VANOC Bracing For Tough Times As Recession Scares Off Suppliers
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McLaughlin Feels Recession Has
Scared Off Potential Suppliers |
VANOC officials are "bracing for tough economic times ahead, warning that the global recession will make the final eight months" before the '10 Vancouver Olympics "extremely difficult," according to Wendy Cox of the CP. The IOC has "yet to secure two more international sponsors," leading to a $30M (all figures Canadian) "shortfall so far in the money Vancouver organizers had expected to receive from them." In addition, VANOC CFO John McLaughlin said that the recession "has scared off potential suppliers." McLaughlin: "All of our partners and stakeholders are being impacted. It's obvious to everybody that we're in very tenuous and challenging financial times." Cox noted Q3 financial results indicate that VANOC is "running a $129[M] surplus," but that is "mostly because of the timing of payments made to the committee and because of another strong round of ticket sales." The $129M quarterly surplus is down from the $146M surplus "tallied for the previous quarter." McLaughlin noted that VANOC is "headed into one of the busiest spending periods of its term, as it has yet to purchase 62[%] of its supplies." McLaughlin: "We have had some suppliers either not in the end bid ... or for some reason, they have to pull out of the process." Meanwhile, McLaughlin noted that VANOC "has arranged to have its line of credit boosted to about $95[M] in anticipation that it will need it by the end of the year" (CP, 6/16).
CEREMONIAL SPENDING: The GLOBE & MAIL's Rod Mickleburgh reports VANOC officials are "coughing up an extra $8.3[M] to make the Games opening and closing ceremonies even more of a whiz-bang spectacle." The "unexpected contribution, which whittles VANOC's construction contingency fund down to a bare-bones $1.3[M], is earmarked for a number of undisclosed alterations to BC Place," the stadium where the ceremonies will take place. VANOC Exec VP/Revenue, Marketing & Communications Dave Cobb: "We'd like to keep what we're doing secret, until the opening ceremonies happen, for the surprise element." Mickleburgh notes there was "immediate speculation the mystery money would be used, at least partly, to revamp the cavernous stadium's notorious sound system, renowned for producing far more echo than clarity" (GLOBE & MAIL, 6/17).
MORE OVERRUNS: In Vancouver, Jeff Lee reports Vancouver taxpayers are being asked to "cough up another $21.9[M] in Olympic-related cost overruns" relating "mostly to finishing the city's affordable housing commitment in the Southeast False Creek development." If approved at tomorrow's meeting of the Vancouver City Council committee on city services and budgets, the funds "will bring to about $45[M] the overruns on civic projects that were fast-tracked" due to the '10 Games. The latest overruns "aren't strictly related to hosting the Olympics but involve civic projects on the south shore of False Creek, which will be used as the Vancouver Olympic Athletes Village" (VANCOUVER SUN, 6/17).
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