Vancouver 2010 organizers said Wednesday that there are no financial problems for the 2010 Games because VANOC is in good shape despite one of the major sponsors and chief financers of the 2010 Games cutting back the committee’s line of credit.
The Vancouver organizing committee agreed to a request late last year from the Royal Bank of Canada to temporarily cut its line of credit to $30 million from $95 million, an amount which is likely to be restored as the Games draw closer.
John McLaughlin, VANOC’s chief financial officer said, “the bank, like banks are doing all over the world, are looking at what credit they have outstanding. They came to us and asked it be reduced on a temporary basis. We probably don’t need it for several months more. It’s been reduced now, and we expect it’ll be put back in place in the next several months”.
He said Vancouver 2010 is in good financial shape. Revenues from licensing and merchandising Olympic products doubled this financial quarter and more than $94 million worth of tickets have been sold.
Organizers reported Wednesday they ended their last financial quarter with a $53 million surplus buoyed by the strong domestic ticket sales and a payment from the International Olympic Committee (IOC).
While they were unable to sign up any new sponsors in the last quarter, organizer said they still expect to meet their budget targets since 95 per cent of planned deals have already been completed.
Meanwhile the International Olympic Committee (IOC) has told Vancouver to scale back its party plans during the 2010 Games. Vancouver 2010 vice president Dave Cobb said Wednesday “they’ve made the observation that we may not need as much as is being planned because there is a lot”.
There was concern by the IOC that the many live sites and celebration areas originally set aside for the Games was more than at any previous Summer of Winter Olympics, Cobb said.
He added that the organizers have taken IOC concerns to heart. “They have done this many more times than the rest of us, so I think this is a good time for everybody to take a final, last look at what the plans are, and make sure that the scope is appropriate”.
