Organizers of the 2010 Games are taking a second look at their
budgets for accommodation and transportation of workers and volunteers in the
Sea to Sky corridor.
The area continues to be “complex” said John Furlong, the CEO
of the Vancouver Organizing Committee for the 2010 Games at a press briefing
following a meeting of the organization’s board Tuesday.
“…Some of the areas that we talked about today (were the) Look
of the Games, (and) the complex questions around accommodation and moving
workforce and volunteers in and out of the Sea to Sky corridor,” he said.
The VANOC board approved the budget in principle.
VANOC had undertaken a review of its budget over the spring and
summer of this year. But as the economic situation began to change rapidly it
went back to the drawing board to review it again.
It has also created a new Financial Oversight Team
as an additional measure and safeguard during the economic downturn, to review
potential issues and to find creative financial solutions.
But this week the board asked that VANOC look again at its
revisions to make sure that enough money was being allocated to ensure the
Games are a success.
Board Chairman Jack Poole asked that VANOC be sure that: “…In the endeavour to cut the fat out of the budget that you don’t start cutting muscle and bone.
“Is there a chance you (VANOC) have gone too far? We don’t think so, but is there a chance that you have, because that would be a mistake.”
VANOC’s overall budget for putting on the Games has not changed.
The main areas VANOC is revisiting are:
• Look of the Games budget: VANOC will review the proposed Look
of the Games budget to ensure enough funds are allocated to create
the intended spectacular atmosphere in Vancouver and Whistler during the
Games.
• Accommodation budget in the Sea to Sky corridor: A review of
the revised budget for workforce accommodation in the Sea to Sky corridor will
take place to ensure enough funds are allocated. Having met most of its
obligations VANOC is continuing its efforts to secure required rooms in
the Sea to Sky region for Games time for its workforce.
• Workforce numbers: VANOC's workforce will continue to grow
but may end up smaller than anticipated. VANOC plans to review projected
workforce numbers to ensure the team is sufficiently resourced to stage
successful Games.
• Revenue development: VANOC will continue to focus on
increasing revenues through innovative programs that respond to opportunities.
The budget revision comes as VANOC prepares itself to face
unknown challenges due to the global economic climate.
Furlong would not say what, if any, changes were going to be
made to the $1.63 operations budget or the $100 million contingency fund. Those
details will be released after the Jan. 21, 2009 board meeting, he said.
“The order of magnitude of the budget is roughly in the same
place as it was,” he added.
“This budget exercise has been about making sure that the right
measures are taken within the budget to look after where we might have some
concerns in the future and the right kind of contingency going forward.”
In a recent address to the European Olympic Committees,
International Olympic Committee (IOC) President Jacques Rogge also acknowledged
that Games organizers need to look at their bottom line.
“The Games are not anymore in a growth mode,” he said according
to Associated Press.
“They are in a conservation mode. ...We must make sure the
Games do not become too sophisticated, too big and too costly.”
Rogge said the IOC's own finances and reserves were solid.
But, in a sign of the times, Johnson & Johnson announced
last month it was not renewing as a global Olympic sponsor, the fourth such
sponsor to go after departures by Kodak, Lenovo and Manulife.
Rogge said the IOC had still secured $900 million in revenues
from nine global sponsors for Vancouver and London, and it still hoped to sign
a 10th global sponsor to top the $1 billion mark.
Dave Cobb, VANOC’s executive vice president of marketing,
revenue and communications, said so far all 2010 sponsors were up to date with
payments or commitments in kind and that there had been no indication that any
of them would be backing out of their contracts.
“Every sponsor is on schedule with (its) payments,” he said.
“We are in close contact everyday with our sponsors and I think every one of them has responded very positively to the situation we are in. They are committed.”
Cobb also announced that a new sponsor has signed on, though he declined to name it. To date sponsorship stands at $745 million of an expected total of $760 million.
VANOC had been projecting it would pass its sponsorship target but are now stepping back from that prediction.
“We are no longer planning on significantly exceeding our revenue target so we are being a little more conservative, given the economic environment…,” said Cobb.
The board also approved prototypes for Olympic and Paralympic
gold, silver and bronze medals. The medal designs will now be sent to the IOC
in Switzerland for final approval before being shared with the public. Sponsor
Teck Cominco is providing the metal for the medals and the Royal Canadian Mint
will mint them.
An executive producer for the Paralympic Opening and Closing
Ceremonies has also been chosen and will be named once all the contracts are
signed.
Included in Tuesday’s proceedings was the annual general meeting during which the 19 members re-elected Jack Poole as the 20th member and chairman of the board through to the next annual general meeting in 2009, a role he has held since the board was established in October 2003. Tuesday’s meeting also confirmed the officers of the corporation.