Olympics Budget Finally Set

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VANCOUVER, British Columbia, May 8 (Reuters) Organizers of the 2010 Olympics in Vancouver released a business plan today Tuesday with a C$1.63 billion (1.5 billion dollars) operating dollars budget that projects strong ticket demand but concedes that not all events will be sold out.

The long-awaited plan pegs the total cost of hosting the Winter Games at over C$2.1 billion, and says the International Olympic Committee will contribute C$401 million, largely by sharing international broadcasting revenues.

''It won't be a loss, and we won't be spending money that we don't have,'' Vancouver Organising Committee (VANOC) Chief Executive John Furlong told reporters. ''It's a balanced budget with a $100 million contingency to protect it.'' Vancouver had projected a C$1.3 billion operating budget when it was awarded the games in 2003, but that estimate was later revised to C$1.7 billion because of rising costs and the strengthening of the Canadian dollar.

The 2006 Winter Olympics in Turin had an operating budget of about US$1.58 billion, and ended with a shortfall of about US$32 million, according to figures released in February.

The operating budget is in addition to C$580 million in public funding already budgeted by VANOC for venue construction, and does not include security costs that are being covered by the Canadian government and have not been disclosed.

Although officially called the Vancouver Olympics, the competitions will be held both in the Pacific coast city and in the mountain ski resort of Whistler, British Columbia, about 125 km away.

Organisers say money from the private sector, including the IOC, will cover 75 per cent of the C$2.1 billion budget, but that does not include spending for projects such an expanded highway between Vancouver and Whistler.

British Columbia's auditor general estimated last year that the actual cost to taxpayers will be C$2.5 billion, but government officials critical of that report said it included projects that would have been built even without the Games.

VANOC projects it will raise nearly C$232 million in ticket sales, but organizers said that, based on past Winter Olympics, they are not expecting all events in the 17-day competition to be sold out.

''There is clearly a sense out there that we will be well supported,'' Furlong said. ''We're absolutely stunned at the interest this far out.'' VANOC said it learned from watching the 2006 Olympics in Turin, which was marred by empty seats at some early events, that they needed a system to re-allocate tickets that are sold to people who do not actually use them.

The business plan said the International Olympic Committee will pay VANOC a total of C$580 million, but will then take back C$178 million to cover the cost of providing international broadcast services.

Furlong acknowledged that local organizers had to renegotiate a new broadcast revenue agreement with the IOC after determining that the original deal would not have provided enough money.

''I think we got a great deal,'' he said.

Officials also defended a deal to pay the owners of GM Place stadium C$18 million, saying the facility, which will host ice hockey events, will be the largest used in Winter Olympic history and generate C$70 million in revenue.