The Associated Press reports that with just over a year to go before the Opening Ceremony of the Turin 2006 Winter Olympic Games, Turin 2006 is scrambling to line up sponsors to overcome a $196-million budget shortfall and drum up national support.
Fiat, one of the key sponsors for Turin 2006, is in financial trouble due to dwindling car sales and losing five CEOs in less than two years. Fiat companies are contributing only $52 million to Turin’s overall $1.5 billion Olympic budget, much of it in payment-in-kind services such as providing 3,000 cars and 900 buses.
Italy’s state airline Alitalia, close to bankruptcy, backed out of its $13-million to $15-million commitment. Other Italian private and state-controlled companies responded meekly to appeals for funds, reports AP.
The other national main sponsors are San Paolo Bank ($58 million) and the phone company Telecom Italia ($72 million).
Turin is getting substantial funding from outside sources arranged by the International Olympic Committee (IOC). Worldwide television rights are adding $618 million and a global sponsorship program accounts for $196 million. Also, total ticket sales are expected to bring in $100 million, according to AP.
Gilbert Felli, the IOC executive director for the Olympic Games, said he expects a final budget solution to be reached before the IOC’s February 10-11 board meeting in Turin.
Meanwhile about 200 people protested against the Turin 2006 Games Thursday at the main entrance of the Palavela where the European Skating Championships are being held.
The protesters were concerned about the high cost of the Olympics and criticized the job reductions at Fiat.
