[sureLoss]

https://www.cbc.ca/news/canada/calga...isks-1.4848251

A document obtained by CBC News reveals some of the details of the financial risks that Calgary would face if its 2026 Olympic bid were to succeed.

Among the key risks: Olympic revenue projections assume NHL players will be on the ice.

The details were presented to city council at a closed door meeting on Sept. 11 but the document was withheld by the city.

Revenue projections
The report states these risks need to be closely monitored and potential mitigation strategies should be developed.

The key risks include the assumption that:

NHL players will participate in the 2026 Games.
Increased domestic partnership revenues will materialize under deals currently being negotiated with the International Olympic Committee (IOC).
Mitigation of foreign exchange risk, as IOC contributions are in U.S. dollars.
Broadcast revenues materialize as planned.
Ticket sales materialize as planned.


Expense projections
The key risks identified in the report include these assumptions:

The incorporation of the IOC New Norms resulting in cost savings.
Learnings from Vancouver Olympics producing efficiencies in venue management.
Technology needs being met within budget.
Certain discretionary expenses like ceremonies and a torch relay staying within budget.


Capital budget projections
The report states close monitoring and mitigation strategies are needed in the following areas:

Venue finalization.
Design work and cost estimates must be reasonable and include contingencies.
Athletes' village delivery as schedule and cost estimates may be impacted by complexities in preparing the site.
Housing demand materializing as planning for the market housing sites.
Inflation being realized at amounts higher than that included in the budgets.
Overall project management and procurement being implemented soon after a successful bid.


Guarantees
The report says the city is evaluating the financial impact of the required guarantees and that there are four ways to mitigate the risks:

Negotiate the wording to make the guarantees acceptable to the city.
Obtain insurance to mitigate the potential financial risks.
Assign the risk to another party through negotiation.
Utilize active management to contain the risks associated with cost overruns.


Contingencies and inflation adjustments
The report suggests strong capital program management is needed once the Games are awarded, "Additional insurance can also be explored to cover cost escalation or cost overruns resulting from extraordinary conditions."