POSTED: December 15th 2008

NewsUpdate

VANOC budget reports positive

SPECIAL CORRESPONDENT / Sports Features Communications

VANCOUVER: The 2010 Vancouver Organizing Committee is finishing the year on a positive note while other organisers are buckling down to grapple with the financial crunch. Sponsor funding is on schedule and the venue construction is progressing.

VANOC's report for the first quarter of its fiscal year includes a management discussion and analysis plus interim financial statements for the period ending October 31, 2008. It also looks forward into initiatives planned for 2009.

John McLaughlin, VANOC's chief financial officer, said: "In light of the world's current turbulent economic outlook, we are fortunate to remain in a sound financial position as 2008 comes to an end.

"We have secured the majority of the funding commitments we require and our venue construction is largely finished. Looking ahead we must continue to remain prudent financially and this discipline will be reflected in our revised budget to be released in early 2009."

Fortunately VANOC had concluded and signed sponsorship agreements before the start of the financial crisis by covering more than 90 percent of the marketing deals included in the C$1.6 billion ($1.3 billion) operating budget.

Sponsors are looking to maintain their commitments; one of these is General Motors which is seeking US government aid and is due to supply automobiles for the Games.

McLaughlin said: "We'd be naive to assume sponsors are not immune to the downturn and that some won't face challenges. But so far we have had good success with them and have no reason to believe they won't deliver on their requirements."

The IOC has already - in mid-November - issued VANOC an advance payment of $71.6m towards its multi-million dollar agreement to host the Games. This money was not supposed to have been handed over until the end next March.

McLaughlin added: "Although operating expenditures exceed revenues for the quarter as we expected, VANOC remains on track to finish the Games with a balanced budget. The next quarter will show high revenues from payments from the IOC, sponsors and ticket sales."

The next financial report will be released just over the one-year-out mark in March and will include interim financial statements for the second quarter of fiscal 2009 ended January 31, 2009. VANOC also confirmed that in early 2009 an updated budget will be finalized and released on schedule.

Keywords · Vancouver 2010 · Winter Games · VANOC

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