Tourism Winnipeg

B U S I N E S S P L A N • 2 2 NOTES TO BUDGET REVENUES 1. R EG I S T R AT I O N FE E S Participants register and pay entry fees to the World Police & Fire Games Federation in U.S. dollars. The Federation in turn forwards a lump sum to the Host Committee. Based on 8,000 to 9,000, athletes the entry fees are conservatively assumed at US$135 basic entry fees plus administration and sport fees of US$20 (note that entry fees are higher for certain sports). At 8,500 registrations, this is US$1.32 million. For budget purposes, this is estimated at CDN$1.8 million (current exchange rate as of June 2017). Exchange rates are uncertain and will be adjusted accordingly. Currency risk will be a key risk managed by the Host Committee. 2 . G OV E R N M E N T SU PP O R T The preliminary budget includes a Province of Manitoba financial contribution of $5.9 million. The large majority of this funding would be in 2023. To cover annual payments of rights fees and pre-event operating costs, the request to the Province would be US$95,000 (CDN$128,200) of the rights fee in 2017, and operating support for rights fees, planning and administration in 2018-2022 prior to the Games. The preliminary budget assumes a Federal Government contribution of $2.0 million in 2023, similar to the Federal Government funding commitment for the 2009 Games in Vancouver. The preliminary budget includes a financial contribution $2.0 million cash commitment from the City of Winnipeg. The initial City financial contribution will go towards the required deposit on the rights fees of US$30,000 (CDN$40,800). The rest of the City contribution of $1.959 million would be during 2023 from the Special Event Tourism Fund (SETF) and other City contributions including the coverage of costs of transit services during the 2023 Games and a small amount for City services such as event permits and street re-routing and closures for specific sports. The SETF also includes $7,509 received from the SETF for the required site visit by the WPFG Federation in 2016. 3 . P O L I CE A N D F I R E SU PP O R T Similar to the Vancouver 2009 Games and other WPFG Games, the RCMP Division and detachments along with the Winnipeg Police Service would provide seconded members and security at specific venues and events. The Winnipeg Fire Department would provide seconded members for the coordination of the Games. Police and Fire commit to covering these contributions which provide budget assistance that is value in-kind. In addition, Police and Fire services would provide many of the volunteers which is not reflected in a budget. 4 . S P O N SO R S H I P Sponsorship packages will be created at three primary levels – major partners, sponsors, and suppliers. The Games will be looking for 6-10 major sponsors and provide category exclusivity. Major partners would be sought for sport hubs/venues, ceremonies, and family programming. Other sponsors and supplies would be sought for specific sports and would not have category exclusivity. Media sponsorships of $700,000 would be sought for value in-kind advertising and media support. Work will be required on specific sponsorship strategies and targets. Travel Manitoba and Tourism Winnipeg will be providing marketing and event expertise to assist the Host Committee from the outset through the 2023 Games. They will also provide comprehensive information and visitor counseling for the competitors and their families in helping them plan their travel. 5. OT H E R R E V E N U E S The Games present an opportunity for merchandise and souvenir sales. There will also be food and beverage concessions. Only commissions on gross sales are included in the total. Other miscellaneous revenue such as website, special event fees, and raffles are included in concession revenues. Accommodation revenues are based on $10 per room-night. E XPENSES 6 . R I G H T S FE E S A N D FE D E R AT I O N E X PE N SE S The rights fees of US$850,000 are due to the World Police & Fire Games Federation over six years beginning in 2017. Exchange rates are uncertain. An assumption of US$1 = CDN$1.35 on average has been used which is the current rate as of June 2017, for a total of approximately CDN$1.15 million. Payment schedule is as follows (all US$): September 2017 $125,000 October 2018 $145,000 October 2019 $145,000 October 2020 $145,000 October 2021 $145,000 October 2022 $145,000 As per the agreement with the Games Federation, the Host Committee covers travel and accommodation, office expenses, and protocol for official meetings leading up to the Games and for the Board of Directors and officials during the Games. Approximately $300,000 has been budgeted for these costs. The maximum room-nights are 538 and maximum airfare are 65 round trips in total.

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