Olympic organizers expect more money for everything from television rights to admission tickets, accounting for the near-doubling of the budget for hosting the 1998 Winter Games to $749 million.
During the first detailed public explanation of the new budget to the Salt Lake City Council Thursday night, members of the Salt Lake City Bid Committee for the Olympic Winter Games said the numbers will continue to change.The revenue and expense figures given to the council were put in the hands of International Olympic Committee officials earlier this week. The IOC will choose the host of the 1998 Winter Games next spring.
"We'd like to stress that this budget is not set in concrete. It will continue to be reviewed and updated," Craig Peterson, chief administrative officer for the Salt Lake Winter Games Organizing Committee, in charge of Utah's 1998 Winter Olympics bid.
Peterson said no more money will be spent than is raised and that no matter how the budget changes, the "first obligation is still to the taxpayers of Utah."
A year ago, voters agreed to set aside $56 million in sales taxes to pay for winter sports facilities that would be used during a Winter Games as well as for other events.
Returning that money to the state was included in both the $400 million budget presented to voters last year and in the revised version released this week.
"There's been a lot of confusion about that number," Mayor Palmer DePaulis said of the taxpayers' contribution to the Olympic effort. "That amount should never grow."
Peterson said the additional revenues expected "mean we see less risk to the taxpayers of the state of Utah and that the $56 million will be able to be repaid."
Comparisons of the IOC bid and the pitch made to the United States Olympic Committee last year showed a $298 million increase in the amount of revenue expected and a $309 million hike in expenses.
According to information presented to the council, the biggest increase - $162 million - is anticipated in the amount of money corporations are willing to spend to become official sponsors of the Winter Games.
Rights to broadcast the Winter Games on U.S. television are now expected to bring a total of $468 million, not $360 million. A recent decision by the IOC to increase the host city's share would boost Utah's portion to $319 million.
Ticket prices are higher in this budget, rising from $34 to $36 plus a new $5 surcharge to cover transportation costs. Also anticipated is a 19 percent increase in the number to tickets sold, from 1.18 million to 1.41 million.
Even the federal government is contributing to the hoped-for increase in revenues. Department of Defense anti-terrorist efforts are valued at $30 million in the new budget.
The only decrease projected is a $30 million gross reduction in revenue from the sale of commemorative coins that would be minted especially for a Utah Winter Games.
Atlanta, the host of the 1996 Summer Games, and the IOC also plan to market commemorative coins, so fewer Utah coins are likely to be sold. That is the only effect noted from the selection of another U.S. city to host an upcoming Olympic Games.
Additional revenues mean additional expenses. But because more money spent in the state means less to split with the IOC and other Olympic organizations, that's good news for Utah, the bid committee members said.
The increases in expenses include a $95 million hike in the cost of sites for various events, including $22 million more to cover a speed-skating oval that already has a $10 million price tag.
Other increases in venue costs include a $38 million boost in the cost of the Olympic Park to $65 million; $12 million more for the cross-country and biathlon venue; and $11 million for three practice ice sheets.
The price of housing athletes, building an Olympic Center and other facilities needed for the Winter Games has gone up $26 million, from $16 million to $42 million.
New items added to the protocol and ceremonies budget, including $5.1 million for the Olympic torch relay and $2.8 million for volunteers, add up to a total of $12 million. More money will also be spent on transportation and security.
Surplus revenues expected dropped from $50 million to $39 million, in part because the $50 million Olympic organizers want to set aside for an endowment that will pay to operate the winter-sports facilities is now listed as an expense.
IOC USOC Change
IOC USOC Change
Admission tickets $58 million $40 million $18 million
Media rights (Utah share) $319 million $210 million $109 million Corporate sponsorships
and licensing $237 million $75 million $162 million
Government $86 million $66 million $20 million
Other $49 million $60 million ($11 million)
Total revenues $749 million $451 million $298 million
Administration $77 million $32 million $45 million
Arts and culture $12 million $10 million $2 million
technology/media housing $131 million $40 million $91 million
Contingency $12 million $20 million ($8 million)
management/operations $12 million $20 million ($8 million)
Contribution to IOC museum $1 million - 0 - $1 million
Housing/food services $23 million $35 million ($12 million)
Publicity and promotion $9 million $18 million ($9 million)
Upgrading sport venues
Venues $163 million $68 million $95 million
Infrastructure $42 million $16 million $26 million
Sales tax repayment $56 million $56 million - 0 -
Protocol/ceremonies $28 million $16 million $12 million
Transportation $30 million $16 million $14 million
Security $50 million $40 million $10 million
Insurance $9 million $8 million $1 million
Medical $5 million $6 million ($1 million)
Endowment fund $50 million - 0 - $50 million Total Total expenditures $710 million $401 million $309 million
Surplus (for amateur sports)$39 million $50 million ($11 million)
Source: Salt Lake City Bid Committee for the Olympic Winter Games