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SBJ/October 5 - 11, 1998/No Topic Name
2002 Olympic budget tops $1.43 billion
Published October 5, 1998
The Salt Lake Organizing Committee has unveiled a $1.435 billion budget for the 2002 Winter Games, which includes $859 million in sponsorship revenue, said John Krimsky Jr., CEO of Olympic Properties of the United States.
"It is a balanced budget," Krimsky said.
The budget is about $400 million lower than the budget for the Atlanta 1996 Summer Games, according to Mike Moran, assistant executive director for media and public affairs for the U.S. Olympic Committee. Summer Olympic Games are generally costlier to produce because they have more events and athletes than the Winter Games, he said.
The budget projects that ticket sales will raise about $162 million, said Krimsky, who also is a member of the organizing committee. The rest of the money will come from broadcast revenue, he said.
Krimsky noted that about 80 percent of the cost of putting on the Games will be paid by American corporations either directly through sponsorships or indirectly through broadcast fees.
The initial goal for sponsorship of the Games was raised from $806 million to $859 million, Krimsky said. Olympic Properties, which was formed to sell sponsorships for the Games, has raised about $600 million and "is definitely open for business," he added.
On the expense side, the budget allotted $1.2 billion for development and operation of 41 functional areas for the Games, including the Olympic Village. Design and construction of venues is budgeted at $217 million.
The organizing committee said it has a $170 million line of credit from Charlotte-based NationsBank Corp., which will pay expenses until the organization starts receiving money from its revenue sources.