Olympics on Track Despite Economic Downturn
VANCO declared today that they are financially secure to carry on with the 2010 Olympics despite the global economic downturn. At the moment they are running a $65 million deficit which they claim will balance out by 2010 and they are calling out their sponsors who have not yet fulfilled their financial commitment to the games.
One major case that VANOC is facing is deal that was made with GM Canada who is currently suspending operations due to possible bankruptcy. GM's contract requires them to provide 4000 more vehicles for the games which is a large challenge to face when on the verge of bankruptcy. Dave Cobb, VANOC's vice-president of revenue spoke about the issue on Monday.
"If something happens and circumstances change, we'll deal with them at the time," he said.
"We could speculate but we have 60 partners now and all of them — any of them — may have challenges in the future and to have 60 Plan Bs just from a sponsorship standpoint would not be a good use of our time at this stage."
VANOC is preparing for the worst at the moment as they begin revising their $1.6 billion budget to build up the "emergency fund" in case the cost esculate next year.