Event Management Workshop Handbook PDF
Event Management Workshop Handbook PDF
Event Management Workshop Handbook PDF
Business Plans
P.1
The aim of the document is to give investors and entrepreneurs a
high-level overview of the opportunity and key considerations they
should take into account while entering a similar business. This
document has been prepared for marketing purposes only.
P.2
TABLE
OF
CONTENTS
Corporate Hospitality 30
Ticketing 44
Television Production 51
Concessions 75
Temporary Toilets 91
P.3
P.4
We have the pleasure to share with you 1 Sports business industry
several opportunities to invest in sports • International sporting centre:
businesses in Qatar. These opportunities will 2006 Asian Games, 2019 IAAF
World Championships, 2022
help you play a key role in the development
FIFA World CupTM
of one of the fastest growing economies in
the GCC.
Sports and sports related industries have
been a key focus of Qatar’s economy and we 2 2
Economic stability
Ministry of Economy & Ministry of Youth & Supreme Committee for Qatar Olympic Aspire Zone
Commerce Sports Delivery & Legacy Committee Foundation
Sport Business Opportunities Forum • Flagship Business Cases October 2015
P.5
SPORT BUSINESS
OPPORTUNITIES FORUM
Temporary Staffing
and Training
P.6
Introduction
Qatar’s strong pipeline of local and international sports events generates lucrative
opportunities for the provision of temporary staffing and training services
The sports industry is complex in nature and covers a wide range of Exhibit 1: Areas for
interlinked and interdependent activities. Seven areas of opportunity have sports opportunities
been identified to analyse the sports market, as outlined in Exhibit 1 and
detailed below: SPORTS
• Event management & promotion: refers to the entire process of
staging an event from the bidding phase to event delivery and post- Venue operations &
event services maintenance
• Sports development: focuses on the engagement of people with sports,
particularly at a young age, both from an elite (professional) sports as Sports development
well as from an amateur sports perspective, eventually leading to the
participation in top level competitions Venue construction
• Venue construction: comprises of the necessary steps that need to be
taken for the construction of venues and training facilities including Sports goods &
planning, design development and construction equipment
• Sports goods & equipment: refers to the entire process required to Sports commercialisation
design, produce, distribute and sell sports goods & equipment
• Sports commercialisation: refers to the activities that aim to monetise Sports tourism
the commercial rights of an event (e.g. broadcasting, sponsoring,
ticketing) and bring revenues to the rights holder Event management &
• Sports tourism: revolves around the necessary steps taken to influence promotion
traveling to participate in or observe sports or other entertainment
events
Temporary staffing and
• Venue operations & maintenance: comprises of the activities necessary training
to operate and maintain stadiums and venues
Marketing Legacy
Bidding Organisation Event delivery
& sales & re-use
Bidding refers to Organisation of an Proper promotion, This activity After the event is
activities such as event is marketing and includes the successfully
concept generation, accompanied by sales can ensure operations to completed, tangible
servicing of a bid, entrepreneurial maximum actually stage an assets should be
preparation of risk with regards to attendance to an event. Depending reused and
bidding documents planning and event. Event on the type of knowledge gained
and event planning. financing. tickets can be event being held, during event
Typically, if the bundled with specific technical planning,
event is hospitality or skills and tangible preparation and
sanctioned, then travel deals to equipment and delivery should be
there is a need to encourage more temporary made use of for
purchase hosting potential infrastructure are future events
rights. customers. required.
Sport Business Opportunities Forum • Flagship Business Cases October 2015
P.7
Introduction
Opportunity overview
Despite the increasing use of technology at venues and events, there
continues to be a great demand for event staff across a number of
functions (e.g. security, cleaning, catering, stewarding, operational “Event organisers
support, box office and access control). rely on hiring
While some high-profile events organisers have developed a strong track temporary staff to
record in terms of successful recruitment of volunteers, many event
organisers (or event sub-contractors) rely on hired temporary staff to
address peak
address peak demand. demand”
This opportunity entails the supply of temporary manpower resources
including stage crew, technical and production staff, hostesses, security
personnel, operational support, parking support and registration staff for
event management companies. The opportunity also covers the provision
of training services to volunteers and support staff, in order to equip them
with the necessary skills required to fulfil their roles at the events.
P.8
Market overview (1/2)
Qatar market
The total market for temporary staffing and training
Exhibit 2: Qatar market size for sports related
in Qatar is QAR 69 million in 2016 and is expected to opportunities (QAR millions)
grow at a CAGR of 10% to reach QAR 167 million in
2025. The supply of temporary staffing to sports
events will reach a peak of QAR 62 million in 2022, +7%
62
growing at CAGR of ~7%, primarily driven by the
FIFA World Cup™. 38 41 43
36
32
Market drivers 23 24
19 21
The primary factors driving the demand in Qatar are:
• Event pipeline: The premium international
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
events to be hosted in Qatar (e.g. UCI Cycling
World Championship 2016, IAAF World
Championships 2019 and the 2022 FIFA World
Cup™) boost demand for temporary staffing Exhibit 3: Qatar market size for non-sports
related opportunities (QAR millions)
• Growing manufacturing sector: Manufacturing
companies represent an important source of 124
future industry demand, particularly for low- +12% 111
99
end jobs such as packing 81
78
• Emerging need to train volunteers for event 57 63 57 62
46
delivery: Event management companies seek
trained individuals in order to deliver the
highest levels of customer service
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
• Economic growth: Improving macroeconomic
conditions, such as low unemployment, high
public investment (QOC, Aspire, MCS, SC) and
rising corporate confidence drive demand for
Exhibit 4: Qatar’s labour force breakdown by
outsourced employment services sector in 2014
Temporary staffing and training providers in 7.5% Manufacturing
Qatar
7.6% Mining & quarrying
To ensure successful temporary hiring of
12.6% Wholesale & retail
employees, temporary staffing agencies often train
their staff and equip them with specialized skills. 13.5% Other
Agencies in Qatar (such as REED or Showforce)
tend to specialise in particular areas of work such 14.6% Trade & consumer services
as medical and nursing staff, computer personnel,
events staff, executive and office staff, engineering 15.2%
Industrial
(excl. construction)
and the technical trades. These companies sign
contracts with their customers based either on a
project-by-project basis or through secondments 28.9% Construction
(e.g receptionist).
P.9
Market overview (2/2)
P.10
Industry overview: GCC and Qatar
There is an opportunity for Qatari companies to provide premium, differentiated services
in Qatar and the GCC
Supplier power
• Recruitment companies generally follow the industry standard for the
pricing of low-skilled manpower with limited bargaining power
• Recruitment agencies that have access to employees with specialized skills
and language capabilities tend to have medium bargaining power
P.11
Financial plan (1/2)
Investment
Exhibit 7: NPV for 2016 to 2025 (QAR million)
To capture the whole opportunity, an investor
29
must be capable of investing ~QAR 17 million.
Such an investment has a NPV of ~QAR 29
million for the next ten years (2016 to 2025). 15
The expected IRR for this opportunity is 21%.
8
Local businesses with limited financial
capability and risk appetite may capture part of
the opportunity by investing less than the 5 9 17
maximum required investment as detailed in Investment1
the scenarios below: 1 Investment = Start-up CapEx + (DSO/365)* operating costs for first year
rest of the GCC region in 2019. This market is Exhibit 10: Annual revenue vs. Start-up investment
expected to account for ~9% of total company (QAR million)
turnover in the first year.
Investment (QAR million)
The cost structure of firms in the temporary Years
5 9 17
staffing and training industry vary based on
company size, client base and the services 2016 8 17 34
P.12
Financial plan (2/2)
3
-5 Due to initial start-
up investment 2
1
-8
-10 0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
P.13
SPORT BUSINESS
OPPORTUNITIES FORUM
Sound and Stage Production
P.14
Introduction
Sound and stage production presents a profitable opportunity for Qatar-based companies
wishing to provide services for sports venues
The sports industry is complex in nature and covers a wide range of Exhibit 1: Areas for
interlinked and interdependent activities. Seven areas of opportunity have sports opportunities
been identified to analyse the sports market, as outlined in Exhibit 1 and
detailed below: SPORTS
• Event management & promotion: refers to the entire process of
staging an event from the bidding phase to event delivery and post-
Venue operations &
event services
maintenance
• Sports development: focuses on the engagement of people with sports,
particularly at a young age, both from an elite (professional) sports as Sports development
well as from an amateur sports perspective, eventually leading to the
participation in top level competitions Venue construction
• Venue construction: comprises of the necessary steps that need to be
taken for the construction of venues and training facilities including Sports goods &
planning, design development and construction equipment
• Sports goods & equipment: refers to the entire process required to Sports commercialisation
design, produce, distribute and sell sports goods & equipment
• Sports commercialisation: refers to the activities that aim to monetise Sports tourism
the commercial rights of an event (e.g. broadcasting, sponsoring,
ticketing) and bring revenues to the rights holder Event management &
• Sports tourism: revolves around the necessary steps taken to influence promotion
traveling to participate in or observe sports or other entertainment
events
• Venue operations & maintenance: comprises of the activities necessary Sound and stage production
to operate and maintain stadiums and venues
Bidding refers to Organisation of an Proper promotion, This activity After the event is
activities such as event is marketing and includes the successfully
concept generation, accompanied by sales can ensure operations to completed, tangible
servicing of a bid, entrepreneurial maximum actually stage an assets should be
preparation of risk with regards to attendance to an event. Depending reused and
bidding documents planning and event. Event on the type of knowledge gained
and event planning financing. tickets can be event being held, during event
Typically, if the bundled with specific technical planning,
event is hospitality or skills and tangible preparation and
sanctioned, then travel deals to equipment and delivery should be
there is a need to encourage more temporary made use of for
purchase hosting potential infrastructure may future events to
rights customers be needed for ensure maximum
Sport Business Opportunities Forum • Flagship Business Cases
successful delivery knowledge October 2015
transfer 3
P.15
Introduction
Opportunity overview
A business opportunity exists for Qatar-based companies to rent light, “The global sound
sound and stage equipment in Qatar to sports and non-sports related and stage
events and venues. Equipment rental companies get the illumination
arrangements, stage platforms and audio-visual systems from specific production market
global and local manufacturing companies and rent them to event is expected to
management companies, enabling a professional delivery of the event reach ~QAR7
content. This also includes supply of equipment for entertainment
billion by 2019,
events such as concerts, weddings, fashion shows, etc.
growing at a
CAGR of ~2%
Capability and capacity constraints in the Qatari market
create an opportunity for SMEs between 2014 and
With a busy upcoming international sports events calendar, Qatar is 2019”
investing in new sports venues to meet international requirements. In
order to satisfy the audience needs, event production services in GCC
and Qatar take the lead in renting stage and sound equipment. The
provision of such equipment and services present a strong opportunity
to sound and stage rental companies.
Currently, the sound and stage equipment rental industry exists in “Renting large
Qatar but is still developing. The provision of high quality stage, high-tech audio
lighting and audio arrangements leaves a lasting positive impression systems,
on spectators. Major opportunities exist for sound and stage
equipment rental firms providing their services to event management floodlighting
companies such as Q-Vision productions and event organisers. These solutions and stage
firms collaborate with government entities such as Ministry of Culture arrangements are
and Sports (MCS), Qatar Olympic Committee (QOC), Aspire Zone and
the Supreme Committee for Delivery and Legacy (SC) as well as other
at the basis of
corporate entities such as Qatar Investment Authority (QIA), Qatar increasing the
Petroleum (QP) and others who invest heavily in events. number of
attendees in sports
In order to capture the opportunity, new or existing local rental venues”
companies could collaborate with global international sound, light and
stage production companies to meet the growing demand in sports
events. At present, only a limited number of key players exist in the
Qatari market. Equipment rental companies play a key role in helping
sports and non-sports venues make a lasting impression on all
shareholders through the renting of various equipment from public
address (PA) and sound systems, to dimmers, follow spotlights, audio-
visual equipment, podiums and stage platforms.
P.16
Market overview (1/2)
Qatar market Exhibit 2: Qatar market size for sports related
The sound and stage production market in Qatar is in opportunities (QAR millions)
the developing stage and is expected to grow from
+7%
~QAR 92 million in 2016 to ~QAR 221 million in 2022. 169
It is expected to reach ~QAR 185 million in 2025,
growing at a CAGR of ~7% from 2016. The supply to 105 110
115
99
sports-related events is expected to grow from ~QAR 63 87
66
million in 2016 to ~QAR 169 million in 2022 and reach 63 53 58
~QAR 115 million in 2025.
Market drivers
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
The primary factors driving the demand in Qatar are:
• Sports and non-sports events: The size and number
of local and international events from sports Exhibit 3: Qatar market size for non-sports related
matches to music concerts, entertainment shows, opportunities (QAR millions)
conferences and summer camps determines the
70
demand for sound, light and stage equipment +10% 63
58
• High disposable income: When households have 47
52
43
more disposable income, they are more likely to 35
39
attend events, which will increase the demand for 29 32
equipment rental required for additional
performances. With a gross national income
increase of 4% between 2013-2014, Qatar has the
highest disposable income per capita in the region 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
SMEs that also play a role in this market: Source: TechnoPro Qatar
• Sports related: Government and non-government related entities such as Qatar Olympic
Committee (QOC), Aspire Zone, Ministry of Culture and Sports (MCS), Qatar Investment
Authority (QIA)
• Non-sports related: Organisers/ event management companies for events such as concerts,
fashion shows, summer camps, schools and universities
Sport Business Opportunities Forum • Flagship Business Cases October 2015
Source: BQ Magazine; Doha News, April 2014; Qatar Open, a men’s tennis tournament played on outdoor hard courts; A selection of LED 4
Screens with Dot Matrix Technology used in sports venues; Integrates a media server with a high output light engine, sensor camera and infrared
illumination system; Large scale images projected on the Commercial bank Plaza building
P.17
Market overview (2/2)
Other GCC market
With Qatar’s successful bid to host the 2022 FIFA Exhibit 5: Other GCC Market Size (QAR
World Cup™ and Dubai’s hosting of the World Expo millions)
2020, the GCC region is witnessing a boom in the
events management industry. The sound and stage 838
GCC market is expected to grow from ~QAR 362 765
+10%
million in 2016 to ~QAR 838 million in 2025; 698
636
growing at a CAGR of 10%. 580
529
483
441
402
Event equipment rental sector segmentation 362
Global market
Globally, the sound and stage production rental
industry is expected to grow at a CAGR of 2%, i.e
reaching ~QAR 7 billion by 2019. North America is
the biggest market followed by Asia-Pacific, Europe,
Latin America, the Middle East and Africa. Source: The rental and staging top 40, AVNetwork
Source ME 2015, Virtual Productions, Events equipment rental, InfoComm International, 2014
Sport Business Opportunities Forum • Flagship Business Cases October 2015
P.18
Industry overview: Qatar
There is an opportunity for Qatari companies to provide sound and stage equipment rental
services in Qatar sports venues
Supplier power
• The supplier market is highly competitive and consists of global players such as
Harman International Industries, Voxx International Corporation and Bose
Corporation
• The suppliers differentiate themselves from one another by regularly investing in
R&D
• Providing a local distribution in service support is crucial to survive in the market
Barriers to entry
Industry rivalry
Threat of substitutes • Local governmental, safety
• The market for sound and and health regulations and
• The presence of event
stage rental equipment is a requirements
management
fragmented market, featuring
companies with in- • Track record for delivering
relatively high competition
house capabilities high profile events
thereby substituting • Due to the commoditized
nature of business, most • Audio-visual technical
the need of renting
companies compete with capabilities required to
large external sound
each others on prices design and install equipment
and stage systems
• Availability of venues • SMEs having a strong • The long-term nature of the
with in-house presence in the market, who contracts signed with end
capabilities have established a solid customers (government
reputation, compete with entities, schools,
new entrants rental suppliers universities, event
management companies)
• Operators provide additional limits the opportunities for
support services such as user new entrants
trainings to differentiate
themselves • High initial capital
expenditure is required
P.19
Financial plan (1/2)
Investment
Exhibit 7: NPV for 2016 to 2025 (QAR million)
To capture the whole opportunity, an investor 109
must be capable of investing ~QAR 80 million.
Such an investment has a NPV of ~QAR 109
55
million for the next ten years (2016 to 2025).
27
Local businesses with limited financial 14
capability and risk appetite may capture part of
the opportunity by investing less than the 1 4 40 80
maximum required investment as detailed in Investment
the scenarios below: Exhibit 8: Investment breakdown based on
benchmarks (Illustrative)
1. An investment of ~QAR 40 million would • Sound systems,
generate a NPV of ~QAR 55 million CapEx monitors, lighting and
Pre-operating expense platforms purchases
2. An investment of ~QAR 4 million, would 33%
generate a NPV of ~QAR 27 million
3. If an investor is limited to an initial 67%
investment of ~QAR 1 million, the resulting • Staff wages
NPV would be ~QAR 14 million • Marketing expenses
and stage opportunity in Qatar and the GCC, its Qatar +11% 163
150 156
144
revenues would increase from ~QAR 66 million 131
119
in 2016 to ~QAR 144 million in 2022 to attain ~ 108
QAR 163 million in 2025. However, investors 72
80
66
with a lower financial capability to invest or
lower risk appetite would still experience
significant revenue growth (refer to Exhibit 10).
Global sound, stage and light rental equipment 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
companies will have a more diversified revenue
base in the sports sector. These firms will be
able to satisfy the audience by providing them Exhibit 10: Annual revenue vs. Start-up investment
(QAR million)
with a unique sound and illumination
experience, allowing them to enjoy every Investment (QAR million)
Years
moment of the matches and performances. 1 4 40 80
2016 1 3 33 66
Total
12 59 595 1,190
(2016 – 2025)
P.20
Financial plan (2/2)
15 14
12
11
10
10
5
5
-5 Due to initial start-up
investment
-10
-11
-15 0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
P.21
SPORT BUSINESS
OPPORTUNITIES FORUM
Temporary Grandstands
and Platforms
P.22
Introduction
Temporary grandstands and platforms present a growing opportunity for Qatar-based
companies in a region that is aiming to become a hub for the MICE1 industry
The sports industry is complex in nature and covers a wide range of Exhibit 1: Areas for
interlinked and interdependent activities. Seven areas of opportunity have sports opportunities
been identified to analyse the sports market, as outlined in Exhibit 1 and
detailed below: SPORTS
• Venue operations & maintenance: comprises of the activities necessary
to operate and maintain stadiums and venues
Venue operations &
• Sports development: focuses on the engagement of people with sports, maintenance
particularly at a young age, both from an elite (professional) sports as
well as from an amateur sports perspective, eventually leading to the Sports development
participation in top level competitions
• Venue construction: comprises of the necessary steps that need to be Venue construction
taken for the construction of venues and training facilities including
planning, design development and construction Sports goods &
equipment
• Sports goods & equipment: refers to the entire process required to
design, produce, distribute and sell sports goods & equipment Sports commercialisation
• Sports commercialisation: refers to the activities that aim to monetise
the commercial rights of an event (e.g. broadcasting, sponsoring, Sports tourism
ticketing) and bring revenues to the rights holder
• Sports tourism: revolves around the necessary steps taken to influence Event management &
traveling to participate in or observe sports or other entertainment promotion
events
• Event management & promotion: refers to the entire process of Temporary grandstands
staging an event from the bidding phase to event delivery and post- and platforms
event services
Bidding refers to Organisation of an Proper promotion, This activity After the event is
activities such as event is marketing and includes the successfully
concept accompanied by sales can ensure operations to completed, tangible
generation, entrepreneurial risk maximum actually stage an assets should be
servicing of a with regards to attendance to an event. Depending on reused and
bid, preparation planning and event. Event the type of event knowledge gained
of bidding financing. Typically, tickets can be being held, specific during event
documents and if the event is bundled with technical skills and planning,
event planning. sanctioned, then hospitality or tangible equipment preparation and
there is a need to travel deals to and temporary delivery should be
purchase hosting encourage more infrastructure are made use of for
rights. potential required. future events.
Sport Business Opportunities Forum • Business Plans customers. October 2015
1 MICE refers to the meetings, incentives, conferences and exhibitions industry
2
P.23
Introduction
Opportunity overview
A business opportunity exists for Qatar-based companies to rent out and “Event management
install temporary/modular grandstands and platforms. This involves is viewed as a new
working with foreign producers to supply the relevant stock of inventory. and a growing
While Qatar is building up many permanent stadiums and structures, the
variety of event categories and locations will require more modular industry by the
structures that can adapt to the needs of event managers and spectators. government – this
Temporary infrastructure within this opportunity includes extensions of will lend to greater
permanent seating (e.g. media tribunes, spectator stadium extension) for
demand for
an event requiring larger capacity than usual, or on green field locations
(e.g. open field or waterside). temporary event
infrastructure”
The diverse array of upcoming events in Qatar, both sports and
non-sports, is creating an opportunity for locally based SMEs
who can cater to customised needs
Qatar has a busy upcoming calendar for both international and national
events. Government entities such as the Ministry of Culture and Sports “The events sector
(MCS), Qatar Olympic Committee (QOC), Aspire Zone and the Supreme needs the creation
Committee for Delivery and Legacy (SC) are all investing in sports-related of unique
events. While stadiums will support the infrastructure needs for some of
consumer
the events, the influx of visitors in the lead up to the FIFA World Cup™
events will require event organisers to expand venue capacity as well as experiences and a
accommodate spectators for non-stadium sports such as beach volleyball. changing
The Qatari events industry is also making a name for itself outside of the environment that
sports world, playing host to a diverse array of events such as will engage
TedxYouth@Doha, COP 18 Climate Change talks, the Doha Tribeca Film
Festival, and the Doha Trade Fair. The varying themes, locations and
audiences –
capacities of these events lend to a demand for increased flexibility in certain events
event spaces and increase demand for temporary infrastructure and demand a certain
overlay. type of venue”
The rental of temporary grandstands and platforms is relatively
fragmented in Qatar, with even greater competition in the installation
space, as the skill is closely aligned with the capability of scaffolding and
other such construction-related work that is already being conducted in
the construction sector.
Qatar-based companies have a great opportunity to build relationships
with event organisers and build up inventory based on local needs for
events. Low staffing needs lend naturally to SMEs starting up in the
sector, and success will be heavily reliant both on stocking inventory that
aligns with the track record of event needs as well as the ability to tailor
modular spaces based on the custom needs of each client.
Sport Business Opportunities Forum • Business Plans October 2015
P.24
Market overview (1/2)
Qatar market
The market for temporary grandstands and Exhibit 2: Qatar market size for sports related
platforms in Qatar is estimated to be around QAR 74 opportunities (QAR million)
million in 2016, and is expected to grow to ~QAR 157
million in 2025. The temporary grandstands and +8%
platforms market for sports related events in Qatar is 121
in the growth stage and is expected to increase from 92
83
~QAR 45 million in 2016 to ~QAR 92 million by 70 75
62
2025 growing at a CAGR of 8%. For non-sports 45 42 47
38
related events, it is expected to grow from ~QAR 29
million in 2016 to ~QAR 65 million by 2025.
Market drivers 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
The primary factors driving the demand in Qatar are:
• Events market: Qatar is gearing up to become a Exhibit 3: Qatar market size for non-sports
related opportunities (QAR million)
major regional hub for the events industry.
Increased attendance at events and variety of Rise in 2019 and 2022 due to
events will stimulate the need for variability in supporting events that coincide
with World Championship in
size of event seating to accommodate Athletics and FIFA World Cup
requirements
+9%
• Tourism: As Qatar builds up its leisure, sports 66 65
and cultural attractions, growth in visitor 53
59
P.25
Market overview (2/2)
2 Source: Statista
3 Source: IBIS World
Sport Business Opportunities Forum • Business Plans October 2015
P.26
Industry overview: GCC and Qatar
The market is expected to grow with the expansion of the events industry thereby
generating a need for new players
Supplier power
• The relatively commoditized nature of grandstands means that grandstand rental companies are able to
switch suppliers quite easily
• There are limited numbers of local manufacturers, which increases reliance on foreign manufacturers
• The market is quite fragmented, which reduces the bargaining power
P.27
Financial plan (1/2)
Investment
Exhibit 7: NPV for 2016 to 2025 (QAR million)
To capture the whole opportunity, an investor
must be capable of investing ~QAR 46 million. 26
Such an investment has a NPV of ~QAR 26
million for the next ten years (2016 to 2025).
The expected IRR for this opportunity is 17%. 13
Exhibit 10).
Qatar-based companies also have potential to 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
expand to other GCC markets. The pathway to Exhibit 10: Annual revenue vs. start-up investment
expansion includes options such as organic (QAR million)
growth, acquisitions, or joint ventures. This
Investment (QAR million)
market is expected to account for ~9% of total Years
company turnover. 5 23 46
P.28
Financial plan (2/2)
-10 0
-10
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
P.29
SPORT BUSINESS
OPPORTUNITIES FORUM
Corporate Hospitality
P.30
Introduction
An increase in the number of sports and entertainment events drives demand for corporate
hospitality services, however, existing local players lack the expertise to address this need
The sports industry is complex in nature and covers a wide range of Exhibit 1: Areas for
interlinked and interdependent activities. Seven areas of opportunity have sports opportunities
been identified to analyse the sports market, as outlined in Exhibit 1 and
detailed below: SPORTS
• Event management & promotion: refers to the entire process of
staging an event from the bidding phase to event delivery and post-
Venue operations &
event services
maintenance
• Sports development: focuses on the engagement of people with sports,
particularly at a young age, both from an elite (professional) sports as Sports development
well as from an amateur sports perspective, eventually leading to the
participation in top level competitions Venue construction
• Venue construction: comprises of the necessary steps that need to be
taken for the construction of venues and training facilities including Sports goods &
planning, design development and construction equipment
• Sports goods & equipment: refers to the entire process required to Sports commercialisation
design, produce, distribute and sell sports goods & equipment
• Sports commercialisation: refers to the activities that aim to monetise Sports tourism
the commercial rights of an event (e.g. broadcasting, sponsoring,
ticketing) and bring revenues to the rights holder Event management &
• Sports tourism: revolves around the necessary steps taken to influence promotion
traveling to participate in or observe sports or other entertainment
events
• Venue operations & maintenance: comprises of the activities necessary Corporate hospitality
to operate and maintain stadiums and venues
Marketing Legacy
Bidding Organisation Event delivery
& sales & re-use
Bidding refers to Organisation of an Proper promotion, This activity After the event is
activities such as event is marketing and includes the successfully
concept generation, accompanied by sales can ensure operations to completed, tangible
servicing of a bid, entrepreneurial maximum actually stage an assets should be
preparation of risk with regards to attendance to an event. Depending reused and
bidding documents planning and event. Event on the type of knowledge gained
and event planning. financing. tickets can be event being held, during event
Typically, if the bundled with specific technical planning,
event is hospitality or skills and tangible preparation and
sanctioned, then travel deals to equipment and delivery should be
there is a need to encourage more temporary made use of for
purchase hosting potential infrastructure are future events
rights. customers. required.
Sport Business Opportunities Forum • Flagship Business Cases October 2015
P.31
Introduction
Opportunity overview
The opportunity consists of providing corporate hospitality services in Qatar
to sports and entertainment events (such as concerts and festivals). The
provision of VIP services at a venue ensures that guests experience the event
in an exclusive setting, and enjoy services and amenities such as first-rate
catering, parking and shuttle service, the best seating (including sky boxes
and lounges), hostess services and others. Due to the nature of business,
limited opportunities exist to export these services to other GCC countries.
Corporate hospitality is typically divided in three categories:
(1) Commercial hospitality: Hospitality packages sold to companies and
individuals, usually with a significant price mark-up
(2) Sponsor hospitality village: Hospitality services purchased by the
event’s sponsors and offered to accredited and ticketed guests. These
guests are given access to a dedicated VIP area either within or
outside the venue, with cost and service provision covered by the
organisers
(3) VIP hospitality: Hospitality services offered to rights holders’ and
event organisers’ officials and special guests. These guests are given “With tighter
access to a dedicated VIP area which is usually within the venue, with controls on
cost and service provision covered by the organisers
spending,
Opportunities exist for local SMEs to provide corporate
hospitality services to sports and non-sports events alike hospitality and
events are
Opportunities for the provision of corporate hospitality services in Qatar are
expected to increase, fueled by upcoming high profile sporting events becoming
including the UCI Cycling World Championship in 2016, the IAAF World increasingly
Championship in 2019 and the FIFA World Cup™ in 2022. tailored to
As the number of local and international corporations in Qatar grows, so too individual needs”
does the number of businesses with both the motivation and budget to
organize corporate hospitality events for their clients and employees.
While once corporate hospitality events were only an opportunity for
luxurious entertainment, they are now becoming more complex as
companies steer towards cost effectiveness techniques and alignment with
business values, such as Corporate Social Responsibility (CSR) initiatives.
Event companies with corporate hospitality services expertise have the
flexibility to deliver custom experiences and can differentiate themselves in
Qatar from competition to drive business.
Competition in Qatar exists in the form of general event management
companies and on-site event services at large scale venues such as hotels and
conference centers; however, the market for corporate hospitality specialists
remains largely unpenetrated. One-size-fits-all exclusive packages do not fit
the needs of all businesses and the opportunity is present for corporate
hospitality experts to offer customers unique value–add through tailored
event alignment.
Sport Business Opportunities Forum • Flagship Business Cases October 2015
P.32
Market overview (1/2)
Qatar market
The corporate hospitality market in Qatar is expected Exhibit 2: Qatar market size for sports related
to grow from ~QAR 72 million in 2016 to ~QAR174 opportunities (QAR millions)
million in 2025. Corporate hospitality services for
sports events in Qatar is developing and is expected +8%
to grow from ~QAR 46 million in 2016 to ~QAR 94 123
million in 2025, growing at a CAGR of 8%, including 94
85
inflation. It is expected to peak at ~QAR 123 million 72 77
63
in 2022. The corporate hospitality sector in Qatar is 46 43 48
39
largely unpenetrated and presents a lucrative
opportunity for potential investors.
Market drivers 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
The primary factors driving the demand in Qatar are:
• Busy events pipeline: Premium international
Exhibit 3: Qatar market size1 for non-sports
events will be hosted by Qatar (e.g. UCI Cycling
related opportunities (QAR millions)
World Championship 2016, IAAF World
Championship 2019, FIFA World Cup 2022™)
64
• Corporate profit: Higher corporate profit +10% 58
52
encourages higher spending on a variety of 43
47
39
activities including the corporate hospitality 32 35
26 29
• Developing tourism and entertainment market:
Qatar Tourism Authority’s (QTA) “National
Tourism Sector Strategy 2030” focuses on
evolving the tourism industry across sectors, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
including family entertainment
1 Includes MICE and entertainment industry
• Business travelers: Inbound business tourism is
increasing and is supported by investments in
business hotels and event spaces
• Corporate Social Responsibility: There is a
growing focus on CSR amongst Qatari “According to the
companies, with a government backed CSR International Congress and
index planned for publically listed companies Convention Association
Corporate hospitality providers in Qatar country and city rankings;
Corporate hospitality is a niche market in Qatar with the number of corporate
no specialised company currently operating solely
events held in Doha have
within this sphere. At the moment, suppliers of such
services are mainly five star hotels and event increased by 40% between
management companies such as The Planners or Q- 2011 and 2014”
Live Events. Large one-off events such as the FIFA
World Cup™, including corporate hospitality events
as well as other private events that may be organised
by FIFA and sponsors, will require additional
corporate hospitality service providers.
Sport Business Opportunities Forum • Flagship Business Cases October 2015
P.33
Industry overview: GCC and Qatar
Corporate hospitality is a niche service offering of particular importance to event sponsors,
corporations and high net worth individuals
Supplier power
• Suppliers (i.e. catering, security, transport, temporary structure and service
providers) have medium/low bargaining power due to limited differentiation
• Supplier power is higher closer to events when the lead time is short, as the number of
suppliers willing and capable of handling the risk to deliver with limited time
decreases
P.34
Financial plan (1/2)
Investment
Exhibit 4: NPV for 2016 to 2025 (QAR million)
To capture the whole opportunity, an investor
must be capable of investing ~QAR 29 million.
39
Such an investment has a NPV of ~QAR 39
million for the next ten years (2016 to 2025).
20
The expected IRR for this opportunity is 20%.
Local businesses with limited financial 7
the scenarios below: 2 Investment = Start-up CapEx + (DSO/365)* operating costs for first year
Revenue
If one company were to capture the full
corporate hospitality opportunity in Qatar, its 111
+10% 100
revenues would increase from ~QAR 46 million 82
91
2016 8 23 46
2022 14 41 82
2025 19 55 111
Total
129 369 739
(2016 – 2025)
P.35
Financial plan (2/2)
EBITDA%
Earnings before Interest, Taxes, EBITDA
Depreciation, and Amortization 15 11
11
(EBITDA) 9 10 10
10 8 9
7 8
EBITDA is projected to reach QAR 11 million 5 5 8
4 4
in 2025, with an EBITDA margin of 10%. This 5 7
is based on the cost structure and revenue 6
0
analysis for this opportunity. 5
Due to initial start- 4
-5 up investment
3
-10 2
-10 1
-15 0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
3 For full opportunity, assuming 100% investment of investment
P.36
SPORT BUSINESS
OPPORTUNITIES FORUM
Crew-wear & Uniforms
P.37
Introduction
Qatar has a busy pipeline of local and international sports events which generates
opportunities for local SMEs to supply crew-wear & uniforms for all event personnel
The sports industry is complex in nature and covers a wide range of Exhibit 1: Areas for
interlinked and interdependent activities. Seven areas of opportunity have sports opportunities
been identified to analyse the sports market, as outlined in Exhibit 1 and
detailed below: SPORTS
• Event management & promotion: refers to the entire process of
staging an event from the bidding phase to event delivery and post-
Venue operations &
event services
maintenance
• Sports development: focuses on the engagement of people with sports,
particularly at a young age, both from an elite (professional) sports as Sports development
well as from an amateur sports perspective, eventually leading to the
participation in top level competitions Venue construction
• Venue construction: comprises of the necessary steps that need to be
taken for the construction of venues and training facilities including Sports goods &
planning, design development and construction equipment
• Sports goods & equipment: refers to the entire process required to Sports commercialisation
design, produce, distribute and sell sports goods & equipment
• Sports commercialisation: refers to the activities that aim to monetise Sports tourism
the commercial rights of an event (e.g. broadcasting, sponsoring,
ticketing) and bring revenues to the rights holder Event management &
• Sports tourism: revolves around the necessary steps taken to influence promotion
traveling to participate in or observe sports or other entertainment
events
• Venue operations & maintenance: comprises of the activities necessary Crew-wear & uniforms
to operate and maintain stadiums and venues
Marketing Legacy
Bidding Organisation Event delivery
& sales & re-use
Bidding refers to Organisation of an Proper promotion, This activity After the event is
activities such as event is marketing and includes the successfully
concept generation, accompanied by sales can ensure operations to completed, tangible
servicing of a bid, entrepreneurial maximum actually stage an assets should be
preparation of risk with regards to attendance to an event. Depending reused and
bidding documents planning and event. Event on the type of knowledge gained
and event planning. financing. tickets can be event being held, during event
Typically, if the bundled with specific technical planning,
event is hospitality or skills and tangible preparation and
sanctioned, then travel deals to equipment and delivery should be
there is a need to encourage more temporary made use of for
purchase hosting potential infrastructure are future events
rights. customers. required.
Sport Business Opportunities Forum • Flagship Business Cases October 2015
P.38
Introduction
Opportunity overview
In most cases, event personnel are required to wear specific uniforms to
ensure consistent branding across all those participating in the event, “The supply of
regardless of the function - from volunteers to officials. For volunteers, crew-wear and
branded crew-wear is also often considered to be memorabilia.
uniforms to sports
Crew-wear and uniform specifications need to be compatible with the
weather conditions of the hosting city. In the case of Qatar, crew-wear
events in Qatar
should be particularly effective against heat and transpiration. Providers will reach a peak
of uniforms are typically either ‘white label’ suppliers, or branded apparel of ~QAR 110
suppliers such as Nike or Adidas. million in 2022
This opportunity covers designing and providing crew-wear and uniforms primarily driven
for event management companies in Qatar. In addition to sports events,
others economic sectors such as healthcare, hospitality, manufacturing, by the FIFA World
education and facilities management provide additional demand for Cup™”
uniforms suppliers.
Opportunity exists for local SMEs to raise their level of
sophistication to provide services for premium events
The market for crew-wear and uniforms in Qatar is supported by a strong
pipeline of international sports events planned for the coming years such “Premium
as the IAAF World Championship in 2019 and the FIFA World Cup™ in international and
2022. Moreover, recurring annual premier international events in recurring local
athletics (e.g. IAAF Diamond League) and tennis (e.g. Qatar ExxonMobil
Open) among others, ensure continued and growing demand for sports
events planned to
crew-wear and uniforms year round. be hosted by Qatar
Crew-wear and uniforms worn by event personnel plays a key role in generate a strong
helping venues and events make a lasting impression on all attendees. demand for crew-
Uniforms are a display of organisation and help attendees identify the role wear and uniforms
of each of the participants. In addition to event management, additional for all event
demand is generated by the education and service sectors. An opportunity
arises for Qatari entrepreneurs or Qatar-based companies to enter this personnel”
market and provide premium services to meet the market growth.
Service providers capable of providing high-quality products, exceptional
customer service, a customized online shopping experience and operate
with quick turnaround times can differentiate themselves from
competitors in Qatar and drive the business forward.
P.39
Market overview (1/2)
Qatar market
The total market for crew-wear and uniforms in Exhibit 2: Qatar market size for sports crew-wear
Qatar is ~QAR 116 million in 2016 and is expected to and uniforms (QAR millions)
grow at a CAGR of 8% to reach QAR 237 million in
2025. The supply of crew-wear and uniforms to +7%
sports events will reach a peak of QAR 110 million in 110
2022 primarily driven by the FIFA World Cup ™.
68 71 75
Market drivers 64
56
41 43
The primary factors driving the demand in Qatar are: 34 38
P.40
Industry overview: GCC and Qatar
GCC and Qatar market is fragmented with opportunities for new players to serve the
growing event market
Supplier power
• Textiles suppliers have low bargaining power due to limited differentiation
in their products and capabilities
• Companies are able to maintain higher profits based on cost competitiveness
rather than prices
• Most of the raw material is imported in Qatar and GCC. Customer are open
to paying a premium based on their perceptions about the quality of raw
material
P.41
Financial plan (1/2)
Investment
Exhibit 4: NPV for 2016 to 2025 (QAR million)
To capture the whole opportunity, an investor 43
must be capable of investing ~QAR 32 million.
Such an investment has a NPV of ~QAR 43
million for the next ten years (2016 to 2025). 22
The expected IRR for this opportunity is 17%.
Local businesses with limited financial 7
capability and risk appetite may capture part of
the opportunity by investing less than the 5 16 32
maximum required CapEx as detailed in the
Investment
scenarios below:
Exhibit 5: Investment breakdown
1. An investment of ~QAR 16 million would
CapEx • Equipment
generate a NPV of ~QAR 22 million • Furniture
Pre-operating expense
16% • Machines such
2. If an investor is limited to an initial as sewing
investment of ~QAR 5 million, the resulting machines
• IT hardware
NPV would be ~QAR 7 million • Advertisement and software
• Staff wages 84%
• Marketing
• Initial purchases
2022 13 39 78
2025 25 45 90
Total
123 369 739
(2016 – 2025)
P.42
Financial plan (2/2)
10 7 7 7 8 9 12
10
5
8
0
6
-5
4
-10 2
-15 -13 0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
P.43
SPORT BUSINESS
OPPORTUNITIES FORUM
Ticketing
P.44
Introduction
Demand generated by a robust sports and entertainment events pipeline, combined with
changing consumer requirements creates an opportunity for local SMEs
The sports industry is complex in nature and covers a wide range of Exhibit 1: Areas for
interlinked and interdependent activities. Seven areas of opportunity have sports opportunities
been identified to analyse the sports market, as outlined in Exhibit 1 and
detailed below: SPORTS
• Event management & promotion: refers to the entire process of
staging an event from the bidding phase to event delivery and post-
Venue operations &
event services
maintenance
• Sports development: focuses on the engagement of people with sports,
particularly at a young age, both from an elite (professional) sports as Sports development
well as from an amateur sports perspective, eventually leading to the
participation in top level competitions Venue construction
• Venue construction: comprises of the necessary steps that need to be
taken for the construction of venues and training facilities including Sports goods &
planning, design development and construction equipment
• Sports goods & equipment: refers to the entire process required to Sports commercialisation
design, produce, distribute and sell sports goods & equipment
• Sports commercialisation: refers to the activities that aim to monetise Sports tourism
the commercial rights of an event (e.g. broadcasting, sponsoring,
ticketing) and bring revenues to the rights holder Event management &
• Sports tourism: revolves around the necessary steps taken to influence promotion
traveling to participate in or observe sports or other entertainment
events
• Venue operations & maintenance: comprises of the activities necessary Ticketing
to operate and maintain stadiums and venues
Marketing Legacy
Bidding Organisation Event delivery
& sales & re-use
Bidding refers to Organisation of an Proper promotion, This activity After the event is
activities such as event is marketing and includes the successfully
concept generation, accompanied by sales can ensure operations to completed, tangible
servicing of a bid, entrepreneurial maximum actually stage an assets should be
preparation of risk with regards to attendance to an event. Depending reused and
bidding documents planning and event. Event on the type of knowledge gained
and event planning. financing. tickets can be event being held, during event
Typically, if the bundled with specific technical planning,
event is hospitality or skills and tangible preparation and
sanctioned, then travel deals to equipment and delivery should be
there is a need to encourage more temporary made use of for
purchase hosting potential infrastructure are future events
rights. customers. required.
Sport Business Opportunities Forum • Flagship Business Cases October 2015
P.45
Introduction
Opportunity overview
This localized opportunity consists of providing ticketing services in Qatar
to sports and entertainment events (e.g. concerts, cinemas and theme
parks) on behalf of producers, promoters and venue operators. The role
and added value of a ticket agent differs by type of event –ranging from
simply providing a ticketing system to fully operating a multi-channel
distribution network. Ticketing companies typically charge several fees to
consumers, but usually pass on some of this additional revenue to event
organizers as ‘client rebates’. Ticket agents can boost ticket sales by
marketing effectively as well as using their brands and different channels
(e.g. internet, call centers, ticket outlets and box offices) to attract a large
group of attendees.
Exhibit 2: Classification of ticket agent activities
Event End
Ticket agent
organiser consumer
Offering a reliable ticketing Maintaining Customer Adding convenience by creating Offering package deals in order
system for booking, invoicing, Relationship Management a multi-channel distribution to enhance attractiveness for
printing, and scanning Combining events in folders or network to allow more customers end-customers
Handling high volumes in short through web portals thus to purchase tickets Offering consumer services such
time frames attracting additional consumers Reducing costs through as event-related accommodation
Reducing costs through Increasing marketing channels economies of scale, and travel arrangements,
economies of scale predominantly in call centres cancellation protection, etc.
P.46
Market overview
Qatar market
The total ticketing market in Qatar is estimated to Exhibit 3: Qatar market size for sports related
grow at a CAGR of ~10%, from ~QAR 60 million in opportunities (QAR millions)
2016 to ~QAR 146 million in 2025. The ticketing
market for sports events in Qatar is developing and is
expected to grow from ~QAR 30 million in 2016 to +8%
82
approximately ~QAR 62 million in 2025, growing at a
62
CAGR of 8%, including inflation. The ticketing market 51
57
48
for sports segment will experience a peak of ~QAR 82 42
30 32
million in 2022, primarily driven by the FIFA World 26 28
Market drivers
Exhibit 4: Qatar market size1 for non-sports
The primary factors driving demand in Qatar are: related opportunities (QAR billions)
• Sports events pipeline: Premium international
and recurring local events planned to be hosted 72
+10%
in Qatar (e.g. UCI Cycling World Championship 59
65
(Seated)
disposable income across the country further
drives demand for events Performing arts / International
Mid-sized Sporting events
MICE events
theatres
Concerts
P.47
Industry overview: GCC and Qatar
The ticketing market in Qatar is still immature and there is a small number of companies
that play in this moderately-competitive market
Supplier power
• Suppliers have limited bargaining power due to the limited differentiation for the material
(such as printed tickets) and services (such as website management/ update services)
• However, when approached on short notices, they have medium bargaining power and are
able to demand higher prices for the products and services offered
P.48
Financial plan (1/2)
Investment
Exhibit 6: NPV for 2016 to 2025 (QAR million)
To capture the whole opportunity, an investor
must be capable of investing ~QAR 31 million. 26
Revenue Qatar
Industry costs and returns vary by operator, Exhibit 9: Annual revenue vs. Start-up investment
depending on the mix of services offered and (QAR million)
the targeted market. Companies that offer a Investment (QAR million)
wide array of event services may be able to Years
5 15 31
obtain higher profit margins due to their wider
reach and services portfolio. 2016 7 23 46
2022 13 41 83
2025 18 56 111
Total
119 371 743
(2016 – 2025)
P.49
Financial plan (2/2)
Setting up a ticketing company in another GCC • The number of employees required to run an online
event ticket sales company is relatively minimal
country would require companies to setup
local offices and work in partnership with local
event management companies. This would
also involve collaboration with local banks to Exhibit 12: Projected EBITDA in 2016 to 2025
provide online payment systems to their (QAR millions)3
customers.
EBITDA% EBITDA
Earnings before Interest, Taxes,
Depreciation, and Amortization 15 11
(EBITDA) 11
12
10
10
10 9
EBITDA is projected to reach QAR 12 million 7 8 9
5 6 8
in 2025, with an EBITDA margin of 11%. This 5
4 5
7
is based on the cost structure and revenue
6
analysis for this opportunity. 0
5
-5 4
3
Due to initial start- 2
-10
up investment
-10 1
-15 0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Label
3 For full opportunity, assuming 100% investment of investment
P.50
SPORT BUSINESS
OPPORTUNITIES FORUM
Television Production
P.51
Introduction
Establishing a television production agency specialised in sports in Qatar presents a
profitable opportunity for Qatar-based companies and entrepreneurs
The sports industry is complex in nature and covers a wide range of Exhibit 1: Areas for
interlinked and interdependent activities. Seven areas of opportunity have sports opportunities
been identified to analyse the sports market, as outlined in Exhibit 1 and
detailed below: SPORTS
• Event management & promotion: refers to the entire process of
staging an event from the bidding phase to event delivery and post-
Venue operations &
event services
maintenance
• Sports development: focuses on the engagement of people with sports,
particularly at a young age, both from an elite (professional) sports as Sports development
well as from an amateur sports perspective, eventually leading to the
participation in top level competitions Venue construction
• Venue construction: comprises of the necessary steps that need to be
taken for the construction of venues and training facilities including Sports goods &
planning, design development and construction equipment
• Sports goods & equipment: refers to the entire process required to Event management &
design, produce, distribute and sell sports goods & equipment promotion
• Sports commercialisation: refers to the activities that aim to monetise Sports tourism
the commercial rights of an event (e.g. broadcasting, sponsoring,
ticketing) and bring revenues to the rights holder
Sports commercialisation
• Sports tourism: revolves around the necessary steps taken to influence
traveling to participate in or observe sports or other entertainment
events
• Venue operations & maintenance: comprises of the activities necessary Television production
to operate and maintain stadiums and venues
The first step of Event production Distribution and Wholesalers/ Services to clients
commercialisation is the business of packaging of commercial rights may include
whether through preparing and rights (sponsoring & acquirers sponsorship
media/gaming or delivering an broadcasting) is the distribute account
merchandise is the event. It is a highly process of converting and sell the management
establishment or competitive and rights into actual material (activation,
acquisition of a sports international sellable products and through retail marketing etc.),
property (e.g. event, business that is distributing them to the channels that customer service
league, brand) or its typically clients (e.g. brands, make it for private clients
commercial rights outsourced by the TV/media etc.) It is available for (ticketing) and
(e.g. broadcasting, rights holders to typically conducted by the wider other
sponsoring, etc.) different parties the rights holder or its public
appointed agency
Sport Business Opportunities Forum • Flagship Business Cases October 2015
P.52
Introduction
Opportunity overview
Along with changes in consumer behaviour over the past couple of years and
a tremendous shift in media technology, the television production industry
is witnessing strong market growth. A business opportunity exists for “Al Kass
potential investors to establish a specialised television production company
in Qatar which focuses on the production of sports television programming.
dominates the
Such firms buy their equipment from global manufacturers and purchase sports television
their copyright licenses from intellectual property licensing firms. Their production
customers are typically broadcasting and networking agencies that broadcast market in Qatar,
the content to consumers. Sports television production is a specialised
opportunity for Qatar-based firms, and will allow spectators to enjoy the with a focus on
unique match-day experience. regional and
local
Capability and capacity constraints in the Qatari market create an competitions”
opportunity for SMEs
In recent years, sports television became an increasingly important medium
in Qatar, with around 28% of residents tuning in to sports channels. Qatar
has a plan to expand the national demand for sports with over 100 events
planned for 2015/2016. Along with a growth in the number of events comes
an increase in demand for sports TV production. “The U.S
Currently, the Qatari market for sports television production is in the early television
stages of development. Al-Kass is one of the key players with strong in-house production
production capabilities. Al-Kass typically focuses on producing content for
local and regional sports events. beIN Sports, on the other hand, has some industry
in-house production capabilities, however, it relies mainly on purchasing represents a third
content from production houses that have produced content for premium of the global
international events.
industry,
A number of leading sports institutions are present in Qatar such as Aspire
Infront Sports & Media, which can lead the way in developing the television dominating the
production segment in Qatar. Few local suppliers exist for production market
equipment, however there exists a large number of federations and worldwide”
associations that hold sports events locally year round. The main buyers of
TV production services include broadcasting networks and online platforms.
Sports television programming is a customized production genre and
success in this field relies on access to technically skilled employees and the
ability to adopt advanced technology quickly.
Source: Informa, SportCal, Company website, The Media & Entertainment Industry in the United States
Sport Business Opportunities Forum • Flagship Business Cases October 2015
P.53
Market overview (1/2)
Qatar market
Exhibit 2: Qatar market size for sports television
The specialised sports television production market in production (QAR millions)
Qatar is in the developing stage and is expected to
increase from ~QAR 238 million in 2016 to ~QAR 486
million in 2025, growing at a CAGR of ~8%.
+8%
Market drivers 641
P.54
Market overview (2/2)
Source: The Media & Entertainment Industry in the United States SelectUSA 2014, IBISWorld
Sport Business Opportunities Forum • Flagship Business Cases October 2015
P.55
Industry overview: Qatar and other GCC countries
The market for sports television production in the region is not yet saturated, and presents
itself as a lucrative opportunity for potential investors
Supplier power
• Suppliers have a high bargaining power as production agencies need to purchase the
rights to produce event content from the rights owners. Rights owners of premium
international events (e.g. FIFA World Cup ™) have extremely high bargaining power and
they typically auction off and sell the rights to the highest bidder
• Television production firms are also highly dependent on production equipment
manufacturers and lessors for raw materials and new technologies
P.56
Financial plan (1/2)
Investment
Exhibit 5: NPV for 2016 to 2025 (QAR million)
To capture the whole opportunity, an investor
11
must be capable of investing ~QAR 4 million.
Such an investment has a NPV of ~QAR 11
million for the next ten years (2016 to 2025). 6
2025 12 24
Total
78 156
(2016 – 2025)
P.57
Financial plan (2/2)
8
1.0
6
0.5
4
0.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
P.58
SPORT BUSINESS
OPPORTUNITIES FORUM
External Screens,
Signage and Wayfinding
P.59
Introduction
The opportunity encompasses the designing, manufacturing, installing and maintaining of
external screens, signage and wayfinding in Qatar and other GCC countries
The sports industry is complex in nature and covers a wide range of Exhibit 1: Areas for
interlinked and interdependent activities. Seven areas of opportunity have sports opportunities
been identified to analyse the sports market, as outlined in Exhibit 1 and
detailed below: SPORTS
• Event management & promotion: refers to the entire process of
staging an event from the bidding phase to event delivery and post-
Venue operations &
event services
maintenance
• Sports development: focuses on the engagement of people with sports,
particularly at a young age, both from an elite (professional) sports as Sports development
well as from an amateur sports perspective, eventually leading to the
participation in top level competitions Venue construction
• Venue construction: comprises of the necessary steps that need to be
taken for the construction of venues and training facilities including Sports goods &
planning, design development and construction equipment
• Sports goods & equipment: refers to the entire process required to Sports commercialisation
design, produce, distribute and sell sports goods & equipment
• Sports commercialisation: refers to the activities that aim to monetise Sports tourism
the commercial rights of an event (e.g. broadcasting, sponsoring,
ticketing) and bring revenues to the rights holder Event management &
• Sports tourism: revolves around the necessary steps taken to influence promotion
traveling to participate in or observe sports or other entertainment
events
External screens, signage
• Venue operations & maintenance: comprises of the activities necessary
and wayfinding
to operate and maintain stadiums and venues
Marketing
Bidding Organisation Event delivery Legacy & re-use
& sales
Bidding refers to Organisation of an Proper promotion, This activity After the event is
activities such as event is accompanied marketing and sales includes the successfully
concept by entrepreneurial can ensure operations to completed, tangible
generation, risk with regards to maximum actually stage an assets should be
servicing of a bid, planning and attendance to an event. Depending reused and
preparation of financing. Typically, event. Event tickets on the type of event knowledge gained
bidding if the event is can be bundled being held, specific during event
documents and sanctioned, then with hospitality or technical skills and planning,
event planning. there is a need to travel deals to tangible equipment preparation and
purchase hosting encourage more and temporary delivery should be
rights. potential infrastructure are made use of for
customers. required. future events.
Sport Business Opportunities Forum • Flagship Business Cases October 2015
P.60
Introduction
Opportunity overview
An opportunity exists for Qatar-based companies to supply, install and
maintain external screens, signage and wayfinding signs to event
“The market for
management companies, developers and venue operators. external screens,
External screens and signage providers supply made-to-order synthetic signage and
textile products, featuring event branding, visuals and directional signage, wayfinding in
to be utilised on fences and other infrastructure. These companies also Qatar is expected
provide additional services such as mast fixing and accessories for signs
related to direction, information, shop front lettering, door & floor
to reach QAR 322
numbering and nameplates. million in 2025”
Growth in the event management, manufacturing and
construction markets in Qatar create opportunities for local
SMEs
Local players operating within the external screens, signage and
wayfinding segment already exist in Qatar and generate most of their
revenue from the advertising, manufacturing and event management
industries.
Qatar has a busy upcoming sports calendar with an average of seven major
sporting events organized by the Qatar Olympic Committee to be held “Qatar’s external
each month. Typically, event organisers contract a marketing and
branding agency to design and develop their advertising strategy. These
screens, signage
events will all require services from external screens, and signage and wayfinding
companies, which can be contracted through a marketing agency. Growth market is expected
in the advertising industry further provides additional demand for to grow at a CAGR
companies playing in this market.
of 10% between
In addition to events, the economic boom and growing construction
industry in Qatar provides additional opportunities for these companies.
2016 and 2025”
The growth in the non-residential construction industry will generate new
commercial spaces and storefronts. As a result, these new businesses will
require the services of external screens, signage and wayfinding suppliers.
Quality and technology used to manufacture and supply external screens,
signage and wayfinding signs vary depending on the requirements and
size of the project, with digital printing being a key component. Currently,
suppliers of high quality digitally printed external screens as well as digital
displays and signage are lacking in the local market.
The digital displays use high-resolution light-emitting diodes (LEDs)
instead of vinyl or plastic sheets. The industry is moving toward producing
more digital displays because they are more profitable than traditional
external screens and signage. For example, up to eight separate
advertising messages can be loaded into a computer that will then cycle
the images periodically on every digital display connected to the network.
Sport Business Opportunities Forum • Flagship Business Cases October 2015
P.61
Market overview (1/2)
Qatar market
The total market for external screens, signage and Exhibit 2: Qatar market size for sports related
wayfinding is expected to grow from ~QAR 161 external screens and signage opportunities
(QAR millions)
million in 2016 to ~QAR 322 million in 2025,
60
growing at a CAGR of 8%. Supply to sports related
venues and events is expected to grow from ~QAR 41 45 46 45
41 40 41
million in 2016 to ~QAR 60 million in 2022. The 34
38
31
industry is expected to continue expanding over the
next ten years as increased economic activity is
expected to boost industry performance.
Market drivers
The primary factors driving the demand in Qatar are: 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
P.62
Market overview (2/2)
P.63
Industry overview: GCC and Qatar
External screens, signage and wayfinding signs manufacturers have low bargaining power
due to the fragmented nature of this industry
Supplier power
• Supplier market is fragmented resulting in lower supplier
bargaining power
• External screens, signage and wayfinding suppliers purchase
materials from numerous suppliers and concentrate orders
only when one supplier offers advantageous pricing
P.64
Financial plan (1/2)
Investment
Exhibit 7: NPV for 2016 to 2025 (QAR million)
To capture the whole opportunity, an investor
must be capable of investing ~QAR 23 million. 18
Such an investment has a NPV of ~QAR 18
million for the next ten years (2016 to 2025). 9
The expected IRR for this opportunity is 19%.
4
Local businesses with limited financial 1
capability and risk appetite may capture part of
1 5 11 23
the opportunity by investing less than the
maximum required investment as detailed in Investment
the scenarios below: Investment = Start-up CapEx + (DSO/365)* operating costs for first year
P.65
Financial plan (2/2)
P.66
SPORT BUSINESS
OPPORTUNITIES FORUM
Event Organisation & Planning
P.67
Introduction
Qatar has a pipeline of upcoming local and international sports events which generate
opportunities for local SME companies to provide event organisation & planning services
The sports industry is complex in nature and covers a wide range of Exhibit 1: Areas for
interlinked and interdependent activities. Seven areas of opportunity have sports opportunities
been identified to analyse the sports market, as outlined in Exhibit 1 and
detailed below: SPORTS
• Event management & promotion: refers to the entire process of
staging an event from the bidding phase to event delivery and post-
Venue operations &
event services
maintenance
• Sports development: focuses on the engagement of people with sports,
particularly at a young age, both from an elite (professional) sports as Sports development
well as from an amateur sports perspective, eventually leading to the
participation in top level competitions Venue construction
• Venue construction: comprises of the necessary steps that need to be
taken for the construction of venues and training facilities including Sports goods &
planning, design development and construction equipment
• Sports goods & equipment: refers to the entire process required to Sports commercialisation
design, produce, distribute and sell sports goods & equipment
• Sports commercialisation: refers to the activities that aim to monetise Sports tourism
the commercial rights of an event (e.g. broadcasting, sponsoring,
ticketing) and bring revenues to the rights holder Event management &
• Sports tourism: revolves around the necessary steps taken to influence promotion
traveling to participate in or observe sports or other entertainment
events
Event organisation &
• Venue operations & maintenance: comprises of the activities necessary planning
to operate and maintain stadiums and venues
Marketing Legacy
Bidding Organisation Event delivery
& sales & re-use
Bidding refers to Organisation of an Proper promotion, This activity After the event is
activities such as event is marketing and includes the successfully
concept generation, accompanied by sales can ensure operations to completed, tangible
servicing of a bid, entrepreneurial maximum actually stage an assets should be
preparation of risk with regards to attendance to an event. Depending reused and
bidding documents planning and event. Event on the type of knowledge gained
and event planning. financing. tickets can be event being held, during event
Typically, if the bundled with specific technical planning,
event is hospitality or skills and tangible preparation and
sanctioned, then travel deals to equipment and delivery should be
there is a need to encourage more temporary made use of for
purchase hosting potential infrastructure are future events
rights. customers. required.
Qatar Sports Business Cluster • Flagship Business Plans October 2015
P.68
Introduction
Opportunity overview
A business opportunity exists for Qatar-based companies to provide event
organisation and planning services for upcoming sports and non-sports
events in Qatar and the rest of the GCC. As a key pillar of the event
management area of opportunity, the overall organisation and planning of
an event is responsible for budgeting, planning, coordinating and
delivering a successful event. The type of event, including the event size,
“Doha’s largest
profile, location and the experience of the organizing committee in hosting auditorium seats
events, determines the overall scope and scale of planning and delivery more people than
required. Generally, large mega events feature strong local organizing the largest
committees prefer to ‘in-sourcing’ of some of the key activities based on
in-house capabilities and capacities. Other activities are supported by an auditoria in
event management company. It is common in the region to outsource London, Paris, or
smaller events related to sports, entertainment and corporate to external Madrid”
agencies who take complete responsibility from planning to delivering the
event. Event management agencies typically have different capabilities
and offer different services around events.
Looking at Qatar, professional event management suppliers are central to
developing a sustainable events management industry, capable of
mobilizing spectators and shaping a “product” that is suitable for
broadcasting and wider marketing opportunities.
Opportunity exists for local SMEs to provide event planning &
organisation services to local, regional and premium events
Growth in the event management market in Qatar is supported by a strong
local, regional and international events plan for the coming years. Qatar
plans to host approximately 100 events throughout the 2015/2016 “Qatar’s event
calendar year, of which 60 events are international. Premium planning &
international events to be held in Qatar include the UCI Cycling World organisation
Championship 2016, the IAAF World Championship 2019 and the 2022
FIFA World CupTM.
market is expected
to increase from
Currently, the market for mid-sized events in Qatar is highly competitive
and saturated, however, the market for premium and mega-events is not ~QAR 659 million
yet mature and is dependent on a strong level of supplier and product in 2016 to ~QAR
differentiation. Local companies lack the level of sophistication required 1.4 billion in 2025”
to plan and organize mega-events, while international companies, which
have been increasing their local footprint in recent years, often overlook
the importance of catering to local preferences.
An increase in the demand for events has resulted in an increase in the
number of Qatari companies hiring highly qualified personnel in the field
of event planning and organisation. Collaborating with world renowned
companies and experience personnel will help expedite the learning curve
for locally-based companies and help them acquire skills which can be
used for future events.
Qatar Sports Business Cluster • Flagship Business Plans October 2015
P.69
Market overview (1/2)
Qatar market
The Qatari event organisation & planning market Exhibit 2: Qatar market size for sports
size is expected to increase from ~QAR 690 million opportunities (QAR millions)
in 2016 to reach ~QAR 1.7 billion in 2025. The sports
event organisation and planning is expected to grow +8%
from ~QAR 437 million in 2016 to reach ~QAR 894 1,179
million in 2025, growing at a CAGR of 8%. The 894
811
market size for sports events is primarily driven the 687 735
605
events being hosted by MCS, QOC, Aspire, SC, 437 407 462
371
national associations and federations..
Qatar will experience a peak in demand for sports
event organisation and planning services in 2019 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
(~QAR 687 million) due to the IAAF World Source: QOC, MCS, SC, ASPIRE, PwC analysis
are international)
• MICE tourism: Qatar is focusing on cementing
its role as a hub for hosting local, regional and
global MICE events. In the Middle East, MICE
tourists account for about $11 of every $100 that “According to the ICCA
tourists spend country and city
• Disposable income: Per capita disposable rankings, the number
income is expected to increase in 2015,
therefore, spending on sports events and others
of corporate events
will increase as consumers become wealthier held in Doha have
and spend more on discretionary services and increased by 40%
sources of entertainment. Qatar has the highest between 2011 and
disposable income per capita in the world
2014”
• Economic growth: Growth in the economy
results in a larger number of companies willing
to spend money on hosting events
P.70
Market overview (2/2)
P.71
Industry overview: GCC and Qatar
The degree of competitiveness within the event management industry is moderate, as the
market has not yet entered the mature stage of its life cycle
Supplier power
• When contracted with significant advance time, buyers
benefit from low supplier bargaining power. However, as
time gets shorter, the bargaining power of suppliers
increases dramatically, as the number of supplier willing
and capable of delivering under time pressure decreases
Barriers to entry
Threat of substitutes • Barriers to entry are
relatively low particularly
Industry rivalry in the marketing and
• A full substitute, however,
would only be in-housing • The middle market for event branding areas, where
operations by the event management is highly creativity and innovation
host or event organizer competitive and saturated, are a driving force
whilst for mega-events, the • In technical areas that are
pressure of public exposure “mission critical”, track
enables selected leading record and experience of
suppliers to differentiate and established suppliers is
maintain a strong level of highly valued by rights
differentiation, leading to holders, generating a
attractive profitability sense of loyalty and
gratitude that is difficult to
break for new entrants
• Switching costs are low
given that many events are
one-off transactions
P.72
Financial plan (1/2)
Investment
Exhibit 5: NPV for 2016 to 2025 (QAR million)
To capture the whole opportunity, an investor
must be capable of investing ~QAR 391 million. 750
Such an investment has a NPV of ~QAR 750
million for the next ten years (2016 to 2025).
375
The expected IRR for this opportunity is 25%.
Local businesses with limited financial 38
10
capability and risk appetite may capture part of
the opportunity by investing less than the 5 20 196 391
• Initial purchases
3. If an investor is limited to an initial • Staff wages 77%
investment of ~QAR 5 million, the resulting • Marketing
• Insurance
NPV would be ~QAR 10 million • Legal costs and
government
approvals
P.73
Financial plan (2/2)
P.74
SPORT BUSINESS
OPPORTUNITIES FORUM
Concessions
P.75
Introduction
Food and beverage concessions present a profitable opportunity for Qatar-based
companies wishing to provide services for planned sports venues in Qatar
The sports industry is complex in nature and covers a wide range of Exhibit 1: Areas for
interlinked and interdependent activities. Seven areas of opportunity have sports opportunities
been identified to analyse the sports market, as outlined in Exhibit 1 and
detailed below: SPORTS
• Event management & promotion: refers to the entire process of
staging an event from the bidding phase to event delivery and post-
Venue operations &
event services
maintenance
• Sports development: focuses on the engagement of people with sports,
particularly at a young age, both from an elite (professional) sports as Sports development
well as from an amateur sports perspective, eventually leading to the
participation in top level competitions Venue construction
• Venue construction: comprises of the necessary steps that need to be
taken for the construction of venues and training facilities including Sports goods &
planning, design development and construction equipment
• Sports goods & equipment: refers to the entire process required to Sports commercialisation
design, produce, distribute and sell sports goods & equipment
• Sports commercialisation: refers to the activities that aim to monetise Sports tourism
the commercial rights of an event (e.g. broadcasting, sponsoring,
ticketing) and bring revenues to the rights holder Event management &
• Sports tourism: revolves around the necessary steps taken to influence promotion
traveling to participate in or observe sports or other entertainment
events
• Venue operations & maintenance: comprises of the activities necessary Concessions
to operate and maintain stadiums and venues
Opportunities in event management & promotion opportunity
One opportunity for potential investors in Qatar is the provisioning of food and beverage concessions at
sports and sports-related venues. This also includes sports-themed restaurants in leisure places such as
malls, airports and conference centres. This opportunity falls under the ‘event management & promotion’
area, and operates specifically within ‘event delivery’. These opportunities can be classified into five parts, as
follows:
Marketing Legacy
Bidding Organisation Event delivery
& Sales & re-use
Bidding refers to Organisation of an Proper promotion, This activity After the event is
activities such as event is marketing and sales includes the successfully
concept generation, accompanied by can ensure operations to completed, tangible
servicing of a bid, entrepreneurial risk maximum actually stage an assets should be
preparation of with regards to attendance to an event. Depending reused and
bidding documents planning and event. Event tickets on the type of event knowledge gained
and event planning financing. Typically, can be bundled with being held, specific during event
if the event is hospitality or travel technical skills and planning, preparation
sanctioned, then deals to encourage tangible equipment and delivery should
there is a need to more potential and temporary be made use of for
purchase hosting customers infrastructure may future events to
rights be needed for ensure maximum
successful delivery knowledge
Qatar Sports Business Cluster • Flagship Business Plans
transfer October 2015
2
P.76
Introduction
Opportunity overview
A business opportunity exists for Qatar-based companies to provide food
and beverage concession services in Qatar sports venues. These “Food is the next
concessions constitute a vital part of the unique match day experience for biggest expense in
both audiences and event organisers; where spectators get to enjoy a
variety of local and international restaurants in the stadium. Food and Qatar after
beverage presence in stadiums is a source of attraction for fans, where transport and
fresh-made meals and drinks increase their excitement when cheering for communications”
their favourite teams/players.
P.77
Market overview (1/2)
Qatar market
The food and beverage concessions market in Qatar Exhibit 2: Qatar market size for sports related
is in the developing stage and is expected to grow opportunities (QAR millions)
48
from QAR 18 million in 2016 to QAR 48 million in
2022, arriving to QAR 15 million in 2025.
Market drivers 28
30
24
The primary factors driving the demand in Qatar are:
18 19 18
16
• Disposable income: The fast growing disposable 15 15
Source Trading Economics 2014, BQ Magazine 2014, Qatar News Agency, The World Bank,
Al Masah capital Research, Doha News - April 2014, AaronAllen & Associates
Qatar Sports Business Cluster • Flagship Business Plans October 2015
P.78
Market overview (2/2)
GCC market
Exhibit 4: Country-wise Food Consumption
GCC has a booming economy with a young Growth 2014-2019F (in %)
multicultural population continuously inclined
towards food services. In fact, international quick
service chains and casual dining restaurants are
expanding tremendously in the whole region. Food
and beverage consumption is expected to grow at a 5.5%
4.8%
3.5% CAGR from 43.8 billion kgs in 2014 to 51.9
3.2% 3.1% 3.0%
billion kgs in 2019. 2.7%
Starbucks, Paul)
• Lounges and bars serve alcoholic drinks and food
(e.g. Cavalli, Hard Rock Café).
Source: GCC Foodservice sector 2014, Al Masah Capital Limited
Major players in GCC
The major players in the foodservice industry in the Sports-themed restaurants
GCC operate retail, restaurants and catering Sports-themed restaurants are common in
businesses. The major players are: developed economies such as US and Europe,
• Kuwait Food Company offering meals and drinks named after famous
• Kout Food Group athletes and players. Sports venues in GCC and
• United Foodstuff Industries Group Company in Qatar could start implementing these
• Danah Al Safat Foodstuffs Company restaurants, thus attracting fans to the
• Herfy Food Services Company stadiums.
• Bahrain Family Leisure Company In the GCC, drinks suppliers such as Pepsi and
• Other privately held companies Coke, already implemented this strategy by
serving sodas with famous players names and
Source:: GCC Food Industry Report 2015, Alpen Capital,
GCC Foodservice Sector 2014, Al Masah Capital Limited
pictures to fast-food chains.
Qatar Sports Business Cluster • Flagship Business Plans October 2015
P.79
Industry overview: Qatar
There is an opportunity for Qatari companies to provide food and beverage concessions in
Qatar sports venues
Supplier power
• Supplier market is largely fragmented with a wide
variety of global raw material suppliers, food
suppliers and service providers
• In general terms, suppliers have low bargaining
power
Barriers to entry
Threat of substitutes Industry rivalry • Requirements set by
• External similar • The market for food and beverage Municipality of Food and
restaurant chains residing concessions is a fragmented Inspection limits the entry of
at proximity of the sport market, featuring relatively high some restaurants
venues, where spectators and growing competition
• Ratings set by responsible
get the chance to eat • High presence of alternative parties to evaluate restaurants
outside before entering service providers serving similar
• The long-term nature of the
the sports venues meals outside the venues; and of
contracts for venues retail
global and regional competitive
spaces limits the threat of new
food chains
entrants
• SMEs having a strong presence in
• The restrictions set in some
the market and provide different
contracts by specific food and
cuisines to the various nationalities
beverage chains principals,
living in Qatar
providing similar services
• Consolidation and expansion is
• Prohibition of alcohol in Qatar
happening through M&A. Private
would impact the revenue of
equity firms are investing heavily
some global food and beverage
in this sector
chains in venues
P.80
Financial plan (1/2)
Investment
Exhibit 6: NPV for 2016 to 2025 (QAR million)
To capture the whole opportunity, an investor
must be capable of investing ~QAR 10 million. 14
Such an investment has a NPV of ~QAR 14
million for the next ten years (2016 to 2025).
7
The expected IRR for this opportunity is 24%.
4
Local businesses with limited financial 2
capability and risk appetite may capture part of
the opportunity by investing less than the 0.1 0.5 5 10
maximum required investment as detailed in Investment
the scenarios below:
Exhibit 7: Investment breakdown based on
1. An investment of QAR 5 million would benchmarks (Illustrative)
generate a NPV of ~QAR 7 million
CapEx • Interior
2. An investment of QAR 500,000, would Pre-operating expense
• Seating
• Kitchen
generate a NPV of ~QAR 4 million Working capital 24% 24% equipment
• Cutlery
3. If an investor is limited to an initial
• Staff wages
investment of ~QAR 100,000, the resulting • Restaurant lease
NPV would be ~QAR 2 million • Marketing 38%
• Initial purchases
of goods
Revenue 48
P.81
Financial plan (2/2)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
P.82
SPORT BUSINESS
OPPORTUNITIES FORUM
Sports Management,
Timing and Scoring
P.83
Introduction
The opportunity comprises of the leasing of sports event management, timing and scoring
systems and services in Qatar and other GCC countries
The sports industry is complex in nature and covers a wide range of Exhibit 1: Areas for
interlinked and interdependent activities. Seven areas of opportunity have sports opportunities
been identified to analyse the sports market, as outlined in Exhibit 1 and
detailed below: SPORTS
• Event management & promotion: refers to the entire process of
staging an event from the bidding phase to event delivery and post-
Venue operations &
event services
maintenance
• Sports development: focuses on the engagement of people with sports,
particularly at a young age, both from an elite (professional) sports as Sports development
well as from an amateur sports perspective, eventually leading to the
participation in top level competitions Venue construction
• Venue construction: comprises of the necessary steps that need to be
taken for the construction of venues and training facilities including Sports goods &
planning, design development and construction equipment
• Sports goods & equipment: refers to the entire process required to Sports commercialisation
design, produce, distribute and sell sports goods & equipment
• Sports commercialisation: refers to the activities that aim to monetise Sports tourism
the commercial rights of an event (e.g. broadcasting, sponsoring,
ticketing) and bring revenues to the rights holder Event management &
• Sports tourism: revolves around the necessary steps taken to influence promotion
traveling to participate in or observe sports or other entertainment
events
Sports management,
• Venue operations & maintenance: comprises of the activities necessary
timing & scoring
to operate and maintain stadiums and venues
Opportunities in event management & promotion
The increase in the number of sporting events planned to be held in Qatar presents an attractive opportunity
for potential investors to lease out sports management systems as well as timing and scoring equipment for
local, regional and global events. This opportunity falls under ‘event management & promotion’, defined as
follows:
Marketing
Bidding Organisation Event delivery Legacy & re-use
& sales
Bidding refers to Organisation of an Proper promotion, This activity After the event is
activities such as event is accompanied marketing and sales includes the successfully
concept by entrepreneurial can ensure operations to completed, tangible
generation, risk with regards to maximum actually stage an assets should be
servicing of a bid, planning and attendance to an event. Depending reused and
preparation of financing. Typically, event. Event tickets on the type of event knowledge gained
bidding if the event is can be bundled being held, specific during event
documents and sanctioned, then with hospitality or technical skills and planning,
event planning. there is a need to travel deals to tangible equipment preparation and
purchase hosting encourage more and temporary delivery should be
rights. potential infrastructure are made use of for
customers. required. future events.
Qatar Sports Business Cluster • Flagship Business Plans October 2015
P.84
Introduction
Opportunity overview
An opportunity exists for Qatar-based companies to provide sports
management systems as well as scoring and timing equipment to event
organizers. Qatar has a busy upcoming sports calendar, with an average of
seven major sporting events to be held each month. This has helped “Sports
position Qatar as a global sporting hub and as a result, Qatar has management,
developed a strong sports culture. A sports management system is timing and scoring
important for event organizers as it is used to manage key information on
people participating in the event. Hence, sports management systems
companies can
provide an integrated solution for the registration of athletes, volunteers, provide equipment
media representatives, etc. The database also has the capability to manage and services to
schedules, determine cumulated medal standings, in addition to identify major sports
competition background and venues. On the other hand, timing
equipment systems such as digital photo finish, integrated timing system events in Qatar
and RFID tags (to measure time to 1/10,00oth of the second) provide fully and across the
automatic time (FAT) as certified by the Olympics and athletics GCC”
organizations such as IAAF, etc. Scoring equipment is integrated with
timing systems to manage and publish competition results.
Capability and capacity constraints in the Qatari market create
an opportunity for SMEs
Sports management systems, and timing and scoring equipment are part
of a very niche market, of which few global manufacturers play a role in.
There are also no local manufacturers present in Qatar and the GCC who
could provide these niche professional systems and equipment that are “Qatar’s sports
required to manage mega-sports events management,
Locally, there is limited capacity available for the provision of highly timing and scoring
specialized equipment and services (e.g. timing & scoring, on-site
market is expected
communication, accreditations). A few local companies, such as Creative
Technologies, have partnered with global manufacturers to provide sports to grow at CAGR
management systems as well as timing and scoring equipment in Qatar. of ~8% between
Most local players have limited experience and accredited equipment that 2016 and 2025”
could be used to manage international sports events. Hence, they would
need to enter into a consortium/joint venture with an international player
to deliver professional services and equipment for timing and scoring to
event organizers. Based on their extensive knowledge, technical
capabilities and proven expertise, international companies will play a key
role in the development of this field locally.
In addition to local, regional and global sports events, opportunities also
exist for companies to provide less sophisticated equipment to the growing
education sector, in order to support their increasing demand for
managing school sports events. Separately, requirements including a high
level of technical expertise as well as manufacturing and R&D capabilities,
limits backward integration opportunities for local distributors.
Qatar Sports Business Cluster • Flagship Business Plans October 2015
P.85
Market overview (1/2)
Qatar market
The sports management, timing and scoring market Exhibit 2: Qatar market size1 for sports related
is expected to increase from ~QAR 38 million in 2016 management, timing & scoring opportunities
to ~QAR 78 million in 2025, whilst experiencing a (QAR millions)
peak of ~QAR 103 million in 2022, primarily driven +8%
by the FIFA World Cup. 103
Market drivers 71
78
60 64
The primary factors driving the demand in Qatar are: 53
38 35 40
• Sports events: Qatar is developing massive 32
P.86
Market overview (2/2)
P.87
Industry overview: GCC and Qatar
Supplier bargaining power is high as few international players provide sports event
management, timing and scoring equipment which is accredited by global sports
authorities and federations
Supplier power
• Due to the niche nature of the products, accredited
OEMs have a high bargaining power
• Market is consolidated, with a selected number of
players such as Omega and Swiss Timing which have
a high market share for premium event segments
P.88
Financial plan (1/2)
Investment
Exhibit 5: NPV for 2016 to 2025 (QAR million)
To capture the whole opportunity, an investor
must be capable of investing ~QAR 61 million. 18
Such an investment has a NPV of ~QAR 18
million for the next ten years (2016 to 2025).
The expected IRR for this opportunity is 22%. 9
Revenue +4%
54
51
If one company were to capture the full sports 45 47 49
43
management, timing and scoring opportunity 38
35
41
32
in Qatar, its revenues would increase from
~QAR 38 million in 2016 to ~QAR 54 million in 42 44 46 48
37 39 40
2025. However, investors with a lower financial
capability to invest or lower risk appetite would
still experience significant revenue growth
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
(refer to Exhibit 8).
The opportunity is expected to expand to the Exhibit 8: Annual revenue vs. Start-up investment
(QAR million)
rest of the GCC region in 2019. This market is
expected to account for ~11% of the total Investment (QAR million)
Years
company turnover. 3 5 30 61
To be successful in this industry, it is 2016 2 3 19 38
imperative that the company develop strong
2022 2 4 22 45
relationships & partnerships with sports
management, timing and scoring equipment 2025 3 4 27 54
and system manufacturers, that are accredited
Total
by global sports authorities such as the (2016 – 2025)
22 36 217 434
International Olympic Committee, IAAF, etc.
Qatar Sports Business Cluster • Flagship Business Plans October 2015
P.89
Financial plan (2/2)
20 35
17 18
Earnings before Interest, Taxes, 16
16
15 30
Depreciation, and Amortization 15 13
14
12
(EBITDA) 11
12 25
10
EBITDA is projected to reach ~QAR 18 million 20
-5 -4 0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
P.90
SPORT BUSINESS
OPPORTUNITIES FORUM
Temporary Toilets
P.91
Introduction
Temporary toilets are a fundamental element for securing the appropriate quality
standards for the spectator experience
The sports industry is complex in nature and covers a wide range of Exhibit 1: Areas for
interlinked and interdependent activities. Seven areas of opportunity have sports opportunities
been identified to analyse the sports market, as outlined in Exhibit 1 and
detailed below: SPORTS
• Event management & promotion: refers to the entire process of
staging an event from the bidding phase to event delivery and post-
event services Sports commercialisation
• Sports development: focuses on the engagement of people with sports,
Venue operations &
particularly at a young age, both from an elite (professional) sports as
maintenance
well as from an amateur sports perspective, eventually leading to the
participation in top level competitions Venue construction
• Venue construction: comprises of the necessary steps that need to be
taken for the construction of venues and training facilities including Sports goods &
planning, design development and construction equipment
• Sports goods & equipment: refers to the entire process required to Sports development
design, produce, distribute and sell sports goods & equipment
• Sports commercialisation: refers to the activities that aim to monetise Sports tourism
the commercial rights of an event (e.g. broadcasting, sponsoring,
ticketing) and bring revenues to the rights holder Event management &
• Sports tourism: revolves around the necessary steps taken to influence promotion
traveling to participate in or observe sports or other entertainment
events
• Venue operations & maintenance: comprises of the activities necessary Temporary Toilets
to operate and maintain stadiums and venues
Bidding Organization Marketing & Sales Event Delivery Legacy & re-use
P.92
Introduction
Opportunity overview
Rental of temporary toilets are a fundamental element for securing the
appropriate quality standards for the spectator experience. The toilet
rental industry is a localized market with limited opportunity to export
services. There are two main customer segments in the temporary toilet
industry: construction sites and events. The quality of toilets varies “Value is mainly
significantly depending on the type of segment. In the low-end segment, driven by the cost
rental of temporary toilets typically service the construction industry. In of staff, temporary
the high-end segments, suppliers are specialized on events. Events that
are staged in a venue not prepared to host a large number of spectators
infrastructure
(small stadium, green field location, or different type of event) require a for venues,
larger degree of temporary infrastructure and overlay compared to state- equipment and
of-the-art facilities dedicated to one sport and regular events. Portable overlay required”
toilets are also often used at remote construction sites; therefore, an
increase in construction activity leads to greater demand for temporary
infrastructure. Concert and event promoters host outdoor concerts, music
festival and recreational events. Due to the large number of attendees,
portable toilets are often needed to supplement stationary sanitary
facilities.
An increase in the number of upcoming events to be hosted in
Qatar, and a substantial growth in the construction industry
create an opportunity for Qatari SMEs
Qatar has a wealth of capabilities and assets that allow it to enter and
succeed in this market. The growth of the market will be supported by big “Qatar Tourism
international sports events in the coming years, such as the UCI Cycling Authority’s plan to
World Championship 2016, IAAF World Championship 2019 and the
FIFA World Cup 2022. Qatar also hosts recurring annual premier
expand the
international events in athletics (e.g. IAAF Diamond League), equestrian, national demand
motorsports and tennis (e.g. Qatar ExxonMobil Open). Qatar Tourism with over 100
Authority’s plan to expand the national demand with over 100 events events planned for
planned for 2015/2016, of which 60 are international, as well as Qatar’s
ambition to host many exhibitions, meetings, and concerts will result in an
2015/2016, of
increased demand for temporary toilets. which 60 are
The expected growth of the construction market in Qatar offers an international, will
appealing opportunity for the temporary toilet industry. Qatar's spending result in an
on infrastructure is expected to reach about QAR 546bn over the next increased demand
decade. These huge projects will include a ~QAR 72bn investment in
roads, ~QAR 145bn to be invested in railways, ~QAR 14bn to be invested for temporary
in stadiums, and ~QAR 29bn to be spent on a deep-water seaport. An toilets”
expected tens of thousands of hotel rooms is also expected to be built
along with a whole new city. The construction projects in the pipeline for
Qatar will necessitate the increased demand for temporary infrastructure
over the next ten years.
Qatar Sports Business Cluster • Flagship Business Plans October 2015
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Market overview (1/2)
Qatar market
The temporary toilet market is a localized market. Exhibit 2: Qatar sports market size for temporary
The temporary toilet sector in Qatar is currently toilets (QAR millions)
developing and is expected to increase from ~QAR +7.2%
66
114 million in 2016 to ~QAR 365 million in 2025,
growing at a CAGR of 13%, including inflation. 43 45
38 41
Qatar is the third largest market in the GCC, 34
24 22 25
dominating around 12% of the market (Exhibit 4). 20
Many of the local suppliers have partnerships with regional (GCC) & international manufacturers
(e.g. Nixon Hire’s partnership with Satellite Industries) of temporary infrastructure which they
then import and lease out to the local market. Suppliers in Qatar also look to increase their speed of
delivery by renting depots in the region to service it’s local customers (e.g. Space Fab’s depot in
Umm Salal Ali). Portable toilets have little product differentiation and are relatively cheap to
purchase. As a result, firms in the industry are required to compete on price to secure new clients.
Firms (e.g. Nixon Hire, KMA Trading, Space Fab) aim to bundle packages to key downstream
market such as construction and special event venues. This includes providing other services such
as temporary fencing, trailers, temporary housing, etc. Firms are also able to include other
guarantees on top of low prices to separate themselves from the competition. This includes
guaranteeing cleanliness, providing deodorizers and providing swift delivery and pickups.
Qatar Sports Business Cluster • Flagship Business Plans Source: BMI Report October 2015
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Market overview (2/2)
Global market
There is a low level of globalization in the
temporary toilet rental industry. The industry
does not involve any international trade and
there is little exchange of information
internationally. Some industry products are
manufactured internationally and purchased by
local companies for rental, however, most
industry-specific demand is domestic.
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Industry overview: Qatar and GCC
The market for temporary toilets presents opportunities for growth driven by the ramp up
in construction and events in Qatar
Supplier power
• The temporary toilet manufacturing supply base is
large and fragmented with a couple of multi-
national organizations and small regional and
local players. Therefore, suppliers have low
bargaining power compared to buyers
• Multiple manufacturers have a footprint in KSA
and UAE to meet local and regional demand
Barriers to entry
Industry rivalry
Threat of substitutes • Barriers to entry for the
• The market is large and portable toilet rental
• The threat of substitutes
fragmented, with SMEs industry are low and
for rental of temporary
dominating the local market. steady. HSSE Regulations
toilets is the construction
• Temporary toilets have little (e.g. QF Construction Site
of permanent toilets
product differentiation and Standards) exist on
• Backward integration of
are relatively cheap to construction sites to
grandstands and
purchase. As a result, firms in ensure cleanliness and
temporary infrastructure
the industry are required to availability of temporary
providers
compete on price to secure washrooms
new clients. Many firms in • Capital investment is also
the industry also provide low in the industry.
temporary fencing, trailers, Beyond the capital
holding tanks, showers and investment to purchase
temporary power to attract the toilets, a trailer and
business through the truck are needed to carry
bundling of multiple services the toilets to and from
locations
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Financial plan (1/2)
Investment
Exhibit 4: NPV for 2016 to 2025 (QAR million)
To capture the whole opportunity, an investor
must be capable of investing ~QAR 54 million. 41
Such an investment has a NPV of ~QAR 41
million for the next ten years (2016 to 2025).
21
The opportunity has an IRR of ~19%.
Local businesses with limited financial 2
capability and risk appetite may capture part of
3 27 54
the opportunity by investing less than the
maximum required investment as detailed in Investment*
the scenarios below: * Investment = Start-up CapEx + pre-operating expenses + funds required until business is self-sustainable
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Financial plan (2/2)
Marketing
The primary capital expenditure in the
industry is the purchase of portable toilets, Exhibit 9: CapEx and Opex intensity
which are leased to clients and must be
replaced periodically. Capital investment is CapEx intensity: High
also needed for transportation vehicles, such • CapEx is relatively high as the initial investment to
as heavy-duty trucks, pumping equipment and purchase portable toilets is the driver to start this
cleaning tools. business
5
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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