Chicago 2016 Confident In Insurance Package For Olympics Bid

Chicago 2016 "has fashioned a unique package of insurance" in its bid for the '16 Olympics, but despite "assurances that taxpayers would be protected by added insurance policies ... no insurance fully protects the city from the overruns that have plagued previous high-profile projects," according to Bergen, Lighty & Heinzmann of the CHICAGO TRIBUNE. Taxpayers ultimately are the "final backstop if catastrophe should strike the games," though Chicago 2016 indicated that "no Olympics in history has had such a wide blanket of protections." The bid group "plans to buy $1.2[B] in insurance coverage against losses from running the games," and it also "plans to press private developers to line up as much as $4[B] worth of financial guarantees to protect against construction cost overruns on the proposed athletes' village and sporting venues." Chicago 2016 officials "even have developed novel policies that they said would protect taxpayers from the financial collapse of corporate sponsors and building contractors." Bollinger Inc. Senior Exec VP Andrew Marks said that "all the insurance and the new, higher premiums may be more than enough." Marks: "They've almost overdone it, in my opinion. This is a Rolls-Royce program" (CHICAGO TRIBUNE, 9/22). CRAIN'S CHICAGO BUSINESS' John Pletz reported the insurance policies that Chicago 2016 Chair Patrick Ryan "says he'll secure would cover only" $1.1B of the $3.8B operating budget, and in "many key areas, no insurer stands between taxpayers and the risk of revenue shortfalls or cost overruns." Pletz noted there is "no insurance against the risk that private lenders won't shell out $1[B] to finance construction of the Olympic Village" as Daley and Ryan "predict they will." There also is "no coverage against shortfalls in corporate sponsorship sales, which they predict will rake in" $1.8B (CHICAGOBUSINESS.com, 9/21).

COVERING THE BASES: In Chicago, David Greising writes Chicago 2016 "seems to have guarded against nearly every risk that comes to mind -- at least today." But it "never is possible to say all conceivable risks are covered." Between now and '16, "new risks are bound to emerge," and Chicago taxpayers "will not be safe unless the Olympics organizing committee is smart and agile enough to guard against the unforeseen risks" (CHICAGO TRIBUNE, 9/22). Meanwhile, Chicago Mayor Richard Daley yesterday said he is "getting more confident" Chicago will be chosen to host the '16 Games at the IOC vote in Copenhagen on October 2. Daley said that he "thought Chicago's main competition would be Rio de Janeiro." Daley: "Our competition comes in Rio de Janeiro. ... I'm getting more confident because they're getting the 2014 (World Cup)" (CHICAGOTRIBUNE.com, 9/21).

WHERE'S THE SUPPORT? ESPN CHICAGO's Nick Friedell wrote, "I'm not sure how many people actually realize or care that we're only 10 days away from finding out whether or not Chicago will host the 2016 Games. I haven't noticed any discernible buzz around the city as pertains to the Olympics. ... What about the people? Do they actually care whether the Olympics come to town seven years from now? Admittedly, there is no accurate way to quantify this, but from what I've observed, at least over the past few months, I'd have to say no." Chicago residents are "still talking about the Bears, the upcoming Hawks and Bulls seasons or the demise of the Cubs and White Sox" (ESPNCHICAGO.com, 9/21). Meanwhile, in Illinois, Chuck Goudie wrote "pathetic is the only word to describe" Michael Jordan's "role in the intensive effort to land The Games in Chicago." A source said that Jordan has been "borderline unresponsive to Chicago Olympic officials." Aside from "one uninspired videotaping," Jordan has been "off-the-air when it comes to the 2016 Olympics" (Illinois DAILY HERALD, 9/21).