Chicago 2016 looks profitable

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A review of the Chicago 2016 Olympic organising committee's financial planning by the Civic Federation has revealed that the city would be able to make a profit if it wins the right to host the Games. The 100–page review was requested by the City Council to assess whether the financial assumptions made by bid officials ahead of the International Olympic Committee's (IOC) decision on 2 October 2009 were feasible. The news will allay fears from local residents that the Games would lose money and burden taxpayers with debt, but the report warned that the budget will still need to be examined closely if the city is to be successful. However, the watchdog group cautioned that the review was not a thorough financial audit and that time constraints limited the depth of the analysis. It also warned that Chicago must purchase additional insurance, with the extra coverage creating "an effective safety net" to protect taxpayers in the event of problems such as cancellation of the Games, natural disasters or "loss of development financing". "The greatest risk that we see for the City of Chicago and the taxpayers is if they get the bid and fail to follow the plan and carry out the professional level of oversight that is necessary, " Civic Federation president Laurence Msall told the Chicago Tribune. The report also said that some of Chicago 2016's revenue estimates appeared optimistic. It added: "Local sponsorships are predicted to be substantially higher than previous Games, and estimated revenues from donations are aggressive when compared to past Olympic budgets. "About The Sport Briefing This story has been reproduced with the kind permission of The Sport Briefing. The Sport Briefing is published by PA Sport and can be found at: www. thesportbriefing. comThe Sport Briefing is updated as and when news happens, from across the global business of sport. The industry's biggest stories have an accompanying email alert, and The Sport Briefing sends subscribers a daily digest to give them an easy–to–read overview of the day's main events. Contact rory. squires@thesportbriefing. com for more information.

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