THE TEMPLE OF DOME

When Led Zeppelin played at the O2 arena the other night to packed crowds and stratospheric gate receipts, it showcased once again the ever-growing feeling that business has the power to make more impact in the modern world than government.

When the Millennium Dome opened at the turn of the century it was hounded and harangued by the press relentlessly and was considered by critics across the country to be an embarrassing and badly executed waste of time and money.

It was the laughing stock of London.

With an ever-changing management team at Board level and unrealistic expectations for visitor numbers set by the Government, it was the antithesis of the vibrant and exciting leadership that had swept Tony Blair and New Labour into power.

Here was a project that became synonymous with failure; it attracted half the number of people through the gates than had originally been hoped for and squandered £204 million more of lottery money than had been planned for at the outset.

To make matters worse, after the closure of the Millennium Exhibition at the end of 2000, the structure remained out of action for most of the next six years. Again the government came under fire from the circling press for its expensive closing of the arena and the exorbitant amount it took to maintain the building as it lay vacant.

It was a perfect example of the inability of the Government and the public sector to implement large-scale plans effectively. Time and again there were calls for the project to be handed over to big business to ensure its success.

But instead it turned into a political and financial black hole.

After years of debate over who would save the Dome, the government finally chose AEG to redevelop the site as an entertainment centre with surrounding houses, shops and offices. At the centre of the financial backing lay American billionaire Philip Anschutz but the figurehead for the project was AEG’s charismatic and revered CEO Timothy J. Leiweke; considered to be one of the world’s leading presenters of sports and entertainment programming.

When telecommunications giant O2 put pen to paper on a £multi-million per year sponsorship deal over an incredible 15 year period, the cynical business press laughed out loud.

Philip Beard was quickly installed as the CEO for the renamed O2 Arena and brought with him a growing reputation for winning.

As a former head of the 2012 Olympic Bid under Lord Coe, here was a man that had a track record of getting things done.

But despite Beard’s insistence that the venue was “London’s most exciting indoor space”, still the media reported that the Dome was doomed.

Yet when it re-opened as “The O2” the results were spectacular.

Six months later and it has become the most successful music venue in history and has secured its place at the heart of London’s entertainment as a music and sporting arena of world repute.

Peter Erskine, CEO of O2, has since gone on record as saying that after just half a year of global exposure their total sponsorship investment over the 15 years has already been repaid in terms of brand recognition and reputation.

Not only that but many believe that in the huge battle for the rights to the groundbreaking iPhone, O2 kicked rivals Vodafone and Orange into touch simply due to their growing music reputation thanks to the O2 Arena.

As the music industry struggles to find a new strategy with the slowing of CD sales and the surge in downloadable music at little or no cost, live music is where the big money is being made.

The O2 Arena has already made a name for itself in terms of diversity. From the Spice Girls to NHL Ice Hockey and from 50 Cent to the 2012 Olympic Gymnastic Finals, it has the capacity to run some of the biggest and most challenging events in the world.

In short it has become one of the most sought-after global venues.

But again it has taken big business to deliver the big projects. The government continually falters under spiralling deadlines, budgets and media pressure.

When comparing the new Wembley Stadium, The Emirates Stadium and The Millennium Dome it becomes painfully apparent that the Government simply cannot and should not get involved in these projects.

Wembley and The Millennium Dome became synonymous with controversy and costly errors whilst the privately funded Emirates Stadium and O2 Arena have been unquestioned triumphs. Only big business is comfortable naming buildings and securing lucrative sponsorship deals and only big business seems capable of delivering results on budget and on time.

When will the government learn that it is perfectly suited to starting these initiatives but to prevent future wasting of taxpayers’ money it MUST hand them over to private sector organisations for delivery?