The Vancouver Organising Committee for the 2010 Olympic and Paralympic Winter Games released an updated, balanced operating budget of $1.76 billion, with a contingency of $77 million.
The updated budget, said VANOC, places a priority on athletes, sporting competitions and the spectator experience at the Games and on television.
The operating budget was approved by VANOC’s board of directors earlier this month and is designed to ensure great Games and strengthen VANOC’s ability to manage through activities in the final year of preparation, including managing through the global economic downturn. This is VANOC’s final formal budget update.
“We are committed to staging spectacular Games within our available financial resources,” said John Furlong, VANOC Chief Executive Officer. “We have a balanced budget with a contingency that we believe positions us well to deliver great Games to the world.”
“Our priority in re-examining our budget has always been to ensure the best experience possible for the world’s best athletes while they’re here in Vancouver and Whistler in 2010,” Furlong added. “The field of play and the atmosphere in the venues must be world-class. We also want to make sure the spectators — from here and guests from around the world — take away great lifelong memories from their Olympic and Paralympic experiences.”
Cost savings were identified in areas of VANOC’s budget during an extensive project review to update the budget, and funds were moved to areas such as sport, services and Games operations. The process started in the spring of 2008 and was revisited again in the fall after the world financial slump sharpened.
VANOC said, that, to make the most accurate comparison to its previous $1.63 billion operating budget, the same accounting principles that were used in the business plan released in May 2007 should be used to assess the updated budget. Under this direct comparison, VANOC’s updated total operating budget is relatively unchanged from the previous budget.
VANOC said it is now able to make accurate estimates of certain offsetting revenues and expenses that could not be reasonably estimated in the previous budget. To be consistent with generally accepted accounting principles (GAAP) VANOC has now budgeted an additional $127 million in revenues and expenses. These offsetting revenues and costs are managed on a break-even basis and result in an updated balanced budget of $1.76 billion.
\
These offsetting items include a number of products and services VANOC will acquire on a cost-recovery basis for user groups such as the Olympic Family. Examples include buses and cars for sponsors, media and broadcasters; outdoor advertising space; and media facilities in the Main Press Centre such as office space, televisions and computers. These activities are recorded as equal amounts of revenues and expenses and therefore have no net impact on the budget.
Operating Budget: $1.76 billion (CAD)
Most of the Vancouver 2010 Olympic Winter Games operating budget is financed by private sector revenue sources. These sources include domestic and international sponsorships, a contribution by the International Olympic Committee, international licensing and merchandising, ticket sales and fundraising.
Venue Construction Budget: $580 million (CAD)
The budget for building new venues and renovating existing facilities to stage the 2010 Winter Games is entirely separate from the operating budget and remains at $580 million. It is equally funded by the Governments of Canada and the Province of British Columbia; the venue construction program is on time, on budget and within a few weeks of completion.
