$3 million sought to cover ‘perfect storm’ cash-flow issue for Police & Fire Games

2025 World Police and Fire Games logoCourtesy World Police and Fire Games

This is not the World Games 2.0, all parties insist. Not the 2022 event, which cost $65.1 million to produce, that fell far short of its participation and revenue goals and left a $14.1 million shortfall that was ultimately satisfied by deep and unexpected contributions from the state, Jefferson County and the City of Birmingham.

Indeed, just a few days into the 2025 World Police and Fire Games being held in Birmingham — which is budgeted at $16.3 million — the number of participants (about 8,300 from 72 nations) is nearing expectations and area hotels are enjoying higher occupancy during a traditionally slow time of the year, according to information shared Monday during the monthly meeting of the Greater Birmingham Convention & Visitors Bureau’s Board of Directors.

“It would normally be deader than a doornail now,” said CVB Board Chair and hotel industry executive Bill Murray. “Our hotels are benefiting.”

Still, during a special meeting of the CVB last week, DJ Mackovets, CEO of the Birmingham host committee, said $3 million is needed to address “near-term cash-flow and ensure the successful closeout of the Games,” he said, according to minutes of the meeting.

Mackovets attributed the cash-flow issues primarily to lower-than-hoped-for corporate sponsorship support and the timing of when public dollars are scheduled to be disbursed. Corporations have committed $2.12 million, with $1.18 million already collected.

“We’ve done a very aggressive job with our corporate community and have literally had a thousand conversations over the last couple of years,” Mackovets said at the meeting, according to minutes. “Corporations are basically tapped out.”

The requested funds, he added, would ensure vendors are paid in a timely fashion — a major stain on the World Games — while awaiting checks from the city and state that are not slated to be cut until the 2026 fiscal year. Mackovets originally requested the funds in the form of a loan.

“We didn’t expect to be here,” he said, before explaining the sources and timing of projected revenue, along with looming costs, which include venue rental, insurance, signage, officials, medals, transportation and numerous other expenses. “We’ve exhausted every [immediate cash-raising] opportunity. So, that’s kind of a perfect storm.”

Mackovets asked for $2 million from the CVB, whose mission is to promote tourism and recruit events to the region (it collects revenue from a portion of hotel and sales taxes); and $500,000 each from Jefferson County and Birmingham.

The CVB had already provided $1.35 million to support the games. Additionally, the state has paid more than $1.1 million — less than half of the $2.75 million it has promised. Jefferson County has put in $2 million, and the city has paid $1.5 million, with an additional $500,000 scheduled to be paid after the 2026 fiscal year begins in July.

Additional revenue comes from registration fees ($1.10 million has been collected, with $400,000 more projected) and sponsorships.

Estimates put the overall economic impact of the event at $66 million, though CVB board members took a more conservative view of potential revenues, calculating projections on tax revenue.

Last week, at the end of what Murray described as “not an easy meeting” (board member Sen. Jabo Waggoner stated it would be a “total embarrassment to the state and Birmingham if we don’t fund this at some level,” according to the minutes), the CVB board narrowly approved (4-3, among those present) to providing additional $1.5 million to support the event.

The funds come from the CVB’s reserves, which totaled $10.8 million before the vote.

“[Supporting events] is not our mission,” Murray said. “It’s not tourism promotion, but we got into this, and we’ve got to see it through. In the end, we all walked out as friends. It’s important to make sure it went well. We didn’t want this to be a World Games.”

“The WPFG is another great opportunity for the Birmingham-Hoover area to put its best foot forward in welcoming the sporting world of first responders to our region,” said board member John Lyda, who is also president of the Hoover City Council. “I am confident we will succeed in that, as we always do.

One significant difference between the World Games and the World Police & Fire Games is that participants in the latter are paying for their own accommodations, which will produce tax revenue not realized from the 2022 event.

“Once we do the math four months from now and calculate the hotel and sales taxes generated during this time when things are usually down, we’ll be fine,” said CVB Board member and Birmingham City Councilor Hunter Williams.

Less than two weeks into his tenure as the CVB’s new CEO and president, Dan Williams, formerly the chief sales officer at Experience Columbus in Ohio, said at the special-called meeting: “These types of events have impact in your communities and always provide a benefit and the exposure needed [to attract other events]. There’s always a risk you have to take.”

Added Lyda: “As stewards of the financial resources of the GBCVB, it is incumbent on our board and staff to ensure our investments have a direct, positive ROI for our local tourism industry by filling hotels, restaurants, and entertainment facilities. Time will tell how fruitful our investment of over $2.8 million in these games will be.”

On Monday, board member Rick Smith addressed what many termed corporate “donor fatigue.” “We need to take on the challenge of meeting with some donors to make sure we have a great relationship with them. We all went through a lot for the World Games and now look to the Police and Fire Games to set the stage for the community to understand the impact. Success begets success.”

“We don’t want this to become a black eye on Birmingham in getting future events,” added Murray last week. “And perhaps we should have planned this earlier. We have a lot of skin in this game, the most we’ve ever had for any event. We’ll get our money back somehow.”

It is not yet known when the city and county will consider its additional requests.

Waggoner committed to working to secure an additional $250,000 from the state.