Sochi 2014 Record Holders for Olympic Domestic Sponsorship Looking for More Dough
October 14, 2011
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Sochi 2014 has already raised more than $1 billion in domestic sponsorships, now Russian organizers of the Winter Olympics hope to secure deals worth another $200 million and finish with a post-games surplus of more than $300 million.
President and CEO of Sochi 2014 Dmitry Chernyshenko, also head of the Sochi organizing committee, told The Associated Press on Thursday the Olympic body will not need any government funding despite the weakening global economy and competition from the 2018 World Cup in Russia.
He said: “We are really confident we will not apply for public money from the state. There is an obligation of the state to co-invest in the games, but my goal is to have this money as profit of the games.”
While Sochi has already secured $1.2 billion an Olympic record in domestic sponsorship revenue and tied up all of its top-tier sponsors, Chernyshenko said deals with a few second-level companies are still possible.
Several deals are still to be negotiated to provide value-in-kind services worth $200 million, which would take total sponsorship deals to $1.4 billion, he said.
In addition, money from licensing, ticket sales, lottery revenues and IOC television rights and global sponsorships should help cover Sochi’s organizing committee budget of $2.2 billion, Sochi 2012 prsident said.
Overall, he said, Sochi hopes to end up with a surplus of about $340 million.
“I would love to have that, but it will depend on the currency fluctuation and economic environment,” Chernyshenko said in an interview after addressing the International Sports Event Management Conference.