LTC 164-2017 World OutGames 2017AN\i BEACH
OFFICE OF THE CITY MANAGER
LTC #: 164 -2017
LETTER TO COMMISSION
TO: Mayor Philip Levine and Members • the City Co aj ission
FROM: Jimmy L. Morales, City Manager
DATE: March 28, 2017
SUBJECT: World OutGames 2017
This letter serves to update the Mayor and Commission on the planning and fundraising
progress of the World OutGames 2017 scheduled to take place from May 26 -June 4,
2017.
The City of Miami Beach has entered into two grant agreements with Miami-Beach-
Miami LGBT Sports and Cultural League, Inc. in support of the World OutGames 2017.
Per Resolution 2014 - 28492, the first grant was issued in FY 2013/14 in the amount of
$100,000; with $50,000 to be repaid from World OutGames to the City of Miami Beach
upon receipt of funding from the Miami Beach Visitor and Convention Authority (VCA).
Although VCA funding for OutGames was secured for 2013/14; 2014/15; 2015/16; and
2016/17, OutGames has not yet reimbursed the City in the agreed upon amount of
$50,000 per this initial sponsorship agreement.
The second sponsorship agreement provides for $300,000 to be disbursed in three
installments:
1. The first disbursement of $100,000 at signing in October 2016,
2. The second disbursement of $100,000 at such time as when the World OutGames
has contracts in place /proof of fundraising of at least $1,100,000 from funding
sources other than the City.
3. The third disbursement of $100,000 would be made at such time as World
OutGames has contracts in place /proof of fundraising of at least $2,200,000 in
cumulative funds from funding sources other than the City.
Furthermore, the second sponsorship agreement stipulates that OutGames would be
responsible for providing financial reports on fundraising activities to the City summarizing
fundraising receipts for the following dates:
• October 31, 2016
• December 31, 2016
• February 28, 2017
• April 30, 2017
• July 31, 2017
Upon repeated request, the first fundraising and financial reports were presented on March
14, 2017. The fundraising report indicated an estimated value of $2,357,000 in both cash
and in -kind sponsorships and represented $495,000 in current cash collected.
Upon review of the fundraising report, it was clear that both cash and in -kind sponsorships
were co- mingled in the reporting, and City staff asked for an updated fundraising report
showing current commitments; cash received; outstanding gifts; and in -kind support.
Further, OutGames staff estimated that the total operating budget for the World OutGames
2017 was now in the realm of $2.5 -3 Million. Staff requested an updated operating budget,
as the budget reflected in the agreement is represented as between $11.1 and 5.35 Million.
OutGames has not yet provided an updated operating budget.
At a subsequent meeting on March 24, 2017, OutGames provided an updated
fundraising report indicating the following funding secured to -date:
• $1,732,541 in committed gifts; including both cash and in -kind
• $495,691 in cash gifts received
• $605,000 in remaining cash gifts to be collected
• $631,850 in in -kind support
The Administration has not received copies of any sponsorship agreements and cannot
verify the cash collected. However, the financial report presented at the March 14, 2017
meeting represented a Balance Sheet indicating a total cash balance of $31,499, indicating
that any sponsorship funds received had already been largely expended. (See attached
financial reports)
Updated fundraising and financial reports were provided on March 27, 2017. In this
updated version, the fundraising report indicated a total of $193,000 in cash gifts
collected, with anticipated gifts remaining in the amount of $620,000. The financial report
did not match this fundraising report, but rather indicated $175,000 in cash gifts/
sponsorships collected and anticipated gifts remaining in the amount of $643,000.
Further, the financial report indicated a total operating budget in the amount of $2.185
Million.
The current Miami Beach Convention Center event schedule shows the OutGames
using a 14 -day time window including load -in and load -out. This would be the first event
of 2017 to open, and construction crews are ramping up and incurring additional
expense in order to reach this milestone and prepare the building for an opening. It
would be a waste of resources should the event cancel at the last minute and leave the
building unoccupied for that period of time.
At this juncture, Administration has grave concerns about the World OutGames ability to
successfully execute the planned events schedule given the very large gap between the
current cash balance ($31,499) and the anticipated expenses ($2.185M), as well as the
impact a potential cancellation will have on the Miami Beach Convention Center
construction timeline and budget.
KGB /MH /ES/VW
World OutGames Est. Sponsorships & Grants:
Value
CASH
BALANCE
RECEVIED ANTICIPATED INKIND PENDING TOTAL Category
Presenting Sponsor CMB $350,000 $150,000 $200,000 $350,000 General Funds
Apparel Sponsor Adidas $220,000 $100,000 $120,000 $220,000 General Funds & Marketing
Alcohol Sponsor Bacardi $149,000 $0 $149,000 $149,000 Product, POS and Staffing
Alcohol Sponsor Coke $0 $0 $0
Alcohol Sponsor Budwesier $50,000 $50,000 $50,000 Week of Event Signage
Hotel Sponsor The National Hotel $21,600 $20,000 $1,600 $21,600 General Funds
Decathlon Sponsor My Gay Miami $20,000 $20,000- $20,000 Motel Rooms
HotelSponsor Marriot Hotel $15,000 $15,000 $15,000 General Funds
Sponsor AARP $5,000 $5,000 $5,000 Human Rights
Sponsor OutClique $15,000 $15,000 $15,000 Marketing
I heart Radio
Sponsor (Goodman) $5,000 $5,000 $5,000 Marketing
Sponsor Miami Heat $25,000
Charitable Fund $25,000 $25,000 Cash towards Sports
Sponsor Art Deco Muesum $20,000 $20,000 $20,000
Perez Art Museum $1,370 $1,370 $1,370
New World Center $5,650 $5,650 $5,650 Venue
Soundscape Park $5;000
City $5,000 $5,000 Venue
Poetry Foudation $5,000 $5,000 $5,000 Cash
Burger King $5,000 $5,000 $5,000 Cash
GoDaddy $5,000 $5,000 $5,000 Cash
Papi Underwear $5,000 $5,000 $5,000
Institute for Race and $30,000
Equility $5,000 $5,000 $20,000 $30,000
Grant - Florida Sports
Foundation
Grant - VCA
Grant - Miami Dade
Culture
$0
$957,620 $155,000 $345,000 $392,620 $65,000 $957,620
$200,000
$45,000
$5,045
$200,000 $200,000
$45,000 $45,000
Grant - Miami Dade TDC $20,000
Grant - Miami Dade TDC
Grant - State of Florida
Culture
$18,000
$25 000
$5,000 $5,000
$20,000 $20,000
$18,000 $18,000
$25,000 $25,000 #
$313,045 $38,000 5275,000 $0 $0 $313,000
$1,270,665 $193,000 5620,000 $392,620 $65,000 $1,270,620
World Outgames 2017 Operating Budget
Pending /Short I
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607,380.00
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Inkind /Waivers
392,620.00
392,620.00
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$ 38,000.00
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283,500.00
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Budget
402,500.00
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$ 187,000.00
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TOTAL INCOME $11,704,470.00 5,621,090.50
$ 340,428.00
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$ 1,464,516.00
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Full Budget
$ 2,543,370.00
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Opening & Closing Ceremonies
Cultural Program
Cultural Program: Venues
Cultural Program: Artists /Films
'Festival Village: Lummus Park
'Women's Program
Operations: Admin
Operations: Insurances
Operations: I ravel (Non - Marketing
Operations :Safety & Security
I Operations: Medical
IOperations: Marketing
IOperations: Staffing
Outreach
Merchandising
1Contingency
ITOTALEXPENSES
'Community Legacy GOAL
EXPENSES
Sports
ISports: Officals
Sports: Venues
Human Right Conference
Human Rights Conterence: Venue
INCOME
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World OutGames Est. Sponsorships & Grants: CASH
Committed BALANCE
RECEVIED DUE INIUND Total
Presentin S onsor CMB $550,000 $150,000 $200,000 $200,000 $550,000
del Spansor Adidas w $20,000 $100,000 $120,000 $220 000
Alcohol Saonsor Bacardi $149,000 $0 $149,000 $149,00
Alcohol Sponsor „ ......u.. Coke .. ...,.,.�,..,....,,..... $0 :.Y. , . -. ...,07 ....................14,,,. $0 .... $0
Alcohol , 0000., . .. .
Alcohol Sponsor Budwesier $50,000 $.5. 0,000 $50,000
Bronze Sponsor Copenhagen Tourism $50,000
. $25,000 $25,000 $50,000
Hotel S onsor The National Hotel $21,600 .$20,000._ $1,600 $21,600
wwMww..r..ww..Y.wwjv.rv...w + x ...,....rrr,v
Decathlon S onsor MGa Miami $40,000 $20,000 $20,000 $40,000
Miami Dade County
Commissioner
Marriot Hotel
Ritz Carlton South
Beach
Sponsor **... 0000. AA
RP $7,500 ��^
S nsor . . .,,M_ CenterplatE \ . M$30 00 l 25,000
$5,000 $30,000
Decathlon Sponsor
Hotel S
onsor
Triathlon Sponsor
$25,000
$15,000
$10,000
$25,000
$15,000
$25,000
$15,000
$10,000 $10,000
$7,500
Sponsor Ex - $5,000 $5,000 $5,000
Sponsor
Sponsor
an mom
Sponsor
Sponsor
Sponsor
Prestige AV $5,000 $5,00(1 $5,000
�... .,,,.... A....... W ........... ........... ......... ........... ...,.,....,.....�.,...........
Spectrum (Global $15,000
Spectrum) d`$10000 $$5,000 $15000
Collins Park Ne° ig° '
Assoc. $7' $7,000 $7,000
Art & Business
Council
CARE Resource
$5,000
$2,500
$1,207,600
$5,00 $5,000
$1,250 $1,250 $2,500
$270,750 $335,000 $601,850 $1,207,600
$o
Grant •-- Florida Sports $200,000
)Foundatio �, $ 200, 000_.....,,..... .............. $200,000
,...M ..,,.,.�,....... ..., ,....,...
Grant -VCA $195,000 $150,000 $45,000 $195,000
Grant GMCVB $80,000 $50,000 $30,000 $80,000
Grant t - Miami Dade
$9,941
Culture. $4,941 $5, 000 $9,941
Grant - Mim D,. a� .. a P ,, e . .� ,,� .. A �
$20,000•
TDC $20000 $20,000
0 0,0,0. ,0,,0,,00 < ................nn w .., wn.•
Grant - State ofHorida
Culture ,$2!2.00 $20,000
$524,941 $224 ,941 $270,000 $30,000 $524,941
$1,732,541
$605,000 $631,85=;: $1,732,541
Miami Beach -Miami LGBT Sports & Cultural League, Inc.
BALANCE SHEET
As of March 14, 2017
TOTAL
ASSETS
Current Assets
Bank Accounts
MDGLCC Foundation - WOG 2017
MDGLCC Foundation Savings - Welts
Fargo
Miami Beach -Miami LGBT Sports and
Cultural League, Inc
TotatBankAccounts
Accounts Receivable
Accounts Receivable (NR)
TotaLAc countsfleciArable
Other Current Assets
Security Deposit
Total Other Curent.Assets
Total Eutxent.Assois
TOTALASSETS
1,840.53
1,151.37
14,381.51
$17,978.41
9,000.00
$9,000.00
5,125.50
$5,1,28.20
$31,496.91
$310498.,91
LIABILITIES AND EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable (A/P)
TotalAceountsPayable
Other Current Liabilities
Loan
Total Other Current
Total OurrentLialMos
Tetalliabikles
Equity
Opening Balance Equity
Retained Earnings
Net income
TotalEguity
TOTALJJABILC IESAND.EQUIIY
6,008.00
$8,008.00
- 1,000.00
$-- 1,000_00
$5,006.00
$5,008-00
100.00
5,000.44
21,390,47
$26,490.91
$31,498.91
Accrual Basis Tuesday, March 14, 2017 09:15 AM GMT -7 1/1
PAda-a, 4 T ( / WORLD ` Main Village Community Sta e
OUT Lummus Park1 Ocean Drive 7th to 8th Streets
GAMES Tuesday, May 29, 2017 to Sunday, June 4, 2017
MI,�MI 2O I
EVENT AFFILIATIONS
Sanctioned By: City of Miami Beach
International Governing Body: ,
LGBT International Bdy
International Hockey Federation (IHF)
Pick Hockey
Badmiton World Federation (BWF)
Ferderacion Internacional de Basketball (FIBA)
National Gay Basketball Association
World Bridge Feredation
Federacion Internacional de Domino (FID)
Federation Internacional de Volleyball (FIVE)
North American Gay Volleyball Asscociation (NAGVA)
International Martial Arts Federation (IMAF)
Federacion International des Luttes Associees (FILA)
Wrestlers WithOut Boarders
Royal & Ancient Club of Saint Andrews
Est. Sponsorships & Est. Value: CASH INKIND
Grants: $2,357,000.000 $735,750 $421,250
Title Sponsor TBD $1,000,000.00
Presenting Sponsor CMB 5OQ,O $1.01 00,00 0 200
Alcohol Sponsor Bacardi, Carlsberg, Coke +, o i l , 0 • 0,000 130,000
Bronze Sponsor Copenhagen Tourism $50,000.00 25,000 25,000
Hotel Sponsor The National Hotel $30 000 00 $20,000 $10,000
Decathlon Sponsor My Gay Miami ' "'... .. $25,000 00 $25,000 $10,000
Decathlon Sponsor Miami Dade $25,000.00 $25,000
Commissioner
Hotel Sponsor Marriot Hotel $15,000.00
Triathlon Sponsor Israeli Tourism $10,000.00 $10,000
Triathlon Sponsor Ritz Carlton South Beach $10,000.00 $10,000
Sponsor AARP $7,500.00 $7,500
Sponsor Collins Park Neigh, $7,000.00 $7,000
Assoc.
Sponsor Art & Business Council $5,000.00 $5,000
Sponsor CARE Resource $2,500.00 $1,250 $1,250
$1,837,000.00 $240,750 $391,250
Grant — Florida Sports $200,000.00 $200,000
Foundation
Grant -- VCA $195,000.00 $195,000
Grant — GMCVB $80,000.00 $50,000 $30,000
Grant — Miami Dade $30,000.00 $30,000
Culture
Grant — State of Florida $20,000.00 $20,000
Culture
$520,000.00 $495,000 $30,000
Miami Beach -Miami LGBT Sports & Cultural League, Inc.
PROFIT AND LOSS
January 1- March 14, 2017
TOTAL
INCOME
National Hotel 26,685.00
Registration Fees 116,791.81
TotalIneome $143,476.81
GROSS PROFIT $143,476.81
EXPENSES
Aquatics Expenses 8,500.00
OPERATION EXPENSES
Bank Charges 30,00
Office Expenses 476.82
Other General and Admin Expenses 1.13
Postage /Mailing 139.91
Rent or Lease 6,521.59
Telephone 674.09
Utilities 80.59
Total OPERATION EXPENSES 7,924.15
PAYROLL EXPENSES
Executive Director 9,000.00
Sports Director 5,025.00
Tota1P.AYROLLEXP'.ENSES 14.02&80
PR & MARKETING
Advertising 5,000.00
Advertising /Promotional 13,512,38
Event Activations 23.09
Printing 197.50
Promotional 1,756.80
TotaiPR &MARL ETINGa 20,48927
Rowing 375.00
Subcontractors 28,167.32
Travel
Internet Access Fees 10.85
Travel Entertainment 86.11
Travel Hotel /Lodging 747.60
Travel Tips 13.00
Travel Transportation/taxi /car rental 797.87
TotalTravel. 1,655 -A3
Travel Meals 537.19
Venue Fees 38,412.50
Total.Expenses $120,086.34
NET OPERATING INCOME $23,39047
OTHER EXPENSES
Miscellaneous 2,000.00
Accrual Basis Tuesday, March 14, 2017 09:17 AM GMT -7 1/2
TOTAL
Total Other.Expenses $2,000,00
NET OTHER INCOME $- A000.00
NET INCOME $21,390-47
Accrual Basis Tuesday, March 14, 2017 09:17 AM GMT -7 2/2