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Agenda – Sports, Arts, Culture & Community Services Committee 8 September 2010 - #2707771

SPORTS, ARTS, CULTURE & COMMUNITY SERVICES COMMITTEE

8 SEPTEMBER 2010

5 FINANCIAL SUPPORT REQUEST FROM NORTHERN AUSTRALIA FUTSAL FOR HOSTING FUTSAL INTERNATIONAL CLUB CHALLENGE AND CAIRNS BMX TO HOST 2011 BMX AUSTRALIA NATIONAL CHAMPIONSHIPS Tanya Rutherford 1/58/16-#2694061v2

RECOMMENDATION: That Council; a) does not approve request for $20,000 financial assistance for Northern

Australia Futsal to cover ground costs of international teams competing in the Futsal International Club Challenge in October 2010.

b) approves financial assistance of $25,000 for Cairns BMX to host the 2011 BMX Australia National Championships in April 2011.

INTRODUCTION: Council recently adopted the FNQ Events Strategy 2010-2015 which highlighted the need for Sports tourism initiatives. These high profile sporting events lead to many lasting benefits, significantly these include the economic benefit to the region, the vast national exposure provided by the event and the positive recommendations of individuals and groups who have enjoyed their Tropical North Queensland experience. The following two organisations are requesting financial assistance from Council to host such high profile sports tourism events; Northern Australia Futsal – Futsal International Club Challenge As part of the grand opening of the newly built Redlynch Sports Stadium, Northern Australia Futsal will be hosting the Futsal International Club Challenge from the 8 -10 October 2010. Northern Australia Futsal have requested financial assistance of $20,000 to help cover the ground costs for the international teams competing at this event. It is a ruling from the International Futsal Body that the ground costs, including accommodation for 4 nights, transport to and from accommodation, venue and the meals be covered by the hosting association. Cairns BMX – 2011 BMX Australia National Championships Cairns BMX submitted a bid to BMX Australia earlier this year to host the 2011 BMX Australia National Championships at the Cairns BMX facility on Scott St. It is forecasted this event will provide a substantial economic benefit to the region in excess of $4 million and attract over 4000 riders and spectators from interstate.

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Council is yet to endorse the Festival and Events funding stream which in future will deal with these types of financial assistance sports tourism event requests. It is anticipated the new funding stream will be tabled at the September Ordinary Council meeting for Council endorsement. In the meantime Council has been approached for financial assistance by the above sporting organisations and an urgent Council decision is required outside of the endorsement of the new Festival and Events funding stream guidelines because of the timelines for these particular events.

BACKGROUND: Northern Australia Futsal – Futsal International Club Challenge This event is sanctioned by AMF World Futsal Association, however Northern Australia Futsal (NAF) is an unregistered name and only exists to identify the region for Futsal National competitions. They operate under Vikings Futsal Association a not-for profit incorporated body, established over 15 years ago which currently has 1500 registered players. Northern Australia Futsal (NAF) estimates they will attract 26 teams of which 10 would be international teams each comprising of approximately 18 players/officials/supports, this equates to approx 460 people, refer Financial Assistance request letter and budget breakdown Attachment 1. After further investigations and discussions with the event organiser, he has stated that there are currently only 12 domestic teams confirmed and 4 international teams from Japan, New Zealand, Solomon Islands and Columbia that are interested in participating but have not yet confirmed their attendance due to pending confirmation that ground costs can be covered. Cairns BMX – 2011 BMX Australia National Championships Cairns BMX has been established for over 31 years and has over 250 members, and a very strong volunteer base. Over the last few years Cairns BMX has been the host to some successful major BMX events such as 2005 Australian Titles, 2006 FNQ Zone Titles and 2008 Qld State Titles. The latter event alone attracted over 900 riders to the region for a week of racing. This event received great praise from the riders and spectators with many looking forward to returning to Cairns. Cairns BMX has a National standard facility and extensive experience in organising large scale events and can offer a positive experience for the riders, spectators and sponsors of the 2011 BMX Australia National Championships.

COMMENT: Northern Australia Futsal – Futsal International Club Challenge Northern Futsal Australia is classified as an Other Incorporated Entity, with the definition of this being an entity that has the same characteristics as a company but is not incorporated as a corporations law company.

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This request for funding from Council would be going to Vikings Futsal Association, for the purpose of covering the ground costs for the international teams competing at this event being held in Cairns in October 2010, which incidentally is also offering $10,000 in prize money to the winning team with each team paying a $1000 entry fee to participate in this event. Cairns BMX – 2011 BMX National Championships It is expected that the 2011 BMX National Championships event will not only have substantial regional appeal but also draw top athletes and fans from across the nation. It is projected that this event will attract more than 4000 riders and spectators from within the region and interstate, who will stay a minimum of 5 nights and inject over $4 million into the local economy. Council’s support of these types of initiatives will contribute to the economic growth and prosperity of our region well into the future. Cairns BMX have been proactive and sought funding from other avenues such as Queensland Events and Community Gambling Benefit Fund to assist with hosting this event. Cairns BMX is seeking $34,000 financial assistance from Council to cover cleaning, security, first aid staff, and included in this figure is a $10,000 hosting fee payable to BMX Australia, refer Attachment 3 event costing breakdown. Whilst Cairns BMX is seeking $34,000 in financial assistance, Council officers are confident cost mitigation negotiations can be put in place with some of the specified items to reduce this financial support to $25,000. The economic benefit of this event will be more substantial than the AFL Masters held in Cairns in October 2009 which attracted 2000 participants. Council provided $15,000 financial assistance plus in kind support for this event. The 2010 BMX Australia National Championships were recently held in Shepparton, please refer to letter attached from Shepparton Council outlining the substantial economic benefit this event bought to the region, Attachment 4 and letter of support form TTNQ Attachment 5. Both financial assistance requests have been assessed against the Economic Benefit Funding assessment criteria tool refer Attachment 6. After assessment, a higher weighting was given to Cairns BMX for financial assistance to host the 2011 Australia BMX National Championships. This was based on the substantial economic benefit and exposure this event will bring to the region, coupled with their strong volunteer base and history of successfully delivering these types of high profile sports tourism events.

CONSIDERATIONS: Policy: Current Council policy, Council Grants Program No.1 06 22 currently accommodates for such requests for financial assistance from sporting associations and the like under the Economic Development Fund. It is intended that a revised Policy allowing for Festival and Events grants specifically will be submitted to the September Ordinary Meeting of Council..

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Financial and Risk: Council has not approved the new Festival and Events funding stream guidelines/ conditions/ eligibility or assessment of such requests. There is $238,000 allocated to this funding stream and currently $151,063 is committed, leaving an uncommitted balance of $86,937 in the 2010/2011 budget to fund future festivals and events. Refer Festival and Events financial assistance budget breakdown in Attachment 7.

CONSULTATION: CEO of Northern Australia Futsal and committee members of Cairns BMX were contacted for further information on their respective events.

OPTIONS: That Council;

a) does not approve request for $20,000 financial assistance for Northern Australia Futsal to cover ground costs of international teams competing in the Futsal International Club Challenge in October 2010.

b) approves financial assistance of $25,000 for Cairns BMX to host the 2011 BMX Australia National Championships

or c) approve $10,000 for Northern Australia Futsal in keeping with the reduced

estimated teams likely to participate in the Futsal International Club Challenge. d) approve $15,000 in reduced funding to Cairns BMX Club to host the 2011

BMX Australia National Championships. It should be noted that if Council decides to only part fund either of these events, this will put the event delivery and success of these events in jeopardy.

CONCLUSION: The Northern Futsal sporting event is unlikely to bring a substantial economic benefit to the region as currently there are only 12 teams (3 from Cairns) registered and no confirmed international teams. Providing financial assistance to Cairns BMX to host the 2011 BMX Australia National Championships will have a flow on effect to the local sporting community, fulfilling Council’s corporate objective of increasing the public’s access and exposure to sport and recreation which is a positive step towards reversing national trends of physical inactivity and sedentary lifestyles. In this respect, Council’s support for the FNQ Event Strategy and these types of sports tourism initiatives will contribute to the economic growth and prosperity of the Cairns region well into the future.

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Attachment 1 – Financial Assistance letter and budget breakdown from Northern Australia Futsal. Attachment 2 - Cairns BMX bid to host 2011 BMX National Championships Attachment 3 – Cairns BMX event costing breakdown Attachment 4 – Letter from Shepparton Council outlining economic benefit from recent 2010 BMX Australia National Championships Attachment 5 - Letter of support from TTNQ for 2011 BMX Australia National Championships Attachment 6 – Economic Benefit Funding Assessment Criteria Tool Attachment 7 - Festival and Events budget breakdown Tanya Rutherford Acting Manager Sport, Recreation & Community Development Ian Lowth General Manager Community, Sport, & Cultural Services

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ATTACHMENT 1 - Financial Assistance letter and budget breakdown from Northern Australia Futsal

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ATTACHMENT 2 - Cairns BMX bid to host 2011 BMX National Championships

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ATTACHMENT 3 - Cairns BMX event costing breakdown

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ATTACHMENT 4 - Letter from Shepparton Council outlining economic benefit from recent 2010 BMX Australia National Championships

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ATTACHMENT 5 - Letter from TTNQ outlining economic benefit from recent 2010 BMX Australia National Championships

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ATTACHMENT 6 - Economic Benefit Funding Assessment Criteria Tool

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ATTACHMENT 7 - Festival and Events budget breakdown Festivals and Events

Committed Tennis Centre Davis Cup 50,000

NQ Sports Foundation 32,504 Cairns Amateurs 23,000 Great Pyramid Race & Country Fair 14,391 Buskers Festival 12,859 Babinda Harvest Festival 10,000 Port to Port Variety Club bash 5,000 Gold Legends - Old Crocs Rugby 3,309 Committed Total 151,063 Uncommitted Total 86,937Festivals and Events Total 238,000

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