Vancouver 2010’s annual report was released Thursday, which shows that organizers are spending more for the 2010 Winter Olympic Games than they are making.
According to the latest financial statement the committee ran a deficit of $48.1 million in the year ending July 31, reports the Toronto Star. That’s in contrast to the $60.9 million surplus they had in 2006-2007.
But Canada.com reports the organizing committee said its $48.1 million deficit at its year end for 2008 owed more to the Games’ extended business timeline, which doesn’t follow regular business cycles.
Organizers say with 16 months left to go to Games time, they’re about to start spending a lot more while remaining within their current $1.6 billion budget.
VANOC chief financial officer John McLaughlin said in a news release that the committee’s budget is in solid shape. “With a significant level of activity in the next fiscal year we remain confident in our financial position in spite of a turbulent global economy”.
He said the bulk of VANOC’s $1.63 million budget will be spent between now and opening day for transportation, energy services, anti-doping, accommodation, venues, food and beverage services, and build-out of its technical infrastructure.
The report said the growth in expenses is related to VANOC ramping up the size of its organization as Games time approaches, and expenses related to its first test sports event – the 2008 Alpine World Cup event in Whistler.
Vancouver 2010 CEO John Furlong said in a statement, “as we quickly transition out of venue construction into a year focused largely on operations, we continue to exercise a strong internal cost control focus with a view to delivering great Games and leaving both positive financial and enduring sport legacies”.
