Key information
Decision type: Mayor
Directorate: Communities and Skills
Reference code: MD116
Date signed:
Date published:
Decision by: Sadiq Khan, Mayor of London
Executive summary
The Olympic Qualifier Series (OQS) is a brand-new production on the market. It was launched by the International Olympic Committee (IOC) in 2022 as a series of three events, held in three global cities, in the build-up to the 2024 Olympics and Paralympics in Paris. Each event will feature six urban sports that have been recently introduced into the Games: BMX park (freestyle), skateboarding (street and park), climbing (boulder/lead and speed) and breaking.
This is a rare opportunity for a city to host an event attached to the Olympic rings at a lower cost than the full or youth Games.
The GLA has been working with UK partners – including UK Sport, the British Olympic Association, and the Department for Culture, Media and Sport – to scope out the feasibility of holding an OQS event in London. Investment is conditional on securing the event from the IOC; identifying a suitable underwriter for the event; and the IOC meeting the event funding deficit.
The event is proposed to take place in June 2024, with two training days and four competition days. The suggested dates for the event are 11-16 June 2024.
This MD also requests a delegation to approve receipt of income and receive funding on a cost-recovery basis.
Decision
That the Mayor:
• if London is selected, approves expenditure of up to £3.7m towards the Olympic Qualification Series, of which £3.5m is to support the operational costs associated with the delivery of the Olympic Qualifier Series in June 2024 and £0.2m is for additional Major Sports Event team resource to manage the GLA’s commitments and monitor successful delivery of the event
• delegates authority to the Executive Director of Strategy and Communications, without the need for a further decision form, to:
receive income from sponsorship, concessions or other public funding contributions in relation to the Olympic Qualifier Series
reallocate budget across budget areas (within the overall £3.7m budget envelope).
Part 1: Non-confidential facts and advice
Major sports events in London
1.1 In order to maintain its position as the sporting capital of the world, London must continue to secure and deliver a further strong portfolio of major sports events in the next 10 years, to build on and maintain our success following the Olympic and Paralympic Games in 2012.
1.2 London has created a lasting legacy from 2012 by delivering a huge portfolio of major sports events in the 10 years since the Games. However, London is currently not hosting any events that contribute to Team GB’s qualification and journey to the 2024 Olympics and Paralympics being staged in Paris.
1.3 The Mayor outlined his commitment to exploring the potential for a future Olympic and Paralympic Games in his 2021 election manifesto: “Exploring a bid for the 2036 or 2040 Olympic and Paralympic Games is the ultimate demonstration of my plan to build a brighter future for London after the pandemic.” The Olympic Qualifier Series (OQS) event is an opportunity for London to work towards this ambition, with the OQS event being an International Olympic Committee (IOC) product. The event would provide London with a platform to demonstrate London’s current Olympic hosting abilities, and to build a stronger relationship with the IOC.
IOC OQS event
1.4 The OQS event is a brand-new product launched by the IOC in 2022 as a series of three events, held in three global cities, in the build-up to the 2024 Olympics and Paralympics in Paris. The event represents a rare opportunity for a city to host an event attached to the Olympics, with Olympic branding, that is not a full, multi-sports Games.
1.5 The event will feature six new urban sports that have been recently introduced into the Olympic programme: BMX park (freestyle), skateboarding (street and park), climbing (boulder/lead and speed) and breaking.
1.6 London is targeting the final of three events; this would be staged in June 2024. Other continents are being targeted by the IOC for the first and second leg. Other host countries have yet to be confirmed, however the IOC have informed London that they are in discussions with a country in the Middle East and one in Asia.
1.7 The venue proposed by London, DockYards London, is part of the Royal Docks. The land is owned by GLA Land and Property Limited (a wholly-owned subsidiary of the GLA), which rents it to Broadwick Live. The Royal Docks is one of the most significant regeneration projects in the UK, home to London’s only Enterprise Zone. The proposal has had strong support from the Royal Docks Enterprise Zone Programme Board and Lendlease, the future developer for the site.
1.8 The IOC has been very positive about the opportunity to host the event in London and the proposed site. This was confirmed when the IOC project team attended a site visit in March 2023 to confirm the suitability of the site and discuss the proposed delivery model.
1.9 The staging of the event would support the regeneration of the area, and offer opportunities to link to East London’s cultural scene and communities in Newham.
1.10 If approval is given, the GLA Major Sports Events team will further engage with Newham Council, the Royal Docks team and Lendlease to ensure the event supports stakeholder strategic objectives in the area.
Benefits
1.11 At a high level, the benefits to London are as follows:
• Maintain London’s position as the sporting capital of the world:
This will be the inaugural OQS event and London’s reputation will be enhanced through delivering this event successfully, providing the IOC with further confidence in the city – which is valuable for any future Olympic Games bid.
As one of the last events before Paris 2024, the links and associations to the Games will be maximised.
The event is expected to receive high media attention and global coverage as the final Olympic-associated event ahead of the Games in Paris.
• Increase diversity and tackle hate in sport:
Team London will be asked to lead the volunteer programme, which will ensure wider GLA policy outcomes can be built into the OQS volunteering programme.
The urban nature of the events included in the OQS will provide new opportunities to engage a younger, more diverse audience in the event.
The Skills and Employment team will be engaged to identify opportunities for work placements and training for members of London’s communities.
• Community engagement and legacy:
The proposed venue is located in Newham, a host borough of the 2012 Olympics. This represents a strong legacy from the Games’ instigation of regeneration.
The event will be a festival of sport and culture offering multiple engagement opportunities for local communities – particularly those in East London.
The GLA, in conjunction with the Royal Docks team, would provide input into the development of a cultural, community and social engagement strategy for the event. While plans are yet to be developed, we would encourage a focus on young people in line with mayoral objectives. The GLA will engage the Royal Docks team, Broadwick Live, Newham Council and Lendlease to support community engagement leading to enhanced impacts.
• Increase sustainability and protect the environment:
Sustainability is one of the three pillars of Agenda 2020+5 (the IOC’s future strategic plan). Therefore, sustainable event delivery will be a key focus for the IOC.
In the long term, the IOC’s aim is to become a climate-positive organisation. It is currently aligning with the Paris Agreement, and has committed to reducing direct and indirect emissions by 30 per cent by 2024, and 50 per cent by 2030.
It is a priority for all partners that the event is sustainable. The GLA’s environment team will be engaged to ensure that the event aligns with the Mayor’s sustainability objectives.
Funding proposal
1.12 The current overall event budget with GLA income (subject to approval) includes:
In addition to the event budget above due to the scale of the project the GLA would incur additional internal legal costs (as London would co-sign the hosting agreement) and a project of this scale will need resource to manage the investment (as outlined in paragraph 1.19). The total cost are outlined in the budget summary below.
GLA expenditure profile
Challenges
1.14 The event would be staged in June 2024. This is a short delivery timeline for an event of this nature and scale, made more challenging by the fact that it is the first ever staging of this event. Additionally, this opportunity has only recently arisen; therefore no existing resources have been identified to support the delivery of the event. We are in the initial phase of bringing this event to fruition; however, as a partnership, there are significant challenges, as laid out below.
Funding
1.15 Initially the budget projects a suggested £9m funding gap from the IOC event manual to the available public funding. Following discussion with the IOC, which has given flexibility of the delivery model and guidelines, it is now believed that this gap could be reduced to £3.08m. Further work is being carried out to determine any further savings through in-kind support that could be available, and to explore a commercial delivery model with event management companies. The IOC has been asked to meet this deficit, and the UK bid is conditional on this deficit being met. The IOC is in discussions with existing commercial partners to meet this deficit.
Underwriting
1.16 All partners, including the UK government, have confirmed they cannot underwrite the event. The IOC has been asked by UK partners to underwrite the event, but has confirmed this is not something they can consider. Exploration is taking place to see if a commercial partner can be found. The UK bid is conditional on a suitable underwriter being identified.
Delivery model
1.17 None of the partners have an existing experienced delivery team that would be able to step in and deliver this event within the abbreviated timelines. It is therefore anticipated that, while an event management company will be engaged to deliver the majority of the functional areas, a central resource to manage the company may be needed. There will also remain an oversight role that each funding partner will need to retain internally to monitor and oversee investment, and for the GLA to ensure the local engagement opportunities are delivered.
1.18 An analysis of the partners, and their ability to oversee and manage the event governance (including oversight of the funding, hosting contracts and delivery agency) has been considered by UK partners. The main considerations are as follows:
• UK Sport has previously led on the delivery of events such as the 2019 Road Cycling World Championships. However, to undertake any event delivery, it would need to establish a special purpose vehicle (SPV); this would require government approval, and the body would need to follow public procurement processes. The timelines associated with the approval and establishment of the SPV, and the procurement, mean UK Sport is not a suitable body.
• The Department for Culture, Media and Sport does not have the resources or experience to take on the delivery of the event.
• The GLA has established delivery teams, but they would not have the capacity to deliver this event in the associated timelines. The GLA has carried out internal feasibility work to determine if it can procure and manage delivery of the event. The length of time to procure is six months, which has been deemed a major risk to the project, significantly reducing the time for production and planning. It has been determined that existing contracts and frameworks are not suitable.
• The British Olympic Association (BOA) is looking into the feasibility of setting up an SPV, which would be used to procure event production and manage the project going forward. This is seen by UK partners as the most appropriate way forward, with the least risk. Therefore, this is the structure currently being pursued by UK partners. The BOA is only willing to pursue this if the government provides assurance that this SPV would not be viewed as a public body.
1.19 To oversee an investment of this scale, and deliver the cultural and community benefits, in an abbreviated timescale, it is anticipated that the Major Sports Events team would require two additional staff members on a fixed term contract: one G11 from June 2023 to July 2024 as a Senior Project Manager; and one G8 for 10 months as a Cultural and Community Manager. These posts will be approved in parallel to this MD through establishment control procedures.
Receipt of income and funding
(This section would only be required if the business model proposed above does not come to fruition, and the GLA takes on greater delivery responsibility.)
1.20 The project is seeking to receive income and funding to reduce the call on GLA funds. This income and funding will be expected in the areas listed below, with the approach and likely income levels quantified when the final scope of the tournament has been agreed over the coming months. The GLA will exhaust all income opportunities to reduce the call on GLA funds.
1.21 There are several opportunities to raise funds and income towards the project, including the following:
• Within the festival site, IOC/BOA sponsors or licensees who do not hold activation rights within their contracts are required to provide a fee in return for an activation space. This ground-rent fee is based on rates determined by the GLA, and is invoiced directly by the GLA.
• Any IOC sponsors or licensees providing an activation at the festival site will be charged for any services provided. This includes power; water; security; cleaning; waste removal; and plant hire. These services will be provided by the delivery partner, but invoiced by the GLA directly to the IOC/BOA sponsor/licensee.
• The GLA has the right to sell a percentage of screen time to additional partners for a fee.
• Companies making a profit from food and beverages sold at the event site will deduct their fee and percentage share. The remainder would go directly to the GLA as income.
• Ticket and hospitality sales: Any further upside over £500k is to be shared 50:50 between the commercial agency and domestic funding partners (at a rate pro-rata to their cash contributions)
• Merchandising sales: Any further upside above £25k is to be shared 50:50 between the commercial agency and domestic funding partners (at a rate pro-rata to their cash contributions)
1.22 In addition to cash income, the GLA will also seek benefit in kind – such as contributions to event programming or other content – to promote and enhance the tournament and wider programme.
1.23 Across some project areas, sponsorship, other income and contributions, and concessions (if relevant and appropriate) may be sought. All sponsorship arrangements will be in accordance with the GLA Sponsorship Policy.
1.24 The Mayor is being asked to delegate authority to the Executive Director for Strategy and Communications to accept income without the need for further decision forms. This will enable the acceptance of opportunities that may arise at short notice.
Project governance
1.25 UK partners and the IOC meet weekly as a project group to discuss progress. There is a monthly steering group, with senior members of each partner group in attendance. If the event proceeds, this structure will be replaced with a formal company board and sub-committees.
1.26 If approval for funding and for the event are provided, the GLA will have a place on the SPV board as an observer. If it was to become a member of the board, the GLA representative would have to make decisions in the interest of the company, not of the GLA. It is therefore felt that the role of observer will provide the required voice at the table. Further controls will be in place via the award letter.
1.27 The Head of Major Sports Events will represent the GLA at Board meetings. The Senior Project Manager (referenced in 1.19) from the Major Sports Events team will attend the regular project group meeting and sub-committees and will report to the Head of Major Sports Events.
1.28 The GLA will also attend any sub-groups relating to marketing, cultural programming, volunteering and legacy development. The lead officer from the Major Sports Events team will ensure that relevant London stakeholders, GLA teams, and London and Partners are included in these meetings to offer project advice and support, and to ensure the project aligns with mayoral strategic priorities.
2.1 The objectives of the proposed uplifted expenditure are to support the delivery of the inaugural OQS leg three in London are to:
• increase economic investment into London
• increase international exposure of London
• increase opportunities for Londoners to engage with urban sports and the Olympics through opportunities to attend, volunteer at and participate in community and cultural activity linked to the event
• contribute to achieving the Mayor’s ‘Tourism Vision for London’
• deliver across a range of the Mayor’s priorities, including community participation and youth engagement.
2.2 Hosting the 2024 OQS presents a significant opportunity to maintain and build on London’s reputation as a leading global city, and a destination for hosting the world’s biggest sporting events; and strengthen relationships with the IOC.
3.1 Under section 149 of the Equality Act 2010, as a public authority, the Mayor of London must have ‘due regard’ of the need to eliminate unlawful discrimination, harassment, and victimisation; and to advance equality of opportunity, and foster good relations, between people who have a protected characteristic and those who do not.
3.2 The Major Sports Events team will ensure that as many Londoners as possible, including those with protected characteristics (as defined in the Equality Act 2010), are considered in the planning of the event, and have the chance to be involved in some way – be that through playing, training, volunteering, or supporting teams.
3.3 Having Team London manage and deliver the event volunteer programme would ensure the OQS programme aligns with the existing Team London equality policy. Team London volunteer programmes are open to all that apply, regardless of race, disability, sex, age, sexual orientation, religion or belief, pregnancy and maternity, and gender reassignment.
3.4 Appropriate assistance to all Londoners and visitors will be available at the OQS. The volunteer-recruitment strategy will encourage those with language skills to join the volunteering programme. This ensures that the sites will be able to offer assistance to both Londoners and visitors with whom we may have previously been unable to communicate; and will foster good relations between persons who share a relevant protected characteristic and persons who do not.
3.5 Planning is being shaped by ‘London 2030 Tourism Vision’ (formerly ‘A Tourism Vision for London’) to ensure that visitors are provided with information in accessible formats to help them do and see more in London. This information has been improved to help them find rewarding experiences. Visitors and Londoners alike are encouraged to explore areas beyond central London; this means persons who share a relevant protected characteristic will be able to participate in public life, or in any other activity in which participation by such persons is disproportionately low.
3.6 The GLA will continue to work with the SPV and appointed team to ensure that it is an accessible venue, with a relevant and effective strategy. A strategy will be used throughout the project to mark out the necessary steps to meet the needs of persons who share a relevant protected characteristic, which are different from the needs of persons who do not share it.
3.7 The wider festival and cultural activity will be inclusive and aimed at all Londoners. This will be achieved through the programme content; the broad and targeted approach to marketing channels; and access facilities at the event, which specifically aim to reduce barriers to attendance for people with disabilities or mobility issues. An allocation of tickets will be free of charge to ensure members of low-income households are able to attend and feel part of the event.
Links to Mayoral strategies and priorities
4.1 GLA support for the event will:
• support the delivery of the Mayor’s manifesto commitment to explore London as a host for future Olympic Games
• support delivery of the GLA’s major sports event framework
• increase economic investment into London
• increase international exposure for London as the world’s leading city for sport
• increase international exposure for London in key European tourism markets
4.2 The table below shows how the event aligns to the current recovery missions.
Conflicts of interest
4.3 Rebecca Edser, Senior Manager in the Major Sports Events Team and lead on this project, is on secondment from UK Sport until the end of May 2023. UK Sport is acting as another partner on the project, and Rebecca will resume her position there from June 2023. Rebecca could have involvement in the project thereafter; however, the view is this is not a conflict of interest.
5.1 This request is to allocate £3.7m towards the OQS event in 2024, and associated GLA resource. If the project goes ahead, the anticipated spend profile is £1.17m in 2023-24 and £2.53m in 2024-25.
5.2 The total cost of the project is £15.794m including £1.064m contingency, funded from a range of sources as outlined in the indicative costings and income table at 1.12. Of the £3.7m requested, £3.5m is the GLA’s contribution to the project if it goes ahead, and £0.2m internal GLA costs to fund staffing and legal requirements to deliver the project. At present, there is a £3m funding gap, which the IOC have been requested to meet. If it is unable to do so, the GLA will not be required to contribute.
5.3 Provisional funding for this project has been set aside within reserves for 2023-24; it will be reprofiled as necessary if the bid is successful to align to the expenditure.
Power to undertake the requested decisions
6.1 The foregoing sections of this report indicate that the decisions requested of the Mayor fall within the statutory powers of the Authority to promote and/or to do anything that is facilitative of, or conducive or incidental to, economic development and wealth creation within Greater London; and in formulating the proposals in respect of which a decision is sought, officers have complied with the Authority’s related statutory duties to:
• pay due regard to the principle that there should be equality of opportunity for all people
• consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom
• consult with appropriate bodies.
6.2 Furthermore, the decision above also falls within the statutory powers of the Authority under section 378 of the Greater London Authority Act 1999 (the Act). Under that section, the Authority has the power to do anything for the purposes of encouraging people to visit Greater London and to encourage people from outside the United Kingdom to visit the United Kingdom via Greater London. As set out at section 4, above, the hosting of the OQS in June 2024 will contribute to achieving the Mayor’s ‘Tourism Vision for London’ and will increase international exposure for London in key European tourism markets.
6.3 In taking the decisions requested of him, the Mayor must have due regard to the Public Sector Equality Duty – namely, the need to: eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010; advance equality of opportunity between persons who share a relevant protected characteristic (race, disability, sex, age, sexual orientation, religion or belief, pregnancy and maternity, and gender reassignment) and persons who do not share it; and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section 3 (above) of this report.
Receipt of income
6.4 Paragraph 1.23, above, mentions that income from sponsorship, concessions and other contributions may be sought in relation to certain elements of the project. Pursuant to section 93 of the Local Government Act 2003, the Authority has the power to charge for discretionary services. However, officers should note that this power is subject to a duty to ensure that, taking one financial year with another, the income from the charges must not exceed the costs associated with the provision of the services. Furthermore, under section 378(9) of the Act, the Authority may receive contributions towards its expenses in carrying out its functions. Accordingly, to the extent that income is unrelated to sponsorship and concessions, that income may also be received by the Authority for the purposes of its hosting the OQS.
The delegation
6.5 Any function exercisable by the Mayor on behalf of the Authority may also be exercised by a member of the Authority’s staff albeit subject to any conditions, which the Mayor sees fit to impose. To this end, the Mayor may make the requested delegation to the Executive Director of Strategy and Communications, if he so chooses.
Signed decision document
MD3116 - : International Olympic Committee Olympic Qualifier Series Event 2024 - signed