(ATR) The downturn in the global economy will take a toll on bids for Olympic-style sports events as well as host cities that have already been selected…ATR Editor Ed Hula has more on these warnings from the Pan Am Sports Organization general assembly in Guadalajara.
The sober view of the impact the recession is having on sports events bidding and hosting was raised first by Richard Peterkin, IOC member from St. Lucia and the treasurer of the Pan Am Sports Organization. In delivering his report to the PASO assembly, Peterkin referenced several times the uncertainty the recession has cast over the financing of sports organizations such as PASO.
While he noted that PASO seems to be in good shape with a $45 million reserve, the rate of return for the conservatively-invested nest egg keeps sliding. He said that in Switzerland, where PASO parks most of its money, the interest rate has gone negative for some funds.
Peterkin, himself president of the St. Lucia NOC, also expressed concern about the cost pressure small NOCs face in preparing teams for an expanding international calendar that now includes the Youth Olympic Games. He says NOCs are "struggling" to make ends meet.
But Peterkin’s most cautionary comments concerned bidders and host cities. He says the recession could drive away potential bidders. For those cities already chosen to host events, the next few years could be a challenge Peterkin told the PASO delegates.
"Cities may have a hard time delivering what they have promised," he said, not mentioning any specific cities that could be affected.
Toronto 2015 Has No Wiggle Room Says Chair
Roger Garland, chair of the organizing committee for the 2015 Pan Ams in Toronto made clear in his comments Monday to PASO that the $1.4billion budget cannot expand.
Acknowledging strong political leadership at national and provincial levels for the Pan Am Games, Garland says both governments are behind the base of funding promised in the bid two years ago.
"But I think we can assume it will be very difficult in the future to expand this funding," said Garland.
"Our board, our management therefore, are under great pressure to manage our financial plan prudently and stay within our budget."
Speaking to Around the Rings after the Toronto presentation, CEO IanTroop sayshis team is committed to deliver on budget.
"We need to stay within our budget. If that requires us to scale the Games accordingly, we will. But we’re quite comfortable that we can put on a great event for this money," he says.
Troop adds that PASO can help Toronto hold costs in line with an early decision on which eight so-called Pan American Sports will be on the 2015 program. Toronto is committed to hosting all 28 Olympic sports plus eight others to be selected.
"When you get the sports program figured out, you’ve got the right venues being built, you can interface with the NOCs and international sports federations. It’s an important foundation from which to build," says Troop.
PASO Ends One Day Early
Organizers of the 2016 Games in Rio de Janeiro will offer their take Tuesday on how the economy might be affecting their plans for the Games. The report from Rio will come on what will be the second and now final day of the general assembly originally planned to last until Wednesday.
Written and reported in Guadalajara by Ed Hula.
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