 2010

• Step Seven: February 2011: EACH Bidding

nation signs a conditional RC 2018 Contract:

– Crucial!

– Based on the Atlanta Olympics 1984 example

– Incur legal costs now rather than post

announcement

– All five countries remain in the process

– Ultimate decision based on Contracts,

incorporating original Bids

– Contract of successful Bidder is activated in May

2011

2018 Ryder Cup Bid process

• Step Eight: Recommendation to key stakeholders: March 2011

– European Tour Board

– Players’ Committee

– Partners: PGA, PGAE

– Ryder Cup Board

• Step Nine: Announcement of 2018 Ryder Cup Host Nation:

April 2011

– Wentworth

– World-Cup/Olympics style announcement

2018 Ryder Cup Bid process

• Existing Venue – Golf National

• Close to Versailles and Paris

• All French golfers to pay a Ryder Cup levy

over 13 years

Bidding Nations - France

• Green-field Site

• Neuburg, close to Munich

• Bid President Bernhard Langer

Bidding Nations - Germany

• Venue under construction, close to Rotterdam

• Course designed by Colin Montgomerie

• Bid co-ordinated on behalf of Federation by

Made in Scotland

Bidding Nations - Holland

The Bidders - Holland

• Green-field site, between Lisbon and Algarve

• Course to be designed by Tom Fazio and

EGD

• Extensive real-estate development

Bidding Nations - Portugal

• Green-field site, close to Madrid

• A city-sponsored Bid

• Involvement of Seve and other Spanish

Players

Bidding Nations - Spain

• A Level Playing Field

• Support from external Experts

• Each Country to benefit from being a Bidder

• We need to ensure good relationships with all

Five Bidders beyond the process

The Keys

To make the correct Sporting and

Commercial decision

THE GOAL

1. Commitment to the development of a world-class golf facility

(new or existing) to host The 2018 Ryder Cup

2. Provision of ancillary facilities, suitable access and

infrastructure commensurate with the staging of an international

sporting event

3. Demonstrable Government, Golfing Community and Private

Sector support

4. Commercial opportunities available to The Ryder Cup

5. Contribution of the Bid Country to the development of golf

THE FIVE KEY BID CRITERIA The Balanced Scorecard

MARKING AND WEIGHTING

Marking

• 10 = Outstanding

• 8 = Excellent

• 6 = Achieves criteria

• 4 = Below expectation

• 2 = Significant concerns

• 0 = Minimum criteria not met

Weighting (for significantly important areas)

• x 3 / x 5

CRITERIA 1 Golf Course - Characteristics

A B C D E Notes

Site characteristics 8 6 6 10 10

Surrounding aesthetics (from high camera)

10 4 4 8 10

Substructure 6 4 6 8 8

Design 8 6 4 8 8

Spectator viewing 10 8 2 8 8

Course condition 6 6 8 8 8

Spectator routing 8 6 4 6 8

SCORE 56 40 34 56 60

FRANCE

The foundation of the French Bid is the financial support of French

golfers, who voted overwhelmingly to pay a levy of €3 per year over

the lifetime of the contract (12 years). The status of Golf National as

an established tournament venue of the highest calibre offers a level

of certainty in terms of the staging of the Matches, along with the

prospect of dramatic finales, with excellent spectator viewing.

The contracting process with the French Bid team has enabled RCE

to ratify many Bid Book “commitments”. Significant venue-related

opportunities exist through a partnership between FFG and RCE.

There is no doubt that a Paris/Versailles Ryder Cup will significantly

enhance the event, and also facilitate significant sales opportunities.

• A proper process

• Elevation of Ryder Cup -> Paris backdrop

• Staging of Ryder Cup on a world-class golf course

• Commercial and hospitality opportunities

• 100 Compact Golf Courses

• Engagement of French golfers

• Joint incentive to increase participation

• Commitment to “democratise” game of golf

• Tournament and Properties opportunities for Silver Medallists

The French Ryder Cup Legacy