VANOC Budget Subject To Fine-Tuning Amid Worries Over Cost Cuts
The VANOC BOD yesterday approved in principle a revised budget for the 2010 Winter Games, but the budget's final approval is subject to fine-tuning and further development based on the BOD's input in areas such as future revenue development, look of the Games, accommodation and workforce numbers. The budget will be forwarded to VANOC's government partners for approval and will be presented to the BOD at its next meeting on January 21 for final approval. The BOD yesterday during its annual general meeting also re-elected Jack Poole as Chair through the next annual general meeting in '09 (VANOC).
TOO MANY CUTS? The GLOBE & MAIL's Rod Mickleburgh reports the BOD sent VANOC "back to the budgetary drawing board," with the BOD "worried that some proposed cuts to the Games operating budget may be too severe." Poole said that the BOD asked VANOC "to take another look at several areas because of concerns over the extent of cost-cutting changes." VANOC said that the budget will be released publicly soon after the January 21 BOD meeting (GLOBE & MAIL, 12/10). Poole: "It's the question we asked the management team. To be sure that in the endeavour to cut the fat out of the budget, you don't start cutting muscle and bone. Is there a chance you've gone too far? We don't think so, but is there a chance that you have because that would be a mistake" (CP, 12/9). In Vancouver, Jeff Lee reports one of the areas where organizers "think they may have cut too deeply" involves the "persistent problem VANOC has had in finding enough affordable housing in the Whistler-Squamish corridor for staff and volunteers." Poole said that VANOC "may also need to put more money into the so-called 'look of the Games.'" VANOC CEO John Furlong "would not say how much VANOC has eaten into a [C$100M] operating contingency fund or whether it plans to increase it in light of the economy." But VANOC Exec VP/Revenue, Marketing & Communications Dave Cobb noted that VANOC is in a "relatively good financial position because it has already raised the majority of the money it needs." VANOC also "expects to benefit from lower costs as it prepares to spend about [C$1B] this year in goods for the events." Lee notes a "better picture" of VANOC's current budget will be offered when VANOC "issues a quarterly financial report next week" (VANCOUVER SUN, 12/10).
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