Northstar Releases AISTS Report on Event Organizer Host Decisions

A study published by the Lausanne-based International Academy of Sport Science and Technology (AISTS) has pulled back the curtain on some of the challenges facing the sports event bidding world.

The report, commissioned by the Northstar Meetings Group, reveals the shared ground for rights holders and prospective hosts when it comes to the bidding process — but also sheds light on their differences.

Based on a blend of surveys, focused interviews and secondary research, AISTS’ findings suggest some tension between the interests of the two parties. So what is each looking for — and how can their differences be resolved in the quest for bigger, better events?

Rights holders prioritize operational delivery

Sports events can be high profile and high risk, so when something goes wrong there’s a danger that the world will find out. Perhaps that’s why, according to AISTS’ research, the top priority for rights holders is the operational offer a host can make.

Asked to score a range of factors out of five, sports facilities and infrastructure unsurprisingly came out on top for the rights holders sampled, earning a score of 4.48.

Below this critical factor comes a range of second order priorities. They include capacity, security and risk management, broadcasting, and hosting costs and experience.

But crucially, all score well above factors that host cities might be forgiven for considering more highly — including ticket sales potential, a sport’s popularity locally and the ability to host VIPs.

The research also reveals that operational competence is one of three consistent challenges for rights holders, alongside financial hurdles and strategic alignment between the parties.

Julien Buhajezuk, senior manager for executive education at AISTS, said all this points to a laser-like focus on making sure an event goes off well.

“Understandably, rights holders are looking for the psychological safety of a well-run event from their host city,” he said. “It’s much more important to them than filling seats or jollying VIPs along. That means that even if a host destination builds a theme around their bid — like sustainability or sporting passion — its core foundation needs to be operational competence. Bluntly, they need to give rights holders confidence that nothing will go wrong. Anything on top of that is a bonus.”

Host destinations seek full hotels and brand awareness 

The AISTS report confirms what most of us already know — for host destinations, bidding for events isn’t about altruism or a love of sport: it’s part of a strategy to support a destination’s economy.

According to the data, when spending their taxpayers’ money, hosts want to fill hotel rooms, bring dollars into local restaurants and stores, and drive repeat visits.

Softer benefits like improving health or quality of life and community development rank much less highly.

And with sports events able to drive the ROI agenda for destinations, the good news for rights holders is that two-thirds (66%) of cities and regions have at least one member of staff dedicated to sports hosting. That’s significant given the emphasis rights holders place on operational success.

Buhajezuk says that the approach of destinations can broadly be described as “more events, bigger events.”

“We found that prospective venues are very committed to growth,” he said. “Almost 90% of them are planning or building new sports venues — whether permanent or temporary — and two-thirds are aiming to host more events. And although destinations know where they can deliver, they aren’t blind to their weaknesses. There is a shortage of athletics tracks and 50m pools, while most places told us that they also come up short on transport infrastructure, too. There’s an awareness that they need to do more and an appetite to do it, too — for the event, but also for the legacy it’ll leave to the local communities afterwards.”

Which destinations are emerging as favored hosts?

Part of the appetite for improvement among destinations is likely fueled by growing competition for the business of sports rights holders. With the World Economic Forum estimating that sports tourism will grow to $1.7 trillion by 2032, that’s not unexpected.

AISTS’ study found that rights holders are increasingly looking to diversify when it comes to the hosts they work with. While Europe currently dominates — 95% already hold an event on the continent — only 29% consider it a top target for the future. Instead, North America is in the sights of 71% of rights holders as a future host, with the Middle East, Africa and Asia attracting the attention of around half of the sports the study polled. If those ambitions are realized, it could lead to big changes in market conditions.

So what can rights holders and bidding destinations do to ensure their expectations align? The AISTS study has some answers.

How can rights holders and bidding cities improve the market?

According to Buhajezuk, part of the answer is to keep talking.

“Almost all our respondents say they value face-to-face meetings and the vast majority attend industry events to facilitate that. But as motivations on both sides change, that dialogue will become more important.”

He points to some of the shifting expectations of rights holders that need to be better understood by bidders if they are to remain competitive.

“We know that operational delivery is vital but many rights holders are increasingly looking to bidders to demonstrate cultural fit, too,” he said. “Our study shows that some want commitments around ethics, human rights and sustainability, for example. If hosts can better align their bid to these growing expectations, rights holders have told us they will be more generous with their financial offer.”

Jason Gewirtz, vice president of Northstar Meetings Group’s Sports Division, which commissioned the report, has the last word.

“The relationships between international federations and host cities are vital to understand as sporting events become more global in nature, and as the power of sports-related travel becomes more evident,” he said. “This report offers a crucial look at what each side values the most in that relationship. It’s important for us to know that those values don’t always coincide, which allows us to find ways to bridge that gap for the benefit of federations and host cities alike.”
To download a copy of the full report, click here.