Organizers Of 2016 Rio Olympics Say Budget Has Increased By 25% To $2.91B
Brazil’s operating budget for the 2016 Rio Games has increased by 25% "above initial estimates" to about $2.91B (7B reais) as a result of "new sports and inflation," according to Tariq Panja of BLOOMBERG. The original spending plan was for 5.6B reais, "mostly funded through sponsorships and an IOC grant." Rio Local Organizing Committee CEO Sidney Levy said that the committee has "undertaken a line-by-line critical analysis of the budget, to balance known spending commitments and be able to meet new obligations as they arise." Levy: "We are striving to achieve a zero contribution of public funds to the committee." Rio 2016 said that the cost of the Games "would be met by private sources, through sponsorship, ticket sales, licensing and a grant from the IOC." Brazil's government "agreed to make up any shortfall when it signed the hosting agreement" in '09. Rio 2016 COO Leo Gryner "blamed the higher costs on the addition of sports to the Olympic program and the country’s increasing prices," which he said had grown 39% between Jan. '09 and Dec. '13. The budget released Thursday is the "smaller of the two" for the Games, with the infrastructure spending plan -- estimated at 23B reais ($9.6B) -- "to be released next week." The "budget for infrastructure projects, such as new roads, railroad lines and arenas, will be split between national and local government and will be announced Jan. 28." Brazil is also spending to stage the World Cup this year (BLOOMBERG, 1/23).