VANOC Slowly Receiving Cash Commitments From 2010 Games Sponsors
VANOC officials have signed contracts for 98% of the C$760M that they "hope to make from Olympic sponsors" for the 2010 Vancouver Games, but only about 40% "has been received so far in cash and kind," according to financial statements cited by Stephanie Levitz of the CP. But VANOC Exec VP/Revenue, Marketing & Communications Dave Cobb said that the payments are arriving "on time and there is no reason to speculate they will not continue to do so." Cobb: "If something happens and circumstances change, we'll deal with them at the time. We have 60 partners now; all of them or any of them may have challenges in the future and to have 60 different plan Bs just from a sponsorship standpoint may not be a good use of our time at this stage." GM, which is committed to the Vancouver Games for about C$70M in cash and cars, is "among the sponsors facing trouble." Nortel Networks Corp., which is "providing much of the technological backbone" of the Games, reportedly is reviewing bankruptcy protection plans, though one exec said that the company's "in-kind commitment to VANOC has largely been delivered." Also, the IOC last week said that it is "holding off looking for the two final international sponsors for the Games until market conditions stabilize." Meanwhile, Levitz reported VANOC for the 3Q this year posted a C$65M deficit, in part due to a "massive loss on foreign exchange and because of increased spending on technology." VANOC officials said that the deficit is "natural because the money for the Games does not always come in at the same rate as it is spent." VANOC CFO John McLaughlin: "The next quarter will show high revenues as it will reflect funds from the IOC, from ticket sales and from sponsors" (CP, 12/15).
HOLE IN THE BUCKET: B.C. Auditor-General John Doyle said that the B.C. government is "shy by [C$170M] when it comes to reporting its direct Olympic costs." Doyle added that he has "scrapped a planned report on Olympic spending ... because 'fundamental differences of opinion remain unresolved.'" Doyle: "What we're saying is that, quite clearly, there should be a document that is maintained and kept up to date ... which actually shows the footprint of the Games over the next period of time, so citizens are kept aware. ...I am the third auditor-general in a row that has had the same problem. I think there's a trend there" (Vancouver PROVINCE, 12/14). Doyle said that there are "holes in the [C$1.6B] operating budget for the Olympics as well, which is managed" by VANOC and noted that while the budget is "supposed to break even, a review found issues with regards to costs and revenue" (CP, 12/12).
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