Lake Placid Deficit

Page 1 $4.3 MILLION DEFICIT IN WINTER OLYMPICS The New York Times October 5, 1980, Sunday, Late City Final Edition 1 of 1 DOCUMENT The New York Times October 5, 1980, Sunday, Late City Final Edition

$4.3 MILLION DEFICIT IN WINTER OLYMPICS BYLINE: By HAROLD FABER, Special to the New York Times SECTION: Section 1; Part 2; Page 51, Column 1; Metropolitan Desk LENGTH: 797 words DATELINE: ALBANY, Oct. 3 The first independent financial analysis of the 1980 Winter Olympics in Lake Placid shows an operating loss of $4,366,029. The financial review, made at the insistence of government officials, also showed claims against the Lake Placid Olympic Organizing Committee of $21.5 million, arising mainly from construction disputes. The analysis was released at a White House conference of organizers and state and Federal officials early this week. At the meeting, the organizers asked for $8.5 million in additional financial aid from the New York State and Federal governments to pay creditors and to set up a reserve fund for the disputed claims and other last-minute expenses. Without the funds, they said, bankruptcy was probable. ''It's encouraging,'' said Peter Lynch, an official of the New York State Budget Bureau, who has been following the Olympic Committee's financial troubles ever since the games ended last February. ''We are ready to sit down with the Federal Government and get the thing settled,'' said Mr. Lynch, who attended the meeting in the White House. ''I am confident we can work it out.'' However, at the White House, Joseph Onek, a deputy counsel in whose office the meeting was held, was more reserved. ''We can now start to make a real decision,'' he said. Federal Stance Shifting Up to now, the Federal officials who supplied most of the money for the construction of the new facilities for the Olympic games have taken a firm stand against supplying any more funds to the Olympic Committee. But, in the heat of a Presidential campaign in which New York State is considered critical by both parties, they are apparently rethinking the situation. ''We're very optimistic that we will representative for the committee. Both awaiting an independent financial audit ments about supplying additional funds.

get the money,'' said Ed Lewi, press state and Federal officials have been of the games before making any commit''

Page 2 $4.3 MILLION DEFICIT IN WINTER OLYMPICS The New York Times October 5, 1980, Sunday, Late City Final Edition This week's unaudited financial statement was made by the accounting firm of Peat, Marwick and Mitchell. According to one state official, the indications were that the audited report of the Olympic Committee's books would not be more than $500,000 off the statement issued. The statement said that it cost $60.8 million to administer and operate the games, with the major expenses in operations, $19.4 million, and marketing, $17 million. The revenues - including television rights, $13 million; marketing and licensing contracts, $17.7 million; ticket sales, $12.2 million, and contributions, $7.4 million - totaled $56.4 million. Construction Cost $72 Million The report also showed construction costs of $72 million, most of which was paid for through the Federal Economic Development Administration. In addition, although the report did not mention it, the state contributed about $40 million for improvement and renovation of state-owned facilities at Mount Van Hoevenberg, where the bobsled run was held, and White Face Mountain, where the downhill speed skiing races and the slalom competitions were held. The most expensive construction items were the $17.9 million housing complex for athletes at Ray Brook, which has just been converted into a prison; a new fieldhouse in Lake Placid Village, $14.9 million, and the ski jumps, $5.9 million. A footnote in the report also showed that the organizers had obligated themselves to pay $1.5 million as a fee and $2.3 million in costs to the Gilbane Construction Company, which supervised the construction. Most of the claims against the committee are in $21.5 million in suits, filed or pending, by construction contractors. But, according to William Lussi, general counsel for the committee, it feels that these are exaggerated and it has included a reserve fund for potential damages within the $8.5 million it has requested from the state and Federal governments. A Profit-Cost Statement For the Winter Olympics Special to the New York Times ALBANY, Oct. 3 - Following is a balance sheet for the 1980 Winter Olympic Games, taken from a financial analysis prepared for the Olympic organizers by the accounting firm of Peat, Marwick and Mitchell: REVENUES Television Rights $13,092,221 Marketing and Licensing 17,750,993 International Olympic Comm. 1,000,000 Contributions 7,368,835 Miscellaneous 590,177 Ticket Sales (net) 12,224,145 Accommodations 2,421,260 Proceeds on Disposal of Assets 751,605 Investment Income 625,710 Restricted Gifts 656,339 Total Revenues $56,481,285 ADMINISTRATIVE COSTS Executive $6,897,343 Protocol 4,104,769 Marketing 17,014,290 Engineering and Construction 7,612,260 Operations 19,439,569 Press and Public Affairs 2,636,914 Sports 3,089,034 Other 53,135 Total Costs $60,847,314 Deficit $4,366,029

Page 3 $4.3 MILLION DEFICIT IN WINTER OLYMPICS The New York Times October 5, 1980, LANGUAGE: ENGLISH

Sunday, Late City Final Edition

GRAPHIC: Illustrations: table of Olympic revenues and administrative costs Copyright 1980 The New York Times Company