CFPSA – ARMYCFPSA – ARMYPARTNERSHIP FOR THE PARTNERSHIP FOR THE

10 December 200710 December 2007Major Christopher HoreczyMajor Christopher Horeczy

On behalf of CLSOn behalf of CLS

“…, the Army will host the that enables the Canadian Forces to protect Canadians, defend our sovereignty, fulfill our international commitments and contribute to international security, in a venue that promotes health and fitness and esprit de corps.”

MISSIONMISSION

DRAFT

The TeamThe Team

► People in uniform: People in uniform:

Army, Air Force and NavyArmy, Air Force and Navy

► Civilian Staff in DNDCivilian Staff in DND

► OGD: RCMP, DFAIT and OthersOGD: RCMP, DFAIT and Others

► NGOsNGOs

► Contractors and other agenciesContractors and other agencies

► Families, Friends and NeighboursFamilies, Friends and Neighbours

► Allies across the same spectrumAllies across the same spectrum

Operators

Capability Providers

Institutional Force

OUTLINEOUTLINE

► Request: $300k Line of Credit to meet Start Up Request: $300k Line of Credit to meet Start Up

CostsCosts

► Background – Strategic SettingBackground – Strategic Setting

► IntentIntent

► Financial Time LineFinancial Time Line

► Income StatementIncome Statement

► DecisionDecision

LINE OF CREDIT PROPOSALLINE OF CREDIT PROPOSAL► Total Cost Total Cost $1,100K$1,100K

► Public Funds *Public Funds * $ 750K$ 750K

► Non-Public Funds Non-Public Funds $ 350k$ 350k

► Revenue SourcesRevenue Sources

Entry Fees (3,000 participants) Entry Fees (3,000 participants) $110K$110K Available Jul – Sep 08Available Jul – Sep 08

Sponsorship Sponsorship $ 250K$ 250K Available Jul – Sep 08Available Jul – Sep 08

► Pledges – not applied to costs; to Pledges – not applied to costs; to Military Families FundMilitary Families Fund and and Soldier On FundSoldier On Fund

► CFPSA Line of Credit CFPSA Line of Credit to cover Start Up Coststo cover Start Up Costs $ 300K$ 300K

► * Cost Capturing: Macro Capture of all potential PF components * Cost Capturing: Macro Capture of all potential PF components Does not take away from current programming Does not take away from current programming

Including TD to get to the Run and other Land Including TD to get to the Run and other Land Forces SupportForces Support

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► Canadians Canadians Support Our TroopsSupport Our Troops - Everywhere - Everywhere

► Canadian National Fitness AgendaCanadian National Fitness Agenda

► CDS and CLS Fitness AgendaCDS and CLS Fitness Agenda

► Connecting With Canadians: Army, Navy, Air Connecting With Canadians: Army, Navy, Air

ForceForce

► Op CONNECTION $10MOp CONNECTION $10M

► Remembrance Day Record 30,000 PeopleRemembrance Day Record 30,000 People

► Recruiting ChallengesRecruiting Challenges

► Personnel stressPersonnel stress

► SOLDIER ONSOLDIER ON

► MILITARY FAMILIES FUNDMILITARY FAMILIES FUND

STRATEGIC SETTINGSTRATEGIC SETTING

Remembrance Day 2007 Record Crowds

Highway of Heroes

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““WHAT TOOK YOU SO LONG?”WHAT TOOK YOU SO LONG?”

► CDS Red Shirt jog: 5 – 6,000 participateCDS Red Shirt jog: 5 – 6,000 participate

► Army 10 Miler: 26,000 Army 10 Miler: 26,000

► Marine Corps Marathon: 28,000Marine Corps Marathon: 28,000

► Canadian Navy 10 KCanadian Navy 10 K

► Ottawa Race Weekend: 30,000Ottawa Race Weekend: 30,000

► Toronto/Montreal/Quebec growing Toronto/Montreal/Quebec growing

eventsevents

► A “Peoples’ Run” to Motivate the MassesA “Peoples’ Run” to Motivate the Masses

► 114,000 Runners in Ontario and growing114,000 Runners in Ontario and growing

► 58% participate in 5k and ½ Marathon58% participate in 5k and ½ Marathon

► ½ M becoming a Destination Event½ M becoming a Destination Event

70%Civilian

STRATEGIC SETTINGSTRATEGIC SETTING

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IntentIntent Army “brand” employed to promote the Canadian Forces and TeamArmy “brand” employed to promote the Canadian Forces and Team

► Run ExpoRun Expo Military / Operations ThemeMilitary / Operations ThemeLimited Running Stuff Limited Running Stuff

► RunRun Para delivery of the lanyardPara delivery of the lanyard

105mm starting gun105mm starting gun

1 minute delay to Start1 minute delay to Start Shadow RunsShadow Runs

VIPs: Political Media MilitaryVIPs: Political Media Military In TheatreIn Theatre

5 k and Half Marathon5 k and Half Marathon

Teams and CategoriesTeams and Categories

► AwardsAwards Short and FocusedShort and Focused

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Spirit and Pride of SoldiersSpirit and Pride of Soldiers

Enhanced Fitness Regime – even motivates Enhanced Fitness Regime – even motivates

spectatorsspectators

Awareness of Awareness of Soldier OnSoldier On and and Military Families FundsMilitary Families Funds

Show the physical and physiological rehabilitation Show the physical and physiological rehabilitation

of wounded CF men and womenof wounded CF men and women

Connecting with Canadians – high optic eventConnecting with Canadians – high optic event

Connecting with Canadians’ hearts and soulsConnecting with Canadians’ hearts and souls

Return on Investment:Return on Investment:

Cash for FundsCash for Funds andand Social CapitalSocial Capital

IMPACTIMPACT

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Worst Worst ScenarioScenario

Planned Planned ScenarioScenario

Probable Probable ScenarioScenario

Best Best ScenarioScenario

ParticipationParticipation 2,0002,000 3,0003,000 5,0005,000 6,0006,000

REVENUEREVENUE

Entry FeeEntry Fee $75k$75k $112.5k$112.5k $187.5k$187.5k $225k$225k

SponsorshipSponsorship 00 $250k$250k $350k$350k $400k$400k

Other FundsOther Funds n/in/i n/in/i n/in/i n/in/i

TOTAL REVENUETOTAL REVENUE $75k$75k $362.5k$362.5k $537.5k$537.5k $625k$625k

EXPENSESEXPENSES

Management ContractorManagement Contractor $80k$80k $80k$80k $80k$80k $80k$80k

Promotion ContractorPromotion Contractor $40k$40k $40k$40k $40k$40k $40k$40k

Promotion Materiel & Promotion Materiel & ServicesServices

$41k$41k $41k$41k $41k$41k $41k$41k

Rental FeesRental Fees $28.5k$28.5k $28.5k$28.5k $28.5k$28.5k $28.5k$28.5k

Contractor FeesContractor Fees $74.5$74.5 $74.5$74.5 $74.5$74.5 $74.5$74.5

SignageSignage $12.3$12.3 $12.3$12.3 $12.3$12.3 $12.3$12.3

Participant ItemsParticipant Items $38k$38k $52.5$52.5 $67k$67k $81.5k$81.5k

Miscellaneous ItemsMiscellaneous Items $12k$12k $12k$12k $12k$12k $12k$12k

ContingencyContingency $10k$10k $10k$10k $10k$10k $10k$10k

TOTAL EXPENSETOTAL EXPENSE $336.3k$336.3k $350k$350k $365.3k$365.3k $379.8k$379.8k

NET GAIN (LOSS)NET GAIN (LOSS) ($261.3k)($261.3k) $12.5k$12.5k $172.2k$172.2k $246k$246k

INCOME STATEMENT

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+/- $75k

Expense vs RevenueExpense vs Revenue

500

2,000 3,000 4,000 5,000 6,000

Cost450

400

350

300

250

200

150

100

50

550Total

Revenue

Participants

2,800

Soldier OnMil Families

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Year to Year Financial PlanYear to Year Financial Plan

11/12

YEARYEAR 20082008 20092009 20102010 20112011

ParticipantsParticipants 3,0003,000 4,0004,000 5,0005,000 6,0006,000

Amount From Amount From Previous YrPrevious Yr $12.5k$12.5k $82.5k$82.5k $210k$210k

Cost of RunCost of Run ($350k)($350k) ($380k)($380k) ($410k)($410k) ($440k)($440k)

Total RevenueTotal Revenue $362.5k$362.5k $450k$450k $537.5k$537.5k $625k$625k

Carry ForwardCarry Forward $12.5k$12.5k $82.5k$82.5k $210k$210k $395k$395k

Planned Scenario

ConclusionConclusion► The Run will provide a professional calibre event to The Run will provide a professional calibre event to

enable a meaningful expression of the Esprit de Corps enable a meaningful expression of the Esprit de Corps

of the of the TeamTeam that enables our success in operations at that enables our success in operations at

home and abroadhome and abroad

► Return on Investment: Real Capital and Social CapitalReturn on Investment: Real Capital and Social Capital

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DecisionDecision Approve $300K Line of Credit for Start Up costs Approve $300K Line of Credit for Start Up costs

- repayment in the worst case over 4 years.- repayment in the worst case over 4 years.