June 26, 2000. Copyright 2000. Graphic News. All rights reserved.

NO WORRIES OVER BUDGET

LONDON, June 26, Graphic News: WITH less than 12 weeks to go before the opening ceremony, SydneyÕs Olympics organizers (SOCOG) have asked the New South Wales state government for an additional US$84 million (A$140 million) bail out.
This comes only weeks after the state government gave SOCOG nearly US$60 million (A$100 million) in its annual budget, telling taxpayers that the Games had finally been paid for.
The latest bail out is just one of many, and follows SOCOG chief Michael KnightÕs agreement in February to US$15.75 million (A$25 million) worth of budget cuts in exchange for a massive rescue plan.
As part of the bail out the IOC and Australian Olympic Committees contributed US$6.9 million (A$11 million) each towards the package. The state government also agreed to give up a US$18.9 million (A$30 million) ÒprofitÓ that the Games had been budgeted to make. 
In addition SOCOG took US$56.7 million (A$90 million) from a contingency fund to maintain its US$1.6 billion (A$2.55 billion) budget.
Olympic Committee money man Dick Pound has been scathing of SOCOGÕs running of the budget. The problem, Pound said, was that SOCOG became greedy.
ÒIt looked like a milk cow that could be returned to again and again Ð against our advice,Ó he said of the revenue target.
Since Sydney was awarded the Millennium Olympics, the marketing target has been hiked from US$1.3 billion (A$1.8 billion) to US$1.6 billion (A$2.55 billion).
ÒWe thought the original goal was wildly optimistic. When it was raised again, we thought it was foolishly optimistic. The third time we thought it was nuts, and we said so,Ó the quick-witted but abrasive Canadian lawyer said.
SOCOG has also been stripped of much of its responsibilities, which have been handed instead to the Olympic Coordination Authority, a branch of the New South Wales state government. Key Games-time operations such as running the venues, catering and cleaning Ð accounting for US$315 million (A$500 million) Ð are now under state control.
Under the new formula, SOCOG will not now take control of any of the Olympic venues, except for the athlete and media villages. Instead, its primary responsibility will be to run the sporting competitions, leaving the state, which has paid for and built most new venues, to run and pay for the rest.
SOCOG still has to bridge a ticketing budget shortfall of at least US$90 million (A$150 million) and a marketing shortfall of around US$60 million (A$100 million).
Olympic marketing chief Michael Payne has played down the budget worries but accepts that SOCOG was initially too ambitious, setting unachievable targets.
He said: ÒWeÕre talking now about being a few million dollars and everything short. ItÕs not short. It is purely a local accounting exercise.Ó
/ENDS
Sources: Reuters, Associated Press, SOCOG