Iii - Finance

[Orry the Oryx]

III - Finance

Chapter III aims to identify the structure of an Applicant City’s bid and Olympic Games budgets, including the city’s revenue generating potential.

7 – BID BUDGETS

Should you be accepted as a Candidate City to host the 2016 Olympic Games, describe how and by whom your candidature will be financed.

What is your budget (in USD) for:

• Phase I (Application)

• Phase II (Candidature)

8 – OLYMPIC GAMES BUDGET

a. How will your Olympic Games (OCOG) budget be structured (private vs. public financing)?

b. What financial commitments have you obtained from your national, regional and/or local governments?

OCOG vs. NON-OCOG BUDGETS

In considering plans for the financing of the Olympic Games, it should be borne in mind that there are two distinct budgets:

• OCOG budget: this is the operations budget for the organisation of the Olympic Games. Infrastructure development costs for sports venues, the Olympic Village, the IBC and MPC or other major infrastructure projects must not be included in the OCOG budget.

• Non-OCOG budget: this is the budget to be financed by public authorities and the private sector in the context of the long-term development of the city/region. It can be divided into capital investments and operations as follows:

- Capital investment: for financing the construction of the main and sports infrastructure required for the Olympic Games which will be a long-term legacy.

- Operations: for investments in operational areas usually funded by public authorities such as security, transport and medical services…

CONTRIBUTIONS FROM PUBLIC AUTHORITIES

Please note that, in the candidature phase, it will be essential for you to obtain, inter alia, the following commitments from your public authorities as they are vital to the successful staging of the Olympic Games:

• A commitment to provide all security, medical, customs, immigration and other government-related services at no cost to the Organising Committee (OCOG);

• A commitment to make available all sport and non-sport venues owned by the public authorities to the OCOG either at no cost or at a rental cost to be preapproved by the IOC;

• A commitment to cover any shortfall in the OCOG budget;

• A commitment to undertake and finance the necessary infrastructure developments.

9 – OCOG REVENUE GENERATING POTENTIAL

a. In addition to the financial contribution you will receive from the IOC, what other revenue do you expect to be able to generate?

Please indicate the source, estimated amount and background information on how these estimates were reached.

b.Provide a guarantee signed by authorised representatives of both the Applicant City and the NOC stating the following:

"The Applicant City of [insert name of city] (hereinafter "Applicant City") and the National Olympic Committee of [insert name of country of Applicant City] (hereinafter "NOC") acknowledge that, in the interest of a successful 2016 Olympic Games marketing programme, all Olympic-related properties and equities of the NOC and the Organising Committee for the Olympic Games ("OCOG") must be consolidated in the host territory as of 1 January 2011. Should the Applicant City be accepted by the IOC as a Candidate City, the Applicant City and the NOC hereby undertake to enter into a Joint Marketing Programme Agreement to the entire satisfaction of the IOC not later than 12 February 2009, whereby all NOC-related commercial rights will be acquired by the Candidate City on the OCOG’s behalf for the period between 1 January 2011 and 31 December 2016."