2010 Winter Games delivered on budget, leaving strong sport legacy and some of Canada’s finest hours on the world stage
VANCOUVER, Dec. 17 /CNW/ – The Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC) announced today that the final accounting for the Games has been completed and the planned for break-even position achieved. The $1.884 billion operations resulted in neither surplus nor deficit as expenditures were matched by revenues generated. Similarly, the $603 million venue development program was delivered on budget. As of today’s date, VANOC has no debt remaining.
The announcement follows review and approval today by the VANOC Board of Directors of the organizing committee’s financial results for the period of September 2003 through July 2010. The Board also received the 2009-10 Sustainability report, the fifth and final sustainability report for the Games. Both VANOC’s full financial statements, Management Discussion and Analysis and a news release and copy of the Sustainability report may be found at http://www.2010legaciesnow.com/vanoc/
“On behalf of all VANOC Board members, I can say that we are delighted to approve balanced final financial results,” said Rusty Goepel, Chairman. “There were many times over the past several years when the VANOC management team reported to us both successes and unexpected challenge in meeting the budget, always with a plan for how to address them and protect and often even enhance the integrity of the Games. It was not easy and took relentless focus and effort, particularly when the 2008 recession hit. Many Board members stepped in to help and I thank them for their contribution. Jack Poole would be proud to be making this report today, and delivering on a commitment to deliver Games with the most positive legacy possible, including financial.”
VANOC’s operating revenues totaled $1.884 billion, including an International Olympic Committee (IOC) contribution of $479.7 million, IOC international sponsorship revenue of $173.6 million, Canadian sponsorship revenue of $730.2 million, ticketing revenue of $269.5 million and merchandising revenue of $54.6 million. Revenues also included government contributions of $187.8 million and other revenues of $175.5 million, less marketing royalties paid to the IOC and the Canadian Olympic Committee of $186.8 million. The overall value of benefits in domestic sponsorship contracts totaled in excess of $760 million, however approximately $30 million of value-in-kind (VIK) contained within these contracts was ultimately not required in the delivery of the Games and therefore is not reflected in the financial statements.
VANOC’s operating expenses, which largely occurred in the final two years of the project, also totaled $1.884 billion as follows: services and Games operations: $723.0 million; technology: $452.4 million; sport and Games operations: $288.0 million; revenue, marketing and communications: $167.7 million; workforce and sustainability: $130.0 million; finance: $115.1 million; foreign exchange loss: $8.0 million.
Separate from the operations results, the final cost of VANOC’s venue development program was $603.3 million, funded equally by the Government of Canada and the Province of British Columbia for $290 million each. An additional $23.3 million came from value-in-kind from sponsors, BC Housing and interest.
“The true measure of the 2010 Winter Games is not strictly financial, but a positive financial outcome is something we are very proud of in the story of the Games’ success. It is a key result we committed to and, through a true team effort, we have achieved it under some very challenging circumstances,” said John Furlong, VANOC’s Chief Executive Officer. “We made a promise to ourselves and all Canadians that at every step we would ensure we were spending on the elements of highest value and every dollar in, whether from our private sector partners or the public, was valued and appreciated. Our rigor and discipline on financial management never wavered and became even sharper when the recession hit right after the Beijing 2008 Olympic Games. It was as a result of strong partnerships and a shared vision from the start that collectively we have achieved this positive financial result on behalf of all Canadians.”
IOC member and Vancouver 2010 Coordination Commission Chairman René Fasel stated,” As VANOC concludes its final Board meeting, I’d like to congratulate the entire team on a job well done. Seven years ago, they presented the International Olympic Committee with a vision of what the 2010 Olympic Games could be and, together, we have delivered on what they promised. It has been a great privilege to share the journey to 2010 with such a competent and motivated group. Vancouver 2010 provided us with sporting memories that will last for decades to come but also with memories of a nation that welcomed the world with glowing hearts – the Canadian people and, of course, the magnificent ‘Blue Jackets’ showed what it means to be Canadian and what Canada has to offer. This perhaps more than anything else will be the main legacy of Vancouver 2010 but I have no doubt that the positive effect of these Games will continue to be felt for years to come.”
Highlights of the final financial report include:
•Balanced financial outcome: Break even operations with no surplus or deficit, despite the impact of several uncontrollable factors including the impact of the 2008-2009 global recession and unprecedented warm weather conditions forcing the additional cost of a $5 million snow management program in order to successfully stage Cypress Mountain events.
•Unprecedented corporate support and success in revenue raising programs: 91% of revenues or $1.882 billion were sourced from non-government sources.
•Full venues, record public attendance: Over 97% of the 1.54 million tickets available were sold, with 71% to the Canadian public at an average price of $139. Adding in international public ticket sales, the percentage of ticket sales to the public exceeds 75% of all available tickets. The 642,000 hockey tickets generated the most revenue ($111.9 million), followed by 89,000 Olympic Opening and Closing Ceremonies tickets ($61.5 million). In addition, through the Celebrate 2010 Program, VANOC received assistance from select sponsors who donated over 50,000 tickets and a further 1,000 were donated by the public through the website. VANOC worked with community organizations and social agencies to identify potential recipients and distribute the donated tickets to children and families with limited financial means, Aboriginal peoples and residents of Vancouver’s inner-city neighborhoods.
•Popular merchandise: 48 licensees sold a variety of branded items, including the surprise “it” souvenir, the Red Mittens, for total royalties revenue of $54.6 million. More than 3.5 million pairs of Red Mittens were sold, exceeding VANOC’s pre-Games target of one million.
•Venue program delivered on time and on budget: The single largest cost, the capital construction program, which was jointly funded by the Government of Canada and the Province of British Columbia, was delivered on schedule within budget, allowing Canadian athletes ample training time and public access to enjoy the venues before the Games.
The 2010 Winter Games have also left a strong legacy of state of the art sport facilities and enhanced First Nations business opportunities. Eleven of the 13 major sport competition and training venues that were built or significantly upgraded for the Games are in use for high performance sport competition and training and most are also available for recreational and/or sport development use. The remaining two are in use primarily as recreation venues. First Nations participated extensively in the construction of the venues through over $59 million in contracts, creating jobs and leaving a legacy of skills and business management that is being leveraged through other projects and opportunities in the region.
Finally, the 2010 Games have been recognized in numerous post Games reports as being among the most widely viewed and well received Games in Olympic history, both in Canada and internationally.
•Record global television coverage: Over 235 broadcasters and television stations showed coverage of the Games in more than 220 territories. More than 100 official broadcast partner websites worldwide carried broadcast coverage of the Games. Television coverage of the Vancouver 2010 Games was more than double the coverage for the 2006 Turin Winter Games and three times the amount available during the 2002 Salt Lake City Winter Games, representing nearly 32,000 hours of broadcast coverage in total.
•Record Internet/mobile views: Globally, there were more than 265 million video views and in excess of 1.2 billion page views on official rights-holding broadcasters’ internet and mobile platforms during the Games.
•Record website traffic: vancouver2010.com, welcomed 275 million visitors, shattering the previous Olympic record of 105 million set during the Beijing 2008 Games.
•Record hockey viewership: The Vancouver 2010 men’s gold medal final was the most watched hockey game ever with viewership of 114 million viewers around the world. In Canada, CTV’s coverage of the game was the most watched TV event in Canadian history, with an average viewership of 16.6 million and peaking at 26.5 million. More than 19 million Canadian viewers in Canada watched some part of the women’s gold medal hockey final.
•Record data transmission: Worldwide sponsor Atos Origin securely delivered more than seven million messages of competition data to international media and worldwide news agencies over a state of the art network provided by Bell three times more than Torino in 2006. Atos Origin also delivered event information to 300 broadcasters and over 100 websites in more than 200 countries worldwide, provided datafeed and result information for 24,000 hours of coverage, and supplied a continuous stream of information to the exploding number of social and online media resources around the world through the Internet Data Feed and the Olympic Data Feed.
•Unprecedented merchandise sales: The Olympic Superstore was the main focus of merchandise sales during the Games, with thousands of fans queuing for the chance to purchase a special Olympic memento. Situated at The Hudson’s Bay department store in downtown Vancouver, the 1,890 square meter Superstore offered the widest range of official merchandise and served over 10,000 customers each day during the Games. The Superstore proved so popular with Olympic fans that its opening hours had to be extended to satisfy the huge demand for official merchandise. In addition to the Superstore, there were seven other Olympic stores, including the online store at vancouver2010.com. Each venue also featured Vancouver 2010 merchandise kiosks, while official licensed products were also available in 400 Hudson’s Bay Company stores across Canada, and more than 2,500 other retail stores.
•Popular collector programs: Canadian crown corporations made significant and broad reaching contributions to sharing the Games story countrywide. The Royal Canadian Mint put more than 350 million Olympic-themed coins into circulation featuring 17 special Olympic designs, two Paralympic designs, and also released 36 limited edition collector coins. Canada Post initiated an Olympic philatelic program, which featured 15 specially-created stamps to commemorate the Games and more than 900 million Olympic stamps were sold.
•First indigenous people’s merchandising partnership: VANOC was the first Organizing Committee to partner with indigenous people to create an official licensed merchandise program. The program also supported the work of the Aboriginal Youth Legacy Fund, with one third of the royalties from the sale of licensed Aboriginal products being donated by VANOC to help fund education, sport and cultural initiatives for Aboriginal youth across Canada.
•Canada #1 brand in the world: Canada was named as the number one brand in the world in November by FutureBrand, a New York-based global brand consultancy. The Canadian Tourism Commission credits the win to their execution, with partners, of a multi-year Olympic strategy to seize the once-in-a-generation opportunity provided by the 2010 Winter Games to showcase Canada’s tourism brand internationally.
•Sport Travel recognition: The North American Travel industry voted the 2010 Winter Games as the world’s premium sport event in 2010. Other finalists included the World Series, World Cup of Soccer and the Super Bowl.
•NBC Emmy Awards: NBC won two Primetime Emmys for their coverage the Vancouver 2010 Games Olympic Opening Ceremony. Bucky Gunts won for Outstanding Directing for Variety, Music or Comedy Special for directing ‘Opening Ceremony on NBC’ and Music Director and Canadian Dave Pierce won for Outstanding Music Direction.
•Gold medal French: In the final report of Pascal Couchepin, the Grand Witness of the Organisation internationale de la francophonie at the Vancouver 2010 Games, entitled “la promotion de la langue française et de la Francophonie dans les Jeux olympiques et paralympiques de 2010”, he declared in his introduction, “As you will find in the following pages, the French language unquestionably came away with a gold medal.”(Comme vous le découvrirez au fil de ces pages, à Vancouver, la langue française a indéniablement remporté la médaille d’or.)