IOC Promises Financial Support To VANOC If Games Run A Deficit

The IOC "promised Wednesday to help bail out" VANOC if it "fails to balance its operating budget by the time" the '10 Vancouver Olympics conclude, according to Rod Mickleburgh of the GLOBE & MAIL. The "extraordinary move [is] believed to be a first" for the IOC and "ends months of financial uncertainty for local Olympic organizers, who had been ruffled by barely a single problem until the recession struck with a vengeance last fall." VANOC Exec VP/Revenue, Marketing & Communications Dave Cobb said that the commitment "enables VANOC to go ahead and spend what it needs on the Games -- fewer than six months away -- without having to worry about a budget shortfall." Cobb: "We are now very optimistic that the budget gap will disappear. It really gives us the green light ... to get out of the planning mode ... and deliver (the Games)." Cobb noted that "no specific dollar figure is attached to the IOC's fiscal vow, since it is not known how much might be needed, and the budget might yet be balanced after all." But he added, "They have given us their assurance, when we get to the end (of the Games), if in fact we do have a shortfall, they are prepared to assist us, financially." IOC Olympic Games Exec Dir Gilbert Felli: "We understand their problem ... so we are being generous" (GLOBE & MAIL, 8/27).

GAP GROWING: In Vancouver, Jeff Lee notes the deal came as VANOC grew "increasingly restless about the gap between the revenue predictions and the reality" on its $1.7B (all figures Canadian) operating budget. The economic downturn has left VANOC upward of $40M "short as it continues to search for new domestic partners to shoulder its substantial financial burden." The "lion's share of that gap rests in a tacit agreement the IOC had with VANOC to provide" $196.4M in royalties from up to 11 international sponsors, as the IOC so far "has only been able to deliver on nine sponsorships" (VANCOUVER SUN, 8/27). The CP's Stephanie Levitz wrote VANOC has "abruptly ended months of treading treacherous financial waters." The IOC already has given VANOC "more than their initial budget projections and by taking over functions such as the Olympic Broadcast Service, has saved them millions." The deal "appears to have dissolved the tension" between the two groups (CP, 8/26). However, REUTERS' Allan Dowd reported both VANOC and the IOC "downplayed suggestions that the issue of corporate sponsorship had caused a rift between the two groups" (REUTERS, 8/26).

Fasel Says Vancouver Is "Ready For 2010," Calls Olympic Venues "Spectacular"

CITY IS READY: IOC Coordination Commission Chair Rene Fasel, who yesterday concluded a two-day meeting in Vancouver, said the city is "ready for 2010." Fasel called the venues "spectacular" and the plans "very good." He added that the "outstanding natural setting with enthusiastic fans will guarantee 'these Olympics will be an unparalleled success.'" Meanwhile, AROUND THE RINGS' Bob Mackin notes IOC President Jacques Rogge last week said that "more promotion would be useful" ahead of the Vancouver Games, and among the promotional moves forthcoming is a $10M "broadcast and Internet advertising campaign to coincide with the Oct. 22 torch-lighting ceremony in Olympia, Greece" (AROUNDTHERINGS.com, 8/27). The VANCOUVER SUN's Lee writes "despite Fasel's positive outlook, VANOC's financial uncertainty overshadowed much of the wrap-up press conference" (VANCOUVER SUN, 8/27).