The impact of major sport events - Study of soft power, trade and investment impacts November 2021 - City of London
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Enter The impact of major sport events Study of soft power, trade and investment impacts November 2021
Contents 1. Forewords
2. Executive summary
3. Introduction and methodology
1. Forewords 1
4. How do major sport events drive impact?
2. Executive summary 3
5. The contribution of major sport events in the UK
3. Introduction and methodology 6
6. International major sport events impacts and strategies
4. How do major sport events drive impact? 9
7. Harnessing the potential of the UK’s major sport events
5. The contribution of major sport events in the UK 13 pipeline
6. International major sport events impacts and strategies 21 8. Study methodology
7. Harnessing the potential of the UK’s major sport events pipeline 27
8. Study methodology 34
Disclaimer
This report was prepared by Ernst & Young LLP for the City of London Corporation (the City of London) and using
information provided by the City of London and the United Kingdom Sports Council (UK Sport), and other primary
data collected by EY.
Ernst & Young LLP does not accept or assume any responsibility in respect of the Report to any readers of the
Report (Third Parties), other than the City of London. To the fullest extent permitted by law, Ernst & Young LLP
will accept no liability in respect of the Report to any Third Parties. Should any Third Parties choose to rely on the
Report, then they do so at their own risk.
Ernst & Young LLP has not been instructed by its client, the City of London, to respond to queries or requests
for information from any Third Party and Ernst & Young LLP shall not respond to such queries or requests for
information. Further Ernst & Young LLP is not instructed by the City of London to update the Report for subsequent
events or additional work (if any) performed by Ernst & Young LLP. Accordingly, without prejudice to the generality
of the foregoing, Ernst & Young LLP accepts no responsibility to any Third Party to update the Report for such
matters.
Ernst & Young LLP reserves all rights in the Report.
1
1. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
Forewords
Major sport events 1
1. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
The City of London UK Sport
Report audience
The City of London Corporation UK Sport is delighted to
welcomes the findings in this report on support the findings of this The City of London Corporation
the trade and soft power benefits of research project into the soft and UK Sport acknowledge
hosting major sport events (MSE). As power, trade and investment that some of the material
an organisation that seeks to support benefits of MSE. and experiences referred to
a thriving and diverse economy, we in this report will already be
In UK Sport’s role as the lead strategic familiar to different parts
Foreword by increasingly value the important role played by the Foreword by
Catherine McGuinness Dame Katherine
agency of HM Government for major and of the sector. That said, it is
sport event industry in the long-term success of
Chair of Policy, The City Grainger mega events in the UK, understanding unlikely that everything will
of London Corporation the UK economy. We see sport as integral to our Chair, UK Sport the scale and breadth of our events, and be familiar to everyone: there
national success and global reach. The summer
the opportunity they provide to generate may be considerable benefits in
of 2012, when London was transformed into a global stage to celebrate the
impacts across a whole range of areas, is critical to maximising the bringing this material together
Olympic and Paralympic games, underlined how these events provide an
return on investment of public funds. in one place. In addition, the
unparalleled opportunity to showcase our commercial and cultural offer to a
worldwide audience. As well as the wider sporting, social, community and environmental intention of this report is that
impacts which our events have and will continue to deliver in the it will have also supplemented
As we enter a new phase in the UK’s trading relationship with the rest of the existing knowledge with some
future, this report shows how MSE can, and have, supported wider
world, this report reminds us of our strengths as a sporting nation and how this valuable new insights. Whilst
economic and foreign policy objectives.
can be used to develop links with new trading partners. The UK is well placed UK Sport is the lead agency for
to do this through its industry expertise and unique venue offer, as well as our UK Sport works closely with partners across the country and in
major sport events in the UK,
historic links to sport and the diverse fanbases from across the four nations. a variety of ways to bid for, plan and deliver events that people
the responsibility for planning,
can enjoy and remember for years to come. This report highlights
There is now a clear and compelling case for doing more to ensure MSE are coordinating and resourcing
the positive work done to date and demonstrates how further
linked to trade and wider international goals. The findings in the report should the many activities that make
partnerships can power success in international relations and
encourage those involved in organising and resourcing MSE to work together up an effective approach in
business.
and develop a more strategic and collaborative approach to planning and these areas is shared between
delivering these events going forward. Not only can this bring about a superior UK Sport has been delighted to partner with The City of London in this a wide range of organisations
product but it can also enable the wider benefits, such as enhanced trade and project and we would like to thank EY for the expert and professional and interests, including sports
international diplomacy opportunities, to be fulfilled. way in which they have conducted the study. We now look forward to governing bodies, central
working with partners across the UK events industry to explore the and local government, and
As the voice of the business community, the City Corporation will seek to use its
results of this study. the business community.
convening capabilities and leadership and work with partners such as UK Sport
For this reason, the report’s
to help maximise trade and soft power impacts from future MSE in the UK. UK Sport is the UK’s trusted high-performance expert, powering the nation’s recommendations are directed
greatest athletes and teams to achieve success. Established in 1997, UK Sport has
The City of London Corporation is the governing body of the Square Mile — the financial district and transformed the high-performance sporting system in the UK — through strategic not specifically to the City of
historic centre of London — and is dedicated to a vibrant and thriving City, supporting a diverse and leadership and investment of National Lottery and Government funds — helping London and UK Sport — nor
sustainable London within a globally-successful UK. to deliver more Olympic and Paralympic medals than ever before and turn the UK
We have a long history of supporting and celebrating major sport events taking place across London into one of the top nations in the world for event-hosting capabilities. UK Sport’s indeed to any one organisation
and the UK, working with our partners to maximise the benefits these events bring to our local purpose is to lead high-performance sport to enable extraordinary moments — but rather to the sector as
communities. that enrich lives and, over the next period, is aiming to work collaboratively with
Find out more about our work and support for sport by visiting our website at cityoflondon.gov.uk/ partners to deliver the greatest decade of extraordinary moments — reaching,
a whole.
sport inspiring and uniting the whole nation.
Major sport events 2
1. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
2
Executive
summary
Major sport events 3
1. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
Scope and context of this report
This report focuses on how major sport events (MSE) can drive soft power, trade and investment
impacts. The report was commissioned by UK Sport and he City of London Corporation, and
delivered by EY and Dr J Simon Rofe, University of London. The report is informed by a review of
existing evidence on MSE evaluation and consultation with informed stakeholders from across the
MSE land-scape.
As is recognised by the UK Government’s Integrated Review , sport, and particularly the hosting
of MSE, is a key pillar of the UK’s soft power strength. MSE have an almost unparalleled ability to
bring people together, celebrating the best of human endeavour through sport, and strengthening
connections within and between communities. For the UK, seeking to evolve its role in the
international community, MSE offer an opportunity to showcase the best it has to offer across its
nations, regions, cities and towns. This builds on the UK’s reputation for high-quality event delivery,
having hosted some of the great spectacles of past decades, most recently including the 2012
Olympic and Paralympic Games in London, the 2015 Men’s Rugby World Cup in England and Wales,
the 2017 IAAF World Championships in London and the 2019 UCI Road World Championships in
Yorkshire.
Sport is an important part of the UK economy; it contributed £48.9 billion gross value added (GVA)
in 2019, accounting for 2.6% of the UK total. As the UK and global economy recover from the
COVID-19 pandemic, MSE offer opportunities to support the Government’s initiative to build back
better, including through the health and education benefits that sport can deliver. In commissioning
this report, UK Sport and The City of London have been looking to improve their, and the sector’s,
understanding of MSEs’ potential soft power, trade and investment impacts. The intention is that this
evidence should provide a platform upon which the event and sport sectors can work together to
maximise these sorts of impacts in the future, and enhance return on investment.
1
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/975077/Global_Britain_in_a_
Competitive_Age-_the_Integrated_Review_of_Security__Defence__Development_and_Foreign_Policy.pdf
2
Much of the relevant literature in this area discusses Sports Mega Events (SME) Refer to Section 3 for more detail on the definition of MSE
for the purposes of this report.
3
Department for Digital, Culture, Media and Sport, using the satellite account approach — https://www.gov.uk/government/statistics/dcms-
economic-estimates-2019-gross-value-added/dcms-economic-estimates-2019-provisional-gross-value-added
Major sport events 4
1. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
Key findings of this report
Click on the
1. MSE buttons
in the coming below for more
decade have details2. Greater strategic planning and targeting3. Soft power, trade and investment impacts
the potential to deliver £4 billion in
• The evidence suggests that MSE can generate
of soft power trade and investment are broadly understood, but are routinely
The UK’s soft power, trade and investment
1. MSE in thetrade
coming incremental soft power trade and investment status:
soft power, and decade have the potential
investment outcomes — and improved monitoring underreported.
—
impacts that add 60% to the expenditure-driven
2nd
to deliver
impacts for £4
thebillion
UK. in soft power, tradecould and enhance these impacts. in Portland’s 2019 Soft Power
• Stakeholders across central and local government,
investment impacts for the UK. economic impacts typically measured by event 30 Index
• The evidence suggests that MSE can • The UK has successfully leveraged MSE to organisers and the business community recognise
generate incremental soft power trade
evaluation the
showcase capabilities and shift perceptions,
(such as the
potential eventIMPACTS
soft power trade andevaluation
investment
and investment impacts that add 60%
2. Greater strategic planning and targeting of soft
to the expenditure-driven economic
but there are clear framework).
opportunities
capitalise on MSE potential.
to better impacts of MSE, which is clearly emphasised in
strategy set out in the UK Government’s Integrated 8th in the World Bank’s 2020 Ease of
Doing Business ranking
powertypically
trade and investment • The potential MSE pipeline of the UK over the next
impacts measured by eventoutcomes — and
• These impacts have not routinely been built
Review.
ten years
• These therefore
could drive
fromsoft power,oftrade
MSE toand
improved(such
evaluation
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— could enhance these
as the eventIMPACTS into event planning, mainly due to optimal
investment
size and scale of an event to deliver
impacts stem
impacts
such bring peopleoftogether
£4 billion.
the power
around shared unique 2nd in Europe for FDI in EY’s 2020 European
Attractiveness Survey
• The potential MSE pipeline of the UK programmes not being clear. and experiences, to change perceptions, build
• Therefore, there
The recommendations below summarise how the
connections and showcase capabilities to new
over the next ten years could therefore are limited examples of clear and consistent largest exporter in 2019 (second in
5th
3.
Softsoft
drive power,
power,trade
trade and investment impacts
and investment UK can
delivery ownership in these areas and enhance its
audiences. approach to MSE to achieve and
Europe) with £679bn of goods and
impacts of £4 billion.
are broadly inclusion in post event impactexceed
understood, but are routinely •thisDespite
reporting. £4 billion impact. few event host
this recognition,
services, 4% of the global market
• The recommendations below summarise stakeholders have sought to quantify these impacts
underreported.
how the UK can enhance its approach — with the notable exceptions of London 2012 and
to MSE to achieve and exceed this the 2018 Commonwealth Games, Gold Coast.
£4 billion impact.
Recommended improvements for the event and sport sectors to maximise soft power, trade and investment impacts
The stakeholder consultations undertaken as part of this study drew out not just perspectives on each stakeholder’s role and performance, but also the ways that relationships, interactions
and responsibilities could be clarified and enhanced. Reflecting on past MSE in the UK and overseas provides some key principles to be applied by the City of London Corporation and UK
Sport, alongside organisers, government and business to measure and maximise soft power, trade and investment impacts for future UK events:
Enhance strategic planning: Encourage effective collaboration: Promote purposeful engagement:
Incorporate soft power, trade and investment into existing Define responsibilities for delivering impacts; form effective Engage business with event host stakeholders early
event and international relations strategies, with appropriate partnerships centrally and locally; coordinate local and and sustain partnerships between sponsors and event
funding and incentives; set a clear rationale for events with national public sector bodies with commercial enterprises; host stakeholders; develop targeted messaging and
the appropriate size and scale; and measure changes (e.g., to and share knowledge across event host stakeholders communication around each event’s purpose; activate
perceptions) enabled by MSE. effectively, such as through the creation of a national host cities and regions, utilising associated activities and
advisory board and local knowledge retention hubs. events beyond the sport events themselves and position
events as part of a locality’s wider offering of attractions.
4
These rankings reflect the latest annual data available, but may be impacted by subsequent global events.
Major sport events 53
1. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
Introduction
and methodology
Major sport events 61. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
Background and Scope The report was informed by a desk-based review of existing
evidence and stakeholder consultation through 25 semi-
The City of London Corporation and UK Sport engaged EY
structured interviews with 39 senior, informed stakeholders
and Dr J Simon Rofe, University of London, in November
from across government, event delivery, governing bodies
2020 to undertake research into the impact of MSE on soft
and the business community. The findings from the desk-
power, trade and investment.
based review and stakeholder interviews were used to refine
For the purposes of this study, MSE are considered to an MSE impact logic framework though which MSE drive soft
encompass both ‘mega events’ and ‘major events’. UK power, trade and investment impacts, and inform the key
Sport considers mega events to have some of the following recommendations summarised in the executive summary
characteristics: and conclusions to this report.
• Pinnacle of the sport The findings from the desk-based review were used in
• Itinerant — not permanently resident in the UK conjunction with a pipeline of potential future MSE to be
• Staging cost in excess of £10m hosted in the UK, in order to estimate the value of potential
soft power, trade and investment benefits that may be
• Over 100,000 spectators
delivered in the next decade. Section 7 of this report
• Requires public sector underwriting or guarantees provides a description of this calculation.
• Significant delivery complexity
The study focused on engaging stakeholders who play an
Examples of such events include the FIFA World Cup, the active role in organising and funding MSE, as well as helping
Commonwealth Games, and the Rugby League World Cup. to form partnerships with MSE. The views of athletes,
Major events are not specifically defined, but can be broadcasters, spectators and wider audiences were not
considered as the ‘next tier down’ from the mega event sought directly as part of this scope, although the critical
profile. role these cohorts play in any MSE is well recognised.
Primary research into the quantitative impacts of events
This report focuses on ‘one-off’ MSE, as opposed to those
was also outside of the scope of this study.
recurring annually or occurring as part of a longer series or
season (such as Wimbledon, or Premier League matches). Recommendations for further study are noted as a key part
of the conclusions of the report.
This report aims to shed light on the impacts of MSE, with
reference to examples from the UK and overseas, aiming to The consultations explored not just perspectives on each
support future event host stakeholders to better harness stakeholder’s role and performance, but also the ways that
events’ potential. relationships, interactions and responsibilities could be
clarified and enhanced.
Major sport events 71. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
Desk-based review Stakeholder consultation Central government departments
The desk based review focused on three key areas: The consultation involved discussions with 39 senior
• Department for International Trade
individuals from 25 organisations across four broad
• KPI consolidation: review of MSE impact studies, UK and • Foreign, Commonwealth and Development Office
categories of central government; local government and
overseas, and collation of key performance indicators
public sector; event organisers; and business. • Department for Digital, Culture, Media & Sport
(KPIs) focusing on attendance, wider audiences and
evidence of impact; including quantitative and qualitative Whilst each consultation had its own focus, as consistent
Local and other public sector
indicators of potential economic, soft power, trade and an approach as possible was taken. Common themes across
investment. The final review included 38 events. discussions were: • Greater London • London Legacy
Authority Development
• Trade and investment literature review: scan of wider • Impact mechanism: We tested our understanding of
evidence regarding the potential impact of MSE on trade • London & Partners • EventScotland
how MSE impact soft power outcomes and trade and
and investment. Sources included: investment opportunities, and used the conversations to • British Council • Welsh Assembly
• British Council refine our view. • Tourism Northern Government
• International Journal of Sport Management and • Soft power: Offering a working understanding of Ireland
Marketing soft power as the ability to shape and influence, we
• International Journal of Sport Policy and Politics discussed how impact potential and best practice Organising committees and rights holders
approach may vary by event scale, different channels • Rugby League World • Major League Baseball
• The British Foreign Policy Group and the Centre for
and forum of influence, engaging with audiences, Cup
Social and Political Risk • 2022 Commonwealth
interaction with associated cultural events, and the
• Journal of Global Sport Management • Football Association Games
relevance of wider contextual considerations.
• Soft power evidence review: a similar soft power • Women’s Hockey World • England Cricket Board
• Trade and investment: We considered the difficulties
literature review was conducted, with key sources Cup • Netball World Cup
in attribution and quantification of impacts, associated
including: • Bureau International
programmes, setting targets, the roles of different
• Australia Sports Diplomacy strategies parties in driving impact, and how impacts may vary des Expositions
• British Council across sectors.
• King’s College London (KCL) Business community
• Scholarly works, including Simon Anholt, • AON • Several anonymous
Nicholas J. Cull, Stuart Macdonald, Melissa Nesbitt, • INEOS contributions across the
James Pamment and J Simon Rofe financial services and
• Major Events
fast moving consumer
• UK FCDO Sports Diplomacy Toolkit International
goods sectors
• Welsh Sports Diplomacy Strategy
5
Foreign, Commonwealth & Development Office
Major sport events 81. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
4
How do MSE
drive impact?
Major sport events 91. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
Soft Power, trade and investment in the context of this study
Soft power is not easily defined. According to Professor Joseph Nye (1990),a state’s soft power refers to a “nation’s ability to obtain its desired outcome not through coercion or payment, but through attraction, particularly through the attraction of its culture, its political values and its domestic and foreign policies.”
Whilst soft power is often thought of as a non-military approach to international relations using financial, social and/or cultural influence, it can entail little to no state engagement in practice. Behaviours can be influenced at the individual level; indeed, this can be the most effective approach in some situations. Soft power is relational to other forms of power; it does not exist in isolation from other conceptions of power often associated with
forms of hard power.
Further, by its nature, the vast majority of soft power at play is unobserved; it may be considered as being akin to an almost completely submerged iceberg, with only the tip observable. Its intangible nature also makes it intrinsically difficult to measure.
Where MSE feature within the soft power framework
Soft power is a much debated concept, with attempts at measurement and evaluation an ongoing source of discussion. Various attempts have been made to rank nations according to prescribed soft power indices. The Portland Soft Power 30 index gained prominence with its 2017–2019 reports,alongside others from Monocle.
Sport and sporting events are a soft power asset, and they can be utilised to enable influence and deliver strategic and diplomatic outcomes. The Soft Power 30 methodology outlines six sub-indices comprising the ‘objective’ measures of soft power. Of these, sport feeds primarily into the culture element of soft power, and MSE is one subcomponent of the broader sporting landscape.8
The analysis in this report addresses the relationship between sport and soft power across a number of metrics and qualitative means to enhance our strategic vision.
MSE, trade and investment: direct and indirect contributions
• For the purposes of this study, ‘trade and investment’ is categorised as export sales and FDI, i.e., inward investment from overseas.
• MSE can deliver direct trade and investment impacts through contracts and agreements directly tied with an event itself.
• In addition, MSE can also deliver indirect contributions to trade and investment through soft power influence, strengthening trust and awareness of capabilities leading to increased likelihood of future trade and investment.
Major events can facilitate substantial changes in soft power dynamics and promote
positive trade and investment outcomes
MSE can influence a host of outcomes, and the main focus of MSE organisers is primarily on delivering engaging sporting
spectacles by showcasing the best of human ingenuity, perseverance and competition. Through this pursuit, MSE also
offer unique opportunities to engage with others that can transcend barriers of language and culture to bring people
together and produce non-sport outcomes. This ability of sport and MSE gives rise to the soft power, trade and investment
opportunities, which are the focus of this study.
Click on each of the buttons below for further detail
Soft Power, Soft power and the power of attraction
trade and Soft power is not easily defined. According to Professor
Joseph Nye (1990),6 a state’s soft power refers to
investment in a “nation’s ability to obtain its desired outcome not
the context of through coercion or payment, but through attraction,
this study particularly through the attraction of its culture, its
political values and its domestic and foreign policies.”
Whilst soft power is often thought of as a non-military
Where MSE approach to international relations using financial,
feature within social and/or cultural influence, it can entail little to
This section examines how MSE may drive soft power, no state engagement in practice. Behaviours can be
the soft power
trade and investment impacts. In particular, it sets out: influenced at the individual level; indeed, this can be
framework the most effective approach in some situations. Soft
• What comprises soft power, and difficulties defining it
power is relational to other forms of power; it does not
• Where MSE sit within a wider soft power framework exist in isolation from other conceptions of power often
• How MSE can contribute to trade and investment, MSE, trade and associated with forms of hard power.
both directly and indirectly investment: Further, by its nature, the vast majority of soft power at
• The theory of the process by which MSE may drive direct and play is unobserved; it may be considered as being akin
soft power, trade and investment impacts
indirect to an almost completely submerged iceberg, with only
These considerations are underpinned by the findings the tip observable. Its intangible nature also makes it
from the literature reviewed and consultations held. contributions intrinsically difficult to measure.
6
J Nye — Bound to Lead: The Changing Nature of American Power 8
Sport features in the Portland survey on the basis of two criteria: gold medal performance at the previous Olympics, and the
7
https://softpower30.com/ performance of the Men’s team at the previous FIFA World Cup.
Major sport events 101. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
How MSE can drive soft power, trade and investment impacts
The impact of MSE on soft power, trade and investment can be summarised through a four-stage impact framework, beginning with the rationale for hosting an event in the context of soft
power trade and investment objectives. Considering impact in this way, and designing measurable targets at each stage can help to better utilise events to maximise their potential impact.
Strategic drivers Event ingredients
Enabling changes Promote local and national
What are the priorities that the event can What are the immediate outputs
How can events drive change? economic and political interests
help to achieve? of the event?
The scale and quality of (and New initiatives and partnerships
interaction between) key ingredients, launched
Soft power
or ‘project outputs’, e.g.,:
Participants and visitors change their
• Participants behaviours
• Visitors
Raising awareness
• Communication Changes to levels of trust in the locality
of national and local
or nation Trade
capabilities to forge • Programming
stronger international • Wider audiences Changes in level of trust and international
connections • Quality of engagement and perceptions of values capabilities
interactions
Exposure to new ways of thinking
• Infrastructure
Investment
• Investment
• Funding Knowledge exchange: transfer of ideas
and information
The wider context
Social, economic and political events that set the wider narrative in which the event takes place
Sustainability COVID-19 recovery Brexit The rise of digital engagement
Major sport events 111. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
Strategic drivers Promote local and national economic and political
• A clear definition of what an event is seeking to achieve interests
across all stakeholders involved in its planning increases • Effective and timely planning and delivery around the
the likelihood of delivering benefits, including soft power, event can promote soft power, trade and investment
trade and investment. interests.
• This logic can be applied to events of all scales — event • These may materialise through immediate commercial
host stakeholders have the potential to drive impact in opportunities, such as contracts to support future
the event’s own context. events, or indirectly, through improved perceptions
and awareness of capabilities, which enhance future
Event ingredients diplomatic and economic exchanges.
• With early engagement and planning, event host
• It should also be noted that whilst economic and political
stakeholders can encourage higher quality interaction
interests can be served through well-delivered MSE,
with events to support soft power trade and investment
there are reputational risk where a locality hosts a poor
impacts.
or negatively perceived event. Examples of risk could
• This may involve wider programming to showcase a range from an event being poorly organised or ill-
city, engage communities and local and international equipped to deal with bad weather through to an act of
businesses, encourage dialogue on pressing social terrorism.
issues, and bringing local culture to the fore.
Wider economic, social and political context
Enabling changes • All events are influenced by the wider context in which
• Higher quality event ingredients (as outlined on the they take place. This means that there will be a certain
graphic in the previous page) and interactions promote a element of fortune to how an event is perceived and the
greater chance of achieving change. impact it achieves.
• This may take many forms, from shifting perceptions, • The contextual factors presented in the mechanism do
building trust and exposure to new ideas, to launching not sit in isolation (e.g., COVID-19 pandemic accelerating
new initiatives and partnerships. the uptake of digital engagement). Similarly, they do
• Larger scale events have a greater potential to build not constitute an exhaustive list, nor are they set in
global conversations, but smaller scale event host stone; COVID-19 is likely to become less relevant as the
stakeholders may be able to engage in more targeted recovery continues, whilst sustainability may continue to
ways to generate relatively substantial impacts compared grow in importance.
to the scale of investment required.
9
British Council — Sources of soft power
Major sport events 121. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
5
The contribution of
major sport events
in the UK
Major sport events 131. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
The UK’s soft power, trade and investment status
10th 2nd 2nd
largest EY’s 2020 Portland 2019
exporter of
goods globally 2nd European FDI
attractiveness 8th Soft Power
30 Index
in 2019 largest exporter index World Bank’s 2020
of services ease of doing
globally business globally
in 2019 index
This section considers the impact evidence from
recent UK MSE and draws out the opportunities for
development from a soft power, trade and investment
perspective, based on both a review of published UK MSE 2010–19
evidence and stakeholder consultation.
The UK has a rich history of hosting MSE, and in recent years has hosted a number of high-profile events. The diagram
This section comprises: below outlines selected MSE hosted in the UK over the past decade. These events highlight the UK’s leading MSE hosting
credentials, presenting opportunities to attract future events to the UK.
• Contextual summary of the UK’s current soft
power, trade and investment standing Click on the buttons below for more details
• Overview of selected MSE hosted in the UK in
recent years 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
• Evidence of success in UK MSE driving soft power, 2010 • Rugby League World Cup (England, Wales and Northern • Women’s Cricket World Cup (England)
Ireland — shared with Republic of Ireland and France)
trade and investment impacts • Ryder Cup (Newport) • World Athletics Championship and World Para Athletics
Championship (London)
• How to maximise opportunities and harness
•
• Ryder Cup (Newport)
Women’s Rugby World Cup (Surrey; London) 2014
• European Rugby Challenge Cup and European Rugby
• Ryder Cup (Perth and Kinross) Champions Cup Finals (Edinburgh)
2011
• Women’s Rugby
benefits, based on findings from the evidence • Commonwealth Games (Glasgow) • Women’s Rugby World Cup (Northern Ireland; shared
• UEFA Champions League and Women’s Champions
review. This includes: World
League FinalsCup (Surrey;
(London) with Republic of Ireland)
2015
• Setting soft power, trade and investment
• London)
European Rugby Challenge Cup and European Rugby
• Rugby Union World Cup (England) 2018
Champions Cup (Cardiff)
• European Rugby Challenge Cup and European Rugby • Women’s Hockey World Cup (London)
objectives
2012 Champions Cup Finals (London)
2019
• Emphasising timely, purposeful engagement • London Summer Olympic and Paralympic Games
2016
(London) • Men’s Cricket World Cup (England and Wales)
• Clearly defining ownership of who should drive • Amlin Challenge Cup and Heineken Cup Finals (London)
• UCI Track World Championships (London) • Netball World Cup (Liverpool)
impact 2013 2017 • Solheim Cup (Perth and Kinross)
• UCI Road World Champsionships (Yorkshire)
• Champions League Final (Cardiff)
• Retaining institutional knowledge • Champions League Final (London)
10
These rankings reflect the latest annual data available, but may be impacted by subsequent global events.
Major sport events 141. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
The UK’s strong MSE track record forms part of its culture, Evidence of MSE success in a soft power, Engaging audiences to strengthen relationships
and therefore its soft power status — as highlighted by the and shift perceptions
Portland Soft Power 30 Index, which scores the UK most
trade and investment context
Recent MSE held in the UK have engaged audiences of
highly for its cultural reputation. The UK and its nations possess numerous strengths that
millions to strengthen national and local relationships,
lend themselves to the delivery of high quality events that
This reputation has real world consequences. Developing including:
can yield substantial soft power, trade and investment
these positive associations can help to build trust, increasing • 2014 Ryder Cup: held in Gleneagles, Scotland, had
impacts. These are evident across many of the ‘ingredients’
willingness to cooperate and to do business. Research by the a national and global reach. The event was broadcast
that make up an event, from the existing infrastructure
British Council finds that those that trust the UK are twice to half a billion people each day across 183 countries
— such as sports stadia, hotels and accommodation and
as likely to do business here, and improvements in trust through 43 broadcasters and generated a significant
transport networks — to the experienced individuals
are associated with substantial increases in both trade and boost to local tourism, with 60% of the 100,000 visitors
and teams capable of designing and delivering effective
foreign direct investment. Whilst there are many factors stating that they would return to Perth & Kinross.
communication and programming approaches.
that contribute to international relations and economic
This sub-section highlights some of the UK’s MSE successes • 2015 Rugby World Cup: The event had particularly
relationships, there is a clear role to be played by sport in
from a soft power, trade and investment perspective. Some broad reach, attracting over 300,000 overseas visitors
general and by MSE in particular.
key themes across these events are: and generating 4 billion television views, showcasing
England and Wales to the world and creating significant
“
• Wide reach: many of the events were broadcast across opportunities to raise awareness of the host location.
the world to millions of viewers.
In addition, UK Sport contributed to the development of
MSE can be used as a vector to achieve • Welcomed overseas visitors: many events attracted the game by running a rugby development programme
existing political aims. tens of thousands of overseas visitors to the UK. linked to the World Cup across Europe.
• Engaged local communities: UK residents attended
Major sport organising body • 2017 World Athletics Championship and World Para
several events to support competing teams and athletes
Athletics Championship — held in London, the events
from the UK and across the world
welcomed 200 participating nations, reached a global
“
• Improved perceptions: visitor surveys indicated the television audience of 942 million, and generated
perceptions of host localities were improved by the event 1.6 billion social media impressions. Over 1 million
London’s diversity is such that any team experience, and outreach programmes played a role in tickets were sold, with surveys suggesting 83% of
framing the UK in a positive light.
can play sport here and have a home attendees would return to the capital.
• High-profile location: a range of famous locations The delivery of the event also included a global legacy
crowd. across the UK hosted the events considered. athletics development programme in 10 countries around
Local governing body • World-class participants: in all cases, elite sport was on the world. This formed part of UK Sport’s International
show. Partnerships Programme offer to MSEs, and part of its
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British Council — Sources of soft power contribution towards soft power outcomes.
Major sport events 151. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
• 2018 Women’s Hockey World Cup: The Women’s Netball Federation in Zambia and Argentina, with the programme. This involves showcasing the West Midlands
Hockey World Cup — hosted in the London 2012 aim of empowering women and girls, and ultimately economy and its capabilities as a whole, with a focus on
facility — connected with over 1,500 hockey events improving perceptions of the UK in these countries. its ability to support sustainability.
nationwide through the ‘Your World Cup’ grassroots • 2019 UCI Road World Championships: hosted in • London 2012: platform for trade. Over £14 billion of
campaign, and the tournament was broadcast to 98 Yorkshire, the nine-day event welcomed riders from trade and investment benefits were generated by London
countries. In addition, UK Sport had a global legacy 67 nations, showcasing the region to 16,000 overseas 2012, with industry and various events supported
project linked to this event supporting the development spectators and a broadcast audience of 329 million. 86% throughout the subsequent decade. The UK House
of hockey in Ghana and the rest of West Africa. This was of surveyed overseas visitors indicated that they would underpinned this success; this designated space hosted
a unique proposition that helps connect, engage and be likely or very likely to recommend Yorkshire as a over 4,000 business leaders across 17 days of events
improve perceptions of the UK. Similarly to the 2015 holiday destination. to showcase global opportunities and UK expertise. The
Rugby World Cup, the event was successful in creating event led to growth in the UK sport economy, including
the opportunity for boosting perceptions of the UK Driving trade and investment increased trade — for example, DIT (formerly UKTI) and
through its wide reach, but the ultimate impact was not the FCDO supported UK businesses in securing more
This sub-section focuses on the drivers of MSE trade and
quantified. than 60 contracts from the Sochi 2014 Winter Games
investment impacts, where trade impacts exclude the
• 2019 Cricket World Cup: hosted jointly by England and immediate impact of visitor expenditure. and the Russia 2018 World Cup. Sectors including
Wales (as the governing body is the England and Wales education, life sciences, food and infrastructure were all
• DIT, sport economy focus: MSE can be leveraged in two
Cricket Board) — attracted 61,000 overseas visitors and targeted for promotion.
main ways: firstly by boosting the ‘sport economy’ — i.e.,
1.6 billion television views. Ties transcending cricket London 2012 was also the catalyst for the International
by targeting opportunities to export sport and event
were cultivated with several personnel from India, Partnerships Programme (IPP). This UK Sport initiative
delivery goods and services; and secondly to showcase
making Manchester more of a hub for Indian business, aims to support National Governing Bodies, national
broader capabilities. The former is more tangible
including through boosts to bilateral travel and other partners and government to develop relationships
and tends to receive greater focus, but particularly
links. that enhance the UK’s profile and sport objectives
for larger scale events, DIT is increasingly working to
• 2019 Netball World Cup: hosted in Liverpool, the event internationally, whilst contributing to the development of
showcase broader capabilities, as the upcoming 2022
welcomed nearly 9,000 overseas visitors. In addition, international sport.
Commonwealth Games in Birmingham (see below).
a UK Sport-funded legacy project — NET 2019 — was
• 2022 Commonwealth Games: showcasing capabilities.
delivered by England Netball and the International
DIT is working with the Games delivery partners on
securing wider trade and investment benefits through
the Games Tourism Trade and Investment (TTI)
12
Whilst the Commonwealth Games has not yet taken place, it is considered as part of this section given that much of the planning — including that to drive trade and investment — has already taken.
13
HMG — Inspired by 2012: the legacy from the Olympic and Paralympic Games — Fourth Annual Interim Report
Major sport events 161. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
• Glasgow 2014: building host capability and confidence.
The Commonwealth Games hosted in Glasgow in Northern Ireland: stepped perception change
2014 built local capability and knowledge of hosting
major events, as well as an injection of confidence Background
2011
to the city. This
MTV Europehas Musiclaid
awards the foundations to host Repositioning Northern Ireland
COP26. Additionally, the Scotland Welcomes the Click on the
has been a key part of Tourism
• £22m economic impact
timeline to
• £1.2bn global audience
World programme,
2012 undertaken in conjunction with the Northern Ireland’s strategy
2014 Commonwealth games included several events enlarge.
ni2012
— there has been a drive for
• Various sporting/cultural events, incl. Irish Open
showcasing• Scotland’s
1.1m visitors, £18m EIcuisine, Scotland House Business stepped change in perceptions.
Events, and the Commonwealth Business Conference,
2013
which 320 delegates attended, including businesses,
Turner Prize
• Derry-Londonderry 1st UK city of culture How events were leveraged to achieve soft power, trade stepped change in perceptions of Northern Ireland,
politicians and
•
economists. Scotland’s reputation for
170 events
and investment outcomes boosted by hosting the 2019 Open.
exports and2014investment increased by 2 percentage • Changed/improved perceptions: The events • Increased golf participation and diversity of
Giro d’Italia big start
points from• 2012 to impact,
£12.7m tourism 2014. 56 global viewers, 227k visitors
contributed to a change in mindset from both a participants: The Open boosted golf participation
• Participation boost
• Raising host2015
location attractiveness. A varied tourism and an FDI perspective. 68% of Giro d’Italia in Northern Ireland. Sport NI and sport Department
portfolio of events
Irish Open contributes to the attractiveness of spectators felt Northern Ireland’s global image was (DfC) used the event to drive key policies relating to
• £12m tourism impact, 131k tickets sold (above events in Republic/GB/Europe)
a location both as a place to live and to do business. improved, and 99% said it was worth visiting. diversity and inclusion.
2016
StakeholdersYearacross
of Food and Drink local public sector and the business
Programme • Improved place brand and increased investment: • Iconic, top-level athletes drove participation:
community• emphasised
•
this role of events in perceptions
Partnership across govt. industry and community
Strong satisfaction recorded Tourism and the events helped establish place brand Rory McIlroy, Graeme McDowell and several other
of place and2017decision making. The Director of the Public and were a shop window for investment. 750 people prominent professional golfers played a key role in
Management Irish and
Open Territorial Governance Institute of
attended the ‘Get Ready for Giro’ roadshows hosted inspiring others to take up the game.
Women’s Rugby World Cup
France’s research
•
into place attractiveness and events
£1.8m economic impact; 12k visitors for the business community.
finds that sport Lessons learned
2019 events bring value added for a place, by
• Economic rebalancing: Tourism Northern Ireland
generating The
particularly
Open
strong boosts for place image • A targeted strategy over a sustained period is
• First Open to sell out
now pursues a selective strategy for hosting events,
and the tourist
• £52m economy. Further,
in golf tourism that year, research
£100m economic/media impact conducted important in positively changing perceptions and
allowing for greater legacy focus and a reduced draw
by Metropolis finds that the organisation of a major building place brand.
on public funds. There is also a focus on accruing
• 96% civic pride
event broadcast by international media helps to create, • Building a strong event pipeline can allow locations
benefits across the country.
transform or boost the image of a city among residents, to be more targeted in selection of future events (an
tourists and potential investors. • High-value tourism boost through golfing focus:
approach taken by UK Sport at a national level).
The average golf visitor spends over £2,000, four
Scottish Government — Commonwealth Games: An Evaluation of Legacy • Tapping into your ‘strength’ and tying it in with local
times the average. The Golf Monitor illustrates the
14
15
Journal of International Business Research and Marketing — Place Attractiveness and
Events: From Economic Impacts to Place Marketing: https://researchleap.com/place-
culture can be effective (in this case, golf).
attractiveness-events-economic-impacts-place-marketing/
16
Metropolitis — The impact of major events on the development of large cities
Major sport events 171. Forewords 2. Executive 3. Introduction and 4. How do MSE 5. The contribution 6. International MSE 7. Harnessing the potential 8. Study
summary methodology drive impact? of MSE in the UK impacts and strategies of the UK’s MSE pipeline methodology
How to maximise opportunities
Cricket World Cup There are lessons to be learned from each MSE, and each
Background Lessons learned event considered within this study has sought to learn from
The 2019 Cricket World Cup, hosted in England and The event provided opportunities to drive greater others. This sub-section summarises the key opportunities
Wales, offered the UK an opportunity to engage with engagement with business and political audiences at a for development based on the evidence review and
audiences in several countries across the Commonwealth sub-national level, helped by alignment with pre-existing stakeholder consultation on recent events held within the
(e.g., India) that are key target markets post-Brexit. strategic objectives in the case of Manchester, and the UK, specifically from a soft power, trade and investment
multi-venue nature of the Tournament. Maximising perspective.
How events were leveraged to achieve soft power, trade
these opportunities can be helped and enhanced by
and investment outcomes
collaboration between sports national governing bodies Set soft power, trade and investment objectives
The Cricket World Cup was played out across ten venues and central government to explore common goals. Across events held in the UK over the past decade, London
between ten participating countries with which the 2012 was the only event for which trade and investment
Advanced planning of strategic engagement in
UK has varying degrees of historical ties, presenting goals were set and progress was subsequently reported back
collaboration with government could increase the
opportunities to cultivate person-to-person relationships. on. This reflects the scale of the Games themselves — and
potential to drive soft power, trade and investment
Several business hosting opportunities were enabled, and the natural alignment between how large an event is and
outcomes. Whilst Manchester offers a regional example
in some cases, the Cricket World Cup demonstrated how the immediate opportunities to drive trade and investment
of leveraging the event to make progress towards
MSE can play a role in accelerating thinking and strategy. benefits — but also highlights the opportunity to further
strategic aims (Birmingham offers another, in investing
For example, during the tournament in Manchester, ties focus on trade and investment impacts in relation to MSE.
in city activation and achieving redevelopment of
were cultivated with several key personnel from India, Edgbaston), there may have been further opportunities Beyond this, business hosting around the Cricket World Cup
accelerating activity around making Manchester a hub for other host venues to undertake similar activities. took place in London, with associated objectives set by the
of investment education and cultural exchange for India There is potential for fuller recognition and investigation facilitating partners.
through the Manchester India Partnership, with travel of opportunities presented by similar subsequent events Nevertheless, MSE stakeholder consultations suggest that
and other links between the two locations boosted. at a national government level. host stakeholders of UK events have the opportunity to do
In addition, a trade programme was set up through As a parallel, 2015 Cricket World Cup in Australia and more to target soft power, trade and investment impacts and
DIT, and an ancillary FCDO diplomacy programme New Zealand saw large-scale government investment in to monitor their achievements in forms that reflect the scale
aimed to get tickets to attendees to support trade and ceremonies, fan zones and marketing, with the aim of of each event.
political aims. generating positive economic returns. Whilst the 2019
event was a significant sporting success, there may be
scope to improve greater returns on future events.
Major sport events 18You can also read
