VANCOUVER, British Columbia — Organizers of the 2010 Winter Olympics Games have approved a revised operating budget to deal with the slowing economy.
The details of the budget won’t be made public until next week but Games CEO John Furlong said Wednesday medal ceremonies for alpine events at Whistler could be among the cuts.
“Our team has looked at everything from top to bottom that we’ve promised to deliver in 2010, and found ways to do things in more creative ways at reduced cost, without sacrificing our key commitment to athletes and the public,” Furlong said
The current operating budget is about $1.28 billion.
It’s funded by sponsorship deals, merchandising and ticket sales.
Furlong said there “really are no changes in scope” and Games Executive Vice President Dave Cobb said that number will not change significantly.
That budget does not include venue construction.
The recent focus has been on the financially beleaguered athletes village.
New-York-based hedge fund Fortress Investment Inc. told the city and Millennium Development in September it wouldn’t pay any more on a $633-million construction loan until a new deal is negotiated.
Fortress stopped payments on the loan because, the city said, cost overruns and a crashing real estate market meant Millennium might not be able to pay them back.
The city stepped in with $84.3 million interim financing to keep construction going. However, that funding runs out next month.
On Saturday the British Columbia provincial government approved emergency legislation allowing the city of Vancouver to borrow at least $350 million to complete the village. The city said the funds are needed to finish it after the original financing fell through.
Organizing committee chairman Jack Poole said apart from a payment for use of the village, the Vancouver’s Olympic organizing committee has nothing to do with the project.
Poole said he’s confident it will be completed.
“There is no Plan B,” he said. “This has to be finished. This is the heart of the Olympics. It is the showpiece. Our confidence that the city is going to deliver on its commitment couldn’t be higher.”
Also last week, Canadian communications giant Nortel Networks, a key Olympic supplier, filed for bankruptcy. Cobb said much of Nortel’s commitments has already been delivered.
He said the situation will have little effect on the Games.
Cobb said organizers remain confident in most sponsors despite tough economic times.
Most are on schedule with payments, he said. He said there may be some reduction in contributions from hospitality sponsors.
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