The Bidding Process for The 2018 Ryder Cup

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The Bidding Process for The 2018 Ryder Cup
The Bidding Process for The
     2018 Ryder Cup
The Bidding Process for The 2018 Ryder Cup
Aims

•   Why we did it

•   How we did it

•   When we did it

•   What we asked for

•   Who won and why

•   The Ryder Cup Legacy
The Bidding Process for The 2018 Ryder Cup
European Tour Board of Directors
                      12 Elected   Tournament Committee
                                        (15 players)
                                                                      PROMOTERS
                    Tour Members
                                                                           OF
                                                                       ET EVENTS

                        SEASON & TOURNAMENTS

                          THE PRODUCT
     PROPERTIES                                         CONTENT &
DESTINATIONS, COURSES                                TV PRODUCTIONS
       & HOSTS
The Bidding Process for The 2018 Ryder Cup
THE EUROPEAN TOUR

Celebrating Golf. Worldwide.
The Bidding Process for The 2018 Ryder Cup
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
The Bidding Process for The 2018 Ryder Cup
A Global Footprint

50 events per year…

              …Across   30 countries.

         More than any   other Professional Tour
The Bidding Process for The 2018 Ryder Cup
Global Reach

                                  Europe:
                                 71,972,000

          North America:                                                     Asia & Oceania:
           69,500,000                                                         293,541,000

                                Africa & Middle East:
                                      5,800,000

Cumulative Global Household Reach now exceeds                440 million
                                           Source: Extrapolated from 2011 Repucom International European
                                                                            Tour Event Evaluation Reports
The Bidding Process for The 2018 Ryder Cup
A Unique Set of Assets in our Control
                                               A unique opportunity

                                                           3 Tours
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.         Our own TV Production

                                         World Class Venue Network

                                                 Golf Course Design

                                        Tour Events &
Graeme McDowell (N. Ire) :
                                                 The Ryder Cup
European Tour Member
2010 US Open Champion
World No. 14
The Bidding Process for The 2018 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
The Bidding Process for The 2018 Ryder Cup
A Unique Set of Assets in our Control

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

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

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

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

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

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

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

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

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

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

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

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
A Foundation for Success

       World No 1                        World No 2              World No 3                World No 4
         Luke Donald                       Rory McIlroy          Lee Westwood              Martin Kaymer

            The Top 4 in the Official World Rankings
            are European Tour Members

                                                          As are 20 of the Top 50…

                                                                                Spanning 8 nationalities
Official World Golf Ranking – as of 1st March 2012
Powerful Title Sponsors
CURRENT PORTFOLIO – MARCH 2012:

    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
Estonian Golf and Country Clu
Terre Bla
PGA Catalunya R
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).
Shareholder Roles

•   PGA European Tour
    –   Managing Partner
    –   60%

•   PGA of GB & I
    –   Founding Partner
    –   20%

•   PGAs of Europe
    –   Manager of Ryder Cup Development Trust
    –   20%
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:
Step Two - The London Symposium
– January 2010
•   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
THE FIVE KEY BID CRITERIA
The Balanced Scorecard

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
Step Three - The Rules of Engagement
Documents – March 2010

•   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 Four – Submission of the Bids
– 30 April 2010
Step Five – Presentation of the Bids
- June 2010
Step Six – Bid Evaluation and Bid
Review – August 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
2018 Ryder Cup Bid process

•   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
Bidding Nations - France

•   Existing Venue – Golf National

•   Close to Versailles and Paris

•   All French golfers to pay a Ryder Cup levy
    over 13 years
Bidding Nations - Germany

•   Green-field Site

•   Neuburg, close to Munich

•   Bid President Bernhard Langer
Bidding Nations - Holland

•   Venue under construction, close to Rotterdam

•   Course designed by Colin Montgomerie

•   Bid co-ordinated on behalf of Federation by
    Made in Scotland
The Bidders - Holland
Bidding Nations - Portugal

•   Green-field site, between Lisbon and Algarve

•   Course to be designed by Tom Fazio and
    EGD

•   Extensive real-estate development
Bidding Nations - Spain

•   Green-field site, close to Madrid

•   A city-sponsored Bid

•   Involvement of Seve and other Spanish
    Players
The Keys

•   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 GOAL

To make the correct Sporting and
Commercial decision
THE FIVE KEY BID CRITERIA
The Balanced Scorecard

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
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)
• x3/x5
CRITERIA 1                        Golf Course - Characteristics
                         A    B       C     D    E   Notes

Site characteristics     8    6       6    10   10

Surrounding aesthetics
                         10   4       4     8   10
(from high camera)

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.
The French Ryder Cup Legacy

• 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
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